| FEATURE GUEST
ARTICLE
Who is Making Money on the
Internet?
by Corey Rudl,
President, Marketingtips.com
We are going to discuss some of the different types of businesses on the
net and how they make their money. We will then discuss some basic "internet business
models" you can use to make money online as many people still don't understand the
concept of these business models. There are only four basic types of companies doing
business with any impact in cyberspace today:
Large Corporations (A.K.A. "Fat Cats")
Many of these companies don't do anything to promote online, perhaps thinking their URL
and external promotions are sufficient. And they are probably often correct in approaching
the net this way. The ones that do promote online prefer to purchase banner advertising on
high traffic sites; a tactic that apparently pays off (We are talking here about huge
companies like Pennzoil, Nike, CNN, etc.).
Medium Sized, Savvy Businesses (A.K.A."Risk
Takers")
The companies referred to here are the electronic cowboys like Yahoo (the search engine),
Netscape (the browser) and Netcom (the ISP). These companies took a very different
approach to business on the net hoping it would pay big dividends in the end. Many failed,
but a few succeeded and grew to enormous size, such as the ones listed above.
Yahoo for example, gave away free listings anticipating people would come and the net
would "catch on" with the general public. They lost a lot of money with no
revenue stream in the beginning, but once the internet grew, they could charge big dollars
for advertising on sites with as many as 15 million hits every day. They got so big they
were able to go public and make millions with their stock offering.
Yahoo took a big risk and a loss in the beginning only to reap huge rewards in the end,
and the same thing happened with Netscape. They gave their software away to become a
dominant force and create a monopoly on web browsers and then made their money by selling
advertising packages, and co-partnering with other products later. A risky strategy that
has paid in the billions.
Small Inexperienced Companies (A.K.A. "Gold Rush
Co.")
These are small companies run by individuals who are inexperienced in traditional business
or the ways of the internet. They are of the "gold rush" mentality and make the
same miscalculations made by inexperienced people in any business venture.
These business owners often think there is one secret to success. They think if only they
could just find that one trick, their work would be done and they could then lie on the
beach with an ever-growing bank account. But as we will see, there isn't any one big
secret, just a whole bunch of little ones!
Small Savvy Companies (A.K.A "Winners")
The "winners" are smaller companies run by experienced business people who
exhibit a high level of awareness and hard work promoting their website. These companies
are currently having the best success on the Web, just as this type of business owner is
having the most success in your local neighborhood. They usually start as one-man
operations and can grow enormously into outfits with many employees.
But whatever approach you decide to take, learn from others' mistakes. Don't re-invent the
wheel. If you try to, you are taking a big risk. Model your business after another that
has already proven to be successful and yours likely will be too.
Some keys of any successful product or service:
Go after a very specific "niche" market (I did this with most of my online
businesses). Try to offer a specialty product or service that is generally unavailable
through traditional retail channels. It is critical that the target market be specifically
identified and located online.
Go after the general public - something everybody wants and try for high volume, not the
profit margin or specialty product angle. Example: An online CD store with a selection
like no other and better pricing to boot.
In my opinion, running two or three (or more) websites and targeting a niche for each one
is the easiest way to make money on the net. Everyone is looking for the "big
buck" makers and often niche markets are ignored. This is how I have made most of my
money online.
I offered something in demand for a small market, and expected only to make $20-50,000 a
year from it. But I soon learned that if I set everything up to be completely automated, I
could run three or four (or even more) businesses this size in only a few hours a day. By
combining several small incomes like that, it is easy to earn in excess of $200,000 a
year, all for investing about an hour a day (per business) now that everything is mostly
fully automated (as I teach in my internet marketing course).
If you really want to "retire" after you set up your businesses, hire a manager
to work a few hours a day to take care of the daily chores that need to be completed. This
is how I started. I ran everything myself at first, then got so busy I had to hire someone
part-time, then in less than 1 year, had to hire 3 more people full-time just to handle
the daily operations of the 2.4 million dollars in business I do between my four online
businesses.
So when you grow a little, hire an employee to run your daily operations. I know many
homemakers with kids who would be thrilled at the opportunity to bring home fifteen grand
a year... and often have lots of free time between 10am and 3pm when their kids are in
school. Your help could be doing all the routine chores and you could be traveling around
the world or just sitting on your patio knowing you're making $500 to $1,000 a day doing
absolutely nothing. This is not a "pipe-dream"... with today's technology you
really can do it (heck, I do! -- although I have to admit, I love to work, so I work a
lot).
Click HERE for more TIPS and our Home Study Course
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Corey Rudl gets
over 6 million visitors to his websites yearly, does US$ 5.2 million dollars in sales
online each year (yes, that is US$5,200,000), and personally makes hundreds of thousands
of dollars from his online businesses... all from his one small office. So listen to what
he has to say as he knows what he is talking about when it comes to starting and promoting
a business on the Internet. He reveals all his unconventional tips, trick and techniques
with examples so you can learn most efficient and fastest way to make money on the
Internet. Go to Corey's Web Site now.
Also check out more
about Corey, the IMC, and his recent seminar in Malaysia!
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