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While the economy might seem a little off topic for this blog, it certainly has relevence to making money online. The economy occurrs in various cycles, and it’s a lot eaiser to make money during certain cycles.  When you hear about a bunch of layoffs, or you can anticipate a series of layoffs and downsizing before they happen, internet businesses will thrive.  Not right away of course, but people that have had jobs for years start to realize that job security is the “old paradigm”.  Whether they were layed off, or their friends were layed off, or family, neighbors, etc, they start to come to this “awakening”. What do many of them do?  They seek jobs online.

A common theme in the internet marketing community is “dont sell the gold, sell the shovels”.  This means that if there’s a hot trend, don’t compete with everyone trying to get the gold, just sell the shovles and get rich anyways.  However, being prepared for the “next gold rush” has everything to do with the economy.  If you can get a little business going offering opportunities o make money online, now is the best time.  But for many it will take awhile, and they might be a little too late to be super competative with the rest of the field.  However, as people start to make money, and eventually the rates get low, and the prices get low enough, people start buying houses.  soon a rush of house buying takes prices up, and some people start to realize what a great opportunity it is to make money with real estate.  So they start looking to buy houses.  A housing boom is good for the economy, then people start building, and companies start growing.  After this happens, more people consume, and oil goes up.  At this point, stocks and the overall market starts to go up.  Eventually people overbuild, buy too much on credit, and oil gets expensive.  There might be different parts of the economy booming between there.  As people overspend and credit catches up to them, eventually you have the fed trying to combat the lack of ability to spend by the consumer, and you have some people get in trouble financially.  The businesses do as well, and then there’s a credit crunch.  From there, businesses cut jobs, and the cycle repeats.

During these phases… Aside from investing your extra cash in silver, gold and oil… whichever is most undervalued during inflationary cycles, and investing in cash producing assets during deflation… You’re also going to want to market towards certain areas based on the cycles.

Right now, MLM businesses, and businesses that teach people how to make money online will generally be pretty successful.  How to save money will be pretty successful.  In the short term future, how to be a real estate broker, how to buy a house, how to fix a house, and how to garden and landscape, and those types of things will be valuable, as many renters will eventually look to buy houses,fix them up, live in them ,etc.  Shortly after people will want to learn how to fix and flip houses, how to invest in real estate, and maybe how to grow their own businesses with more of a focus on “business” then “quick cash” since at this point, rather than looking to bail themselves out otf a jam, they’re looking to build for long term.  From there, it’s a lot more wide open, and dependant upon what sort of new advancements, and what people are doing.  This time you want to learn what the technological trend is, or any other trends.  “How to GROW your business is also a pretty good topic. After that, you should focus on trading, and investing.  When the economy is good people have money to spend on stuff, and they also want to buy physicial goods so you can look for those, but many of them want to really earn that cash and multiply it, and the stock market is usually a pretty common place that they look. Now when all of a sudden thingss get too hot and the market starts to cool down, “how to eliminate debt” and things like that are good for quite a long period of time.  “how to save your business, and “how to make money in a down market through stocks” and that sort of thing. Even on the way down people are still looking for that dream way to make tons of money overnight despite their debt as well, and from then on the cycle starts over.

If you want to take the time to learn about the economic cycle, you might consider reading one of Jim Cramer’s books, and look at his chart on the back.  One other thing to notice is, you have to get ahead of things and anticipate it, BEFORE it gets hot.  The reason is, because you want to establish yourself as aan “expert” in the field BEFORE everyone starts looking for advice, so when they finally do, your competitors that know to “sell shovels” aren’t going to have the supplies to sell as many shovels as you do.

Not only do you personally have to prepare to allocate your funds, to save money, and to grow your wealth so you can put that money into your business, but you have to understand what other people will be doing, before they do it… The economy is actually pretty predictable over the long term, and you don’t need a chrystal ball to predict the future, you just need to know the overall trend that has always occured for the economy.

How much would you pay to be willing to pay in order to retire in 2.5 years or less, and not only have more money comming in, than going out, but have $5000 coming in every month?  Obviously it’d be worth every last penny you had, and you could even go into debt, as long as you could safely pay it off, just so you could afford this opportunity.

Now the situation would change if it wasn’t guaranteed, but still gave you a very high chance of coming close, or if it might take longer, but you’d still be willing to pay $1000, wouldn’t you?

No, this is not some guide I want you to buy  for $1000 that teaches you how, in fact, it’s much simlper than that.  This method can be used by anyone.

How’s it work?

Well lets say you have $1200 plus you have your emergency cash on the side, and you understand this is $1200 that you can risk.  I know I said $1000, and it’s pretty much true, but if an extra cost comes up, you’re going to want to be able to afford it without having to dig into the emergency cash. Your emergency cash should be based on current expenses, and although you’re increasing your income, you’re also increasing expenses.  You use that $1000 on buying an already established web business. 

You can do this simply by going to sitepoint.com and clicking on marketplace.  Sitepoint is not the only place.  There’s digital point forums, and there’s a few others. I prefer Sitpoint, but that’s just me.  So you check the “established websites”, and you notice that there’s one website availble for $1000, and it gets $200 of cashflow a month.  If you plan on running this website yourself, I reccomend, actually being interested in the topic and liking it, but if you are willing to outsource everything, you don’t have to like it. If you just know enough to know whether or not someone is making quality informative useful points on it that should be enough.  You will simply be going to elance.com or rentacoder, or whatever freelancing service you prefer.

Now we’re going to assume you need to pay a few bucks to keep the website running.  Lets say from that $200 cashflow that you’ll be getting, you’ll spend $50 of it paying people to keep your website going for you.  That leaves you with $150 bucks.  You also have to pay for $10 in hosting to host all the accounts before you need to upgrade to a better hosting account.  You might get hosting for free when you buy the website, but maybe not.   Now it wouldn’t be unreasonable to assume that if you continue to have someone add content to your site, and you pay for traffic, or build the traffic streams in your free time, or have someone else do it, that the revenue would actually INCREASE.

There might be a few times where it doesn’t go right and the sites revenue falls, but for the most part, you can at the very least make $150 per site.

If you would just let the income come in the first month, and then use that to pay to have someone add content and things like that to your site so you would ONLY invest the initial $1000 into this (plus $10 per hosting for one month),  and only use the cashflwo from here on out to buy, you would have over $5000 per MONTH from these websites coming in every single month at the end of 28 months.  This is calculated based on fractions of months, but in many cases the checks won’t come in until the end of the month… However, you would be able to buy 2 websites in one month at some point, or you could buy websites for OVER $1000 in some months, so it really wouldn’t be too far off.  So you have $5000 a month with 2 month s to spare until 2 and a half years.

 It might not take money to make money.  You may be able to create your own WSO on your own for free.  But it certainly will make you a lot more, if you focus on reinvesting your traffifc to grow it, as well as an reinvest your money to increase the ability to grow.

Here’s what your monthly earnings will look like

Month 1 190 (paid for hosting)

Month 2 140(paid for someone to help run it for you)

Month 3 140

Month4 140

month 5 140

month 6 140

month 7 140 (now use money to buy 2nd site)

Month 8 290 (after paying to have site maintained

Month 9 290

Month 10 290

Month 11 290 (buy new site)

Month 12 440

Month 13 440 (buy new site)

Month 14 590

Month 15 590 (buy new site)

Month 16 740

Month 17 740 (Buy new site)

Month 18 890 (Buy New site)

Month 19 1040( Buy New Site)

Month 20 1190( Buy New Site)

Month 21 1340( Buy New Site)

Month 22 1490( Buy 2 New Sites)

Month 23 1790 (Buy New Site)

Month 24 1940 (Buy 2 New Sites)

Month 25 2240 (Buy 2 New Sites)

Month 26 2540 (Buy 3 New Sites)

Month 27 3440 (Buy 3 New Sites)

Month 28 3890 (Buy 4 New Sites)

Month 29 4490 (Buy 4 more sites)

Month 30 5090 (Buy 5 More sites)

END of 2.5 years 

Month 31 5840

etc

Now what do you think would happen if you continued this for 4 years?  In 4 years, if you can manage to keep this up, you will crack $100,000 a month.  Of course, it will get harder and harder to find $1000 websites, o you’ll be forced to take a look at the more premium websites with a slightly lower return, and/or get a team of people to buy the websites for you, which will cost you more money.  You also will not be able to use any of that money you gain if you want your website to really grow as fast as possible.  The question becomes, how much do I want to make before I start spending.  I also think you should make sure to have more and more available cash aside because if something goes wrong, you might have to deal with missing out on ALL of the incomes sources.  Make sure to back up all of your files as well, a server crash can kill your business.  You would need to spend more time on this, and you would need to continue to buy more and more hosting account as you get more sites, or at least pay $30 a month for one of those superlarge reseller hosting accounts.

As you can see, it’s really not that difficult, and  being able to actually own a cash producing asset that you can reinvest, will lead to a much more valuable return than any stock.  Is it likely that you’ll see a 500% return in a stock in 2.5 years? Probably not, and if you do, once you sell it, the money stops coming in.   Tour return is limited. Not only that, but if there’s inflation, you will generally take in MORE cash to adjust for it.  While saving has your cash going down, and investment cashes in for dollars that aren’t worth as much as they were before you started, cash producing assets produce more cash. In addition, when cash assets produce more cash, they’re worth more money to the buyer.  So if you can buy something for $1000 that brings in $200 a month, and you can increase the monthly income to $400, what do you think someone would be willing to pay for it?  Twice as much cashflow, is at least twice the amount of value.

Now if you’re smart, you’ll track your income, and you’ll learn which sites have more potential.  The lowest profit sites you can work on to increase the income for a few months, then you can sell it. Then you can use the cash to either replace it with another one, or to increase the advertising and value of another website.

Don’t have $1000?  You can easily start with a $250 website that rakes in $50 a month.   Of course, you won’t make much money on it, especially if you have to use all $50 to automate, but you can at least have the price of the website gain in value so you could sell it later if you want, and you have the potential to make the revenue go up as well.  Websites are like fine wines, they become worth MORE as they age.  People like the domain names better, and there becomes more demand for certain domain names.  They usually naturally gain backlinks as well, making them more valuable.

I’m not saying jump in right away,  I’m saying understand it’s a possibility, use it to dream big dreams, and motivate yourself to learn what you need to.  When you are completely ready, and have everything ready, and have the finances the right way, go ahead and give it a shot, and let me know how it goes… I love success stories

1)Wordpress Plugins – You need to have the right plugins that make it possible for you to keep your traffic comming back. Having the right site layout with the right plugins is crutial to obtaining this.  Think of installing the wordpress plugins as building the foundation for a large skyscraper.  After you’re done, you still have a long ways to go, but if you screw up the foundation, your whole building is going down!

2) Monotize Your Site For Traffic, Not Income – although many of the top earners have monotized their sites for income, they succeed because they work hard, and they hire others to work hard.  But even so, they have already layed the foundation for repeat traffic anyways.

 3)Build Backlinks – If you want to maintain search engine results, you’re going to have to build links directing people to your site.  And if the search engine changes it’s algortihm, you should still be collecting traffic from these links. One great place to put backlinks is internet message boards aka “forums”.  There are several other resources to build backlinks. Trackbacks is a great way to appear on prominant blogs

 4)Set Up RSS Feed Subscription Buttons - This is mostly part of your plugins, but you should have buttons that people can use to open up and save your RSS feed into an RSS reader.

 5)Set Up Social Bookmarking Buttons – This is an absolute must. people need to be able to get your content out in front of everyone else regardless of whether you do or not. You should be using some sort of wordpress plugin that does the job for you. This is crutial in turning your visitors into people who will in a sense, recruit others to your website.

6)Set Up An Autoresponder. -2/3rds of your autoresponder is providing content to your readers, letting them know about everything that’s going on in your blog, and telling them the information that they want.  The other 1/3rd is where you will reccomend a product.  However, so you don’t scare them away before they have a chance to learn to like your writing style, you want to start out more like 80% being valueable content.

7)Establish Your Network Of Trackbacks And People Who Request Them And Accept Them- Basically you want to trackback several people, develop your blog, expand into as many different blogs and audience as you can, and start getting trackback requests with every post you make.

8)Add Blog Community Widgets Like Mybloglog, And Blogrush.  These will help your traffic convert into more traffic.  It will also widen your influence and increase your “network”

9) Add Social Network “AddMe buttons” – This allows people to get to know you on a more personal level, and communicate with you in a more interractive way.  Your links to social communities should also be setup in a way that allows you to get traffic to your blog, and to your other social communities.

10)Add Interactivity – I’m not even sure if “interactivity” is a word, but if not, it is now, I could simply goto wikipedia and invent it… Anyways, your blog should be interactive as possible.  Add videos, and allow users to add video comments. Add audio, add a podcast if you want to take the time to do that.  Add links to posts that you’ve made in forums.  don’t restrict your users ability to interract to just your blog.  They will appreciate it, and they will return again and again.  The amount of returning visitors and repeat traffic you gain will make up for the ones you lose.

11)Start Doing Occasional Reviews For Various Products.  This will be where some of your affiliate income comes from, this and your autoresponderare basically your only sources right now, that and your autoresponder.  Grow first, earn later.

12)Free Report – Give away a free report for people that sign up.  Make sure your link is on every page, and people can click on the ebook link to access your site. Now give people the rights to giveaway or sell that report.

13) Refer People To Traffic Exchanges – your referral links will gain you advertising crdits.  The traffic is low quality, but the people that see your site are all interested in  getting more traffic. Give them a chance to download a free report on how to get more traffic, and reccomend that they check out your list of traffic exchanges.

14)Use The “Get Google Free” Ads Method… more on this later

15)Start Guestblogging, And Invite Others To Do The Same – Allow people to guestblog anytime they would like.  Let them know that if they get out of hand and spam your customers, you will block them and take away their ability to post.  Start to guestblog on popular blogs and share those blog networks.  Now you can promote your blog post on someone else’s blog, and reap the rewards, and your guest poster will want to do the same, which will also help you. 

16)Hire A Ghost Writer – This ghostwriter will eventually replace you completely allowing you to move on, but you should hire him before you actually do.  You might hre a few before you decide on which one you like, and you might even let multiple ghostwriters write for you.

17) Set Up RSS Feeds On Your Blog - these will act as content generators.  They will be promoting other people, but the constant content creation will usually be worth it, and keep your visitors comming to your site.

18) Hire An Editor – This person will edit the posts made by the ghostwriter, and submit them.  He will also be responsible for linking your posts to other posts.

19)Hire A Website Manager – This person will watch all of your traffic stats and clickthroughs and will make sure everyone else is doing their jobs. He will also find new people if the people who have done it in the past quit or need to be fired.

20)Hire a Team of Marketers and Affiliates.  This one is optional.  You could very well go through the process of creating another product and building your network of affiliates, but that’s only if you find this niche that you’re working in to be exceptionally profitable.  

21) Next blog! Since you don’t know what niche is the most profitable, I think it’s better to use whatever monthly income you have remaining, except for a little bit leftover on the side to automate your blog and move on to the next one.  Your revenue should actually go up after doing that, but the important thing is that it’s automated. After creating several of these automated blogs, you will be able to figure out which niche is the most profitable, and if it’s a niche that will maintain it’s popularity rather than being a dying trend, you can spend all of your time adding products and reccomendations and backend offers.

If  you learn how to follow these steps, you will be on your way to having an awesome automated business.

There are countless amount of ways to automate your business.  But the key thing is, that you set up systems to automate your income for you.  You don’t want to always depend on yourself to run a successful blog if you don’t have to.  You should still be able to step in at anytime so you’re not dependant upon anyone or anything either.

The entire idea behind automating your business is saving yourself the time.  If you can’t walk away from your business for an entire year and come back still earning the same amount you were before, you really are working in a business, rather than truely owning one.

So what are some ways you can automate your business?

I have made a brief list of 21 Steps To Business Automation here