Saturday, November 04, 2006

Understanding how money is made from websites

Before we start actually making a website, there are a few things that need to be thought about.

#1 Understanding how money is made from your websites

A lot of people do not understand how money is made on a website. That is OK. For most of you reading this, this is very new to you. That is OK. I think it is important to understand before choosing what the site is going to be about or building the sites. We will get into specifics, but for now the basics money makers are:

Affiliate programs - another website gives you a link that you put on your website. If someone clicks on that link AND buys something at that website, you get a commission. This commission varies from program to program. For now, just know that pretty much anything that you want to promote has an affiliate program somewhere.

Advertisers - another way to make money from your site is to sell space and links to advertisers. If you take a look at casinodave.com, you will see that in the right hand corner I have "premier partners". At the time I am writing this, I average about $50 per link per month on that site. I also have sold ads on several other pages on the site. For now, just know that their is this potential to make money.

Google Adsense and other Pay Per Click programs - another way many people choose to make money is by putting Pay Per Click ads on their website. Just like their name sounds, PPC earns you money for anytime someone clicks one of these ads on your site. I like adsense because it does a very good job of matching ads with what your site is about.

The list is longer then this, but these are the big 3 that I concentrate on when I want to make money from a website.

I find many people have the same misconceptions about making money online with their websites. A few of the more common ones are that they have to sell something and ship something to customers, and that regular links between your site and popular site have some value to your website or that you will make money that way.

Obviously you could sell actual items from your website. I do not use this method, and my guide will not talk about this. I really like the affiliate programs because you will make about the same amount of money (profit) on an item sold and you do not have to ship it. There is no need to worry about inventory, shipping materials and expenses, and so on.

So that is a brief introduction to the possible ways to make money with your site.

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