There are many ways to make money online. But when you search Google for “How to Make Money Online,” it is surprisingly deficient of any real methods to make the most amount of money, whether online or offline. Sure there are items about using blogs to make money, or writing articles about making money online, selling other peoples products as an affiliate or your own products, and also just the simplest approach – by making money with AdSense advertising. But none of these things picked up and utilized the way everyone is is doing is going to make you rich. And definitely copying every man and his blog is not going to make the most amount of money for you!
How to make the most money online is not a matter of just putting up a blog or a website and earning a few dollars when someone clicks on an ad. Nor is it by selling products as an affiliate or even as a vendor of your own products. Sure you can earn some money doing each of those things. But no way are they going to produce a “Money Bonanza”. In order to make the most amount of money online it is essential that you approach the endeavor in a proper business-like fashion. Which means starting with a properly formulated business plan with specific goals and objectives; from which you then develop clear strategies and tactics designed to achieve the money making objectives.
The goals and objectives you set in your money making plan must quantify the amount of money you want to achieve within a specific time frame. Just setting a vague goal such as making the most amount of money in a month or a year is not sufficient. You need to be specific. The target you set should be finite and ascertainable; such as “I want to make a million dollars in the next 12 months”. If you want to make the target a bit higher that is fine. Shoot for making two million dollars in a year. That is a precise target which you can zero in on. If you miss the target but score say $300,000 you can evaluate how well you did. You achieved only 30% of what you were trying for – but that in itself can tell you two things. It can tell you if you are headed in the right direction and it tells you how far short you were in achieving success. Having quantifiable results of your money making efforts is far better than not being able to evaluate how well you have been doing. Which would be the case if your goal simply was to make the most amount of money.
How would you know if you were “making the most amount of money”- unless you had an index to measure it against? It would even be far more helpful to have a goal such as making more money that you did last year, or make more money than your father, or make more money that some successful person who you could attempt to emulate and try to beat. Having a clearly defined quantifiable money sum which is set as your target for a specific time period is a means of measuring your success and also is a valuable diagnostic tool – that will signal when you need to take action to remedy what is going wrong.
Once you have quantified your money goal for say a year you can then start working on sub-goals and money making strategies. For instance you could break down the million dollar year goal into monthly money targets. A simplistic approach would be to divide the million dollars by 12. However it is extremely difficult to go from zero to a hundred from a standing start. Therefore your strategies might require in the early months the expenditure of money for advertising and other requisites, but not produce any revenue immediately. Hence you modify your business plan and set the money targets for the first few months as minimal. Until you have products to sell and customers at your doorstep you will not be able to make any money at all. Therefore the first few months of business involves doing those things necessary to get products in stock, or have suppliers lined up to provide what goods and services you will sell to customers when they are there to purchase. Then you need focus on how to get paying customers to your shop. In the initial months you will need to generate traffic. It will be hard to sift the buyers out from the lookers. However once you get a bit more experienced and learn a lot of the internet marketing techniques you will find out how to generate qualified buyers to your website store.
On the internet the preliminary steps involved in getting product suppliers can be as simple as signing up for reseller accounts with ClickBank and CPA networks. If you are seriously interested in how to make the most money online then right from the start you are better off simply forgetting about Google AdSense. Giving away customers who arrive at your shop to some one else is counter productive. There is little gained to get a few cents at best from a would be customer by delivering them to another business. There is little reason for you to make cents while you help someone else make dollars. Instead of making someone else rich you need to focus directly on how you can make the most amount of money online in the shortest amount of time. AdSense definitely can not help you do that.
Okay so moving forward to where you have products to sell as an affiliate. In a way affiliate marketing is far easier than having to create your own products. Not only can you get selling instantly – without product develop stage – you can avoid the product life cycle down turns simply by switching to other products. A sales person is far more valuable than a product creator – unless you create the miracle product. For the run of the mill products it makes little difference who the product creator was. These days you can even get master reseller rights to products and label them as your own – much the same as some supermarket chains with their “House” brands.
Many many years ago at University I wrote a marketing thesis on “Marketing Channels and Distribution Systems”. Those who own the distribution systems own the customers. With the internet even the lowliest online marketer can become a distribution magnate – simply by having web traffic to their site or blog. Turning web-traffic in to paying customers makes money but in itself it is not the way to make the most amount of money. It is just one ingredient; and an essential one at that. Once you are generating traffic and you have monetized it, that should have – or need to have – recurring income streams. There are two streams of revenue you should be developing. First is to have regulars. It is far easier to sell more product to an existing customer than it is to get a new customer. Therefore treat your customers like hens teeth.
However over time your customer base will shrink. All businesses suffer attrition of customers over time. This can be due to competitors, change of tastes, or fashion shifts, or simply because customers age and die. Therefore it is important for any business to gain new customers continually. If the rate of new business is faster than customer attrition then revenues grow and you business might be sustainable. Do not sit back though simply because you see your customer numbers increasing. Business economics must also be part of the money making equation. In case you lost sight of the fact that you are wanting to make the most money you can then you need to keep that in clear vision. Pin your goal up on the wall in front of you – and have it flash on your computer when it boots up every day.
Accountants and Economists would agree on the need to make a profit and they would probably be of similar minds that you should be looking at developing a business model where you can optimize revenue. Without getting in to the “nitty gritty” of business management if you are serious in your money making objective then you must learn about pricing, economies of scale, marketing, accounting and finance. Phew – you did not expect that when you were first wanting to get in to business did you!
Money management and business economics plus tax accounting and planning are all essential elements of the “BIG MONEY” picture. If you do not want to make the most amount of money then you can sub-optimize. Which means just settling for less. If you do want to make the most amount of money then you need to roll up your sleeves and put on your thinking cap. It also means going back to school and learning. That does not mean getting a diploma or a degree that says you passed some academic tests. The only test that matters is the grades you are getting when you score the amount of money you are making against the amount of money you set as your target. You see I have not suggested you should evaluate your earnings against what some one else is earning.
In fact your earnings from revenue can even be less than what some one else is earning but you can still make more money than them in the long run. Short term profits are not going to determine longer term financial results. For example short term profit maximization might be achieved by predatory pricing. A classic example of this from experience is how Citibank would adjust its advertised interest rates to attract customers – and then once they were locked in to increase those rates in an unpalatable way. Ultimately what happened to Citibank? They lost customers!
Now the coup de grace in how to make the most money online. Once you have a viable business with recurring revenue and a customer base you have a sellable asset. You can turn the business income stream in to capital – by selling the business. As there is insufficient space to go in to elaborate detail here it should be sufficient for you to realize that people buy businesses which are profitable in order to provide themselves an income. Generally these people fall into two categories. One is people who do not have the skills to be able to start from scratch to develop the business or they might just not have the time – so they want an immediate flow of income; which can only be obtained through buying a business such as yours will be. The other type of business purchaser is more than an investor. They too are entrepreneurs and can see the potential your business has for them to improve or to blend with their own businesses so they might get to a higher money making plateau.
By selling to either of these types of business buyers you are cashing out of your business and thus will be able to turn future income (which you are foregoing) in to capital – which gives you more money now than if you merely continued to run the business and bank the income stream. What you do with the capital you receive will determine how much money you ultimately make. Certainly it can be a lot a lot more money than the money you would make just continuing to operate the business. Also by receiving capital on sale of your business there is a lower rate of tax on your profit than if you are receiving income streams. With good prior planning – and this means at the commencement of your online business – there are methods to minimize the incidence of tax on your ultimate take home profits; which further maximizes the amount of money you can make. Making the most amount of money certainly must boil down to what is the bottom line after tax profit from your entire money making ventures.
But wait! The story is not yet over. To make the most amount of money on selling your business you should be endeavoring to list it on the stock exchange for investors to buy. In practice investors more often than not pay higher multiples of earning for a business via the share market than business investors do via trade sales. In order for the stock exchange to list your business you need to build its earning to a much higher level than for a trade sale. Which could mean spending more time to enable your business to grow to listing size. That is how you make the most amount of money with your online business.[ad_2]
Source by Nathan Rothschilde