How Do You Make Money On YouTube

Youtube’s really on fire. There are more people spending more time on the platform more whether it’s through the increase in Smart TVs or larger mobile devices. It’a become more mainstream for all ages especially teenagers, who are watching more YouTube than TV.  But how do you make money on YouTube? 

We know that video is such a dominant player that entrepreneurs and anybody that wants to build their influence online should be leveraging it.

However, it is not always obvious how you can make money on YouTube. Unless you are PewDiePie or Casey Neistat, you are or unlikely to pull in a huge endorsement or sponsorship deals.

But, you can still make money, if you know how to do it. I am going to show you how using real examples of YouTubers who are doing just that.

Free Guide

If you would prefer to read this information in your own time, please download my fee guide on How to Earn an Income from your YouTube Channel.

Affiliate Marketing

This is probably the easiest way to generate serious income from YouTube when you are just starting out. You don’t need to spend time making your own products. Instead, you are promoting and selling other company’s products for a commission.

Affiliate Marketing on Video falls into two main categories:

  • Promoting Physical Products
  • Selling Software and Information Products

Affiliate Marketing – Physical Products

No matter what niche you choose, there are likely to be physical products that you can promote through YouTube videos. By far the easiest way to earn an income, from being an affiliate for physical products on YouTube, is by producing unboxing videos and product reviews.

This can be electronics, jewelry, kitchen equipment, even garden furniture. With larger items, that need to be assembled, you can add ”assembling the product” to your video portfolio. This is especially useful if you are promoting a product that is great when assembled but is a little tricky to build.

A good starting point is to sign up as an Amazon affiliate (Amazon Associate). You can then provide links in your video notes so people can go to Amazon to by the product you are showing them, earning you an affiliate commission.

Although he is now known more as a YouTube marketing expert,  Sean Cannell’s Think Media channel was primarily set up on the back of promoting physical products as an affiliate.  

Check out his YouTube video ”Gift Ideas for Him”. The video is clever in that it addresses a real need – how to buy gifts for the men in your life – but also promotes affiliate product sales. This is a really good example of an affiliate marketing video that promotes physical products, but in a helpful way to the audience.

Sean offers a free Masterclass: 3 Strategies for Growing Your Audience and Income with YouTube in 2018

He also has a $7 course on how to make profit from reviewing physical products: Video Product Review Profits

Both are worth checking out.

What Products Can You Promote As An Affiliate?

You can promote, un-box and demonstrate pretty much anything. The higher value items such as TVs and digital cameras bring in higher commission but may sell in lower volume. Other items may be high volume but only for a short period, like new mobile phone releases or fashion items.

Amazon Affiliates

The commission rates Amazon pays aren’t the most exciting, ranging from 1% for video games and consoles up to 10% for some fashion items. Even so, you only need to make one video to promote a product to multiple buyers. If the product is a long-running item, this can keep on giving.

Etsy Affiliates

Etsy is another platform that offers affiliate commissions. If you are not familiar with Etsy, it is an online marketplace where people can sell products they have created, mostly arts and crafts. As an affiliate, you can make 4-8% commission by selling other people’s products.

The process is similar to Amazon, but the video process should focus on product detail and quality and maybe showing how the product looks in your home.

Affiliate Marketing – Software and Information Products

This is an area where many online marketers make their first income, including me. The commission rates paid for this type of product are usually much higher and can be recurring in the case of subscription software and membership sites.

As an example, if you get someone to sign up for a $100 per month software subscription that pays 40% commission, that can earn you $480 per year, per customer

Best Software Affiliate Programs

Here are some of the top software affiliate programs. As well as paying out excellent recurring commissions, they are also great products you can use in your business.

ProductCommissionRecurringPurpose
Kartra40%YesMarketing Automation Suite - Page Builder, Email Autoresponder, Membership and Course Host.
Clickfunnels40%YesSales Funnel Building Software
Spyfu40%YesGoogle Keyword and Ad Research Tool
ConvertKit30%YesEmail Automation Tool
Leadpages30%YesLanding Pages Software
Drip30%YesEmail Automation Tool

You will notice that all these products have recurring commission programs.  Remember, that if you want to make a full time income from YouTube, you need to look for recurring income sources. 

The best way to promote this type of product is through tutorials, that show people how to use the product, or a review of the product’s main features. A comparison of two or more products is also a good idea.  Here are some examples of tutorial videos I have made for Kartra.  These videos are primarily educational, but they also demonstrate the features of the product, which may encourage people to purchase it through my affiliate link.

If you watch these videos, you will notice the links in the description. These take viewers to my other relevant content, but they also include affiliate links for people that want to sign up for a Kartra trial.

If you would like to learn more about how to build a business around Affiliate Marketing, I recommend that you check out Pat Flynn’s course,  1-2-3 Affiliate Marketing

Note: I am an affiliate for this course.  This is because I have gone through it and recommend it to anyone looking to learn from someone who has built a sizeable recurring income through affiliate marketing. I do earn a commission if you sign up through this link, but it doesn’t cost you any more. 

Selling Courses

This is more of an indirect result of using YouTube, but it can be quite lucrative. You use YouTube as a traffic source to drive traffic to a landing or opt-in page, where people can sign up for your course.  This may start by using YouTube to grow your email list

There are many examples of people showing their expertise and track record of success in YouTube videos. They then take people off YouTube onto their website and email list to sell courses.

People will also use YouTube to host mini training courses that give a taste of what is available in the paid-for course they sell.

On his YouTube channel, Sean Cannell shares advice on how to get more views on YouTube.  He then links out to information about his course, ”Video Ranking Academy” which he sells to people who want to grow their YouTube channel.

Pat Flynn has a series of YouTube videos giving people tips on starting a podcast. People who want to learn more can sign up for Pat’s ”Power Up Podcasting Course.”

It is possible to combine this with Affiliate Marketing and sell someone else’a course. If you have gone through a particular course and found it useful, you can ask the course owner if you can be an affiliate, like I did with Pat’s courses on Affiliate Marketing, Starting an Online Business and Starting a Podcast.  If you want to check any of these out, please click here.  I highly recommend them.

Selling Membership Programs

This is similar to selling courses. You use YouTube as your traffic source. People view your videos, which may be examples of what is available in your membership site. This gets people interested and wanting more.

If they want more, they can become a member of your program and get access to more useful stuff that is constantly being updated and added to.

Again the key here is that this is a recurring income source. If you keep your members happy and wanting more, they will keep paying you to be part of the membership.

What Can You Earn From A Membership Program

Here are some numbers that you might find interesting.

If you charge $25 per month for a membership program, if you have 100 members you will be earning $2,500 per month

If you charge $49 per month for a membership program, if you have 100 members you will be earning $4,900 per month.

If you charge $99 per month for a membership program, if you have 100 members you will be earning $9,900 per month. That is a full-time income.

Advertising

Advertising, by signing up for Google Adsense, has been the staple income earner for many YouTubers over the years. However, Google has recently changed the rules on this as follows:

“You can apply for monetization at any time. To be reviewed, all channels need at least 4,000 watch hours in the previous 12 months and 1,000 subscribers. This requirement allows us to properly evaluate new channels and helps protect the creator community.”

So this is no longer a way to make income from your videos from day one. If you do have a sizeable audience and subscriber base, you can choose to sign up and get yourself some ad revenue. It isn’t going to make you rich on its own unless you find the next ”Gangnam Style”, but it will add to your other YouTube and YouTube-related income streams.

Patreon

If you don’t know what Patreon is, check out the video on their home page:

What is Patreon?

Patreon allows you to get paid by running a membership platform for your fans. With the patron platform, you can offer exclusive experiences to your viewers that they pay for via a membership. It’s like a VIP club for your most devoted followers.

It is much more effective when you have built up a following, but I have spoken to some YouTubers who say they earn several thousand dollars through the platform each month. You do need a fan base to really make an income from it, but it can work and is also a way for your fans to “give back”.  Also, if you can make money from Patreon, it demonstrates that you have a “loyal” fan base, who is happy to be a part of your brand.

Further Reading

I hope this gives you some ideas of how you can earn an income from your YouTube channel. If you want to learn more, please

download my Free YouTube Sales and Marketing Funnels Guide, which will take you through the actual steps you need to take to turn your YouTube viewers and subscribers into customers so you can start earning an income.

Can You Make Money Blogging?

So you want to know, “Can you make money blogging?” The straight answer is yes. There are thousands of people around the World who make a full-time income blogging.  Many more are making money blogging part-time alongside their full-time job.

Before you start your blog, you need to decide what you are going to blog about and, if you want to make money blogging, you have to find a topic that people want to read about. More to the point, you have to blog about subjects in markets where people spend money.

Typically these fall into three main “mega-niche” categories:

Blogging Mega Niches

Making Money/Lifestyle

Health and Wellness

Sex and Relationships

There are exceptions to these rules, but in general most financially-successful blogs fit into one of these three categories. The basics of making money from blogging, and indeed any online business is to:

Find an audience, provide that audience with value and then sell them something that is going to help them get where they want to go.

So let’s look at each of these mega niches and see what sort of blog you could build in each.

Making Money/Lifestyle

This covers the obvious topics like:  how to make and income online, investment strategies, real estate income, etc.  It can also cover things like: travel, working less and passive income strategies. 

Think about what interests you. Does it fit into these categories.  Lets look at some examples: 

This covers the obvious topics like:  how to make and income online, investment strategies, real estate income, etc.  It can also cover things like: travel, working less and passive income strategies. 

Think about what interests you. Does it fit into these categories.  Lets look at some examples: 

I will teach you to be rich -
Ramit Sethi

The title may give you a clue about the topic and it definitely fits into the money making category.

Ramit started off blogging about financial planning and introduced his audience to simple techniques to save costs and invest wisely. 

 

Ramit has also published a book of the same title, which is well worth a read if you want some no-nonsense advice on how to plan your finances. 

People pay to learn how to invest sensibly and ultimately make more money and Ramit sells a range of online courses and coaching on the back of his blog.

DIgital Photography School -
Darren Rowse

Digital Photography School is a lifestyle blog which teaches people how to be better at something they enjoy – digital photography.

Darren and his team earn income from affiliate relationships with camera equipment companies and they also sell paid training courses and classes on photography.

 

This recent article on the Digital Photography School blog may be of interest to anyone looking to set up a blog on photography.

People interested in this mega niche are looking to improve their lifestyle through making more money or achieving a better lifestyle.  They are also looking to learn new skills so they can be better at something they enjoy.  These are powerful desires, so people will happily pay to learn how to do these things.

Remember, its all about the transformation.  Ramit’s audience wants to be transformed into wealthy individuals through better financial planning.  Digital Photography School aims to transform it’s audience from beginners to expert photographers so they can enjoy the hobby more or earn an income from it professionally.

Health and Wellness

People spend an awful lot of money on their health and well-being. They long to lose weight or look younger.  They also want to be healthier or learn how to overcome a chronic illness or mental health issue.  This mega niche also covers fitness.

If you have an expertise in any of these areas, you can share it in a blog. People will happily pay for products that you promote or courses you offer if you can demonstrate your expertise in a particular health or wellness field. 

Some areas, like weight-loss are fiercely competitive, but there are specialist niches that offer opportunity to the new blogger. There is also a wide range of affiliate products that you can promote for a commission if you don’t have your own products.

Nerd Fitness -
Steve Lamb

Steve founded Nerd Fitness in 2009 blogging about fitness with an off-the-wall twist.  

Nerd fitness succeeds in the crowded fitness market by appealing to a very specific market – nerds, misfits and mutants.  Maybe mutants aren’t all that common but you get my drift!

 

Nerd Fitness makes money through online courses and 1-on-1 coaching programs.

If you want to learn more about how Steve built Nerd Fitness, check out his interview with Pat Flynn on the Smart Passive Income Podcast

Sex and Relationships

This may not seem as obvious as a mega-niche, but it is the place people turn to when they need help. This can range from people needing help to find a partner to bringing sex back into a marriage.  A relationship blog can document a couple as they travel or how they handle a divorce.

The money is made by offering training. I have a friend who is expert at erotic massage and sells a course for women who want to take control in the bedroom. 

 

Love and Life Toolbox -
Lisa Kift

This is a blog that provides advice around relationships and emotional health.  The site has a number of authors writing for it and sharing their expertise.

Here are the topics they cover:

Lisa earns her income through online courses and consultations.

How Much Money Can You Make Blogging?

Quite honestly, this is up to you. If you choose your niche carefully and put in the time and effort to create quality content, promote it and find ways to sell things that are of value to your audience, you really can earn a lot of money.  It does late time. Blog’s primarily rely on organic traffic, unless you want to accelerate things with paid traffic.  It may also be necessary to add other media, such as YouTube video or a podcast to drive traffic.

How Do You Start A Blog

You may already have a blog and are just looking for ways to make money from it.  If that is the case, then I hope you have found this article useful.

If you haven’t started a blog yet, then here are some additional resources that you might find useful:

 

FREE RESOURCE PAGES

Blog Resource

Learn how to start a blog and drive traffic to it through SEO and paid ads.

Sales Funnels

Learn how to create the perfect offer and drive qualifed traffic to it.

How to Make Money on YouTube

YouTube is a Serious Platform!

Cisco years ago did a report that said by 2019, 80% of the internet will be video.

Google just had a conference and released some new stats that Youtube is at 1.8 billion monthly active users that are logged in and watching over an hour of content per day on mobile.

Fool.com, the investing site, actually looked deeper into some data and discovered that Youtube currently is growing almost twice as fast in monthly active users than Facebook.

Youtube’s really on fire. There are more people spending more time on the platform more whether it’s through the increase in Smart TVs or larger mobile devices. It’a become more mainstream for all ages especially teenagers, who are watching move YouTube than TV.

Quick disclaimer – this review does contain affiliate links to products that I recommend. I only recommend products that I have used and that I think could be beneficial to your business. I receive a small commission if you click on any of the links and sign up for the product or service, but that doesn’t increase the price and may sometimes include special discounts.

So how do you make money on YouTube?

First, if you don’t want to read through this article and instead want to learn how to build an income from YouTube, using sales and marketing funnels, please download my FREE GUIDE.

YouTube, Make money from YouTube

We know that video is such a dominant player that entrepreneurs and anybody that wants to build their influence online should be leveraging it.

However, it is not always obvious how you can make money. Unless you are PewDiePie or Casey Neistat, you are or unlikely to pull in a huge endorsement or sponsorship deals.

But, you can still make money, if you know how to do it. I am going to show you how using real examples of YouTubers who are doing just that.

Affiliate Marketing

This is probably the easiest way to generate serious income from YouTube when you are just starting out. You don’t need to spend time making your own products. Instead, you are promoting and selling other company’s products for a commission.

Affiliate Marketing on Video falls into two main categories:

  • Promoting Physical Products
  • Selling Software and Information Products

 

Affiliate Marketing – Physical Products

No matter what niche you choose, there are likely to be physical products that you can promote through YouTube videos. By far the easiest way to earn an income, from being an affiliate for physical products on YouTube, is by producing unboxing videos and product reviews.

This can be electronics, jewelry, kitchen equipment, even garden furniture. With larger items, that need to be assembled, you can add ”assembling the product” to your video portfolio. This is especially useful if you are promoting a product that is great when assembled but is a little tricky to build.

A good starting point is to sign up as an Amazon affiliate (Amazon Associate). You can then provide links in your video notes so people can go to Amazon to by the product you are showing them, earning you an affiliate commission.

How to Make Money on YouTube, YouTube Sales Funnel

Graphic courtesy of Sean Cannell

Speaking of Sean Cannell, he has a really good example of an affiliate marketing video that promotes physical products, but in a helpful way to his audience.

Check out his YouTube video ”Gift Ideas for Him”. The video is clever in that it addresses a real need – how to buy gifts for the men in your life – but also promotes affiliate product sales.

Sean offers a free Masterclass: 3 Strategies for Growing Your Audience and Income with YouTube in 2018

He also has a $7 course on how to make profit from reviewing physical products: Video Product Review Profits

Both are worth checking out.

You can promote, un-box and demonstrate pretty much anything. The higher value items such as TVs and digital cameras bring in higher commission but may sell in lower volume. Other items may be high volume but only for a short period, like new mobile phone releases or fashion items.

The commission rates Amazon pays aren’t the most exciting, ranging from 1% for video games and consoles up to 10% for some fashion items. Even so, you only need to make one video to promote a product to multiple buyers. If the product is a long-running item, this can keep on giving.

Etsy is another platform that offers affiliate commissions. If you are not familiar with Etsy, it is an online marketplace where people can sell products they have created, mostly arts and crafts. As an affiliate, you can make 4-8% commission by selling other people’s products.

The process is similar to Amazon, but the video process should focus on product detail and quality and maybe showing how the product looks in your home.

Affiliate Marketing – Software and Information Products

This is an area where many online marketers make their first income, including me. The commission rates paid for this type of product are usually much higher and can be recurring in the case of subscription software and membership sites.

As an example, if you get someone to sign up for a $100 per month software subscription that pays 30% commission, that can earn you $360 per year.

The best way to promote this type of product is through tutorials, that show people how to use the product, or a review of the product’s main features. A comparison of two or more products is also a good idea.

Here is a link to a tutorial video I made on how to create landing pages using Karta.

Another good idea is to show how you use the product to perform a function in your audience’a business. You can further engage with your audience by offering a cheat sheet or mini-training on the product as an opt-in from your video.

You need to check that the product vendor has an affiliate program and is accepting new affiliates before you go to the trouble of making videos. If they have a program you should apply to be an affiliate. Once accepted, they will provide an affiliate link that you can add to your video notes. If someone clicks the link and signs up, they pay you a commission.

affiliate marketing course, 123 affiliate marketing, pat flynn

If you would like to learn more about how to build a business around Affiliate Marketing, I recommend that you check out Pat Flynn’s course,  1-2-3 Affiliate Marketing

Note: I am an affiliate for this course.  This is because I have gone through it and recommend it to anyone looking to learn from someone who has built a sizeable recurring income through affiliate marketing. I do earn a commission if you sign up through this link, but it doesn’t cost you any more

Selling Courses

This is more of an indirect result of using YouTube, but it can be quite lucrative. You use YouTube as a traffic source to drive traffic to a landing or opt-in page, where people can sign up for your course.

There are many examples of people showing their expertise and track record of success in YouTube videos. They then take people off YouTube onto their website and email list to sell courses.

People will also use YouTube to host mini training courses that give a taste of what is available in the paid-for course they sell.

Sunny Lenarduzzi talks about how she has built her YouTube business through a series of videos. She then links out to information about her course, ”YouTube for Bosses” which she sells to people who want to repeat her YouTube success.

Pat Flynn has a series of YouTube videos giving people tips on starting a podcast. People who want to learn more can sign up for Pat’s ”Power Up Podcasting Course.”

It is possible to combine this with Affiliate Marketing and sell someone else’a course. If you have gone through a particular course and found it useful, you can ask the course owner if you can be an affiliate. Like I did with Pat’s courses on Affiliate Marketing, Starting an Online Business and Starting a Podcast.  If you want to check any of these out, please click here.  I highly recommend them.

From here you can put together a review video on YouTube.

 

Selling Membership Programs

This is similar to selling courses. You use YouTube as your traffic source. People view your videos, which may be examples of what is available in your membership site. This gets people interested and wanting more.

If they want more, they can become a member of your program and get access to more useful stuff that is constantly being updated and added to.

 

Branding, Sponsorship, and Placement

This is a great way to earn an income if you have an established YouTube channel with a large, loyal audience. If your specialty unboxing or reviewing products and you have built a decent sized subscriber base, you can often get companies to loan or even give you products to review.

If you are really well known, companies may even pay you to unbox or review their products. Just take care not to compromise your brand by doing something that won’t appeal to your audience, or giving a positive review to a product you don’t really like.

Advertising

Advertising, by signing up for Google Adsense, has been the staple income earner for many YouTubers over the years. However, Google has recently changed the rules on this as follows:

“You can apply for monetization at any time. To be reviewed, all channels need at least 4,000 watch hours in the previous 12 months and 1,000 subscribers. This requirement allows us to properly evaluate new channels and helps protect the creator community.”

So this is no longer a way to make income from your videos from day one. If you do have a sizeable audience and subscriber base, you can choose to sign up and get yourself some ad revenue. It isn’t going to make you rich on its own unless you find the next ”Gangnam Style”, but it will add to your other YouTube and YouTube-related income streams.

Patreon

If you don’t know what Patreon is, check out the video on their home page:

What is Patreon?

Patreon allows you to get paid by running a membership platform for your fans. With the patron platform, you can offer exclusive experiences to your viewers that they pay for via a membership. It’s like a VIP club for your most devoted followers.

It is much more effective when you have built up a following, but I have spoken to some YouTubers who say they earn several thousand dollars through the platform each month. You do need a fan base to really make an income from it, but it can work and is also a way for your fans to “give back”.  Also, if you can make money from Patreon, it demonstrates that you have a “loyal” fan base, who is happy to be a part of your brand.

Further Readingyoutube sales funnels, make money on youtube

I hope this gives you some ideas of how you can earn an income from your YouTube channel. If you want to learn more, please

download my Free YouTube Sales and Marketing Funnels Guide, which will take you through the actual steps you need to take to turn your YouTube viewers and subscribers into customers so you can start earning an income.

How to Earn Enough Money to Quit Your Job

If you want to earn enough money to quit your job, you need to first work out your expenditure. Unless you have $100K+ in savings, you are going to need to cover your costs through income.

So breaking it down, what do you spend every month, this is what you are likely to have in terms of fixed costs:

  • Mortgage
  • Car Loan
  • Car Insurance
  • Cable TV
  • Health Plan
  • Mobile Phone Plan
  • Food
  • Gas/Petrol
  • Utilities – Gas, Electric, Water
  • Clothes, Eating Out, Gym Membership other entertainment.

In California, that sometimes adds up to over $4,000 per month. In the U.K. £2,500 is more likely. I suggest you take a look at your own expenses so you can have something to work from.

Remember that this doesn’t account for income taxes. Depending on where you are in the World, this averages out around 30% of your gross income.

So in order to get to $4,000 per month income after tax, you have to be earning around $6,000 per month before tax or $72,000 per year.

This number may sound like a lot, but let’s look at what you need to do to get to this number and why it may not be as difficult as it first appears.

“1,000 True Fans”

The “1,000 true fans” example, originally presented by Kevin Kelly, is well known, but what are the numbers behind it and how do they apply to different types of business. Also, how can this be used to show us how to get to that magic number.

So so let’s round things up. Instead of $72,000 let’s work out how to get to $100,000 per year. This allows some contingency and some spare money to enjoy. It also gives you enough money to cover some business expenses like advertising and software subscriptions.

Selling Online Courses

A business selling online courses is the easy one. If you have a course that costs $100, you just need to sell and deliver it to 1,000 students every year to earn $100,000 per year in revenue. If your course is $200 you only need to sell it to 500 students per year. This doesn’t sound too bad at all. Most, if not all of your sales will come from your subscriber list.

This could apply to a course in pretty much any area. You just need to select something that there is a demand for. Something people will pay $100 or $200 for.

You may need to give away a few things to build your email list and also to give your audience enough confidence to buy a course from you, but at least you have that target number. You will also need to keep adding new subscribers every year or bring out a new “follow-on” course that you could sell to your students.

Membership Sites

A membership site is a great way to earn a recurring income, while also serving your audience. Typically, if you have a lot of content that falls into a particular category, you can deliver it to your audience through a membership site. Good membership sites also include some personal time with the organizer. A sort of online group coaching. This allows you, the host, to field questions from members and also encourage more of a team feeling.

So let’s look at some numbers again. If you have a membership site at $30 per month, you need 280 members to earn $100,000 per year. Let’s take that up to 350 to allow for cancellations. If you add in a premium option, which involves some bonus items at say $70 per month, then that number of members required can fall to around 250 people.

Affiliate Marketing

If you are looking to build your income through affiliate marketing, the math works slightly differently.

If you were to refer your audience to 5 different software subscriptions that each pays you $20 per year in affiliate commission, you would need to refer 1,000 people who subscribe to all 5 products.

$100 per year per subscriber x 1,000 subscribers = $100,000 per year.

What is more likely is that they will each sign up for 2-3 product subscriptions each so you need more subscribers.

However, many of the most popular affiliate programs pay higher than this. Let’s look at some real examples:

Leadpages

Leadpages pays a 30% recurring commission. Their most popular “Pro” package is $49 per month for an annual agreement. So your monthly commission is $49 x 0.3 = $14.7 per month or $176.40 per subscriber per year.

Total Annual Income for 100 subscribers = $17,640

Find out more about Leadpages (affiliate link)

Kartra

Kartra pays 40% recurring affiliate commission and their Starter product is $99 per month. So your monthly commission is $99 x 0.4 = $39.60 per month or $475.20 per year.

Total annual income for 100 subscribers = $47,520 per year.

Learn More About Kartra

Try Kartra for $1

ConvertKit

ConvertKit pays a 30% recurring commission. Their 1k-3k subscribers’ package is $49 per month for an annual agreement. So your monthly commission is $49 x 0.3 = $14.7 per month or $176.40 per subscriber per year.

Total Annual Income for 100 subscribers = $17,640

Find out more about ConvertKit (affiliate link)

So if you were just able to get just 100 subscribers for each of these products you would be earning $82,800 per year.

That is just 100 subscribers. Remember earlier we were talking about 500 or 1000!

The beauty of this type of affiliate income is that it will continue each year. You will get a few people unsubscribe, but you will balance this will new subscribers if you keep promoting these products.

I am sure you have your own examples that fit your business model. If you would like to share them, please add them to the comments box below. If you would like to learn more about this topic, please subscribe to my email list using the link below.

Whether you are focusing on selling online courses, affiliate marketing or a blend of the two, this is an exercise worth going through so you have something to aim for.

When you are building an online business it often seems like there is some much to do. Writing endless blog articles, learning new marketing tools, posting on multiple social media platforms, building and managing an email list.

I have certainly become overwhelmed on a number of occasions. I am sure that you have all felt the same at some point. Having goals based on attainable numbers keeps me motivated. I hope you found this article useful and helps you stay motivated. Remember:

Quitting the day job you hate to do what you love, may be easier than you think

How to Earn an Income From Your Online Business

If you are serious about building an online income, you need to learn how to make money from your website and associated activities.

This can either be directly from the website, through things like affiliate marketing, or indirectly by using your site as a way to bring in visitors who will purchase things like ebooks or online courses from you. It will take time and, above all,  you must focus on producing content that is interesting and helpful to your audience.

Whichever method you use to monetize your online business, there are some fundamental things that you need to have in place:

  1. A blog platform that is well designed and full of interesting content that is relevant to your chosen niche. If you don’t have that, please take a look at my “how to start an online business” resource page.
  2. An idea of how you plan to make your money. (I will discuss this in the next section.)
  3. Ways to get traffic to your site.
  4. Tools to automate things like emailing your subscribers with offers or completing transactions so you get paid.

This last point is more important than you think. If you talk to many of the most successful online marketers, like Pat Flynn or Ramit Sethi, they will tell you that they wished they had started building their email list sooner. There is little point driving traffic to your site if you don’t have a way to add visitors to your list, so you can keep engaging with them.

Please take a look at my resource page on “How to Build an Maintain Email List” if you want some help with this.

Different ways to make money off your online business.

There are several ways you can make money through your online business, but it is worth pointing out that it may not happen overnight, unless you are very lucky. It takes a lot of effort and a fair amount of time to generate a consistent income from your blog platform, but it is worth the effort.

It is also important to note that the ability to generate income is a fundamental factor when choosing your niche unless your online business is just going to be a hobby. Some niches lend themselves more to money making than others. I recommend taking a look at Pat Flynn’s book “Will it Fly” which takes you step by step through selecting your niche and testing it with your market.

Here are the main examples of how you can make money from your online business. Later I will give you some examples of how this works with different niches.

Affiliate marketing

This is where you promote someone else’s product and receive a commission for it. The main advantage of affiliate marketing is that you don’t need to develop your own product to sell, so you can get started relatively quickly. The main disadvantage is that you are not in full control. An affiliate can change their commission plan or even close down their affiliate program and there is little you can do about it. This is why I recommend having multiple affiliate programs running at any one time. Even so, many of the most successful bloggers derive a large portion of their income from affiliate marketing. For example, you could become an Amazon Affiliate and recommend books and products. You could set up an Amazon affiliate account and have links to these products from your blog article. You only make a small percentage from each sale, but it you generate a lot of sales through multiple products, you could generate a healthy income.

A more effective way to generate an affiliate income is to use and review software tools that may be useful to your audience. If you place “affiliate links in these articles and our visitor purchases the product, you get paid a commission. If the product is a subscription, you often get paid for every month the subscription is in place, which can really add up. If you would like to know more about Affiliate Marketing, please read my article, “How to get into Affiliate Marketing”.

Publishing ebooks or books for sale

This requires a little more work but can be very lucrative if you have enough good content to make into a book or just like writing. It doesn’t have to be long, especially with an ebook, but it does need to contain valuable content for your audience. Some bloggers give their ebooks away for free, in exchange for someone signing up to their email list. This is a great way to build your list and prime your audience for something you are going to charge for. Others will sell their ebook or book to generate income. Typically this should happen once you have built up some trust with your audience. Start with writing blog articles to drive traffic to your site and build your list. Follow up by giving a few things away. Once you have a number of subscribers and regular traffic, then you can offer an ebook for sale.

If you are good at writing, this can expand into book publishing. Anyone will tell you that writing a book should not be taken lightly, but it is a great way to increase your credibility. If you want to know more, there are some excellent podcasts on the subject:

YoupreneurFM: Marketing you Book all the way to the Bestseller list with Jay Bauer.

Side Hustle Nation: How Book Marketing Really Works – Tips from a 6-figure self-publishing Author.

Advertising

This is where you allow ads to be placed on your blog by the likes of Google or Amazon. This happens automatically once you sign up for the program and when one of your visitors clicks on a like and buys something, you get a commission. Like affiliate marketing, this is easy to get started with because you are using a ready-made program rather than building your own product.

I am not a great fan of this because it can get expensive and can be difficult to get right, but if you have a budget and want to build up traffic quickly, it can work.

A lot of people use Facebook ads and, more recently Twitter, Instagram or Snapchat as a way to drive traffic to their site. I am definitely not an expert on this so I recommend you check out these podcasts:

Amy Porterfield: Your Facebook Ad Questions AnsweredMedia Marketing Podcast: Instagram Ads: What Marketers need to know.

Or if you are in the business to business space: Marketing School: How to Use Linkedin for Marketing

Developing and selling online courses or coaching

Like writing ebooks, this can take a little longer to build and also does require you to establish a degree of credibility before you will be able to get people to buy a course from you. Like an ebook, you can build a course from content you already have and can promote it via your blog or email list. If you have a large list, courses can be very lucrative, because you only have to write it once, but you can deliver it to a large number of paying customers.

I recommend you test your course with a select audience before you release it to your entire list, maybe for a reduced fee. That has two advantages. 1) you can get feedback from your target market which will allow you to fine tune the content. 2) This select group will really appreciate the opportunity to interact with you and contribute to the course material.

You could also sell your time and expertise through coaching. On your site or in an email you send out you could offer the opportunity for “one on one coaching” have a link where people could book you for virtual coaching sessions. This is more time consuming because its one-to-one, but you may be able to charge more per session, because of the personal attention. The bonus in that is you will really engage with your audience and start to see the same struggles, topics & questions come up that you can build into your courses and articles.

One of the best in the business in Ramit Sethi. He has built up a loyal following, some of whom will happily pay thousands of dollars for one of his high-end courses: www.iwillteachyoutoberich.com. Don’t be fooled by the name. Most of his content is free and I have found it very helpful in building my business.

Sponsorship

This is one of the indirect methods available to bloggers and is usually through getting someone to sponsor a podcast episode or online video. Again, you will need to have a large audience to lure in paying sponsors, but it certainly helps to fund these activities.

I am sure you know of other ways to make money from your blog, but these are the main ones.

How do you Build an Income in Your Niche?

I want to show you how you could make money from your blog in a particular niche. This may not be your niche, but you can go through the same steps with your chosen niche. The formula is pretty much the same, although, as I said earlier, some niches will be more profitable than others.

Let’s take the example of personal finance:

Many people are interested in personal finance. They struggle with things like budgeting and getting through the month without spending more than they earn. Do some research on what others are saying, maybe listen to podcasts on the topic. Is there something you have done that has really made a difference to how you manage your finances?

You could start by writing a blog article telling your story about how you got into personal finance. Maybe you were finding you had a student debt to pay off or you were living in a high rent area for work but didn’t earn much — how did you deal with it? You may have found inspiration from books on the subject. You could set up an Amazon affiliate account and have links to these books from your blog article. Note: If you send someone to Amazon to buy your book and, while they are there, they buy other stuff – you make a commission on the entire sale!
You may have found certain tools that help you plan your finances. Check if they have an affiliate program that you could sign up for and earn commission from people who take your advice.

At the end of the article, you offer your readers a Monthly Budget Spreadsheet how to manage your finances in exchange for their e-mail address, so you can start building your email list.
Before you do that, you could do a weekly or monthly newsletter with tips and recommendations, maybe include links to some of your other content as you produce it. You could also include links to books, tools, subscriptions that you have used and recommend. Again these could be affiliate links that earn you money.

Keep writing more articles on different subjects around personal finance. Include links to other material if you think it is useful, even if it is from another site. This may seem strange, but it provides extra value to your audience which they will thank you for. You may also find that the person who owns that material could link back to you which will increase your search engine rankings “SEO”.

You could also self-publish an e-book. This could be a combination of several of your articles that cover a specific topic. An example would be: “20 steps to fix your personal finances.” I am sure you can think of a better title. Take a look through the articles you have published and see what articles fit into a topic. You can then put them together into sections or chapters and add extra content to fill in the gaps or connect things together. Don’t try to charge too much for your first book. You are still building credibility. Also, put a few free copies to select people on your list in exchange for feedback. You will be surprised how much they will tell you that will allow you to improve the ebook, prior to sale.

You could also sell your time and expertise through coaching. In the personal finance space, you can offer a 1 hour per week ‘personal finance analysis’. At the end of the coaching program, people can expect to have a defined plan for getting their finances in order with steps and timelines. Running a series of coaching sessions will likely tell you what the main challenges are that your audience is facing. This will give you some material to build an online course on “Fix your finances in 30 days ” that you can sell to your list. The advantage here is that once you produce your material, you can run a series of courses and make money each time for very little extra work. I encourage you to test the course first with a select audience. I also find courses where the course writer (you) is actively involved throughout, get much better results and feedback.

Further Reading

Blog Article: How to Earn Enough Income to Quit Your Job