Guide to Finance


eg: UK or Brides UK or Classical Art or Buy Music or Spirituality

Business & Money

Technology

Women

Health

Education

Family

Travel

Cars

Entertainment

Three To Five Years

View:

LANE #4 - THE INTERNET

I'm not going to tell you that making money online is easy, but like all wealth creation, it's simple when you know how.

I created a six-figure turnover business, The Money Gym, using a very simple marketing plan, online, but I had to work at it. But every month the passive income element of that business grew and grew and I built it one block at a time.

The most wonderful thing about the internet, is the low level of intial investment required. If you have time and no money, you can learn to do it yourself (I did) or if you have more money than time, and know what you want to achieve, you can outsource most of it. Making money online is a bit like becoming a millionaire in five years - simple but not easy! You can make money online by:

1. Promoting your real world business more effectively using the internet - using an EFFECTIVE website to generate more leads, building an ezine mailing list, Search Engine Optimisation, and Google Adwords to explode your traffic.

2. Creating spin off automated products from your real world business - like our client Paula Gardner did with www.DoYourOwnPR.com. See the section below for ideas.

3. Creating a series of one page websites, each to sell one ebook (or other product) - either your own, or as an affiliate.

4. Creating traffic flow and then recommending good products and service to them via affiliate links and an ezine. You can also make money from Google Adsense, which provides instant income which will build with your traffic.

5. Creating a free/paid level membership site (just think.....17,000 people paying you #5 a month is #1.02 million PER YEAR)

Which of these you decide on will depend on whether you have a real world business or expertise or not. I like to recommend people work through these in order, starting from the quick and simple routes to more income immediately and building up to the bigger projects.

However, and this is the most important element for synergy and focus between all your projects, and the part that many novice (and even more experienced!!) internet entrepreneurs get wrong.

Always choose and then working around a niche topic/subject - hobbies, leisure activities such as rowing, rock-climbing, obscure cuisines or knitting for example.

Or choose a broad topic (business building for example) ideally one in which you have some expertise, but offer it for a really tight niche of people (reiki healers as opposed to holistic therapists) or female accountants, for example.

IS MY WEBSITE WORKING?

As soon as someone asks me this, we ask them to find out the following:

1. Number of unique visitors to this page per week

2. Number of unique visitors to the sales page per week

3. Number of sales if any

4. Number of new additions to existing database / mailing list per week

5. Average value of sale (so if you sell a t-shirt for $20 and one for $10, the average value of sale would be $15)

6. Average profit per sale

These figures will enable us to work out

1. Conversion of unique visitors to leads in %

2. Conversion of unique visitors to sales in %

3. The value of each subscriber

4. The Value of each visitor

We would also be asking you to look up the main referring key words that people are using to find your page. You will find your website host gives you a statistics package where you can find this information.

Then I would be asking you how much (i.e. what percentage) of your income do you want to come from which potential income producing activity around your niche.

Potential other income streams include:

a) 101 tips - free b) ebook - 17.50 - 27.50 (but do it in dollars not pounds) c) one-off teleclasses 27.50 - 27.50 but record it and resell later d) membership site - 17,000 people giving you 5 a month = 1.02 million per year e) one day workshops - sell for 147 discounted to 97 for early birds d) group coaching programme - 79.50 a month - how many can you handle? e) 1:2:1 premium coaching programme - 279.50 - 379.50 per month - how many can you handle? f) associate fees - say 5 new associates per year paying XXX each to become your associate g) physical product - XXX - dropshipped ideally from manufacturer/supplier to customer h) any other ideas?

Ok. our business model has been decided on, we have established our products / services and we have decided on subject matter and the group of people we are aiming at. Even when you are affiliate marketing with other people's products and services, it's made easier by knowing who you want to attract to your internet business.

SO WHAT DO YOU NEED, AND IN WHAT ORDER?

I have seen many types of websites come and go, many tools and bits of software, and we have finally honed the Money Gym site into a finely tuned money making and client attracting machine. This is our business model for The Money Gym for new (cold) traffic.

1. Blog gets us indexed in search engines and attracts new visitors. We Also use PR/SEO/Google Adwords

2. Welcome / Squeeze page to convert visitors to mailing list.

3. Offered chance to win good value prizes by referring friends - choose yes or no

4. If yes, refer friends, get prize, jumped to ebook sales page. If no, jumped to ebook sales page

5. Ebook sales page, bundled with free month at Silver level of membership site

6. Decide to buy ebook / trial membership and click "buy now" button

7. Offered chance to buy ebook / paperback version / 3 months free trial of site

8. Decide yes (click to buy) or no (just buy ebook) or join mailing list

9. If just click to close page, popunder box offers free Wealth Tips (101 x tips & ezine)

The most exciting thing of all is that, since putting in the above system and getting all the elements right, we are now looking at a systematic conversion of traffic to subscribers, to sales of the ebook, of sales of the upsell offer, to trial memberships, to retention of memberships. We have worked out which percentage of visitors will take which action, at every stage of the process.

And you know what that means, don't you? More traffic = more visitors = more conversions = more revenue = more profit.

We are looking at an automated, predictable money machine, and what's more all of that is just the FRONT END.

SO WHERE DO I START NICOLA?

Here's my guide to getting started, quickly and inexpensively. what to do, in which order.

1. Set up a blog. Used Typepad or Wordpress (outsource the latter)

2. Attach it to a mailing list via a good shopping cart (you will need it later)

3. Use a "refer a friend" script at the point of signup

4. Set up a private Google Group, put signup box on blog

5. Blog every day, or at least once a week (and get your blog fed onto your MySpace/Facebook profiles via an RSS feed)

6. Set up profiles on MySpace, Facebook, Squidoo, Ecademy as a minimum, and link to your blog

7. Send even more traffic using Google Adwords, learn how to make video for YouTube

8. Set up Google Adsense on your blog

9. Find some GOOD products and services with affiliate schemes (sell our ebook, earn #12.50 per sale) and recommend on blog side panel, social network sites. Use a good affiliate link cloaking service.

10. Start creating a community / membership site - free membership until you get to 1000, then set up next level, under #5 / $10 a month

And my final tip, just make the decision that 2008 is the year that you will make a passive income online. If you just make enough to take two holidays a year, wouldn't that be worth turning off the TV occasionally?

Have fun and send me your stories of success - even if it's just about making your first $1 online, I love those best!

And the best thing of all is that internet businesses are even more attractive to potential purchasers than real-world businesses as they are largely automated, so the multiple of turnover / profit that you can sell an internet business for, is even higher.

CONCLUSION:

I hope that I've shown you here that it's not only possible to become a millionaire in five years, but given you some ideas on which Wealth Highway Lane would be the most easiest for you to use, to achieve that. The great thing is that by laying out the numbers like this, it makes it less of a mystery and more like a plan.

Three To Five Years

what you will find is that as many wealthy people made their money in business, as property, and once they have made their money in one of those two lanes, they then invest in the other.

Why? Because property is not such hard work!

In the same way that you have two ways to make a million in business essentially, you have two ways to make a million in property, within five years.

Actually, there are SO MANY ways to make a huge amount in property - like buying, renovating and flipping - but most of them incur capital gains tax whcih will make my sums harder, so I'm going to concentrate on the simplest and most tax efficient methods.

To make (and keep) $1 million in property in five years, you could work out that you need to create $250,000 rental profit per annum, net of tax, or $416,666 per annum gross. That's $34,722 per month.

If you work out that a good rental profit on a small condo or family unit is $200 per month, then you can see that you need 173 rental units to achieve your goals.

An easier way is to create a property portfolio that appreciates in value by $250,000, per annum, which you can periodically refinance to pull out your equity, tax free (it's not earned income you see, so not taxable).

If you figure that property appreciates in value by 10% per annum on AVERAGE, which means that some years it will do better, some years not so well, but over time, 10% per annum is reasonable for most of Europe, the UK, the USA and I believe most urban parts of Australia.

So in order to own a property portfolio that will appreciate by $250,000 per annum and that's 10% then yes, you've guessed it, you will need $2.5million worth of property.

And before you tell me that this is impossible, let me tell you about my great friends Greg & Andy, who took £10,000 on a 0% credit card, bought property under market value, did it up a little bit, revalued, refinanced, pulled their deposit back out and went again, which enabled them to build up a £37 million (that's pounds NOT dollars) within just 10 years.

if you visit our blog you can enjoy Greg & Andy's very funny story.

They can pull out £3.what is even better is 7 million per annum, tax free.

Do the sums for yourself because every year, the compounding effect kicks in, and every year, their portfolio is growing exponentially, and so then is their available income every year.

One way to make money from property without even owning any (great for people without a deposit, who can't get a morgage or who's credit rating isn't great) is to educate yourself about what makes a great property deal and then go and find those deals and then sell them onto investors with money but no time.

Another way is to find people who HAVE to sell, offer to buy their property at a future date at today's full market value, then find people who can't buy now but who can in the future (perhaps they are new to the country and haven't built up a credit rating yet) and then strike a deal whereby the future owner moves in and rents the property, but has agreed to buy it for todays price, but in two years time. You make money from both deals and often an income at the same time. On The Money Gym blog we go into this in more depth.

There is another way to buy property - guaranteed 405 or 50% under market value. This is not an income strategy in the short term but it could certainly make you a property millionaire within five years.

I hope I've fired you up about the possibilities for becoming a property millionaire - there are just SO MANY ways to make money from property.

Look for Part #3 of this article to enjoy the extensive information on Lane #4.

Related Articles
Author
Most Popular

•	Add Life To Your Years, by Mercola .com
•	Baby First Five Years, by John Wigham
•	Babys Book The First Five Years, by Dean Caporella
•	Babys First Five Years, by Nicola Cairncross
•	Countdown To New Years, by Chloe Ramsbottom

Nicola Cairncross has sinced written about articles on various topics from Finances, Finances and Alternative Medicine. Nicola Cairncross Wealth Coach, Author, Speaker & Founder of . Nicola Cairncross's top article generates over 14800 views. to your Favourites.

Buying New Home Checklist
Another aspect to consider especially if you have kids is are there any local schools or parks around the area where it will be much more convenient not only for yourself but also for your kids