That's it for start up costs.

Things like promotion, Search Engine submission and, copy-writing you can do yourself at first, via free methods and manual work. After you start making money with your web site, you will be able to afford automating and outsourcing many of these tasks.

Remember, you have to make a choice: you are either going to invest money or time into whatever you want to do. At first, time was ONLY thing I could afford. But then I decided to outsource a few things (some people have more copy-writing talent than I do ;-) and invest a few bucks into my business. The key is to invest it wisely.

Pay for something only when you are absolutely sure it will bring results. Otherwise, spend more time researching and observing other Internet marketers and their strategies.

As you start making money with your online business, your purchasing power will increase. A year ago spending a $150 on an autoresponder services sounded crazy to me and impossible to afford. Now I look at it as a necessary cost of running a business and saving time following up with my customers.

Let's summarize your online business start-up costs for your first year of operation. If you start making money first year, your expenses might go up since you will probably be more willing to invest:

- Domain Name: $16.00 - Web Hosting: $6.00 x 12 months + $28.00 set up fee = $100.00 - Web Design: $50 (training materials) or $200 (outsource) - Totals: $166 (do-it-yourself) or about $300 (outsource)

As you can see, you still need to spend a little money to get started. You can spend more or less money, depending on how much time you are willing to put into your business.

If $166.00 seems like a lot to you to spend in 12 months, then you might want to try a completely free web site offered by Geocities or Angelfire, as I mentioned before. Your business won't be as effective because there will be no company domain name or a well-designed web site, but you will at least get your feet off ground and get a feeling of what it's like to run a web business.

So, what are steps to making money while you sleep?

1. Find or develop a product to sell.

2. Make a Web Site to sell it from.

3. Create a killer sales letter (or hire a professional copywriter) 4. Set up an automatic credit card processing system. 5. Start an affiliate program & submit it to affiliate program directories.

6. Give away a freebie on your web site to generate a list of potential customers. Use an autoresponder to automatically send out offers to your list. 7. Submit your site to Search Engines.

8. Go to sleep every night and wake up to a sale!

The above list is only a rough draft of what should be done to completely automate your online business. A lot of testing should be conducted to see what marketing strategies, sales letters, pricing, and bonuses work best to achieve maximum sales.

Yes - making money while you sleep is possible! But only if you work when you are awake :-)