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How do websites make money?

There was a time not so long ago that a website was a way of getting an online presence and the question of how do websites make money never came up. Companies rushed to join the internet boom and it became the done thing to have your own website.

Although there is nothing wrong with a website that does nothing but give information about an individual or company there are ways of turning that dry site into a lucrative venture. Traffic to a website is essential, but there are ways to monetize that traffic also. So how do websites make money from traffic that comes their way?

Let me explain a little more…

Google has a great business model in terms of its advertising opportunities.

How do websites make money – Google Adsense

You can earn money by allowing Google to place relevant advertisements onto your website. Think about how do websites make money and also how does Google make money? For example if your website is about cars Google will place car related advertisements on your website. If someone should click one of these advertisements on your website you will get paid a commission. The amount you get paid varies, it could be a few cents to a few dollars. This is what Google call Adsense. Many people use this model to earn from their websites and some make their living this way.

Notice in this example there are some small red links at the bottom. These are Google adverts.

how do websites make money

Don’t think you can go blindly clicking the adverts though in order to earn more money. Google has detection methods which look for this kind of activity and it really is not worth the risk. If your adsense account is shut down you will find it difficult to start another in the future.

How do websites make money – Affiliate Products

Everyone seems to always ask the question how do websites make money? One of the more popular aspects on internet marketing is affiliate marketing. Ideally you should aim to create your own products to sell because not only do you control all aspects of it, but in the long term it can prove a lucrative model. The downside is that for some people creating a product does not come easy. For one you have to think up and idea and secondly you need to create the product. All this can be somewhat time consuming and people may be prone to give up.

So when thinking of another idea for how do websites make money let me show you a popular model you can use. There is an alternative to creating your own products and that is to sell a product that someone else has created. If you make a sale you will get a proportion of the value of the sale and so will the creator of the product. This is what is known as affiliate marketing. You join an affiliate network and get to promote one of the many products listed in the marketplace. The products can be advertised from your own website or blog.

How do websites make money – Membership Sites

The beauty of starting a membership site is that you can set yourself up to earn a recurring income. Imagine having 100 people paying you $20 a month to gain access to your content. Of course your content has to have something valuable in order for people to want to sign up. You can set a membership site on just about any topic imaginable. Common examples are health and fitness, internet marketing, dating etc. People may sign up to get your monthly dating tips or videos showing them the best way to go about getting a date. By creating membership sites you can easily find an answer to how do websites make money.

Keep in mind that you will need to keep creating good content. As soon as people feel they are not getting their money’s worth they will unsubscribe from the membership. Content is always the key with these things. Content can be made up of videos, articles, pdf reports etc. All of this can get you in the right direction to finally understanding how do websites make money?

How do websites make money – Sell Websites

If you have developed a site that gets a fair amount of traffic and is essentially a popular site, you can earn by selling it onto someone else. You don’t need a lot of traffic either. If the site is in a popular niche and in demand people will want to get their hands on it. Some people create a website with the main aim of selling it on.

When thinking about how do websites make money imagine this. Sometimes people don’t have the time or even the skills to create their own website. Creating a website is a long process. Not only do you need the skills to put it together you also need time to create the content. Some people find writing site content does not come easy to them. Also think of the time it can take to create a full blown website. Even WordPress takes time to set up.

You may just have the solution they are looking for. Your website could be the answer to their prayers. Websites can be sold on at a site called flippa.com.

How do websites make money – Sell Advertising

If your website is picking up traffic and is getting noticed then you may find that companies or even other site owners will be prepared to pay you to advertise on your website. They may have a small banner that they want placed on your website advertising their product or website. The answer to how do websites make money is in this model. Some will pay for example $20 or more a month to advertise on a website if it means they can take a share of your traffic. By now you should be picking up more ideas on how do websites make money.

How do websites make money – Sell a Service

If you have a particular skill then why not offer your services to others. Can you create a website for example? If so then offer this service on your website. Other ideas could be teaching yoga, creating graphics, make specialised Birthday cards, mobile phone repairs, proof reading documents, fixing computer problems etc. If you are offering value to others then you will find they are prepared to pay for it.

One of the biggest challenges when thinking of an online business is how to make it lucrative. As you can see from the examples above there are many ways of going about this. Keep in mind like anything in life it is best not to put all your eggs in one basket and explore other avenues of earning from your website. Diversifying is the key.

If you have been considering how do websites make money then I hope I have given you some ideas on how to go about this.

how do websites make money