Service or product based business and consistent income!

[womaninbiz]

[Lynn Terry]

This should make for an interesting discussion

I do earn a consistent income, and I work solely online and from home. This is my 9th year in business. I've been earning money since the first quarter, but am earning more now than ever - and more consistently too. Most of that due to the fact that I switched to a more passive business model (turning to affiliate marketing to replace the income from a service based business).

I prefer not to disclose my actual income for a lot of reasons - I'm sure everyone has their own. I'm actually very content with what I earn at this point, which is approx 2-3x the standard income in my area (and growing). I'm not into the bragging or hype, but I do make reference to my income (in general) from time to time simply to encourage and inspire those who are working towards similar goals.

To answer your question:

What actually earns the most at this point, in the least amount of time, is Affiliate Marketing. Specifically using SEO (search engine optimization) to put the right products in front of the right market.

$40ka year is not an unreasonable income from a business venture - online or off. Whether someone can earn $40k in 90 days (I wasnt sure I understand that part of your question) depends on how much time they are willing to invest... and how much time they have already invested making the contacts and doing their research. Again, not unreasonable - but there are few that really "go for it".

As for who's making what, and who's full of hot air... we may never really know. I like to ignore the hype (unless it has some kind of motivational value to me for some reason) and really take away what I can use from any seminar or book or even article. I could care less what they make... as long as I end up with a nugget that helps me to earn more or do more or what have you, the value was in what I did with the information - not in how credible I think the author or speaker was.

I've had the opportunity to meet quite a few "online marketers" in person. They are very "real" - and it's interesting to put a face to everything you have known about a person through the internet. Some I've been even more impressed with in person (Perry Marshall comes to mind), and some I have not. Some people didnt change my initial impression at all when I met them in person - they were a "perfect match" to how I had envisioned them. I suppose its that way in any type of situation where virtual and physical meet up.

Long story short... there IS a lot of money to be made online - and as an entrepreneur, in general. Some people are doing it, some arent.

Along these lines, if you havent already heard it you might enjoy the interview that I did with Rae Hoffman (full time SEO and Affiliate Marketer) a couple of years ago. She is a very down to earth (fun - in person and online!) young woman with 3 children... who will "tell it like it is". You might enjoy it - I'll link it below:



Prepare to walk away educated and inspired about Affiliate Marketing! You'll learn the keys to choosing affiliate programs, coming up with keywords, pay-per-click and content-based sites, and much more. Rae also shares her #1 recommendation for anyone that is ready to get started. Find out why $60,000 through Affiliate Marketing alone each year is NOT a stretch - in fact, its just the beginning of your earning potential!

[PattyGale]

[Lynn Terry]

[WAHumor]

Income levels are most certainly relative.

In reality, the big moneymakers just make money and say nothing about it.

Nothing I've done to date would have been possible for me offline. I wrote a book and anticipate the start of another. Offline, the expenses are astronomical. I'm looking into the viability of some products that I could never manage in "the real world." I have a long way to go and several ways to earn my living online in the meantime.

The potential is there when one recognizes it and not before. Better yet, it's only getting bigger.

I too believe in the neccessity of passive income sources as an integral part of a healthy and growing online business.

Y'know, someone wrote a book about that I've been waiting for...

...and still am.

[Lynn Terry]

[johndilbeck]

I'm enjoying what I've read so far in this discussion.

I'm not earning anywhere near where I intend to earn, but I still haven't focused. I've been exploring and testing for the last couple of years to see how things work and what works for me.

I'm one of those "I'll believe it when I see it" type of fellas.

I got into online marketing when I decided to quit being a computer consultant. Every job I took required learning new skills and it was a rare job where I could leverage what I'd done on a previous job. I was starting all over every time.

When I quit, in 2000, I moved in an entirely different direction and went into full-time blacksmithing -- a tradition in our family that dates back more than 200 years. I have an interest in medieval knights and weapons, but, strangely, I earned more by making Steel Roses That Never Wilt (tm). I made my first one to give to my daughter as my Father's Day gift to her.

You can see them here, if you're interested:

http://TheRoseThatNeverWilts.com

I was doing well and had a backlog of orders from around the country when my Mom was diagnosed with colon cancer in 2002. What was supposed to be a six day stay in the hospital following her surgery turned into a 7 week stay because she suffered nerve damage during the surgery and could not walk afterwards. I made the decision to bring her back home and be her full-time caretaker. I also had to close my blacksmithing business.

Because of this, I had to learn how to make a living while staying in the house almost all the time. I'd done some affiliate marketing through Amazon.com to earn some extra spending money, but I needed to earn more than pocket change.

I've been studying affiliate marketing for about three years and I'm earning more in a month now than I did in my first year, and it's still growing.

But, I could still earn a lot more as a computer consultant, but it isn't worth the extra income for Mom to have to go to a nursing home. That's unacceptable.

So, I work from one room where I can hear her call me from the adjoining room.

I earn 100% of my income now from affiliate marketing and it's nice to earn even if I'm not working.

As a consultant or a blacksmith -- selling both services and products -- my income was limited to the number of hours I could work productively in a given time. If I was sleeping, goofing off, or sick, no income.

That limitation does not apply to affiliate marketing. As long as my sites are active and people are visiting, I'm earning a living. Now that I feel like I know what I'm doing, I'll be focusing more and building more niche sites.

I don't think someone can earn a large income in three months unless they have the money to drive a lot of traffic to their sites through paid advertising. And, even then, they won't earn much if their site doesn't convert well.

One thing to remember, $40K is not always $40K. Are we talking gross or net? There's a big difference between two people earning $40K if one is paying $1K for advertising and other overhead expenses and the other is paying $35K. It's the profit that counts, not the gross.

Some of the people who claim large incomes also have large expenses, so that has to be taken into account. Me working in my bedroom is different from someone else who has a staff of people helping and a large advertising budget.

To a person who is used to earning a salary, $40K may sound like a lot of money, but it is on the lower end of the scale for businesses, even for small-small-businesses.

I'm not earning what I want to earn, but I'm earning what I need to earn and I know what I'm going to do to increase my revenue over the next two years.

Affiliate marketing, in my opinion, is not a way to earn a fast income, but it is an excellent way to build a growing income over several years is one is willing to do the work and invest the money necessary to do so.

It takes at least $100K to open the smallest of brick-and-mortar businesses, but one can start an online affiliate marketing business for only one or two percent of that.

I started on a virtual shoestring because I'd depleted my savings before I got to the point where I had to "hunker down" and get some money flowing in. I started with a free hosting site and reinvested every penny I could while I learned what I was doing.

Now, after laying the groundwork, and building an infrastructure, I'm ready to get serious about building my marketing business.

How much am I earning? That's something only my accountant and the IRS will know for sure. I'm earning enough to do what I want to do for now, but I'm going to have to bring in a lot more before I can build my castle.

It's the first million that's the hardest -- or so they say.

I've found that it is the first thousand that's the hardest.

I'm looking forward to reading what others have to say about this.

All the best,

JD

[ChristyK]

[womaninbiz]

Thank you so much,

John, Lynn, Patty and Dan for posting so far. All of the information that each of you have posted is quite beneficial and makes a lot of sense.

In response to your question Lynn, yes I was referring to the fact of if it was possible to earn $40 K and above in under 3 months, but like you mentioned if someone is ambitious and hardworking enough and means business then of course anything is possible with the right prodcut/service or affilate business.

I am going to enjoy reading all of the posts that have yet to come. I apologize for my delay in responding to my own thread, but my little boy delivered 7 weeks early and was born on Wednesday October 26th, I was not let out of the hospital until Friday and have been running back and forth ever since to visit with him daily at the hospital.

So I did not forget to stop back and check my post for responses and I appreciate that all of you have responded, it's great information not only for me but others as well.

I too earn an income from an affiliate program, but my income is not yet consistent although in due time I know it will be as my affiliate downline is growing tremendously and I am doing more to draw attention to our product both through my virtually based business and offline as well.

I agree that the more you put into your business is the more you will get out of it in the long run and then you will be able to sit back (and not do as much work) and just reap the benefits of your earlier years of hard labor.

I look forward to reading other posts that will come up. Also I now get that inquiring about the big dogs incomes is not what is important because of course if I take their advice and work my business similarily/differently yet diligently then I also have potential to earn what they do and more!

I'll stop by again soon, bye now!


Scharlene

[Lynn Terry]

Congratulations on the new baby, Scharlene!!

[misspellingsmakemoney]

[jbsmith]

In my mind, you should set some goals in your life that go beyond just
money - then figure out how much you would need to achieve to reach
those goals.

For instance, if you want to experience the freedom of giving up your
current job - that's your goal, and to fulfill that goal, you may want to
earn 80% of current income witin X months.

In my case, I wanted to replace a six-figure corporate income and did that a couple of years ago.

In terms of what business model makes more sense.

In my case, it was a mix of products, services and affiliate marketing.

However, I will say this, leading with your own products is the method I highly recommend for a few reasons:

1. Having your own products will draw far more business options TO you
instead of you having to chase service or affiliate business.

2. Having your own product increases your credibility and perceived value
to your market (assuming your product is relevant and is good), which
allows you to get more for your services and get better conversions on
your affiliate marketing.

3. Creating or licensing a product gives you leveraged income. In other
words, you create (or license) once and it generates passive revenue for
you for months (even years) to come.
My own income split started at approx 1/3 for each of product, service
and affiliate marketing - now is much more like 65% product, 25% affiliate marketing
and 10% services (I have purposefuly limited them)

I cannot stress the importance in having your own book, ebook, report,
course, workshop, audio or video products out on the market in terms of
your overall business. Of course, you need to make sure it taps into a
real challenge in your market and sets you aside as offering a unique
solution.


Hope this helps...

Jeff

[KathleenGageSpeaker]

I have been in business for over 12 years (with an 18 month period where I joined a company to oversee operations then returned full time to my own company).

In the time I have had my business I have earned revenues both online and off.

I, too, earn a "comfortable" living from what I do. However, it has taken planning, focus, commitment, systems, follow through, etc.

My revenue streams come from keynote speaking, consulting, writing, product development, eProducts and corporate training. Although I make an excellent income as a keynote speaker I am of the belief that I cannot put all my eggs in one basket.

Over the last few years I have developed passive streams of income through my web presence. This has taken time but has been well worth it.

I don't believe the hype about "get rich quick." However, I do know that when you have systems in place you can literally make thousands of dollars in what appears to be incredibly short periods of time.

Recently, I launched a campaign in which I was selling one of my eBooks for the lowest price I ever had. I included multiple bonuses with it. In a matter of days I made a lot of money (several thousand), but there was a considerable amount of time invested in putting the campaign in place.

One thing I have found most useful, both online and off, is to connect my various campaigns in some way. What I often see people do is try something once and leave it at that, rather than figuring out how what they are doing today can benefit what they will do in the future.

Just a few thoughts from someone who does make money on the Internet.

Kathleen

[womaninbiz]

[Rembrandt]

Thank you! Thank you! Thank you!

This is a GREAT topic, and the info I've learned just from reading this thread is unbelievable!

I've only been promoting my online business (selling my own product) for about 3 months, and am just beginning to delve into the world of affiliate marketing. There's sooooo much hype out there, it's hard to know who/what to believe.

This is the kind of info I was looking for when I joined this group -- THANK YOU!