Can You Really Make Money Online?

People keep asking me how to make money online.  I give out bits and pieces of information and then remember things that I should have explained.  So for those who I've left wanting more information, here is my all-inclusive report about my experiences making money online.

I'm going to discuss eBay, Amazon.com, affiliate marketing, online data entry, downline programs, and online investing.  (I've tried all of these!)  Before I go into detail, let me answer a few frequently asked questions.

Q:    Is it actually possible to earn money online?
A:    Yes!  It is possible to earn money online.  I've done it and I still do it.  It is not, however, something automated that will happen at the click of a mouse.  It takes time, work, and research.

Q:    Will I have to spend any of my own money?
A:    Most likely, yes.  Making money online is different than having a job in the real world.  When you have a job, you are an employee and you get paid a salary or an hourly rate.  Your employer takes care of operating costs like advertising, rent, and purchasing office supplies. When you work online, you will almost always be an independent contractor.  This means that YOU are the company, and YOU must take care of operating costs.  The money you make will be based entirely on how well you market yourself.  Start thinking of yourself as a business, and if you're serious about this, don't be afraid to spend some money in the right places.

Q:    How much money should I spend?
A:    There's just one rule here: Don't spend more than you can afford to lose.  It takes awhile to find your niche, and you will probably have to invest some money before you start to see any profits.  If that's not something you're comfortable with, working online is probably not for you.

Get the right savings account.  Tried it - MADE MONEY ($508.96 in 2007)

Let's start with where you keep the money you already have.  If you don't keep it in a savings account with a decent interest rate, you're missing out on the easiest way to make money!  This is a no-brainer because you don't have to do anything... your interest just gets deposited into your account each month.  I maintain several savings accounts including HSBC Direct and FNBO Direct, but my favorite is my ING Direct account.  ING Direct has slightly lower interest rates, but they're fee-free, have an easy-to-use website with online access to your funds, and give great customer service.  They also offer you a $25 bonus if you open your account with at least $250, and a $10 bonus for every person you refer who opens an account with $250 or more.  Want to go ahead and make $25 right now?  Click HERE to go to the ING Direct website (and yes, you'll be helping me make $10!)  ING Direct also offers higher rate CDs for those who want to park their money in one place for a longer period of time.

Fees involved: None

eBay.  Tried it - MADE MONEY ($357.00 selling old stuff)

There are two approaches you can take if you want to make money on eBay.  The first is the I-want-to-get-rid-of-my-old-stuff approach.  eBay is perfect for this!  If you're cleaning out your attic or garage and find things that other people might want, by all means list them on eBay.  Save books, CDs, and DVDs for Amazon.com (I'll explain why in a moment) but electronics, kitchen items, antiques, etc., are great for eBay.  Before listing your items, do a search on eBay for similar items to see what people are willing to pay.  You won't get rich this way, but you'll make a few bucks for cleaning out your house.

The other approach is to buy things specifically for the purpose of selling them on eBay.  Be very careful if you choose to try this!  Many people purchase a large quantity of merchandise hoping to make a profit and are then unable to sell any of it.

Fees involved: eBay charges small listing fees when you list your items and sales fees once your items sell.

Amazon.com.  Tried it - MADE MONEY ($115.00 selling used books)

Amazon.com's bar code entry tool makes it easy to sell your old books, CDs, and DVDs.  Simply enter the bar code from your item and Amazon.com fills in the information for you.  eBay has a similar tool, but you'll save money if you use Amazon.  Amazon has no fees unless your item sells, and your listing remains posted much longer than on eBay.

Fees involved: Amazon charges a sales fee once your item sells.

Downline Programs.  Tried it - DIDN'T MAKE MONEY

Stay away from these!  Also called pyramids, upline programs, networking programs, multi-level marketing, and matrixes, these programs usually require you get other people to join the program before you can make any money.  In my view, it's a waste of time.

Fees involved: Most downline programs charge you a fee to join.  Some charge you a monthly membership fee.

Affiliate Marketing.  Tried it - MADE MONEY ($48.00 from a link on my own site)

Affiliate marketing involves signing up as an affiliate with a large company.  The company then gives you a unique link to their website and you earn a percentage (usually around 5%) of the sales that originate from your link. This sort of marketing can make you some money if you already have a website that gets lots of visitors (you place an ad with your affiliate link on your website, and some of your visitors click on it.)  If you don't have a high traffic website, affiliate marketing is probably not the way to go.

Fees involved: Usually none.

Online Data Entry.  Tried it - MADE MONEY ($3,042.00 during several months in 2007)

There's a lot of confusion out there about online data entry.  Most people hear "data entry" and think they'll be punching numbers into their computers, sending the numbers to a company, and getting paid.  Not true!  Online data entry is usually another way of saying "online marketing" which means promoting a product online by entering keywords and ads into search engines, blogs, and forums.  This is similar to affiliate marketing, but you're promoting a product instead of a site.  It will cost you a bit to be successful, but it is possible to make some decent money.  I worked with two companies for a few months in 2007: iTech Data and My Data Team.  I spent about $50 a day on advertising and made about $100 a day, for a profit of around $50 per day.

Fees involved: Joining fee plus whatever you spend on advertising.

Online Investing. Tried it - MADE MONEY ($620.00 in 2007)

I opened an account with OptionsXpress and tried my hand at trading stock options.  This is a risky thing to do and you shouldn't do it unless you are okay with losing everything you invest!  I did a lot of reading about stock options and practiced with the virtual trader that OptionsXpress offers before I did any trading with my own money.  I ended up profiting, but a lot of people lose money doing this, especially with the state of our economy today.

Fees involved: Broker fees for each sale and purchase.

I hope I've shown you that you CAN make money online, but that you have to be careful.  It's good to diversify your efforts (my profits last year came from six different sources).  Don't beat yourself up if you try something that doesn't work-- it's all part of the learning process!  Good luck!