This is the definitive introduction guide on how to start an online business. Make sure you subscribe and hit the bell icon so you don't miss my future videos, which will dive deeper into this subject. Okay, let's get started. Now there are three major components to every online business they are as follows initial traffic, recurring traffic and monetization method. Initial traffic is in my opinion, the hardest component out of the three to master because It's the one with the most competition.
See, in order for any online business to do well, you need to be able to get someone's attention, get them to stop what they're doing and check out whatever you have in store. Basically, you need to be able to get views. Now there are two forms of initial traffic, there's paid. And then there's organic. paid traffic is like the name suggests traffic or views that you have to pay for. Whether it's buying ads on Google or Facebook, or paying an influencer to mention you in their Instagram post or YouTube video. paid traffic can be effective if you know what you're doing. But it can be very costly and there is always some level of risk involved. For example, you might spend $100 on an ad and only make $25 back. Now most people who specialize in paid traffic will actually tell you the results like this are to be expected. It's up to you to fine tune your ad over time and also narrow down the audience that you're targeting over and over again until it's finally profitable. So you have to be good at analyzing data. The other form of initial traffic is already jannik traffic basically views that you don't have to pay for the most effective way of doing this nowadays is by producing content on some sort of platform with a large user base. And it doesn't really matter what content or what platform you grow on. It could be websites on Google videos on YouTube photos on Instagram, Facebook, tick tock, Twitter, Twitch, LinkedIn, Heck, even Reddit. As long as you produce unique content that provides value on a platform that a lot of people use, you will eventually gain organic views. Now successfully pulling this off takes significantly more time and energy than simply paying for traffic. But it's a better long term strategy for any online business because good content will continue to generate you views for years to come for absolutely free. For example, a lot of the videos that I made four years ago still bring in thousands and thousands of views from me every single month. And because of this, I could hypothetically take a three month break from my business and I would still make money while I sleep with without spending a dime. That's the power of focusing on organic initial traffic. Moving on. The second component of any successful online business is what's called recurring traffic. Initial traffic is getting someone to take a look at your content one time. Recurring traffic, on the other hand, is getting them to come back for more. Now, technically, you don't need recurring traffic to run a successful online business. But the difference between a business that makes maybe $50,000 a year, and one that makes $500,000 a year almost always lies in how they approach recurring traffic simply because recurring traffic is more valuable. See, we live in a society where everyone's fighting for your attention. So even if you get someone to take a look at your content one time, it's extremely easy for them to forget about you and quickly move on to someone else. Now on the other hand, if you are able to get people to come back over and over again, a stronger relationship is formed. There is more trust you become their go to guy for specific problem or issue and at that point, it becomes significantly easier for you to sell your products and services, people are more likely to buy something from someone that they know and trust. It's just human nature. Now there are numerous forms of recurring traffic subscribers, followers, connections, Heck, even automated Facebook Messenger, but the hands down most powerful form of acquiring traffic. As of right now, it's what's called an email list. You'll notice that most online entrepreneurs and businesses will eventually ask you to join their newsletter or mailing list or something along those lines. I do this too. Just look in the description box below. And the reason we do this is because people hold their email inboxes closer to their hearts. It's more personal than a simple follow on Instagram or hitting the subscribe button on YouTube. When you receive an email from someone It feels like they're talking directly to you. It's easier to build a relationship. And to give you an idea of just how effective email lists are. It's been said that On average, for every person in your email list, you should be able to generate $1 per month, meaning that an email list with about 10,000 people will make you around $10,000 a month. If you continue to send out good emails, build up relationships, and also tell people about your offers and whatnot. To put things into perspective. Do you know how much it would cost to make $10,000 on a platform like YouTube using just ad revenue, basically only relying on initial traffic? Well, if we assume that you're getting paid $2 per thousand views on YouTube, which is actually the current average across the entire platform, you would have to generate 5 million views in order to make the same amount of money as your email list, Which do you think is easier to do? Getting 5 million new views every single month, or simply maintaining an email list that already has 10,000 people? I'll tell you right now, the email list wins by a landslide because social media platforms like YouTube are constantly changing the outcome. Rhythm is constantly adjusting. So certain months, you might be able to get a ton of views. But other times you might get a fourth of what you were able to get before. This happens all the time to me. So my ad revenue is constantly fluctuating. Regardless of what happens on YouTube. My email list is consistently growing in size, and it remains a profitable source of income. That's the power of recurring traffic. And finally, we have monetization methods. Traffic is useless in the long run without some sort of monetization method or some way of converting those views into profit. Now, there are literally dozens of ways you can go about doing this. So today I'm going to tell you about the three most common ways people monetize their traffic. First, we have selling your own product or service. This is when you send people to your ecommerce store your website, or if you're really looking to make money what's called a funnel, which we'll definitely talk about in another video, so make sure you hit that bell icon.
Once they're on that page. They are convinced to purchase your product or your service and voila, you make money. Next Have selling someone else's product or services, also known as affiliate marketing. This is easier to do than selling your own products and services. Because you don't have to make manage or do any sort of maintenance. All you have to do is sell someone else's creation. I do this frequently on this channel as well. I promote other courses that I've gone through and believe in, and for every person that decides to join via my recommendation, I get paid a commission. And finally we have selling your traffic also known as paid sponsorships, or shout outs. This is when you mention a brand or another business and simply tell your audience to check them out. You're not really selling them too hard on it, you're basically getting paid a flat fee upfront to redirect your traffic. It's sort of like selling ad space for commercials on TV. Now that you know about the three components of every successful online business. Let me tell you why you need to have a website in order to execute these things correctly.
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