The Basics of Making Money Online

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What are the Fundamentals of Creating an Online Business?

If you have found your way here, I’m going to guess that you are looking for a way to create an income online. You may be looking for a way to make some extra money, let’s say some extra Fundamentals of Creating an Online Businessspending cash.

Perhaps your ambitions are a bit larger and you are interested in creating a full time income via the internet, say $2,500 or even $5,000 per month.

All of this is truly possible and for you dreamers out there, yes you can make much, much more than that.

I will show you examples of ordinary people, that started with little to no experience and are now making $30,000 in a single month and in some rare cases, how one young man made $100,000 in just one week.

Now, if you are anything like me, you are not interested in hearing that someone else is living your dream. You would much rather have me show you a clear and detailed path toward doing it yourself.

Don’t get me wrong, I do enjoy hearing success stories and I like seeing proof that creating and online income is possible, but I get nowhere when I’m always reading about others who were successful and I’m not out making it happen for myself . So, I set out to learn the basics of how to earn an income online and I will share them with you.

So here is the fundamental formula for creating a successful online business, a road map, if you will:


It can’t get any more simple than that, right? Of course, it’s not that simple, but with a well devised plan and consistent work the simplified components of this plan will come together and will develop into a successful online business.

What I failed to realize is that with every new visitor I attracted and with every increase in income I was able to gain, I was increasing the value of my website. This hit me like a ton of bricks and when I finally figured it out, it all started to make sense, and my website had a purpose.

Let’s take a look at the steps above in a bit more detail:

Creating Value for your website – The number one secret for creating wealth via the internet is to create value for the “property” that you own. Just like Real Estate in the real world (Land, Houses, Buildings), Internet Real Estate such as domain names, website, traffic, email lists and authority all have value.

Domain Name – We are going to talk a lot about domain names, because domain names still carry a lot of weight in the Internet Real Estate world. Although I can tell you that the domain name has lost some of its credibility in the industry. At one time the domain name was “KING”, to have a memorable and brandable domain was critically important.

Today not so much, Search Engines have taken the place of domain names.

EBay and MySpace and even Google all relied on the user remembering their domain name and typing it in directly. Now people can search for specific “key” words and find a variety of websites that match what they are looking for. And they don’t really care (and in most cases, even know) what the domain name is for the site they select.

Driving Traffic to your website – In the world of the internet Traffic equals Customers. And I do not need to tell you that lots of customers equals lots of profits. So if you own a website that gets many visitor on any given day, you have a winner on your hands. There are a trillion ways, (potential slight exaggeration warning) that a savvy Internet Marketer can convert traffic in dollars.

You will drive traffic to your website in three ways, the first is Search Engine Optimization, the second is through Social Media and the third is repeat visitors. Let’s expand on each of these three search engine optimizationmethods a bit more:

Search Engine Optimization: Often called SEO, search engine optimization is the ability for your website to show up early in the results of someone’s search; preferably on the very first page of the search. SEO is a huge subject and will take a half dozen posts or more to explain fully, but for now let’s just mention that we want to attract what is called “organic” traffic.

Organic traffic is free and is attracted by optimizing the words, the layout, the speed and the valuable content of your website. It is possible to pay and have your website show up early in search engine results, but this becomes very expensive, very fast and we just don’t want to do that just yet.

Monetizing Your Website – The next step in creating value for our website and ultimately making money online, is to monetize our website. This is the part where we decide to sell something or sell ad space on our website to generate income (both very popular methods, by the way).

Personally, I am a huge fan of Affiliate Marketing, so I am suggesting that you select a few of the hundreds of thousands of products that have affiliate programs associate with them, and sell them from your website.  One of the more popular affiliate programs out there is Amazon, and Amazon sells 606,000,000 products, so you might be able to find something there??

In fact, many of the major retailers have affiliate programs, Target and Walmart, both have one.  So I doubt that you will have much trouble finding something to sell on your website.

Learn Website value by Buying Websites

Understanding the value of a websiteActually you do not need to purchase a website to learn to valuate a site.  Just scrolling through an online website marketplace will give you a sense of how websites are valued. And it’s a very simple formula indeed.

A website is worth anywhere from 1.5 times to 3 times it’s monthly net profit

I highly recommend that you evaluate as many websites as possible.  There is a wealth of information that you can glean from reviewing sites that are already successful.  Remember, you are not trying to re-invent the wheel with your business, you are trying to learn from those that are currently successful.  I would also like to mention that it is possible to accelerate the learning curve by purchasing existing websites.  I do not recommend it for the novice, but we will explore the possibility in later posts.

What to look for when Evaluating Websites for Sale:

Evaluating websites for saleIs the website currently making a profit?I highly recommend that you focus on evaluating websites that are claiming to make a profit. We will graduate to evaluating “Starter Websites” or “Neglected Websites” later in our careers, but for now we will want to stick with websites that are generating income.


How much work is involved in maintaining the site?
As you evaluate a website, you will need to keep your goals in mind. You should know by now that I believe we should always be working toward a passive income. So how much work will the website you are evaluating need to remain profitable. Certainly if you are evaluate an FBA (Fulfillment by Amazon) website or a drop shipping website, there will be quite a bite of customer service involved with maintaining that website.

You should also know by now, that I believe there is no such thing as a “100% passive income”, so there will be a certain amount of work that is involved with maintain or growing the site. If the site is content based then you will need to continually generate content and if the site is serviced based then you will need to continually upgrade and provide the service. The point is, you should get an idea of the amount of work involved with each website you evaluate.

Is there room to grow with the site?
Websites that are “on-the-market” or Webmasters that are selling websites will certainly tell you that the upside is tremendous and they could actually be correct. But as you might expect the challenge is knowing when they are right and knowing when they are not.

Is there evidence that the metrics are accurate?
Practically every online business auction website will offer evidence regarding the “for sale” websites traffic and revenue.  The trick is to know when the information provided is valid.  The best method for evaluating the traffic and revenue statistics for a website is to perform some fact finding searches.  Determining if the websites traffic claims are accurate is very simple, just use any of the available web traffic tools available online like or

Revenue on the other hand is a little more difficult to verify, this is when you may need to ask the seller for more information.  Remember it never hurts to ask for more information, even if you are only attempting to evaluate the website, you should feel free to ask questions.

Personally, I’ve never been one to shy away from competition, but it also does not hurt to learn who they are and how many exist.  Learn the keywords that the “for sale” website is ranking for and if the site doesn’t rank for any keywords, then you know where you stand.  However, if the site is ranked for keywords, then you can easily find those keywords in Jaaxy and get valuable information regarding your competition. Test Jaaxy here:

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