© 2002 Elena Fawkner

I received an email during week from a reader of a recent article "The 10 Most Popular Myths About Running A Home-Based Business Online" (http://www.ahbbo.com op10.html). That article was, I admit, something of a vent which was long overdue and it struck a chord with many readers who wrote in to let me know that it described their experiences to a T.

One Internet-experienced reader wrote: "People ask most amazing questions, such as 'I put up a web site. When do I start getting money and where does it come from?'"

Amazing but true. I kid you not, I get emails like this all time. They're what prompted article in first place. So, in this article, rather than venting, I'll be a little more constructive and actually answer question: Just how exactly DO you make money on Internet?

1. The simplest - join an affiliate program (hell, join LOTS of affiliate programs) and spend your time and money advertising and promoting it to drive traffic to you-beaut self-replicating website every other affiliate gets. A la Amazon.com.

This is a VERY inefficient way of trying to make money online. And it will cost you a fortune before it yields a return. If it ever really does. If you're VERY lucky, you MIGHT just cover your costs.

(If you don't know what an affiliate program is, read "Affiliate Programs ... A Not THAT Easy Start To Your Own Online Business" at http://www.ahbbo.com/affiliateprograms.html.)

2. Create a content-based website, get traffic to it and use it to promote your affiliate programs. The trick here is to sign up for affiliate programs related to subject matter you choose for your website. The idea is that, by creating a content-based website, you will attract targeted REPEAT traffic, thereby increasing odds that someone will buy one of your affiliate program products. This is a MUCH better option than #1. and will save you a fortune on advertising.

3. Create a content-based website, get traffic to it and use it to sell your own products. Anything that can be delivered digitally is a good bet - software, e-books etc.

4. Do #3. above and establish your OWN affiliate program so other people can also sell your product in exchange for a commission.

A cash flow may sound intimidating but it doesn't have to be. It is a way to see out how much money you'll be spending and how much money you'll be receiving, and when. You'll see when your expenses will exceed your income and vice versa; it is a plan!

A simple cash flow is just a chart with rows and columns. Label columns "January", "February", etc. Down side show each item of income and expense. Then place amount of that income or expense in column for month that money will actually be received or spent. The idea is to see how much cash is flowing in and out for each month. (Remember to show expenses as negative numbers and income as positive numbers.)

For example, you plan to set up your office in January, get a mailing list, order inventory, design brochures in February, and do a mailing in March. Make separate lines for each expense: computer, furniture, fax, etc. If you finance anything, show payment(s) for each month they are paid. Now marketing expenses: printing, envelopes, postage, etc. You may order inventory in January, charge it in February, and pay it in March; put payment in March column. Get idea? If mailing is going out in March, you may expect some sales in April. Estimate them and put income into April column. Total each column to see what net cash flow is for that month.