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How Do People Really Make Money Online? - Business - Nairaland

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How Do People Really Make Money Online? by samsubo(m): 4:06am On Sep 09, 2013
A lot of people still hold the old believe view of making money online as almost entirely advertising based. There was a time when that was true. During the tech boom of the late 90’s, thousands of websites jumped up based solely on monetizing content (e.g. articles and news) with advertising.
And yes, many of those businesses failed because they tried to grow into fortune 500 sized companies overnight, riding on the back of advertising profits and the ‘virtual’ equity of their stock options. Of course, the market corrected itself and these companies crashed and burned.
The major lesson learned there is that to make money online you need to offer a mix of products and services. In other words, you need to offer real value to visitors while charging a fair price.
The types of products and services offered really run the gamut. Nearly everything for sale offline is also for sale on the internet. Also, there are some products and services which are exclusively internet-based and arise from the unique needs of internet users (for example, e-books, website graphics, internet service, providers, email providers, etc)
Just what types of products are offered online then? The possibilities are endless and they can tale a number of forms:

Type One: Physical Products
Again, anything you can sell offline can be sold online, too. This includes things like books, cds, clothing, jewellery, houses, cars, kitchen appliances, plane tickets, toys, gadgets and so on.

Type Two: Digital Products
People also sell ‘digital’ products and services on the internet. For example, downloadable e-books, audio, video and software are considered ‘digital’ products. Other types of digital products include membership-based services. For example, you can charge a monthly fee for access to a website, newsletter, consulting service and so on.

Type Three: ‘Intangibles’
What I’m calling “intangible” products aren’t really products, per se, but monetization models based on internet traffic and advertising. A good example of this is Google Adsense. In the Google Adsense program, website publishers can place Google ads on their websites and get paid each time a visitors clicks on one of the advertisements. Likewise, publishers can set their own advertising rates and sell space for things like banner advertisements. This is all very similar to the ‘old’ model internet business relied on a few years back…

It’s just a matter of finding creative ways to extract advertising profit from the content that pulls traffic to your website.
By now, I believe you can see the avenues smart people use to make money online; you could be the next net millionaire being of value to people online.

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