The Process Behind Making Money Online (The Big Picture)

byjamesprc

745 followers

Updated 5 years ago

In the grand scheme of things, there are only two business models that work:

• Influencer model,
• Lead collection model.

In this article, I will explain both processes and talk about what it takes to make them work.

It's easy to get lost in the details of SEO, Google rankings, traffic numbers, affiliate links, and social media...

But what about the big picture? What's the actual process behind making money online?

IMPORTANT: For simplicity sake, I am generalizing A LOT in this article. Exceptions are always possible of course, however after everything I have seen over the years, most success stories follow this process.

Influencer Vs. Lead Collecting

The biggest difference between the influencer model and list building model is that one is FREE and SLOW, while the other one is EXPENSIVE and FAST.

Of course, you could pay to increase your influencer reach, and you can also get leads onto your list through free traffic sources... but that's not the point!

The point is that each of these models has a different approach, a different logic... a different way of thinking about your online business.

That's what this article is all about...

The Influencer Model

This is the model that most people start with. It's the one that is also most often taught, and it's the one that most people have success with here on WA.

In the influencer model, the goal is this: Get a lot of traffic from Google.

The characteristics are as follows:

• You create a lot of free content, either through blogging, YouTubing, social media, or a combination of them all.
• It takes time to build your audience.
• It takes time to build authority.
• Through consistent content creation, you are rewarded with a steady increase in traffic, as a blogger mostly from Google.
  

Creating content takes time and effort, but it can be done for completely FREE. Of course, you can outsource it, and you can even hire a social media manager to further promote your content...

But as I've already said, that's not the point.

The point is that anyone can create content, and anyone can succeed at this through consistent hard work, without paying anything (besides the basics of web hosting, coaching, mentorship, etc.).

All it takes is that you let time work for you, and that you don't quit...

The secret is to be creating content every week or every day, never stopping at growing your authority / reach / influence / Google rankings... whatever you want to call it.

The Lead Collection Model

Sometimes, when people have a grasp of their blog's core metrics, they become interested in collecting leads.

The goal here is this: Pay less for leads than what they earn you.

The characteristics are as follows:

• You know how much a lead is worth to your business.
• You try to figure out how you can buy leads for less, so you make a profit.
• You try to figure out how you can earn more per lead, so you make a profit.

To avoid confusion: Yes, any influencer and blogger can build a list through Google traffic. But it's a different way of thinking about this process that's important!

Here's the difference: You think about your online business like a FACTORY, in terms of input and output. What goes into the factory must cost you less than what you earn from what comes out of the factory.

If you know how much you pay per lead, and how much you earn per lead, you can make money virtually overnight - simply by buying traffic and putting it into your "factory". This is also called a funnel.

So this model is much faster than the influencer model, but it requires you to have profound knowledge of your target audience!

Of course, the real challenge is figuring out the process...

How To Succeed And Make Money Online?

Knowing which business model you are running is vital. It is the first step on the road to success.

In the influencer model, which really most of us practice here on WA, the process is already clear for most of us, here is a re-cap:

1. Number one priority is always creating content, that is helpful and interesting to your target audience.
2. Improve your keyword research and keyword targeting.
3. Promote your content on ONE social media platform of your choice: Facebook, Instagram, Twitter, Pinterest.
4. Interact with anyone and everyone who gets in touch with you on your blog or on your social media network: Be that through comments, shares, likes, etc.
5. Be consistent.
6. Give yourself time to grow.
7. Find products that fit into your niche.
8. Review these products and make recommendations where it fits.
9. As traffic grows, so will your affiliate sales.

If the above 9 steps are confusing, check out this article below for a clear roadmap of what I mean: How does this work anyways? (The WealthyAffiliate Roadmap)

In the lead collection model, the process is as follows:

1. Research your niche and target audience, find the most pressing problems and questions that they have.
2. Buy or create a lead magnet: Something that you can give away for FREE but that is so helpful, that your target audience would even be willing to pay for it. (For example an Ebook answering an important question, for which people would be willing to pay like $5 or $7.)
3. Create an ad promoting your lead magnet. Most businesses pay for ads on Facebook or Google.
4. Everyone who requests the lead magnet gets on your list.
5. Continue offering great service to your list of leads, especially through interesting content very much like an influencer does: Mostly blog posts & videos.
6. Analyze your ads: How can you reduce the cost per click?
7. Analyze your lead magnet: How can you increase the conversion rate? Do you need to change your landing page? Do you need to change your lead magnet?
8. Analyze your list: How can you increase the value per lead, meaning how much money you earn from your list on average per lead?
9. Keep improving steps 6 to 8 until your factory / funnel is profitable.

Final Words:

In the lead collection model, you usually lose money upfront. But if you are good at this, you can make your money back later. And once your list is profitable, you can start cashing in. The process is fast but expensive.

On the other hand, in the influencer model you don't risk anything besides your time. And time is only really a risk if you quit... The challenge here is not money, the challenge is yourself, your daily habits, and your willingness to create content even when nobody is listening yet.

EDIT: Dave left a great comment below, which I want to add here for you to see. He said: "I think the ultimate business is a crossover between the two. Starting out with the influencer model but then moving towards lead collection as you gain authority."

Which model is for you? Which one has brought you the most success?

Do you share my thoughts on the "big picture" of online marketing?

Let me know in the comments below!