Make Money Online - Business

How to Make Money Online: Reverse-Engineer Your Business for Success

by Charlie Ritchie

Wondering how to make money online? If you're scouring the Internet looking for a product to sell to do just that...

... STOP right now!

This is a huge, fatal mistake that can kill your business before you even get it off the ground. The key to making money on the Internet -- and guaranteeing your success -- is to reverse-engineer your business: Look for a MARKET that's easy to reach.

Find your market first and then start thinking about what kind of product or service they might want. If you do this, your business is geared for success before you even launch it!

Ignoring this simple but fundamental rule is the #1 reason why so many start-ups fail to make money online.

And the beauty is that in the online world, all the information you need to find a hungry market is at your fingertips...

The Internet has revolutionized communications because it allows people with common interests to find each other in ways that weren't possible 20 years ago. And it makes the same information available all over the world, to everyone, everywhere.

And the doorway to all that information is the search engines, like Google and Yahoo.

Practically everyone searching the Internet for information starts by typing a description of what they're looking for into a search engine, e.g., "brownie recipe" or "cheap flight Hawaii." These descriptions are called "keywords," and they will be the foundation of your market research.

Keywords provide the link between business and customer. Where the phone book arranges everything alphabetically — pet food is under "P" — the Internet sorts by keywords, so pet food is under "pet food."

All this information is out there, just waiting to be sifted through.

Software and keyword research tools will allow you to find what people are looking for. Then you can build your business based on the concrete, measurable market demand that already exists.

How you'll know when you've hit market gold: interests, supply, and demand

Starting out by exploring your interests is one of the cornerstones of finding a successful market. When you start with something you're interested in, you're less likely to consider it a chore and more likely to see it through.

To be clear about this, we're not saying that you absolutely have to choose a market based on your favorite pursuit or skill — it's just a great starting point that's been proven to work again and again.

Whether it's your hobby, something you have experience in, a unique perspective on something that inspired you, or a topic that you've always wanted to learn more about, whatever you choose must be something you want to pursue.

And since the biggest obstacle you need to overcome is just getting started, we want to make sure you won't get tired of your subject before you finish.

Your ideal market will be based on these three points:

1. Interests
   
   In the broad sense of "interests," this category also includes experience, credibility, passion, and a willingness to explore.
   
   
2. Demand
   
   If there's a demand for information in your interest area, then you may have found a potentially profitable market. Keyword research will tell you if there are enough people searching for information in an area to make it viable.
   
   
3. Supply
   
   What is already out there that satisfies your market's demand? By critically analyzing possible competitors, you can find out if there's enough room to establish yourself as the key provider of information or products within that area.

Keep your eyes open and your mind sharp, and you'll be surprised at how many ideas for making money online come to you.

Best of all, by paying attention to this simple rule, you'll know that you have a winner before you spend time and money building a business that has NO chance of making money on the Internet.

About the Author

Charlie Ritchie is one of the internet marketing experts at The Internet Marketing Center (IMC) . Since 1996, The Internet Marketing Center has helped thousands of entrepreneurs to successfully start an online business. See MarketingTips.com for more information on how to make money online.