How do Websites Make Money?

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Creating Multiple Revenue Streams

Create multiple revenue streamsIn this article we are going to examine the many ways that a website can make money. As a point of clarification the act of setting up any website to earn an income is called monetization and you will hear that term throughout this article. So the first thing I’d like to explore is why we even bother to use the internet as our source of income. And there are three incredibly important reasons:

The Audience is Endless – After a couple of Google searches, the best estimates I could find, say that over 3 billion people use the internet. So to put that into perspective, if you could convince 1 out of every 100 people on the internet to send you 1 penny, you would still make $30,000,000. If just one percent of the people on the net sent you a penny, you would make 30 million dollars.

Cutting all Earthly Ties– OK, so this bullet is a bit of a play on words, but the internet gives us the ability to live what is known as the Latptop Lifestyle.  And that should be your goal in life, in my opinion. When done properly, creating a business online will literally cut every “income related” tie you have to a given geographical area.

Living a laptop lifestyleWhen you work toward a truly passive income (and I can show you exactly how to do that), you will be able to work from anywhere and at anytime. Go to the beach for a month and work from the boardwalk, visit your Mother in Colorado for 2 weeks, ski in the morning and blog in the afternoon. Anywhere with an internet connection and you are in business.

Multiplicity – Again, when done properly, online businesses are what we call “scalable”. Now we will talk more about scalability a bit later, but for today’s conversation, let’s just say… If you can do it once, you can do it again and again and again. Unlike a brick and mortar business, there is very little start-up cost for most online businesses. So that means there is little to keep you from owning two, three or ten businesses, all generating income.

The important thing to consider when starting an online business is proper training. There are only two limitation you will face when making the decision to move forward, the first is money and the second is YOU. Training is going to cost money, so you will need to make that commitment (rough estimate about $500 in the first year). Once you make that commitment, the rest will depend on your time and effort.

What types of Websites make Money Online?

E-Commerce Websites – The term “e-commerce” simply means buying and selling products online. An e-commerce website provides customers with the opportunity to purchase items from the comfort of their own home. Typically, an e-commerce website will hold inventories of the various products it sells and ship those items to customers once the purchase is made.


This type of website can absolutely generate a huge income (ever heard of a tiny site called AMAZON?), but there are a few things to consider before running of and creating an e-commerce site. First, you will need inventory and generally a brick a mortar building to store the inventory and ship the inventory. Of course that could be your home, but as the business grows so will the inventory.

The other thing to consider is that e-commerce sites will require almost 24 hour attention, particularly if the site has a global audience. When servicing the globe you might expect people will be making purchases around the clock and they will have question around the clock and they will require attention around the clock.

Advertising Website – We will not get into a great amount of detail regarding Advertising sites in this section, because we will discuss them in great deal later in the article, however, advertising sites generate the majority of their revenue from well… Advertising.  There are several ways that a website owner can generate income through advertising, the first is to use an Advertising platform, such as Google Adsense.  An Advertising platform is managed entirely by the management company and all the website owner needs to do is enter some code on their site.

advertising income - Niche Website Newbie

Another form of income can come from directly advertising for businesses.  This can be more lucrative, but will require more administrative work on the part of the website’s owner.  This is one reason why an advertising platform can be a much more attractive way to generate advertising income.

Blog / Niche Website – This is my favorite type of website, hint… hint… Generally incorporated with Affiliate Marketing as its primary means of revenue, the blog or niche website sells products for other companies. The beauty of this form of website is that all the inventory, shipping and customer interaction is done by the Affiliative Program.

Primary methods Used to Monetize a Blog:

We are going to discuss four primary methods of monetizing a niche website. There are more, but the four we are going to discuss will give you years of steady income and are the best means for newbies to generate an income.

  • Advertising
  • Affiliate Marketing
  • Products and Services
  • Consulting

Monetize through Advertising

google adsense - niche website newbieWebsites have been making money with advertising since the dawn of the internet and not much has changed since those early days.  As promised above, we will spend some more detailed time discussing advertising sites in this section.  Advertising is everywhere and the internet is no exception. You will see advertisements before every YouTube video and in the sidebar of when you are checking out your teams latest statistics.

One very common way to generate and income through advertising on your website is to subscribe to an Advertising Platform.  This method generally requires you, the website owner, to fulfill certain requirements that the management company specifics.   Those requirements may be as simple as verification that you are the owner or as complicated as specific traffic minimums or even exclusivity with that program.

There are a few different networks that bloggers can use but here are the main ones:

Google AdSense – “King of the hill”, the leader in website advertising revenue.  The word Adsense has become synonymous with generating an online income. The requirements for are minimal, which may be a significant reason for it’s popularity.  Google does require that a website be complete before the site will be approved for ads.  A website cannot have a single page “under construction” when applying or the site will be rejected.

Google AdSense – “King of the hill”, the leader in website advertising revenue.  The word Adsense has become synonymous with generating an online income. The requirements for are minimal, which may be a significant reason for it’s popularity.  Google does require that a website be complete before the site will be approved for ads.  A website cannot have a single page “under construction” when applying or the site will be rejected.

Google Adsense will display advertisements on your website and randomly change them with each visit.  The ad program very often uses “cookies” to determine a visitor’s preferences and displays ads that are relevant to the users taste.  This is good news for you since the ads are more likely to catch the visitor’s eye and get “clicked”.  Google Adsense like many other Advertising Platforms pay a fee every time an ad is clicked on and the visitor is directed to the advertiser’s website. – This platform is one of the more popular choices, it is the 2nd largest platfrom behind Google and has a reputaion of being dificult to get approved.  There are a few tips for getting

Propeller Ads –

Ad Thrive- need 100,000 page views per month

Pay per click (PPC)

Direct Advertising/ Sponsored Posts

Now, this way is slightly less well-known but it can be more lucrative for beginner bloggers.

Direct advertising is when a company reaches out to you to either publish a post on their behalf or ask you write a post for them. It may be a review of a product or simply a post about their industry.


Affiliate Marketing

CJ Affiliate program– almost everything

Shopify– eCommerce

Rakuten– Online store

And here are some popular blogging affiliate links:

Leadpages- Online marketing tool

StudioPress- WordPress themes

ConvertKit– Autoresponder

Bluehost– Hosting service

Tailwind– Pinterest scheduler

Wealthy Affiliate– Affiliate marketing training, support and hosting service.

If you are interested in learning more about how you can monetize your website and particularly how you can get the most success from affiliate marketing then try out this free email course.

Some of what it covers:

What do you NEED to get started (that most people don’t know)

How to write quality content


So this leads us onto the third and last way (or is it the last way?) of monetizing a website…

3. Creating and selling your own products


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