Home Business Ideas Make Money Online (Basic 8 Ways) - How Websites Earn Money

Make Money Online (Basic 8 Ways) – How Websites Earn Money

In this digital world, we are so much dependent on the internet. There are millions of websites people use on a daily basis.

They are a very important part of our social, professional as well as personal life. With the rapid growth of dot com trend, many businesses emerged online.

Later, many websites were created and people started earning money online.

how-to-make-money-online

There are a lot of websites providing many facilities where we can shop online, book tickets, entertain ourselves, search for the latest trend and news, and much more.

Contents-

  1. E-Commerce
  2. E-Services
  3. Affiliate Marketing
  4. Lead Generation
  5. Membership
  6. Advertisements
  7. Donations
  8. Data Mining
  9. Conclusion
  10. FAQs

The Myth about How Websites Earn Money

The people who are not familiar with the inside facts about the online world think that the earning of a website depends on visits via search engine results or when a user enters its URL in a browser.

People also misunderstand that the websites get paid for every download of an image, audio, video, document, application, etc.

Most of the people think that all the popular websites such as social networks, news providers, international blogs, and free service providers earn a huge amount of money online.

websites-earning

Logic behind “How to Make Money Online?”

But, none of these facts is true because you visit these websites free of cost, and the fee of your internet connection goes to your Internet Service Provider (ISP).

So the question arises that if we don’t pay a penny to any website for providing web services, then how do they survive on the internet?

Basically, when users visit a website, its traffic increases and this traffic is used to earn money online through different methods with a proper business model.

websites-earn-money-through-user-traffic

Let’s discuss the key methods used by all websites to make money online.

1.  E-Commerce

E-Commerce stands for Electronic Commerce. Basically, it means purchasing and selling a product online. There is not any physical shop or store in e-commerce.

In fact, people can operate through their own e-commerce website or register with a popular e-commerce platform as a seller to list their products online.

So, Anybody can visit an e-commerce store from any location of the world through the internet. It is a very convenient as well as rapid growing business today.

So, the traders showcase the products they want to sell on the website with proper description, user guide as well as reference images so that the customer can analyze and make a decision to buy the product.

You can place the order on the website and also pay immediately through online transaction or at the time of delivery of the product.

People can select a proper niche or add a broad variety of products on their store and earn money with this e-commerce business.

For example- Amazon, Flipkart, Myntra, Snapdeal, etc.

ecommerce-store

2. E-Services

E-Services stands for Electronic Services or it can be called e-commerce for the service sector. The business model is very similar to e-commerce, but there is only one difference.

People provide services instead of selling products on their own website or register themselves as a service provider on a popular running platform. Those platforms are aggregators.

There are many services which are provided online such as traveling, hotel booking, online ticketing, public transport, food delivery, real estate, insurance, etc.

For example- MakeMyTrip, Oyo Rooms, BookMyShow, Ola Cabs, Zomato, etc.

3. Affiliate Marketing

Affiliate marketing is one of the fastest adopted methods to earn money online which is very often seen on blog websites or youtube channels.

In this method, people don’t sell their own product or service, but they offer the products of other businesses on their platform and convince the viewers to purchase the product or opt for the service.

The overall top-grossing businesses run their affiliate programs and anybody can register and join them as an affiliate.

It is a performance-based reward system where you have to generate your own affiliate link for every product or service you want to offer.

You can provide it on your blog, your videos, or your online posts and whenever a user purchases any product or service by clicking on your affiliate link, you get a fair commission of the total amount.

For example- MySmartPrice, Trivago, Policybazaar, etc.

affiliate-marketing

4. Lead Generation

Many websites provide an online marketplace for all kinds of businesses. They allow them to register on their platform and arrange them according to their categories, locations, and scale.

Every profile has some basic details such as the list of products and services, company history, way of operation, etc. and users from different places can visit that platform to search for the matching business of their requirement and ask for the contact details to discuss further details.

Generally, the listing of the business is totally free but the businesses which want to display their name on top in their relevant searches to get more leads of the customers have to pay a certain amount which is decided by the marketplace provider on the basis of duration.

For example-Justdial, Sulekha, Olx, Magicbricks, etc.

lead-generation-website

5. Membership

If you can deliver a good quality of content or service to the users which is useful and beneficial for them, then you can provide membership to them for your service and ask them for a recurring amount in order to stay a member and keep enjoying your service.

There are many software products, online services, OTT (Over the Top) platforms and, e-learning courses that are following the membership method. There are two types of business models which are following-

Premium Model

This is a business model where users get premium services and if they like the content or service, they can pay for the membership and access all the features and services until expiry.

To extend the membership, the users have to pay an amount for the renewal of the subscription.

For example- Amazon Kindle, Netflix, Byju’s, etc.

premium-model-website

Freemium Model

In this business model, the content or service provider offers both free and paid service in different manners.

Whether some content is free and the premium one is paid or every content or service has a free trial/demo for a limited period or the free versions contain fewer features.

The users who want to enjoy full versions or premium features and services are liable to pay the amount to the service provider.

For example- Dropbox, Hotstar, Spotify, etc.

sahil-khanna-intellactual-indies
Sahil Khanna – Youtuber (Intellactual Indies)

6. Advertisements

If your website has a good user base and a large number of visitors access your website, then there is one of the most prominent, easy, and convenient methods to earn money from your website which is advertisements.

This can be the primary or additional way of generating income. If the traffic level of your website is high then you can offer offline or online business players to display their advertisements on your website by selling ad space.

You can also charge them a fair amount for a sponsored post about their product or service on your platform and that post will reach your users.

There can also be an option to boost the post for even more users by paying some extra amount. Most of the social networking websites and video communities work on the same business model.

For example- Facebook, Instagram, Twitter, Youtube, etc.

adspace-on-a-website

Google Adsense

If your website does not have a large user base then you can approach an advertising agency to enable online advertisements to display on your website.

These companies have a huge network of advertisers working for various multinational companies and organizations.

They manage to display personalized ads on your website according to the niche of your content and the behavior of your users through an automated system.

Whenever a user clicks on an advertisement to know more details about the product or service, he is redirected to the landing page of the advertiser, and you are paid a nominal amount on every ad click. This is called Cost Per Click (CPC) model.

google-adsense-logo

7. Donations


There are many government organizations and non-profit organizations which don’t run any business or promote any product or service. The main purpose of those organizations is to add value to the lives of people or to help the needy persons.

These organizations work for the development and welfare of society and don’t expect to earn money for that. These kinds of organizations give an option for others to contribute according to their ability and convenience. They accept charities and donations to run their network and system.

For example- Wikipedia, Wikileaks, ICANN, W3C

non-profit-websites

8. Data Mining

Besides all these methods there is also a process that is so secret but still so popular and that is data mining. The online marketing industry comes in the list of the fastest-growing and highest-grossing businesses of the digital world.

The top players of their respective industries promote their products and services in many different ways in order to target the right customers for their products or services the marketers need to analyze the behavior of the users on the internet.

So, Here comes the role of the companies which collect information of the users (name, email, contact, address, interests, browsing history, lifestyle, etc.) visiting different websites for various purposes, and turn that raw information into useful data.

They track the patterns of users, classifying them into categories, and making their clusters. It helps in the prediction of their possible customers and to pitch the products or services in front of them.

websites-collecting-user-data

These are the most popular ways to make money online. Many businesses are running from years and years on these basic methods.

infographic-basic-ways-to-make-money-online

9. Conclusion

There are so many other ways that have been found to earn money online. you can simultaneously do any of the business as a part-time for the secondary source of income. Some popular ways are-

The list doesn’t end here as there are so many other legal and proper ways to make money online and for which you don’t need any business but skill in which you are proficient.

Moreover, people can still develop another ways with the rise in time but all of these methods will be secondary. But, the root of all the methods and techniques that help in earning money through the internet is-

  • Sell any of your products or service online.
  • Act as mediocre to sell else’s products or services.
  • Promote else’s products or services through direct or indirect means.

FAQs

1. How to start E-Commerce business?

First of all you have to select a niche which helps you decide which products you should sell. Then you should calculate the demand and profit margin of those products.
Now, find the wholesale markets to purchase those products. You can build your own e-commerce website or to be less expensive, you can register yourself as a seller on Amazon, Flipkart or a trusted e-commerce website.
List your products properly and spend a portion of your budget on marketing to target the right customers. Then deliver your orders with good packaging and run a successful online business.

2. How can I start Affiliate Marketing?

If you run a website, a blog, or you are a social media influencer, affiliate marketing is a great option for you to make a secondary income source. There are so many businesses that have their affiliate programs. Check their websites and register yourself as an affiliate.
You will get a unique affiliate link for their every product. You can share those links on your related posts. If anybody buys a product through your affiliate link, you will earn the affiliate amount of that product.

3. What is Dropshipping?

Dropshipping is a kind of e-commerce business where you don’t have to maintain the stock or purchase products for every order. You can tie-up with a manufacturer or a seller.
Whenever you get an order, your dealer will fulfil the order including packaging and delivery. You will accept the orders and handle the payments and feedbacks of the customers. You can open your dropshipping store from Shopify or WooCommerce.

4. What is Crowdsourcing?

Crowdsourcing is the portmanteau of “Crowd” and “Outsourcing”. It is a process of dividing the tasks or collecting ideas, data, etc. from individuals and organizations through internet. It helps in reducing the costs of companies for their projects and planning for their strategies.
Companies that need to complete some occasional tasks, such as coding or graphic design, etc. can crowdsource those tasks to avoid the expense of a full-time in-house employee.

Digital Marketer | SEO Strategist | WordPress Developer | Content Writer | Graphics Designer | Video Editor | YouTuber

Kishan Chourasiyahttps://chourasiyakishan.in
Digital Marketer | SEO Strategist | WordPress Developer | Content Writer | Graphics Designer | Video Editor | YouTuber
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