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If You are NOT making MONEY ONLINE - Here is Why

Updated on October 16, 2011

What You Won't be told about Making Money Online

About Me: I've been working from home full time for nearly a decade now, and this is my job, my only job and yes it supports me and my family.

NOW BEFORE I GET STARTED: Because it's a Sunday and I'm a bit tired and worn out from this past week I probably will ramble a bit and this won't be as pretty as most of my hubs, so if you don't want to work your brain a bit... then you should probably go and read yet anther Weight Loss or Recipe Hub written by someone trying to push yet another book on Amazon.

Now that you know that and have gone through your "who cares" moment, let me cut to the chase. What I am about to share with you has nothing to do with me and everything to do with you. And why you probably (Yes I said probably, will never be able to work from home full time).

First off this is not to discourage you but rather to help you NOT WASTE TIME.

Who wouldn't want to work from home right? It sounds great, you just get up in the morning, get yourself a cup of coffee and turn on the PC... your word day is just about to get going. And you didn't even have to fire up the car. You might still be in your pajamas, you probably didn't put on any makeup, maybe you haven't even fed the dog. Wow this is relaxing I could really get into this lifestyle right?

Now what do you do? Well what do you do? The computer is on and you are at home, you have the internet connection, what do you do?

If you are like most people you don't have any idea what do to so you go online and type in "Make money from home" or "Make money online" and you start to read. But what do you find in your efforts? You find the same old thing over and over.

And it usually goes something like this:

Make a website, find some products, then go and try and find some people to come to your website (Traffic). The most asked question in online Forums about marketing is "How do I get more traffic". I need more traffic! Of course you do... but what will you do with your Traffic? That's right the traffic will all be sitting there with their credit card in hand ready to buy what you have linked to on your site right? WRONG! But I'll try and remember to tell you why in a bit.

Now for some Cold Hard Reality (Again not to Discourage You)

Making money online is hard, damn hard. Why? Because most people are simply not good at marketing, and they are even worse at sales. Most people do not have very good Graphic Design Skills and they are even worse at writing, and by writing I mean compelling Ad Copy that will encourage people to want to take action on their offer. Without that compelling action you are just another website out of millions of similar websites. And occasionally you might make a sale, but it's more out of sheer luck and statistics than anything you did to make in happen. In fact I grin every time I read about the person who "Sold" something on Amazon and they didn't even have a link to that item. Wow! That's because they didn't sell anything, they used the power of luck and the fact that Amazon has a huge Brand and a ton of product to have the sale just happen.

Let Me Get More Specific

I am not here to sell you anything at all in this article. There are no affiliate links, no special offers, no enticing ad copy. Yeah there are Adsense Ads but I am NOT targeting any keywords in this article specifically. Make money from home or Make money online are the only keywords I'm bothering to intentionally include and I am not doing any research on them, because I already know they are searched. So what?

Can You Buy the Information you need to Make Money Online?

Probably not. Have you heard of ClickBank? Probably if you are investigating working from home, but if not them probably not. ClickBank is a digital information distribution source. They have sold over 10 Billion in Digital Products online over the past decade. That's a lot of cash flowing from people who want to make money online to the people who are making money online. And this should be your first clue. The real money being made is in SELLING SHOVELS TO THE GOLD RUSH, NOT MINING FOR THE GOLD.

Most of you just caught on to what I mean, if not it's simple - The people selling the information are making money from people buying the information, not from actually doing what they say they can do. It's all hype and hyperbole. Kind of the same thing. Most of these "Experts" couldn't actually make any real money doing what they tell you to do. But they hire copywriters and they hire graphic designers, and they may even hire ghost writers to put together a package of "How To" information that seems very compelling.

Fraud Fraud and More Fraud plus the Salty Droid Calls them All Out

The biggest example I can think of is a guy named Jeremy Johnson from Utah (The Fraud Capital of the World). He has amassed over $300 million dollars selling "How to" information online over the past couple of years. And his big seller was the "Obama Grants" type ads. You see them online on the major websites. These products are a total fraud. The information is useless and this guy is going to be in Prison just like the now deceased Don LaPre. He took people's money, over billed their credit cards, then never answered the complaints when they rolled in. There are several telemarketing companies these fraudsters hire to do their dirty work. It seems so legit on the surface but it's a total fraud. If you want to learn more about why you won't make any money with these scan visit the Salty Droid. It's entertaining, but uses a bit of naughty language that may offend some of you (You've been warned). And no it is not an affiliate site, far from it.

Stuff that Kills your Chances to Make Money Online

Security Software and Anti Spam Software and Malware Prevention Software

Those are some big words, but basically anyone who is not using some kind of Anti Virus (I'll just include them all in this phrase) software is going to have the enjoyable experience of having their Operating System hijacked and their computers rendered useless over time. In my own experience I've lost days to computer viruses even though I run the software to prevent them. There is this element of humanity that thinks it's going to make money by ruining your computer and somehow trying to trick you into buying their fake anti virus solution, which they just covertly put on your unprotected computer. And this occurs because there are few laws to prevent it and because companies like AMERICAN EXPRESS, VISA, DISCOVER, and MASTERCARD could careless... oh let me not forget one of the biggest offenders PAYPAL. The criminals must process payments somehow and the credit card companies are complicit in the fraud because they make money off of it. If there were no payment gateways the scams wouldn't work... but back on point.

Security software strips out Cookies (little pieces of code that companies use to keep track of sales so you can get paid a commission). As soon as that code is gone your commission is gone and you do not get paid. It's estimated that a full 1/3rd of all Affiliate Marketing Cookies are stripped out before the customer makes a purchase.

Not Understanding Numbers

This is a big deal. People do NOT understand basic math concepts. They go to Google Adwords and do some keyword research. They see that some phrase gets 40,000 searches a month and then the pretend flawed math kicks in. If only I could get the #1 Ranking in Google (Which doesn't exist by the way... hopefully I'll remember to explain that later), I would have 40,000 visitors. Then if "only" 2% of them bought from me I would have 800 sales and then if I got $20 commission per sale I'd make $16,000 every month. Boy this affiliate marketing stuff is going to be easy. Then they make their site, put those links up, and try to figure out how to get the traffic. It's all so very simplistic... just the math.

And here is the Math...

America Online Released a study about the percentage of click through based on Search Engine Position. And the reality is the numbers are not what people WANT them to be. The first spot gets about 40% click through. So in the above example those 40,000 become 16,000 visitors (40% of 40,000). The #2 Drops to about half of that. So you now have 8,000 visitors. #3 half again. By the time you are in #10 it's 2%. Now granted you can still make money, but it's not the math people are thinking of... and here's more on why.

Lets say you do get 10,000 visitors. They go to your Home Page (Actually not as good as going directly to a page with an offer on it). You have the people on your site. Now what are they going to do? Well in reality they are going to take 5 to 6 seconds to scan your site and see if it looks like something they may want to stick around to read. And guess what? On even the best sits half of them are gone in 5 to 6 seconds. So you now have 5,000 visitors. And of those 5,000 you manage to get them to click through to another page on your site/blog. And what do they do? That's right they take another 5 to 6 seconds to scan your content to see if it matches what they are looking for... and again about half of them leave. And they have only made 1 click so far.

So we have 2,500 people reading something that matches their interests. That's great. But now you have to get them to take some kind of action. How many of those 2,500 can you get to click at least one more time? Let's say half again... which is incredibly high and lets even give you the benefit of the doubt that what they click on is an advertisement say a Google Adsense Ad. That's 1,250 clicks. And at 10 cents a click you just made $125! Awesome. You made a site, you got your site ranking, and you made $125 for the MONTH! How long did it take you to make your site and get it ranked? What does that work out to per hour? You getting rich yet?

Lets flip that example into an affiliate sale that pays $20 commission. You have a 2% conversion rate (which is high by the way). So you have 2% of 1,250 people who buy. That's 25 sales or $500. That's a nice return depending on how much effort it took and if you can sustain it.

Now lets go back and before I forget let me tell you why #1 is not #1. When someone searches Google for a Keyword Phrase the result they see may not be the result you see when you do the exact same search. And here is why. Google uses cookies to track people as they browse from site to site. So they are in effect tracking their behaviors. They know how long they are on a site, and how often they search and research. People do not know how to search so they just re-search by typing in a new phrase until they finally see something that interests them. Which is why if you are on the 2nd or 3rd page of results it doesn't matter, you have to make the first page. Google also knows where these people are from geographically and they use that information. So they custom match the search to the user not to the phrase. Read that again. They match search to the user not the phrase. So there really is no way to always be #1 for a search phrase because search is a MOVING TARGET. Sure one big company may get 90+ % #1 ranking for a particular phrase, but even so they still might not always be number 1.

Well I've kind of lost my train of thought on this.. should probably be watching football.


Submit a Comment
  • teutophile profile image


    6 years ago

    This was a very useful article. Lots of good insights here. Thanks.

  • gailalovesbijou profile image


    7 years ago from Wyomissing, PA

    Interesting and informative, even with some of it missing. I love working from home, writing, doing my thing, but making some decent--even part time--income from it is important. Liked your laid-back approach to the writing of this hub. Thanks for sharing your knowledge! Voted up, useful, and interesting.

  • KoffeeKlatch Gals profile image

    Susan Hazelton 

    7 years ago from Sunny Florida

    Terrific article, great advice and tips. You are so correct about the moneymaking not going exactly the way you think it will. I tend to underestimate or just let thing take their path.

  • MikeNV profile imageAUTHOR


    7 years ago from Henderson, NV

    Again unfortunately about a third of the article got cut off and cast off into cyber emptiness.

    The point is not to completely discourage people, but rather to set real world expectations based on real world experience. There are people making money online, big money they are called Corporations! Individuals can make money online as well... but the opportunity as an affiliate marketer selling other peoples products really needs to be put into perspective. There are so many pitfalls... and once you send a customer off to an affiliate they basically start emailing them direct so you are cut out of the loop. It's a tough business. Thanks for the comments.

  • profile image


    7 years ago

    Great article, your explanation of the math was super concise and easy to get through...and very informative! I'm definitely going to pass this on to a few of my friends who have big (pipe) dreams of making a killing online...

  • quicksand profile image


    7 years ago

    Great article indeed. The Internet certainly is addictive. Lol, the first year yielding $45.00 is enough impetus to keep one going! Thank GOD we start off as part timers! Awesome, and voted up too.

  • Jed Fisher profile image

    Jed Fisher 

    7 years ago from Oklahoma

    Awesome article, liked the tips!

    I'm already making a couple dollars here and there, online, if publishing eBooks counts.

    Problem with my ad campaing is, Goog won't let me put Amazon as the landing page so I have it landing on a hub, an article about the eBook, with an Amazon ad at the end. Horrible, but it seems to be working okay so far.

  • MikeNV profile imageAUTHOR


    7 years ago from Henderson, NV

    Thanks, sadly a large portion of my article was cut off for being too long. Usually I write in Word then copy it over, but not today. Lesson learned.

    The exact numbers are less important than the concept... which is people use the Web to research and are not just surfing with credit card in hand. To make money online you need a large amount of traffic to follow the Click Path - from finding your site, to your content, to your affialiate partner, to their content, to their sales path, then to the commisionable sale... then wait to be paid.

    It's not easy.

    I also know most people will not get much out of this article because it is too long so they won't read it.

  • LindaSmith1 profile image


    7 years ago from USA

    Interesting hub. I am not going to try to comprehend the math, but point well taken. People do not have a long attention span. One owner of a company told me at minimum, it takes 1000 viewers usually to make one sale.

  • MikeNV profile imageAUTHOR


    7 years ago from Henderson, NV

    Crapity crap. Hubpages cut off the article for being too long. Damn them. One more reason why your own blog is better than someone elses.


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