In this article, we look at 5 ways to make money online.
Just about everyone today is glued to the internet in one way or another.
They may be trawling social media or the web on their smartphone or sitting on their couch watching YouTube.
Take a moment to consider just how much time per day you spend staring at your phone while checking out something on the internet.
Yes, social media counts!
With this huge amount of attention focused on the internet, the potential for revenue is staggering.
It is estimated that by 2021 global e-commerce will be worth $4.8 TRILLION. (Source statista.com)
That is a very large pie.
I’m sure no one would mind if you helped yourself to a little slice.
But how do you earn your share of money from the internet?
Let’s take a look at ways to make money online.
5 Ways To Make Money Online
Not that many years ago, if you wanted to become an author you would have to find a publisher willing to take on your work.
Any author from that era will tell you that, for most people, getting published was nigh on impossible.
Rejection letter after rejection letter.
Amazon completely turned this on its head when they launched the Kindle device and allowed people to self-publish digitally.
No more jumping through hoops or starting a collection of rejection letters.
With Kindle, anyone could write a book and self-publish it to the Amazon Kindle platform.
Once word spread, it lead to a mini digital gold rush as people flocked to the new platform.
Readers and Authors alike.
Amazon has introduced the Kindle app that allows people who may not own a Kindle device to still view books on other platforms such as phones, laptops, and tablets.
This increased the reach, and therefore potential revenue for both Amazon and Authors alike.
Amazon now offers the option to convert and sell your work as a paperback or audiobook.
If you have a talent for writing, be it fiction or non-fiction, you can potentially make money by uploading your work to Amazon via the Kindle program.
One way to start making money online without paying upfront for, or having to store, an inventory is dropshipping.
Dropshipping involves sourcing a product directly from the manufacturer or wholesaler and then reselling it at a profit.
I will give a brief example below to clarify how this works.
Jim starts a business reselling electrical and tech products.
He joins a drop shipping network that gives him access to the manufacturers and wholesalers.
Jim finds a T.V that retails for $1000 in traditional retail stores and $850 from online retailers.
By ordering directly from the wholesaler, Jim can get the same model of T.V. for $500 and $25 shipping costs.
Jim lists it on his website for $775, shipping included.
*Note, Jim does not actually order any T.V’s or pay anything out of pocket upfront.
Chris visits Jim’s website and decides to purchase the T.V. via Jim’s website shopping cart software.
Jim notes the address and processes the payment.
Jim then contacts the wholesaler via the drop shipping network platform and pays them $525 (the wholesale cost + shipping) and gives them Chris’s shipping address.
The wholesaler then ships the T.V. directly to Chris.
($775 (Jim’s price) – $525 (Wholesaler price of $500 + $25 shipping) = $250
Jim has made $250 profit.
Dropshipping can be very lucrative but it does take some work to set up your site and is very competitive price-wise.
There are a selection of drop shipping networks available online but one of the most famous is Doba.
You can visit their website here to take a look, Doba
Some people list their dropshipping products on platforms such as E-bay.
I have never done dropshipping myself, so if you are interested you would have to do some research on the topic to find further details.
I doubt anyone reading this has never heard of YouTube.
Most of us visit the site on a regular basis.
Personally, I’m on there all day, every day, either watching something or listening to something while I work.
I’m actually listening to music on YouTube as I write this article!
So, how do people make money on YouTube?
There are plenty of ways of making money on YouTube.
Product reviews with affiliate or drop shipping links in the video description.
Sponsored products within the video content.
Promoting your own products.
The one we shall look at in this article is advertising revenue.
How it works is actually pretty simple.
A person starts a channel and uploads content.
As they build a subscriber base and acquire views on their videos, they become eligible to join the advertising program.
When the ads run at the beginning, or at any point, in the video, the advertisers have typically paid x amount per 1000 views.
The amount paid per 1000 views can vary greatly due to many factors such as the competitiveness of the market the product/brand is marketing to.
Some of the little banner ads that spring up on videos will mostly pay per click, or anytime someone clicks on the banner.
As an example, let’s say Jim starts a YouTube channel.
After building up his subscriber base he qualifies for the advertising program.
He earns an average of $3 per 1000 views (Example number, not meant to be an accurate estimation of potential earnings)
His channel averages 70k views a month.
Jim typically earns $210 a month from his YouTube Channel and this will increase as his views do.
Now, you may be thinking, $210 a month, is it really worth the hassle of creating content?
As I said, the above numbers were purely an example.
Some YouTuber’s earn millions per year.
For example, there is a 7-year old that earned an estimated $22 million in 2018 by reviewing toys on his channel. (Source Forbes)
There are also gaming channels that produce content of people literally sitting and playing video games that earn millions per year.
The key to YouTube is to produce content that people want to watch and inspire them to subscribe to your channel to see more.
Build your following and the ad money will roll in.
Bear in mind the people on that list are far from typical as far as earnings.
A lot of people, however, do make a comfortable living from YouTube.
Here is a video from the YouTube Creators Channel
Social Media Influencer
It seems everyone is obsessed with sharing every detail of their lives online today.
For the majority, it is purely for fun and people they know.
However, did you know there are some smart cookies out there making serious money from their social media?
Some Influencers, as they are known, charge $30k or more per selfie with a product.
The reputed top earner on Instagram is Kylie Jenner who is said to earn $1 million per post (Source Harpers Bazaar)
Known as sponsored posts, it really is an evolution of product placement marketing.
A brand approaches an Influencer who has a substantial following and offers them a rate to pose with a product in a selfie and post it to their account.
Considering some of these Influencers have millions of followers, it really is a win-win situation for both the Influencer and the brand.
Here is a video from the Forbes Youtube channel
Although Instagram is usually the platform people think of first when talking about Influencers, they are found on all the major social media platforms.
Create your brand, build your following, and earn that money!
Now we come to one of my personal favorite ways to make money online, affiliate marketing.
If you are looking for a home business that has very low start-up costs and can produce practically unlimited returns, then this is something you should pay attention to.
Affiliate marketing is one of the most widespread and lucrative ways to make money online.
Most of the top websites in the world either use affiliate marketing to monetize their traffic or even have their own affiliate programs for their products.
Before we proceed let me give a brief example of how it works.
Lauren has a blog that is focused on beauty product reviews and she has a substantial social media following as well as good traffic from search engines such as Google.
She joins an affiliate program for a beauty product site that pays 10% commission for any sales from referred customers.
The program provides Lauren with links that have her affiliate i.d. built-in.
She then writes some articles and reviews of the companies products.
She includes her affiliate i.d. links within the content.
*An affiliate i.d. simply lets the product site know who referred the customer and therefore who to pay the commission to.
The following month Lauren promotes her articles and reviews to her followers on social media.
Her content is viewed by twenty thousand people in total and 3000 people end up clicking through her links to view the products on the beauty brand site her links direct traffic to.
2000 of those people make purchases on the beauty website which average $20 each and result in $40k in total sales. (2000 x $20 = $40,000)
Lauren earns 10% of referred sales which amounts to $4000 in commission.
The beauty company pays Lauren $4000 and Lauren posts more content with their links aiming to make even more money the following month.
Sounds great, doesn’t it?
What is also fantastic is that once Lauren has created content (articles, reviews, etc) it potentially will keep earning money for her over and over again in the future.
The more content she creates, the more of her links are reaching people who may end up purchasing products that earn Lauren money via affiliate commission.
Affiliate programs are big business and one of the original programs that helped pioneer the industry is the Amazon affiliate program.
Yes, you read that correctly.
Amazon will pay you money, usually a percentage commission, simply for referring people to products on their site.
Most of the big companies you can think of have affiliate programs.
For example, here are a few well-known companies I found programs for with a simple Google search.
Affiliate marketing is a pretty straightforward concept, but it does take a skill set to utilize effectively.
I hope you have enjoyed 5 ways to make money online, please feel free to share it with your friends and followers.
I will be writing another article soon with more ways to make money online.
In the meantime take a minute to view my other article on WHY you should start an online business.
In this article, we are going to look at why you should start your own online business.
We will look at how the scope for online revenue is vast in both monetary value and also opportunities to take advantage of the online gold rush.
There has been a shift towards online shopping for years, but due to recent events in the world, it has accelerated.
With various social policies in place that restrict the number of people allowed in a location, many people are choosing to shop online.
With the current situation we all find ourselves in, with regards to the outbreak, not many people can say their job is truly secure.
Businesses have closed and it seems many more are struggling to the point that they may close as time goes on.
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