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Starting an Online Business: Three Basic Ways to Build Profits Online

Author: Jamie Jefferson

Starting an online business is a great way to increase your income. There are many different ways you can make money online through your own websites and your own digital products as well as by being an affiliate for other people's products.



Many things make starting an online business so attractive. First, starting a web-based business is much cheaper than starting a brick-and-mortar business. That means you'll be able to become profitable a lot faster and earn real money from your efforts. The costs of having websites that earn you income online are negligible compared to what other business-owners pay. All you'll need is web hosting and a domain name, which can cost under $30.



You'll also have the ability to reach a large audience of people. The Internet puts you in touch with the world, and a big customer base. If you don't have a local base that is big enough to support your business, you can definitely find one online.



There are many different ways to earn money online, and you can use one or all of them. The first basic way of earning money online is to create digital information products that you sell from a website. Products can be digitally delivered and, once you set up the website, you can have it running on autopilot, making money for you while you sleep.



You can also make money by selling advertising on a blog or a website. There are many different programs that allow you to sell advertising space on a website. When someone clicks on a link on your website, you'll receive a few cents to a few dollars in payment. This doesn't sound like a lot, but it can add up very quickly as you build a good flow of traffic to your site.



The third way to make money online is to become an affiliate for another person's product. You can use your own website to direct traffic to someone else's website, where the visitor will have the opportunity to buy a product. When they buy through your link, you'll make a commission. Commissions on affiliate products can run anywhere from 1 percent to as much as 75 percent, depending on the type of product you choose to promote.



All three of these methods can be combined so that you can have multiple streams of income from the same site. You can create a website on a specific topic and then create your own product to sell there. At the same time, you can sell links for advertising and promote someone else's product. These three streams of income will give your site long-term earning power.



The only piece missing from this set up is the topic, or niche, that you use for your money-making website. Ideally, you will want to find a topic that has a lot of interest, but not a lot of competition. There are several keyword search tools that can help you determine the right topics that people are interested in. Once you find a good topic to work with, you can start either creating a product, finding advertisers or finding an affiliate product to promote.



This is a simple formula, but it's very effective for online income. The part that takes time is building traffic to your site, and that's where you'll be focusing much of your efforts as an online business owner.



Once you've established yourself with one topic and one website, you can move onto the next and create a network of money-making websites that will earn you money over time.

Article Source: http://www.articlesbase.com/home-business-articles/starting-an-online-business-three-basic-ways-to-build-profits-online-383396.html

About the Author:

Jamie Jefferson writes for Momscape.com and Susies-Coupons.com where she shares special offers for Ken Evoy's Site Build It, a proven program that can you help you create a profitable web business. You can also read a Site Build It review here.

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