Earn Money Online . . . Maximize Profit Potential

When you set out to earn money online, you want to do all you can to ensure that you'll be profitable.

Major factors influence profitability and time frame for success include:

  1. How hard you are willing to work . . . and how fast you implement your plan.
  2. The niche you choose.
  3. The profit margin from each action on your site (sales, clicks, etc).
  4. How well you convert your visitors to action


You will be most productive if you have a plan . . . daily, weekly, monthly and yearly goals with specific action steps for each goal . . . and if you follow your plan.

Strong Market Niches

Another way to boost profitability in order to earn money online is to choose a strong market niche. Historically, proven profitable site theme winners include the following 9 categories.

Of course you aren’t limited to these. (There are many, many micro niches that can be very successful.) They are suggestions that may increase your profit potential.

  • Business to Business Sales/Marketing/Operations
  • Business Opportunities
  • Health and Wellness
  • Improve Your Credit Score
  • Internet Marketing
  • Investing and Trading (i.e. stocks, commodities, futures
  • Real Estate (investing or buying/selling a home in today’s market)
  • Saving Money
  • Sex and Relationships

Profit Margin

You’ll need to balance competition (supply) with margin and traffic potential (demand or number of searches). All three affect how soon you can earn money online . . . they are connected.

If you choose a niche that has small payouts, then you’ll require more traffic volume to make money working online . . . and the opposite is true.

For example, if you sell something that retails for $300, and you make $70 on each sale (a high margin sale with approx. 23% commission), you’ll need to make 28 sales a month to make $2000. That means if you convert 1% of your traffic into a sale, you should attract 2800 visitors monthly.

Higher margins usually mean higher competition. So if you are a newcomer, ask yourself if you have the knowledge or skill to compete in such a niche. If you don’t, it’s easy to get disheartened.

Conversely, if you sell something that only pays out $4 a sale and you want to make $2000 a month, you’ll need 500 sales monthly. If you average a 1% conversion rate, you’ll need to attract 50,000 visitors monthly.

Of course, most Internet entrepreneurs don’t rely on selling just one product or service. They usually diversify with several different ones. But it’s important to be aware of the connection between competition, margin and traffic.

To Earn Money Online, First Research the Popularity and Competitivenss of Your Market Niche

A way to check whether people are able to make money working online in your interest area is to use Google Sandbox This tool is designed for those who want to use Google Adwords for a Pay per Click campaign. But you don’t have to use it for that. You enter the keyword term that represents the market niche you are interested in, and it will generate information not only about that specific term, but related terms. And, more importantly, it will show you how much advertisers are paying for each click. If they are paying a reasonably high price per click, you know they are making money. In short . . . the more it costs an advertiser for a click, plus the higher the search volume . . . the more popular that term or market niche.

A more scientific method. . . you can also use Yahoo Search Marketing to check the profitability of your site theme keywords. Unlike Google, Yahoo lets you check the bid spread. (More on this in a moment) Use the "view bids tool" in Yahoo Search Marketing. (Note: You’ll have to sign up for an account with Yahoo and pay $30 before you can use the tool. But you won’t be charged anything more unless you actually start a Pay per Click campaign.)

While bid pricing is one measure of competitiveness, another more important measure when choosing a market niche is a relatively high price combined with a fairly low bid spread for the first 8 to 10 bids. This spread is calculated by using the standard deviation function found in any spreadsheet. You don’t have to understand this function . . . but if you are interested in what shows, according to AnswerBag.com, it “is a statistic that tells you how tightly all the various examples are clustered around the mean (middle or average) in a set of data. When the examples are pretty tightly bunched together and the bell-shaped curve is steep, the standard deviation is small.” (In other words, there is more agreement among the respondents) “When the examples are spread apart and the bell curve is relatively flat, that tells you have a relatively large standard deviation.” (There is less agreement.)

Earn Money Online with Profitable Products for Internet Auctions

Finally, a way to check out profitability for Internet auctions . . . finding a good niche that will bring in traffic and finding a highly profitable niche when it comes to selling products are vastly different things. For example, there are probably many people looking for USB cables for their mp3 players. A niche like this will attract plenty of traffic to eBay. And there is also the likelihood of getting new member sign-ups through this niche. . . but mp3 player cables are only $4 to $5 items and don’t produce much of a commission. What you need to earn higher commissions is an in-demand item that sells on eBay in the $300 range and above.

Find these profitable Internet niches by looking in eBay Pulse It will show you what’s popular and being watched the most for different categories. You can also use eBay’s “Completed Listings” to find out if things are selling in your niche. If all looks good, add it to your list of stores to be developed . . . ones that can help you earn money online.

Also, while we're discussing profitability, don't forget the importance of finding good drop shippers if you are considering opening an online store.

If you follow these tips you increase your chances of building a profitable site when you set out to earn money online.

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