Though at the beginning stages of an informational site you probably won’t make much money, it makes sense to know how you’re eventually going to turn your time and energy investment into cash.
Making money from information can come in many forms. Some forms work better for certain kinds of sites. Here are three of the main forms of earning money using information, along with what kind of site it’s meant for and how to implement it.
Advertising
When most people think of monetizing traffic, they immediately think of advertising.
Advertising is extremely easy to implement, but your earnings per visitor are extremely low. That means that in order to make any significant amount of money, you need a lot of visitors.
For brand-oriented sites like Facebook, Google – or on a smaller scale, About.com, eHow.com, etc. – advertising works very well. They get so much sheer traffic that even with a low revenue per person, they earn a lot of money.
For the individual site, that’s often not enough. If you’re earning $10 per 1,000 visitors, even with 10,000 visitors a month you’re earning just $100.
Implementing advertising is simple. You can start with Google AdSense or other ad networks, but eventually you’ll need to start selling ads directly. The more middlemen you can cut out, the higher your payout.
Selling Other People’s Products
The second way to make money from an informational site is to promote someone else’s products or services.
If you run a website about men’s fashion, for example, you can promote special jeans, shoes or even fashion magazines.
If you run a website about how to get better grades in school, you can sell study guides, speed reading courses and SAT study courses.
Many courses, physical products, digital products and other services are willing to split their profits with you in exchange for sending them customers.
This is called an affiliate program. To participate in an affiliate program, either join an affiliate program aggregator like Commission Junction, ShareASale or contact the merchants directly.
Create and Sell Your Own Products
Finally, you can create and sell your own products.
These products can be physical or digital. Physical products are more complex to create, but seem more “real” to many consumers.
Digital products on the other hand can be easily created. The margins are nearly 100%. And since you already have credibility in the quality of information that you provide, your readers will already be predisposed to trust buying information from you.
Creating your own product is perhaps the most profitable way of earning money from an informational site. For example, if you create an eBook that sells for $30 and 1% end up buying, that’s $300 per 1,000 visitors – instead of the measly $10 you’d get from advertising.
These are three completely different yet highly effective ways of earning money with an informational website. Don’t jump straight into making money with a new website. First focus on building the site and getting traffic. Once you have a loyal user base, then implement one or more of these tactics.