Two Fundamental Components for Making Money Online

Making money online is an ever-elusive Holy Grail. There are countless stories online of people showing obscene profits online. It is not uncommon to run into advertisements showing happy-looking people making hundreds of dollars per day. Despite these ads that make it seem easy to make money online, most people find it incredibly daunting and challenging to make a good income through an Internet business. As we will show, getting traffic and having a sound ad campaign are the two basic necessities to making money online.

Most Internet entrepreneurs fail to make money online because they do not have a sound strategy in place. An aspiring artist may set up a blog and put AdSense on it. Expecting to make millions of dollars off of insightful and witty comments, this artist closes down the site a few months later due to low traffic. This example happens very often. The aspiring artist failed because he or she lacked a solid strategy. There are thousands of blogs online showcasing art. There was nothing to set this artist's site apart from the rest. All online entrepreneurs need a strategy in place to drive traffic to their newly launched sites. Whether you are selling games, selling art, or just musing about the good old days, the fundamental key to any online business is traffic.

Getting traffic may seem difficult at first. Every web site must start out small with only a few hits per day. Ensure that your site can be found in the top search engines. Once you write enough content, you will begin to notice random organic traffic coming to your site. One of the pages of your site will often find its way to the top of a major search engine. To help with this process, identify keywords that you would like to target and write content with that keyword in it. Make sure this content is genuinely useful and not copied. Search engines are becoming quite sophisticated at detecting irrelevant content.

You may also wish to consider purchasing ads. Be careful if you choose to do this. Many Internet entrepreneurs have blown through thousands of dollars in advertising and not sold much online. If you want to be successful, then target particularly specific keywords. You cannot make a profit selling an e-book for $20 if you are paying $5 per click. A good conversion ratio is about 1%. If you are paying $5 a click, then you will likely have to spend $500 before someone buys your product. Do not think in grandiose terms. Do not think that you will be an exception that has a 25% conversion ratio. Think that 1% of people who click on your advertisements will buy your product. If you can still make money under these criteria, then the odds are in your favor that your business will be profitable.

In short, there is no guaranteed way to make money online. There are only basic components that every Internet business must have. These fundamentals are a solid traffic stream and a good ad campaign. They tend to work symbiotically. A good ad campaign will increase traffic to your site. Conversely, a good traffic stream will increase the effectiveness of your campaign. It is important to dedicate the time and money required to write quality content as well as have effective advertising.

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