How to Make Money Online | Start a Website Business

Making money online takes more than just a website. In my opinion, an individual should first get incorporated. This is beneficial for mainly tax purposes, as any and all advertisements, equipment (that’s right, treat yourself to a new computer!), and any other expenses may be written off (this means that the money you spend on the equipment will not be taxed at the end of the year).

If you are fortunate enough (as I am) to have a friend/family in Florida, I highly recommend to incorporate there as there is no State income tax (although State laws will say you must spend at least 180 days there per year or outside the country). Just so you know, it is going to cost a little money to get your operation going but it’s like the saying goes, “Sometimes you have to spend money to make money.”

Incorporating

Step 1 – Setup as either an “S-Corp” or an “LLC“(Limited Liability Company). Without getting into too many details, they pretty much offer the same tax benefits (I’m not an accountant but I see my savings on each).

Step 2 – Whichever State you decide on(try for the lowest State income tax – See Chart), you will need to incorporate by downloading a simple application form.

This form will either be called;

  • For LLC’s – Articles of Organization (Sometimes referred to as a Certificate of Formation)
  • For Corporations – Articles of Incorporation

If you want a free guide on how to incorporate in every State you can use;

You can also use professional incorporating websites like LegalZoom or Rocket Lawyer that will charge between $150 to $300 to complete the filing on your behalf in addition to the State fees.

Step 3 – After filing with the Secretary of State’s office, you will need to setup an “Employment Identification Number”(EIN) at this web page with the Internal Revenue Service (IRS). This is a free number to obtain that works like your Social Security Number (SSN). You will need this to create bank accounts and conduct everyday business with your entity.

Make Money With a Website

After you have created your entity it is now time to start making some money. There are three (3) main ways to make money on the internet with a website.

  1. Advertisements – This is probably the toughest one of the three as it requires you to offer knowledge and information that is so valuable, others are willing to pay for ads on your site. It also takes a lot of traffic in order to earn a living unless your niche is really valuable, such as talking about how to get a good DUI attorney in Miami which runs at about $115 per click on an ad.

The most popular type of advertising platform is Google AdSense. They have the most advertisers in the world and therefore will bid and pay the most for your content.

(Miami DUI Attorney Keyword Value below)

Miami DUI Attorney CPC

  1. Affiliate Marketing – This is where you get a link from a company that tracks users that come from your site. If the user ends up making a purchase or using their service, they cut you a piece of the action usually ranging from 10% to 50%.  This is tricky but can be good if you know what you are doing or are offering a step-by-step guide and using affiliate links while showing a person how to do something.
  • For Example

When I was first starting to make websites, I followed an individual who showed me how to buy a domain name and get hosting through GoDaddy. At the time I thought he/she was recommending it because it was the best place to go. Although when I saw the link later on, I noticed it wasn’t a true link, it was scrambled when I copy and pasted it. Therefore, the person had recommended me to buy from GoDaddy just so they would make a commission off of the sale.

The most popular affiliate marketing website is Commission Junction. They are a directory of all the affiliates out there and you can sort by niche, percent (%) cut, and type.

  1. Selling Products – As I have stated on this website, the first time I started making money on the internet was selling products. This can be one of two things, an actual item that must be shipped, or a digital download.
  • For Shipping – This is a bit tricky and is one of the only areas online that I do not have hands-on experience. Although my friend, who sells ski and surf equipment, has a number #1 complaint of people who try to fraud him with credit cards. As I was selling digital downloads, the cost of a fraudulent credit card was of little expense, so I did not care about the deduction.
  • Digital Downloads – If you can get into this you will have a much easier time. Seeing as ebooks, documents, software, or any other downloadable item has no inventory or loss if a fraudulent purchase is made, you can live a much easier and stress free life.
    • *The only problem with selling something on the internet right now is ranking on Google. You may have a great product but there is someone that is always seeming to give it away for free. I have found if someone is giving away something for free you will always have a tougher time out-ranking them on the search listings.

How to Make Money Without a Website

  • Video
  1. YouTube – This is the easiest way because all you have to do is simply sign-up for AdSense. You will have to make a quick website to apply (I know I said without a website, but you can make a free one on WordPress and after creating a few videos, upload them with a little content and you will get approved).

YouTube ads are only getting more and more popular, especially with the rise in advertisers. With access to a camera and the right viral video, the revenue can be huge if you can catch the right audience. I have also seen others have a lot of views just by talking about everyday things like ‘how to change your last name‘ or ‘how to sell a car‘.

Youtube Homepage

  • Article Writing/Freelance – There are many content providers out there. You may not see their face but they are often the reason why a lot of good information is out there on the internet.
  1. Upwork is the world’s number 1 freelance website. There are jobs on there to do just about anything. Although it is mostly home-based, there is work on the website for just about every niche. Upwork Homepage
  2. Craigslist has all kinds of job postings available and many of them are working from writing or performing other home-based services. The employers will sometimes ask for experience, so try and apply within your expertise or at least act like you do. Craigslist Homepage
  3. fiverr has jobs from singing happy birthday to writing articles all in the name of $5. Not a lot of money. But this was just an example. Fiverr.com Homepage

 

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