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How Not to Make Money Online business-meeting.jpgWhile I don’t claim to know all when it comes to making

business-meeting.jpgWhile I don’t claim to know all when it comes to making money online,I think I know a little when it comes to how not to make money online based on my personal experience and that of some people I have met. I know this post will raise some sort of controversy but I just want to bare my personal thoughts on this subject…no harm intended.Okay,so,I start of with:

1.Surveys.For me,it’s a pure waste of your precious time to involve yourself in surveys.Why? Most survey programs don’t accept Nigerians. Even if you use a foreign address,most times,they end up tracing where you are browsing from through your IP. And for most Survey programs,you need paypal to collect your earnings and Nigerians are not allowed to use paypal and off you go to get a virtual address with which you open a paypal but I honestly won’t advise you to open a paypal because I have been a witness to too many paypal horror stories. Forget all those adverts about verifying your paypal account as a Nigerian. One day,paypal will request for proof of your residence.Pray,how do you prove an address in which you neither reside nor work? God help you if you have a substantial sum of money in your account as it will become history from that point.

2.Paid-to-read-emails.They promise to pay you to read emails.The moment you sign up for one,they flood your email with so many mails that most times,you end up abandoning that particular email to open another one. For me,it’s another time waster as some of them allegedly pay only after you have earned a huge sum of money reading mails.Why don’t you pay me if I earn $50 or less? Why must I make $100,000 to be paid.These are all elements of this business which I honestly don’t understand.If I run my adsense program,I know I will get paid at the end of the month if I make $100.That is acceptable by me.
3.Data Entry. Their own promise is,fill some forms and we will pay you.Enter data for us and you will be paid.Most of them request you to pay to join.I know one of such sites that you pay to $49 to join and when you login as a member,you are requested to buy a book that will help you understand data entry business for $40.God help you if you are not able to cope with the business.Your initial investment will go down the drain.

4.HYIP-High Yield Investment programs.They request you invest some money and then you will be getting some yield weekly or monthly as the case may be.Most of these programs deliver initially but as time goes by,the site disappears from the net and if you invested a lot of money,you are left to lick your wounds.Formerly,e-gold was their currency of choice but liberty reserve seems to have taken over now.

My greatest grouse with all the above-mentioned online business models is that they are active income earners.Now,I want to focus on building passive income. That is why you see me writning books.My books will bring me royalty many years to come. So,what are the ways you can also earn passive income online?

1. Affiliate Programs. With this, you can make passive income online without creating your own product or website. The income is derived from setting up a web site that pre-sells a companies’ products. The parent company provides the products, tracks the sales and gives you a commission for each sale. Find companies that offer large commissions, and will track clients for multiple sales over a long period of time (i.e. lifetime) so you can get recurring commissions. Make sure they offer multiple tiers (at least 2) for sales, i.e. you still get paid if one of your affiliates makes a sale.

One of the best affiliate sites is clickbank.com. It offers a number of great products with high commissions with excellent sales materials and content to help you pre-sell its products.Visit http://www.clickbankwarlords.com for more info.

2. Information Products - the web is a great place to create an ebook that explains ‘How to” information, i.e. How to start a restaurant business, How to buy a house without getting ripped off…anything that makes life easier for people. People are
hungry for information; therefore if there is a need, you can create an ebook and sell it on the Net.Visit http://www.quityourdayjobsummit.com for more info.

3. Creating software products - if you have a good idea for a software product that will help people do something faster, easier or teach them something, then you may have a winner. The best example is Bill Gates who created the Microsoft Corporation selling the Windows Operating System. You could do the same on a smaller scale.

4. Advertising commissions - if you have a web site that attracts 1000s of visitors a day from the search engines, you can offer to place a banner or link on your site for a fee that you collect each month. You set it up once, and then collect the passive income forever.

*Newsletters, or ezines - offer advertising space in your ezine. The greater number of subscribers you have the more you can charge every time you publish. If you are wondering what an ezine is, it is an electronic magazine. Magazine that is delivered to your email unlike the traditional ones which are published on paper.

*Ebooks - offer advertising space in your ebook. Give the ebook away for free or even place links in it from affiliate programs you recommend.

*Google AdSense - place Google Ads on your web site. When someone clicks on the ad, you get a commission for every click. If you have 100s or 1000s of pages on your site, you can earn a substantial monthly income.Visit http://makedollarswithoutselling.com for more info.

5. Pay Per Click Campaigns - you can make money instantly by setting up a Google AdWords campaign for your product or affiliate program. If there are not too many competitors promoting the same product and it is in high demand, you
can earn a good passive income. Creating several successful campaigns will multiply the amount you can make.

6. Referrals - create a network of people that offer services or products related to your business. Ask for a commission every time you refer someone. Let’s assume you are a web designer, you may have cause to refer clients to graphic designers,search engine optimization experts, copywriters and database designers especially when you don’t have the time to do the work yourself or it is outside your area of expertise.

7. Create a membership site - if you are an expert in your field and can provide the resources, knowledge and support, you can charge a monthly fee to gain access to your membership site. The more members you gain, the more money you make. Because you are an expert in your field, you can also recommend other products and services to your members, from which you earn commissions.

8. Become a Reseller - by reselling other people’s services you can earn ongoing residual income. One such example is web hosting or domain name registration. You pay a monthly fee to the reseller and you can charge whatever you like to your customers for your service. Of course you must be thoroughly familiar with the service to provide the necessary support to your clients. Like I sell hosting as a reseller through www.webkonsults.com. I source for my clients once but they pay me for as long as they want their website to be on the net. Every year, they have to renew their hosting and domain registration.

9. Network Marketing
I don’t claim to be an authority on this but I know some people who have made good money from it.According to Wikipedia.org, “Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).

Independent distributors develop their organizations by either building an active customer base, who buy direct from the parent company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which includes their independent sale efforts as well as the leveraged sales efforts of their downline. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be multiple levels of people receiving royalties from one person’s sales.”

Conclusion: Building multiple passive income streams is a great way to secure yourself for the future. You never know if you will be laid off from your regular job, get too ill to work, experience a disaster or want to start saving for your retirement. Choose one of the above types of passive income streams and take action now, to secure your financial future.

To make you act faster, let me suggest that tonight when you lay on your bed, ask yourself this question, “what percentage of my day did I spend creating passive income?” If the answer is no, you’re in deep trouble. You’d better wake up tomorrow with a determination to start creating passive income. I will end this post by saying if you are yet to start creating passive wealth; you are yet to make real money. I repeat: if you are yet to start creating passive wealth; you are yet to make real money. Why? You are only making active income while passive income is it!

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