Posted by: The Soaring Eagle | June 21, 2012

Making Money Online – part 2


 

In this post, I’ll start presenting few online, money-making methods, focusing on how they work, how they would generate money (or became monetized), and some of their pros and cons.

  1. Advertisement

Every year, businesses spend billions of dollars on advertisement. The online portion of that expenditure is getting larger and larger. The most common online advertisement instrument is the banner. A banner gives a flashy, brief sales message, that highlights the two or three biggest and most attractive attributes of the business.

Technically, the banner is but the nice face of few lines of HTML code. If you have an idea about programming, the banner is the execution of the HTML code behind it.

Once the banner is created and tested, it has to be promoted. Online promotion boils down to a single word: Traffic. For  the banner to reach as many potential buyers or subscribers as possible, it has to attract online traffic. So what does that mean? It means that the banner needs to be spread around, so that online surfers would see it, and be interested enough to click on it. Every click is called a visit, a hit, or a view. The more the hits, the better.

Since the banner  is “click-able”, once clicked, a webpage gets launched, and the surfer who has clicked the banner, would be shown a whole lot more details about the business. The hope is that the surfer would get more interested and “convert”. Conversion takes place when a surfer, who has initiated the “hit”, becomes a buyer of the business’s products or services. If the business needs subscribers only, conversion takes place when that surfer signs up, providing enough details, especially name and email address. That allows marketing/sales people to follow-up, in order to offer that subscriber a service, a product, or more information, for the time being. Another term that describes this process is “opt-in”. The surfer is said to be “opted in”, when he or she provides his/her name, email address, and sometimes, phone number, by filling out a special form on the sales webpage.

How would you make money out of all of that? The easiest way would be to sign up as an affiliate of an online business of your choice, and promote that business banner(s). The banners you promote, have in their HTML code your unique ID. So if they got clicked, the business (usually the admin) would know that it was you who had made that hit possible. The majority of businesses won’t pay you anything for hits only. But they do pay once the person who has clicked, converts. In other words, generates money for the business now, or in  the near future. As an affiliate, you would receive a percentage of that money, or an “Affiliate Commission”

To summarize: First you need to find a business you’re interested in promoting. Then you sign up as an affiliate. You get your special banner code and promote it, aiming at driving as much traffic as possible to that banner. The higher the traffic, the greater the probability that someone would click on your banner. The more the “clickers”, or the hits, the higher the probability of conversion, i.e. commissions.

Now you may ask: How would I promote that banner? The ideal approach would be to have your own website, where you paste the HTML code, so that the banner appears on your website, preferably the front page. But that’s not enough. You still need to make your site visible. You ought to drive traffic to that site. One way to do that is to list your site’s URL on as many traffic exchanges as  possible.

What is a traffic exchange (TE)? It’s a website that offers a service. When you sign up for that service, the site allows you to post a certain number of URL’s. Once you finish entering the URL’s (one of them is of the site, which contains the banner you wanted to promote), you can start “surfing”. This is a rather boring activity. You have to watch other people’s webpages, who are trying to promote, exactly as you are. Each “view” takes a number of seconds. Usually  between 10 and 30. For every site you watch, or view, you earn one credit. That credit serves as the cost of one view of your own site (sometimes the ratio is not exactly 1:1). You view other people’s sites so they view yours.

You could escape the boring part, to some extent, by joining an auto TE. The upside of that is you don’t have to click every 30 seconds or so to view the next page (and earn another credit). The TE does that for you automatically. The downside, however, is that other promoters would do the same. Which means they won’t actually see your site. Because while the auto TE is cranking, viewing one site after the other, people would minimize it, sending it to the background, and go off doing something else.

One way to know how your site is doing in terms of visibility and popularity would be to perform a Google search on it. The best result you should aim for is to see your site on the first page of the search results. Another technique would be to go to http://www.alexa.com. This free service tells you the rank of your site, globally, and locally, where the site was registered.

As you can see, the process is somewhat complex, and the reward is not that much, unless you became really good at it; something that takes a high overhead of time and energy.

This should be enough about advertisement as a source of online income. Please let me know if you have anything to add to the above, if you’d like to comment, or ask a question. All you have to do is use the form below. And don’t worry, you’re not “opting in” for anything 🙂

Till the next post: Read, think, consult your heart, decide and act…

The Wealth Maker

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