3 Ways to Make Money Online as a New Entrepreneur
Thanks to the Internet, the dream of creating a successful business is possible, and it’s easier than ever. However, many people have no idea how to make money online. It’s not for the lack of opportunity; it’s actually due to the abundance of it. Overwhelm generates confusion, which usually leads to procrastination and a poor understanding of how to put an online business model in place. There are many ways of making money online, but here are some of the most tried and true methods.
Network marketing gets a bad rap because people don’t understand how the business model works.
They assume that just being at the top will make you money, but it won’t. It takes quite a bit of effort to build your network, regardless of when you come into a company.
Network marketing, sometimes called multi-level marketing, is an old business model that predates the Internet by quite a few decades.
Companies will pay you a commission to bring in new customers and new affiliates to help promote their products, and because they only pay you when they make a sale, they save money on advertising.
The multi-level bit comes in when you get paid more for what’s called your downline.
If you recruit someone new to act as an affiliate, you get a commission when that person makes a sale. You also receive a small commission for any sales generated by people they recruit. This process continues downline.
The downside is that you must attract people already familiar with this type of business or find people willing to learn it.
And with network marketing’s severe learning curve, you must have the patience to learn how to do the business. But if you do, the rewards can be astronomical.
There are two main ways that people recruit:
- The offline method involves constantly meeting new people and pitching your business to them.
- The online method involves meeting people online or running ads to recruit new affiliates or sell more products.
Many books, courses, and coaching programs exist to teach you how to do this, but too many people hoping to get rich overnight without any marketing experience have given the business model a poor reputation.
However, multi-level marketing works exceptionally well for those willing to learn its intricacies. While you must wear many hats, for those who enjoy meeting new people and earning money by working as a team, this business model can be a great way to make money online.
Affiliate marketing is a bit like stripped-down network marketing in that you’re an affiliate for a company, but you aren’t recruiting anyone.
You aren’t trying to build a team and teach that team how to replicate your success; you’re simply acting as a middleman for a company, again helping them save on advertising costs.
You get paid on a per-sale basis, and only for your own sales, but a high-converting or high-ticket product can generate a good monthly income.
As with most businesses, this business also has a learning curve, but the upfront costs are lower, and it’s a more accessible business to learn.
Affiliate marketers typically have a blog, YouTube channel, or social media communities where they can promote products.
For example, a cooking blog might call for a particular cooking tool and place an affiliate link to their favorite one. If a viewer clicks the link, then the owner of that blog gets a commission if the item is purchased.
Most prefer this more discreet form of marketing to the constant business pitches that network marketers must do (however, you can be overt with affiliate marketing too).
There’s also a wider variety of affiliate products to promote than in network marketing; virtually every niche and industry is available. It’s a great way to do business that doesn’t involve stocking inventory and fretting over customer service.
And you don’t have to reinvent the wheel; much like network marketing, many books, videos, and courses will help you learn.
Do you want an online storefront but don’t want to source inventory and stock it?
Drop shipping might be for you.
E-commerce is a booming business, and it’s becoming more accessible for everyone. People used to rummage through thrift stores for high-value items to resell on sites like eBay, but now you can source brand new inventory and sell it through your own website.
Drop shipping works by utilizing a manufacturing company that will ship to your customer when they purchase a product from your store.
Many online tools can automate this process, but some drop shippers require you to manually place orders for your customers.
The good thing about drop shipping is that physical products are always in demand. So while a drop shipper’s profits can sometimes be marginal, providing a wide variety of products and acquiring repeat customers is easier to do than it is in affiliate marketing.
The downside to drop shipping is that, in most cases, you’re responsible for all returns, refunds, and other customer support. And because some payment processing platforms will hold payment until the item has shipped, it may be necessary to purchase products from the manufacturer on your customer’s behalf, requiring you to have a sizeable amount of funds available.
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There is no way to make money online that doesn’t involve a learning curve, and overnight riches are still virtually unheard of.
You have to be prepared to invest a lot of time and possibly money to learn how to run an online business (even so, costs will still be lower than running an offline business).
And one final word of advice: you should never start an online business if you’re in a desperate financial situation. Every kind of business requires a clear head and a drive for success; challenging traits to achieve when you’re knee-deep in scarcity.
Additionally, online businesses require more upfront costs that will likely take time to return to you in the form of sales and revenue.
But if you approach your new business with an open mind, the willingness to learn, the ability to keep trying after setbacks, and the flexibility to adjust course when necessary, you might just achieve the business of your dreams.