There may be several different ways to divide this list up, but in my mind there are really only 6 ways to make money online. And note, I'm talking about basically running a home-based business, not working for someone else with some type of online job. (Not to say that there aren't opportunities there though, either through freelance work from www.elance.com, www.rentacoder.com, or www.mturk.com. Then, there is always tele-commuting, but that is not what the focus is here.)

Here is the way I look at this:

1. Monetizing a website by selling advertising space.

2. Selling affiliate products (information products and/or software)

3. Doing network marketing or mlm online.

4. Creating your own information products.

5. Having an e-commerce webstore, whether your own products or someone else's.

6. "Flipping" domains.

Certainly, people make great livings and create fortunes for themselves doing the last 3 on the list. Right here though, I'm going to focus on giving an over-view of the first 3, as those are the ones I am most familiar with.

Many cool routes to take this way, but it is all centered on one thing and one thing only: Content.

Just like the real estate mantra of location, location, location, for the internet it is all about content, content, content. Since the internet really is just a large web of information, you want to have as big a slice of the information pie as possible. And the way to do that is by having as much of what John Reese refers to as VRE or Virtual Real Estate.

By providing engaging, useful, and entertaining information in as many formats as you can, you expand your own VRE and capture and grow a fascinated audience at the same time. When purely providing content and information, you don't even have to be "selling" anything directly at all. Let the robots take care of that! (By automatically placing relevant ads around your content, for which you get paid when people merely click on the various ads.)

There are several platforms you can do this from, many different advertising tools to utilize on your platforms, and many ways to direct interested eyes to your stuff. The platforms to use are: your own personal site, or community publishing sites that share revenue with you.

For your personal site, I have a few recommendations. DEFINITELY get your own site (ie, your own domain name with paid hosting), and definitely run that site off of blogging software (I recommend wordpress). This way, you have complete control over the site and ads that you run, and don't need to share revenue with anyone else. The down-side is that it will take some time for this site to have good search engine rankings.

For more information on how exactly to set up your own blog, I have a whole series about this on various other hubpages, you can see the first one of my How To Set Up a Blog series here.

Your own blog will be the heart of all your efforts, but that will be in the medium to longer-term timeframe. By using some community publishing sites, and the various traffic funnels below, you can create short-term traffic and income while you build up your site. The great thing about doing this is that it ALSO builds up consistent long-term traffic as well!

The profit sharing sites I recommend are two: Hubpages and Affsphere article directory. I recommend hubpages over squidoo because hubpages has higher standards, and therefore has had more consistent traffic compared to squidoo. (ie, google likes sites that have higher standards.) Affsphere is a newer article directory site that is affiliate friendly, so they are more lenient when it comes to promotional activities.

The low down on hubpages (and squidoo) is this: You start your own pages for free (writing must be consistent with their terms of service), they have high authority in google that is somewhat passed to your pages, they display ads using your account in various affiliate programs, and you split the revenue in various ways. They leverage your (unique) content, and you leverage their authority. Win-win!

The one thing I will say is this: read their terms of service very carefully, and follow it rigidly. They have high standards, so stick to them!

Advertising tools to look into are:

• Google's Adsense - automatically runs related google ads on your site
• Kontera - automatically runs ads linked to from your content
• ShoppingAds - automatically displays related ebay auctions
• aLinks with CJ or Clickbank - automatically links your text to related affiliate products.

You can run each of the 4 types of ads above on the same page. For the first three, you are paid per click. For the third one, you are also paid for each new ebay account created. For aLinks, you are only paid per sale, but that pay-out amount will be many times higher than a pay-out for a click.

The great thing about each of these is that they are passive, and intergrate automatically into your site. I have more detail about setting each one of those up at my How To Monetize Your Blog page.

Note that once your blog is somewhat established and you have some consistent traffic, you can make deals with companies separately to display their ads on your blog for a monthly fee. That way, you won't be splitting revenue with google for those ads!

Traffic Funnel Ideas are:

• Use profit-sharing Community Publishing sources (squidoo.com, hubpages.com, affsphere.com)
• Free Blog Sites (just using wordpress.com or blogger.com)
• Article Directories (Ezinearticles.com should be your focus)
• Image Sharing Directories (flickr.com and photobucket.com)
• Video Sharing (youtube.com, revver.com, metacafe.com)
• Document Sharing (docstoc.com and scribd.com)
• Audio Sharing (itunes.com)
• Social Networks (focus on Facebook and Twitter)
• Social Bookmarketing (StumbleUpon, Digg are the largest)
• Niche forums (specific places about your topic, DON'T SPAM!, always focus on adding value)
• Related Blogs (search BlogCatalog.com or MyBlogLog.com, and get your own blog listed in each, tagged with your main keywords)
• SEO efforts (focused on Google results) [See SEO-friendly Blog]

If you focus on the locations above, so just one or two from each category, you'll reach people in as many various formats as possible, while not spreading yourself too thin. Generally, the top site for each category will account for 50 to 70% of the total traffic anyway, so even just focusing on the top site will get at least half the traffic, and the top two will usually get 80% of the traffic.

The idea is that you can link some of those to each other, and many or all of them back to your blog. Notice in search results if any of these secondary, off-site content locations is showing up. If so, focus on getting some links to those. Whenever tags are available, tag each site or page with relevant keywords. Sometimes, you can show up in a tag or category page. If that happens, you won't be the only site on that page, but at least you'll have a presence, and usually that will be on the first, second, or third page!

This is a great way to make money online, because you don't have to make up a product of your own, but can still share significantly in the money earned from a sale. In fact, for digitally delivered products, you will typically earn 50 to 70% of the sale price as your commission. Product owners can do this because: their marginal cost of production is almost 0 for a digital product, and your commission is effectively their "advertising" buget. Ie, YOU bare the advertising expenses, and they only pay a commission when a product is sold and they get paid.

Again, it is a win-win situation.

There are basically two methods to selling affiliate products: utilizing free (ie, "organic") search engine results, or using paid sources of traffic.

If you are going to go the seo or free search way, I have some advice for you. Start off with a focused blog, that has a sales page for the affiliate product. Better yet, do a review of the product (buy it and read or use it yourself first, you want to only promote solid to GREAT products) and link to the product with your affiliate link. (You will be given that when you sign up, more on that below). To "cloak" your link so that it is not obviously an affiliate link, I recommend Ninja cloaker.

Then, focus on using ezinearticles and hubpages to write content around that product, and link to your blog review. Be sure to do some keyword research first, and focus your titles, topics, tags, and categories around each keyword. Each hub on hubpages or article at e-zine articles should be focused on only ONE keyword. (But, don't "keyword stuff" either. Use the keyword in the title, in an h1 heading, and a couple times in the text. Also be sure to include synonyms equally as often. Make it natural.)

If you abide by the terms of service for ezinearticles right off the bat, you can get quick turn around after just 10 articles. (I mistakenly DIDN'T do this, and now must publish an additional 25 articles before I get quick service. Don't make that mistake, be on your best behaviour from the beginning!)

If you abide by hubpages terms of service, and focus on writing high quality hubs, you can quickly get a good to great "hubscore" which will help get more traffic. I learned from my ezinearticles experience, and started as a "prodigy" right off the bat. The keys are to only link to a given domain 2 times at most, write alot on each hub, and don't be overly promotional. Also, I would not recommend saving unpublished hubs and letting them sit. Write out your content ahead of time, then add to hubpages and publish right away. That will help boost your score too.

By focusing on ezinearticles, hubpages, and your own blog, and linking these three together, you get the quickest bang for your buck, and long term traffic to boot. People that find you from an article or a hub are "pre-sold", and you will have more people finding you that way first. Plus, your articles will get published more quickly, and your hub links will be set to "dofollow" instead of "nofollow" more quickly. If you spread yourself too thin and write content for too many places first, it will take longer to get these benefits.

Once you are a "Platinum" Ezinearticles author, and a "Prodigy" or "Expert" hubber that has dofollow links, then start spreading out to other "off-site" content sharing resources (as listed in the section above).

If you are going the paid search route, start with google's adwords. Google get something like 70% of search traffic, and rewards strong ads, so you can get lower advertising costs from here, IF you know what you are doing.

Here are the basic rules for using Adwords:

1. Start small, test, and expand only on what is working. Start with 5-10 adgroups, with only one keyword per adgroup
2. Split test your ads, write compelling ads that are benefit focused, and have the landing page be tightly related.
3. Each ad should use the keyword in the title, and possibly in the ad body or url landing page.
4. Expand on what is working, and kill what isn't.
5. Be aware of your competition: what their ads are like, what their landing pages are like, and what their sales funnels are like.
6. Capture e-mails and names on your landing page, so that you can market to the people who don't buy the first time they see your page (which will be most)
7. Use video on your landing page if you can. Best to have the video play automatically, and be placed on the left side with opt in on right side, and some text below that. (Having that can DOUBLE the leads you get, at NO extra cost).

So, what are the best affiliate products to promote?

Depends on your niche. For starters, look through Clickbank's Mall (and buy any product you plan on promoting first), and sign up for commission junction and look through their mall. (I think you need to have a webpage first to sign up for them). Another resource that has alot of affiliate products is paydotcom.com, and there are other malls as well.

Clickbank is the largest mall of digitally-delivered products (over 10,000), and cj is the largest affiliate network overall. (They have physical products as well as digital, and "lead" affiliate programs too. For those, known as CPA or Cost per action, you are paid when someone simply fills out an application, for example for a credit card or a mortgage. Something else to look into for you.)

Research your niche and competition by looking for related blogs, sites, discussion boards, e-zines, and videos. Research related products, and see if they have their own affiliate programs. (Many will have their own affiliate program only, and will not show up in any affiliate product malls.)

My top resources for pursuing this type of home-based business? I have three:

• Perry Marshall's Definitive Guide to Adwords - widely considered the most comprehensive on the subject, and it is only $30
• Chris Carpenter's Google Cash - Specifically about promoting affiliate products through adwords
• Commission Blueprint - Specifically about promoting click bank affiliate products only through adwords

As a side note, once you have some products that are selling well and you are profiting from nicely, you have another asset: DATA. Doesn't sound like much, but you'll know exactly what products are selling for what keywords. Then, you can focus on SEO-type efforts and target THOSE KEYWORDS SPECIFICALLY using off-site content locations and your own blog.

Yes, you can make money online promoting an MLM Business.

The great thing about using an online mlm method is that you remove the uncomfortable "make a list of everyone you know, including your third grade teacher you haven't talked to in 30 years, track them down, call them up, and invite them to a "party" process. That is the exact strategy that has given the entire industry such a bad rap in the first place.

Instead of "spamming in person" everyone who ever knew you, focus on bringing the business only to people who are: entrepreneur-minded, go-getters, people-persons, or professionals who are sucessful but have no family-time that you are close to. For everyone else, DON'T BUG THEM, they won't be interested anyway!

Beyond this, you need to market strategically, and for that there is no better medium than the internet. Using your own blog and creating content around that to get free search engine traffic, utilizing social media networks (ie, web 2.0), or highly targeted and strategic pay per click ads, you can reach THOUSANDS to TENS OF THOUSANDS of people who are actually INTERESTED in what you have to say. And when done properly, this can be highly automated.

Of course, this is still a relationship business, so you generally can't simply build a network marketing business by e-mail. But you can get your message out to them consistently and in an automated way, and when they are interested, they'll let YOU know. What a nice change!

Another important thing to do here is to widen your business, and have a "funded prosposal" system. The idea is that you can sell related, general training or support tools to some people who will choose not to join your main opportunity, which will offset advertising, or even put you in profit, while you generate your own highly targeted and exclusive leads.

My recommended resources here are anything that Mike Dillard has ever done. Check out two free video series he has put together: 7 day internet network marketing bootcamp and how to expertly and easily recruit, and carefully read his magnetic sponsoring sales letter too. You can learn alot just by watching what he does, and you definitely want to be on his mailing list too: very inspiring and crystal clear writing, something we should all model, whether you want to do network marketing or not.

Here's my last bit of advice: Tie ALL of this Together!

The more ways that you can profit from a visitor, the more valuable you are to them, and the more valuable they are to you. Another win-win situation, and one that allows you to reach more and more people as well.

Have a blog that is monetized passively, with targeted, high quality affiliate programs, and a top-notch network marketing business as your ultimate back-end. Use off-site content to build up your reputation, increase traffic, and pre-sell your audience. Use adwords carefully, and grow winning ads and campaigns, to dramatically and quickly increase your reach and profitability. Use social networking to further expand your network, make more friends, and mutually benefit each other. Have a way to automatically follow up with people over time tied into your blog.

Note that many of the top network marketing companies are VERY anti-internet, for a very good reason. They are afraid of people making crazy claims in writing using their product names and being shut down by the FDA or FCC. They can't control what people say on the internet, so they basically ban internet marketing. The only thing you can do in their name is to use "replicated websites", which they approve, and which are generally nice-enough looking, but HORRIBLE at selling.

You can get around this easily though: DON'T USE THEIR NAME! Just talk in general terms, with no hype, with no claims of any kind, and start building a relationship first. THEN, privately, refer your new friends to look at the business. Be real upfront, and people will trust you more quickly, and become friends and partners over time. To speed this up, use video whenever you can.

I'm trying out a new system now that includes brandable resources like professionally written capture pages, pre-written e-mail series by top copywriters, pay per click campaign management automation, and integrates funded proposal products and services automatically. Seems like a great system for internet network marketers, and comes with training as well. Coupled with my company's training and videos, my team's training resources, my own training and resources and knowledge, I think this will be an absolute winner! I'll be sure to write back here and let you know how it is going, as soon as I test drive it.

Need help finding the right network marketing company?

I have advice for you in a series of free reports that you can download by signing up at my Online MLM Blueprint Blog. (Note, even if you are not interested in MLM at all, and I understand that some people are not, I do have alot of other resources, tools, and information that are applicable to any home-based internet business.) My intro video is useful no matter what you are doing.

And, a final word: No matter what path or paths you choose to start a home-based businesss to earn money online, TREAT IT LIKE A BUSINESS. Invest in your own education, have a business plan, and execute your plan giving yourself a reasonable time-frame. Adopt the mindset "anything it takes" and committ to paying that price. Just imagine what is on the other side: the freedom to work from home, on your own terms, spending time with your friends and family as you want, and possibly earning multiple times what you now make. Ultimate control of your destiny!

If you are serious about creating this type of lifestyle (and I bet you are, since you read this whole page!), comment here, visit my site, and get in touch with me. I'd love to become friends, master-mind together, and help each other out! (And, I'm always looking for quality in content link partners as well).

I hope you've found this useful! To your success,