I often hear people who want to make money online say they have no idea where to start. In this article, which consists of two chapters, I will cover a few most popular ways to making money on the Internet which are affiliate marketing, auction selling and freelancing. Each of them allows you to quit your day job and earn enough money to live comfortably. Although, some methods might take longer time to master to produce results than others.

Affiliate marketing

The affiliate marketing dates back to early days of the Internet. It appeared when the first sponsor (merchant) invited a web site owner to promote their product for a percentage on sales they would generate. Later, a pay per sale (pay per lead, cost per acquisition, CPA) system, which pays you a fixed amount for each sale (lead) no matter what the order amount is or if the customer requests the refund or charges back, was introduced. There are sponsors such as Market Health that offer both options. In this case, you would normally choose percentage-based payout if you are confident that the customer will come back and can wait until you get enough recurring customers to produce you a desired monthly payment; or pay per sale if you are after quick cash and don’t want to worry about the customer behavior.

Your job as an affiliate marketer is to deliver customers (traffic) to the sponsor’s side (landing page) that sells a particular product. Your earnings will depend on how well you match customers to the offer, pre-sell them before sending to that offer and how much targeted traffic (people looking for the product you advertise) you deliver.

This method is the most time consuming of all making money online options because you will have to figure out what product to sell (there is a strong competition in one niches and weak in others), sponsors to use (some sponsors give generous payouts, some - don’t) and where to get the traffic from. Having a mentor who could point you in the right direction might be crucial to your success an an affiliate marketer as there are simply too many products on the market to try before you learn what sells best.

However, this is the most rewarding method of making money online too. Once you have your sites up and traffic going you don’t have to do anything to make the money flowing, except for making minor adjustments.

Dropshipping

This is a relatively new variation of the affiliate marketing. It works similarly but also give you control over the earnings on each product you sell. With drop shipping you get into the partnership with a sponsor (product manufacturer) who promises to deliver the product to the addresses you give them for the wholesale price. Such arrangement is beneficial if you have a store-like website with customer base to sell different products to. You are the one who set up the price on the product, which generally results in higher payouts, while placing all the responsibility for product handling onto the sponsor.

The downside to this method is you will be the one to deal with customers’ complaints.

In the next chapter I will continue talking on the subject of how to make money online and explain auction marketing, which takes traffic worries from you…