To succeed making money online it is vital that you actually run your work like a business. Many people start out making a little money and don’t take the time to consider the laws, taxes, and other matters involved in running an online business. If you are just happy to make a little extra spending money you may not need to do everything a business does but there are still some simple steps that will help you. Taking these steps will also help you later if you want to scale up and work online full-time.
Most of the things you will want to do are the same or very similar to starting an offline business.
Yes, in most cases, if your goal is to make serious money online and to quit your offline employment it is mandatory to start a business.
If you live in the U.S. there are both some Federal and State laws that will apply. At first it seems intimidating but it really is not that complicated. You will want to decide on a name for your business and apply for an EIN. It only takes about 10 minutes online and you can find the steps to do that in this article: Employer Identification Number – Do You Need This For Your eBiz?
You will want to consult an attorney and/or a tax advisor to decide if you want to simply be and independent contractor, incorporate, or apply for an LLC. There are advantages and disadvantages for all of these so it really depends on your situation. It is not the purpose of this article to outline all the details of one way over the other. The main point is that taking any one of these routes will establish you as a legitimate business. You will find many tax advantages with being self employed as a sole proprietor or as a business.
Be prepared to invest either time or money and probably both. There are a few ways to make some money online that don’t involve risking your money but they are essentially not much different than a regular job. I am aware of some people that make around $1000 a month only using Hub pages and Squidoo lenses. They have not invested any money at all. That kind of success will not happen overnight of course. It takes many months to get the content ranked to start getting the traffic needed to earn money that way.
To grow you business you will want to consider investing money in such things as advertising, outsourcing, equipment, etc. The key is to make sure you are always getting a good return on your investment. Monitor your spending closely or you can burn through a lot of money very fast and see no return on your investment. I remember the first time I used Google adwords. I invested $100 and received exactly $00.00 for my advertising. The problem was not with Google but with me. I had not researched and effectively tested. I have friends that spend thousands of dollars every month on advertising. It is well worth it though because they make much more in return. They are constantly testing with small ad campaigns to make sure there big dollars will likely succeed.
It is also very important to monitor how you use your time. It is very easy to spend lots of time that turns out to be wasted. Always make sure that you are getting some short term or long term returns from the time you spend. The returns can be measured in different ways. It may be you are building a reputation (branding), establishing connections (networking) or earning money.
Many people have found that the most important key to running an online business is having a designated time to work. It is wonderful to have the flexibility and usually extra time that comes with working online. At the same time the most successful people I have known are diligent about sticking to a schedule to care for the various tasks involved with their business. This helps them to make steady progress and to avoid forgetting vital things to do.
In summary, it is fine to take advantage of the many benefits of making money online. At the same time if you truly want to succeed it is necessary to start a business or at least run it like one. You will find many more rewards when you take your online business seriously.
For Online Business Success – Do You Think Like A Winner Or A Loser?
For Online Business Success – Try To Master Something New
For Online Business Success – Take Good Calculated Risks
For Online Business Success – Should you Follow the Crowd?
For Online Business Success – Hire the Best People To Help You
For Online Business Success – Stay Focused on Your Goals
For Online Business Success – Brand Your Name, Website Or Company
For Online Business Success – Stay Motivated and Persevere