Welcome


What Is So Great About This Blog?

The only chance this blog has of succeeding is to be different then the 100's of other 'How To Make Money Online' blogs.

What makes this blog different:

  • This blog is about a website. It discusses and analyzes the creation, maintenance, and performance of howthiswebsitemakesmoney.com.
  • All claims are backed up by actual data. You will not see claims like: 'post comments because it increases traffic'. This blog will show, by using actual data, how much traffic posting comments has brought to howthiswebsitemakesmoney.com.
  • There are no false claims of how I made 1000's of dollars a day using a secret system. With this blog, lies and exaggerated claims are impossible because howthiswebsitemakesmoney.com reveals all of its stats.
  • Being a webmaster is not always a sunny day. This blog discusses the real trials and tribulations of being a webmaster. If this blog/website are doing poorly then you will see traces of tears in the posts.
  • This blog has no advertising or selling of any kind. It is simply information and entertainment. The website howthiswebsitemakesmoney.com does all the money making, not this blog.
  • Most blogs expect you to follow their advice on the assumption that they are an authority on the subject. This blog expects you to look at the data and decide for yourself.

All Posts Are Written With The Following in Mind:

  • Honesty.
  • Mix information with entertainment.
  • The visitors time is valuable. Provide clear and original content.
  • No claims without data to support it.
  • One day this blog and the website it discusses will be successful.

Enjoy!




Webmasters Lose Internet Innocence

March 31st, 2009
innocent youth smoking

In my twenties I really enjoyed reading.  Especially fiction.  One of my favorite activities was going to the book store and spending half a day there.  Browsing through the fiction section.  Looking at covers and skimming the back.  After a few hours of drinking my coffee and flipping through 20 books, I would pick one.  Pay the cashier and head home.

The next couple weeks were spent in a new world.  Early in the morning, before work, I would stop at the local coffee shop, order a large coffee and read.  An hour later, coffee gone, and 20 pages later my body and mind are ready for the day.  I could not imagine starting a day any other way.  Each chapter ends wanting more, and each chapter begins with promise of more to come.   I would wake up anticipating what will happen next, and then spend the day thinking about what had happened.

Everything was going great until I made a terrible mistake.  One that can never be undone.  An misstep that changed me forever.  I decided that I would try to write a story.  At first this does not seem like something horrible – what is the harm in trying?

The problem was not that I wanted to write a story, or that I tried.  The problem is that I purchased a book about how to write a book.  After reading the ‘how to book’ a bit of beauty left my soul forever.  I felt like a small kid who peeks around a dark corner in Disneyland and sees Micky Mouse without his mouse head.  Instead he sees a man with the head of the costume dangling from his hand and smoking a cigarette.  Mickey mouse will never be the same.

The ‘how to write’ book reduced fiction writing into a science.  It turned the author into somebody who’s job is to entertain me.  He has to create a story that I want to read.  Make strange and wacky characters, create unusual situations, build suspense.  Do what ever he can to interest the reader.

I use to think that an author was somebody who had a special connection to another world.  A world that only he has access to.  A world that he shows me with words.  I felt like I was peering at a privileged place.  I was not able to figure out why I enjoyed reading so much – I just assumed that it was magic.

But then the truth was revealed.  I was being played for a fool.  The author does not have a special connection to the universe.  He simply knows my weakness.  My need to be entertained.  The story does not come out of him through some special medium – he simple thinks to himself, “what can I do to make this character different, what can I do to surprise the reader.” 

So now when I read a fictional book the magic is gone.  When I come across some character with a odd trait I simply think, ‘great job Mr. Author at conjuring that up’, or when something unexpected happens in the story I think, ‘you must be really proud of your self for coming up with that twist’.  I use to think of an author as somebody who, late at night sits in his candle lit den, a quill in hand, putting to paper words sent to him from above.  Now I see him as a guy in a sweaty business suit, sitting in an office behind a computer, under florescent lighting, thinking, ‘what twist should I throw in now to keep the idiot reading.’  I had to stop reading fiction because it made me bitter. 

Warning To New Webmasters

Before I became a webmaster I was the innocent kid at Disneyland.  Mickey was a mouse that stood on two legs, magic mountain a place where the king and queen live. 

The Internet was a place where people exchanged ideas freely.  If someone had something to say they would create a website and tell the world.  Their only intent was to share.  To exchange ideas.

But now I know better.  Most websites are created to sell things.  Sites are optimized to get Google to notice them.  Words are chosen not because they tell the best story, or give the most accurate information, but because they bring the most visitors to the websites.  And the more visitors to the website, the more money is made.  Webmasters are spending a lot of their time figuring out where to place ads, how to best deceive the reader into clicking them.  They are constantly checking their stats, what page generates the most money, which page is under performing, what can be done to increase revenue.  Mickey Mouse is not baking chocolate chip cookies for Minnie Mouse – he is thinking about how the hell he is going to make next month’s rent.

Now when I arrive at a website, the first thing I notice is how it is being monetized.  Where are the ads?    What are they selling?  Why do they want me to click on that?  Are they telling me this because its true or because they are using keywords for Google’s sake?  I notice that a specific word is being used over and over again.  It is hard to read, but I know why they are doing it.  They want that page to be at the top of Google search results.

Members on forums are not simply being friendly by answering your questions and giving you advise.  They are hoping that you click on their signature link – visit their website – and buy whatever they are selling.  Like the guy who rings on your door, comes in and begins to vacuum your carpet.  He is not doing it because he wants you to have a dirt free floor, he is doing it hoping that you buy the vacuum. 

The Internet has turned from a place of wonder and mystery, into just another place to sell things.  So this is a word of warning to anybody wanting to become a webmaster.  Be prepared to loose your Internet innocence.  Be prepared to loose something that you will never get back.  Like my ability to sit in my favorite chair, sip on hot chocolate, and be taken away by a good tale.

Successful Website Advice – Avoid It

March 25th, 2009
medieval market

Lets assume that you just started a site, or are planning to.  You are looking for advice and ideas.  The first instinct is to do a search on Google for your niche.  Click on the top results and have a look at what others are doing.

This website’s niche is making money online.  There are about 5 big players for this niche.  Websites and blogs that get thousands of visitors a day.  They are an outstanding success.  Make lots of money.  The Walmart, Mircrosoft, and Kellogs of the make money online niche.

All of them give advice on how to make money online.  They give tips about website design, what to sell, how to write, basically they answer the question: how to have a successful website.  They can do this because they have authority – their website is successful.  Do what they do, follow their advice.  It worked for them so it will work for you.

Wrong.

True – they know what they are doing.  They did all the right things.  The proof is their success.  If your goal is to have a website exactly like theirs then follow their advice.  Design it like their website, write like they write, post when they post.  Follow their advice and end up with a website very similar to theirs.  It will identical in all aspects except for one – the most important one.  Your website  will not be a success. 

The fundamental flaw in doing what the successful websites do is that you are setting yourself up to compete against the best.

Following Advice Of The Successful Leads To Failure

Lets say its the year 1300.  You live in a bustling medieval city.  And you are sick and tired of your day job – there is no point in plowing the local prince’s field.  You want to go into business for yourself.

You wander around town in your woolen tunic with hands clasped behind back, looking for business ideas.  You come across the city market.  Little stalls selling assortments of goods.  Mmmmm, maybe I should open up a stall.  But what would I sell, how will I sell it?  You look around for the busiest stall. 

Careful not to step in donkey shit, you make your way through the maze of stalls.  Most of them have one or two people haggling over trinkets.  No big money there.  Then suddenly you see it.  A stall with a lineup.  At least 20 people waiting in line, all of them happy and waiting eagerly to make a purchase.  The owner is gleaming as the money moves from the customer’s hand to his.  You have found a successful stall.  The sign above the stall reads, “Prowalkers – The best and biggest walking sticks in the city”.  The plan is to wait for the end of the day and seek advise from this great business man.

Hello, my name is Fergus.  I am tired of my day job.  I want to be successful like you.  What advise can you give me.  Being a kind and patient man the business man goes into a long lecture about what makes his business successful.    He tells you how to build the stall, how the merchandise should be arranged, how to advertise, and most importantly  – always smile at the customer and ask them to come back.  You thank the man for all the great advise.  Skipping home your main concern is whether to have the house re mudded or to buy a new apple cart once the silver coins start rolling in.

The next few weeks are busy.  Following the advise of the business man you set up your stall.  You are very pleased.  It looks almost identical.  The design is the same, the layout is exactly how he recommended.  He sells 9 foot tall walking sticks, you sell 9 foot tall walking sticks. 

Monday morning…the grand opening.  You wake up early and rush to the market, setup your stall, and wait eagerly for the masses.  The only worry is whether there will be enough room in front of the stall for all the hordes of people lining up.  Probably not.  But you console yourself by realizing that if they squish together then at least 30 people can stand in line.   The church bell dongs and the market opens.

By the end of the day you are in tears.  You sold only one walking stick and that was to the village idiot.  Weeks pass with little change.  Your stall receives very little traffic.  And the few that do visit already have a 9 foot tall walking stick.  Where did you get that you ask.  Proudly the man looks at his walking stick and replies, from Prowalkers of course.  He has been around for years, has the best walking sticks – everybody buys their sticks from him.

Two weeks later you are back in the fields digging up the princes potatoes. 

Do Not Follow The Successful

When your are starting off, it is very tempting to look at the successful site and do as they do.  This is a mistake.  By doing what they are doing, by following their advice, your site will be similar to theirs.  And that puts you at a major disadvantage.  Because then you have to compete against them.

The best way to use the successful sites is to try to find something that they are not doing.  Do something that they never mention.  Or best yet, do something that they recommend against doing.  Since everybody will follow the advice and not do it,  you will be the only one doing it.  While everybody is thinking about how to improve the horse carriage you will be creating the Model T.

The greatest opportunities and surprises are down paths least traveled.  Paths which start with a warning sign, “Danger, path unexplored – enter at own risk”.

Self Promote My Website

March 22nd, 2009
Seismic Data Transcription equipment

A few years ago I owned and operated a data transcription company.  It provided the service of copying old and outdated 9-track tapes to CD.  It was a small company with only 4 employees and a few machines.  But it had big clients.  The tapes contained seismic data which oil companies used to determine whether there is oil in the ground.  Clients included Shell, Exxon and BP.  These clients did not come easy.  It was a year before any of them even picked up the phone.

A typical phone call:

Me:  Hello, this is Roman . Can I speak to Mr. Smith (the data manager).
Secretary of Mr. Smith:  Can I tell him what it is regarding.
Me:  I represent TMT – a data transcription company. I want to discuss with Mr. Smith data transcription services we provide that I believe he would be interested in.
Secretary:   Just a moment please…
[2 minutes later]
Secretary:  Unfortunately Mr. Smith is in a meeting. Can you please give me your contact information and he will call you back.

I give my contact information and waited for a phone call that would never come.  Variations of this happened everyday, many times a day, for the first year.

Running your own business has many perks.  You have heard them all before.  Be your own boss, work whenever you want to, pay yourself what you deserve, profits go in your pocket.  These are the positive virtues.  But there is a major aspect of owning your own business that is usually left out.  Relentless, unbashful, almost arrogant self promotion.  Trying to convince complete strangers that you are what they need.  That only you provide a special service they cannot get anywhere else.  You are special.  Use me – I am the best.

As an employee you rarely need to promote.  You simply turn dials, punch keys and pull levers.  You do not need to persuade anybody that you work for the best damn company in the world.

But if you own your own business  you constantly need to convince people that your company is the best.  And indirectly, since you own the company, you are the best.  When you finally break past the secretary and have the attention of a manager the selling begins.  Hello Mr. Smith, let me list the ways why I am the best, why you need me, why only I can provide what your need.

Self promotion makes you feel dirty inside.  Because you know it is not true.  The competition is very similar to you.  Basically the same service, the same product, the same prices.  Actually you are aware of faults in your business.  You see it from the inside.  Half the machines are in dire need of repair and the service level needs improvement.  But that is not what you tell the potential client.  To the potential client you paint the perfect picture – every brush stroke a work of genius.

A Webmaster Must Self Promote Website

Being a webmaster is like being a owner and operator of a company.  Not only do you have to make sure the website is running, you also have to promote it.  As you can infer from the above I cannot stand self promotion.  I hate it. I would never walk down main street in a red shirt with big white text stating: “I am the best – you need me”

But it has to be done.  Promoting your website requires convincing people to visit your website.  In a forum post you answer a question and then at the end of the answer you have to write: By the way, I have a great post about this topic – click here to read it.  Or you send out emails to subscribers stating how you have found some amazing information that they need to know about – visit my website for more details.  You make a comment on a blog: Great post, I make a similar point on my blog – click here to see.

Always promoting.  Me, me, me.  Everybody look at me.

Its a necessary evil.  Most likely your post is not the best, your website is not the best.  The visitor does not need it.  Without your website the world would not end.  But that is beside the point.  To increase your traffic you need to self promote.  Convince people to visit your website.  Make yourself look better then you really are.  Comb your hair, tuck in your shirt, smile and to anybody who will listen say: I look good don’t I – come visit my site.

The good news is that the dirtiest type of self promotion must only be done at the beginning.  At the beginning nobody knows who you are and what your peddling.  But as time goes on and the word spreads you can tone down the self promotion.  Others will promote your website for you.  They will link to your website, they will tell their friends.  They will say: look at this guy – he is the best.

Unfortunately I am still at the beginning.  Still self promoting.  Everybody look at me.

How This Website Gives Fortune

Albert Einstein famously asked himself, “What would it be like to ride on a beam of light?”.  By answering his own question he was able to completely change our understanding of time and space.  Time became relative and space was curved.  He changed the world.

A couple days ago I asked myself, “What would it be like to be the only affiliate for all of Amazon’s products?”  What if everybody who buys a product from Amazon did so through my website?  For Albert it took years to answer his question, I had my answer in a matter of seconds:  My website would crash.  And I would be have a #$@! load of money.

The Standard Amazon Affiliate Model

The standard method of being a affiliate for Amazon is as follows.  Review a product and place a link to the product at Amazon.com.  If the visitor is persuaded by your review they will click on the link and purchase the product from Amazon.  You get paid a  commission for sending the visitor to Amazon. 

This website is about making money online.  The only products I could review are make money online books.  But for me to review them I would have to read them – and like them.  Find a few books I enjoy, write a review and try to peddle them off on my visitors.  If I do manage to convince someone to purchase a book Amazon would reward me 5% commission.   I could never become rich this way.

I do not want to review products.  I want people to simply use my site to buy products from Amazon.  And not just some products – all products.

How To Get People To Buy Products From My Website

The most obvious way is to ask them to.  I could post a picture of me on bended knees with hands clasped together under my chin, begging them to use my website.  With caption, “Please use my site to buy your Amazon products.  If you do I will become rich.”.  Although this is the easiest way, it is also the most infective.  Nobody cares whether I make lots of money.  There needs to be incentive, other then my financial gain, to convince people to buy products from my site.

The World Needs Help

Before Adam’s grumpy stomach overtook him and he bit into a fresh apple, the world was a happy place. The skies were an unpolluted blue, the trees tall and full of singing birds.  Everybody got along, had what they needed, and were happy. But times have changed.  The world needs help.  People are fighting, hungry and abused.   The environment is changing, skies are graying and choking;  the seas are murky and sick;  animals are fighting for their existence. The world is far from being a paradise. 

It is not all that bad.  There are places in the world doing well.  There are people doing well. People with plenty of food and living in peace. Parks and sanctuaries where animals and plants thrive. The universe  hands out fortune randomly.  Some have lots of fortune, while others are completely without.  Lady Fortuna deals her cards blindfolded.  Only the fortunate have the luxury to help those dealt a poor hand.

So far I am one of the fortunate ones.  I am better off then the world average.  But if everybody used this website to make their Amazon purchases then that would change.  I would become abundantly fortunate.  Too much fortune to handle by myself.  It would have to give it away.  Push my fortune down and pull other’s fortune up.

People Do Not Care About Me, They Care About The World

This website donates most of the revenue earned from Amazon to charity.  The possibilities are amazing.

According to Amazon’s 2008 income statement they receive almost 20 billion dollars in revenue annually.  Amazon pays approximately 5% of purchase price to affiliates.  This means that if in 2008 all products where sold through this website, Amazon would have had to pay this website (5% of 20 billion) 1 billion dollars.  Compared to how much this website makes now, that would have been a really good year.

1 billion dollars – that is a lot of fortune that can be passed on to the less fortunate.  And that is what this website intends to do.  Take most of the money and pass it onto the those that need it.

People might not care about me, but they care about the world.  By using this website to make their Amazon purchases the state of the world can be improved.  They will do it to help the less fortunate – people, environment, animals.  This website will make money by tipping the scale of fortune towards a more even tilt.

To answer the question: What would it be like to be the only affiliate for all of Amazon’s products?  It would be having hundreds of millions of dollars to give the less fortunate.  Change the world.

Update September 2009 – This idea was a total bomb.  The charity page was up for a couple months and only two people purchased a book from Amazon.  So the charity page has been removed.  The Lesson: Do not depend on people’s chairty to make you money online.

Being A Webmaster Is Psychologically Challenging

The first few months of being a webmaster are challenging. Especially psychologically. All new webmasters should be ready to deal with the following:

Silence

You pluck away for hours creating new content.  After reading it and re-reading it, adding sentences and deleting others.  Making sure every sentence flows gracefully from one to the next.  Creating perfection.  Finally it is done, your Saturday is spent, but it is done.  You post your creation online and wait. 

Nothing.  No comments.  No emails.  Like it was never written.  Like it does not exist.  Silence.  The tumbleweed rolling through a ghost town kind of silence.  The time spent trying to please the masses was for nothing.  There is nobody out there.  Like Robinson Caruso writing a beautiful story, putting it into a bottle, and throwing it out to sea.

As a new webmaster do not expect praise or feedback for your work.  Expect nothing.  Write it, post it, and then write another one. 

Zero

For the first few months expect to see a lot of the number 0.  Especially when it comes to revenue.  With so few visitors to your site, most of the time your revenue will be zero. 

Normally this means that once a day you are disappointed by seeing 0.  But you will see it more then once a day.  You will see it at least 10 times a day.  Because every free moment you have will be spent checking your revenue.  Waiting for the coffee to brew…good time to check the revenue.  A commercial on TV…good time to check the revenue.  Three o’clock in the morning coming out of the bathroom and walking past the computer…good time to check the revenue.

You will come to despise the zero.  Its size, font and color will be ingrained in your head.   $0.00.  As the revenue page is loading you will have a slight emotional high.  The expectation that maybe this time it will be some other number.  But the page loads and there it is.  $0.00.  You close the window and sigh.  For a   fleeting moment you consider the possibility that a mistake has been made.  Maybe the servers are not refreshing and the value is not being updated.  But your energy is drained – you do not care enough to do anything about it.  Acceptance comes at last – it is true. $0.00.  30 minutes later the process starts all over again.

The Unknown

Normally when you perform a task successfully the feedback is immediate.  The boss gives you a raise.  The teacher puts a big A on the test.  The dinner guests compliment your spicy spaghetti.  A website is different.  For the first few months you get no indication whether the website is good or not.  You think it is good – that is why you visit it so much.  But the real test is whether other people think it is good.  At the beginning there is no way to tell. 

For months you build with no feedback.  Similar to building a prototype machine.  Spend lots of time designing and assembling.  No way to test whether it will work.  You have to build it first.   Day in and day out you faithfully work on the prototype. Hoping that when it is complete it works.    Only then will you discover whether all that work was worth it or not.  If in the end  it works then it was time well spent.  If not, then you have to acknowledge that is was a waste of time.

Thomas Edison had the same problem.  He had no idea whether a filament exists that enables a light bulb to burn for days.  He just hoped there was.  His only option was to try as many different filaments as possible.  After trying the 500th filament he was no closer to the answer then he was after the 2nd filament.   No indication if he was on the right track or even if success is possible.  Days, weeks, months passed and he was no closer to finding out whether a filament exists.  No feedback.  Only the hope that one day he will find a working filament drove him to continue.

A webmaster must work the same way.  Not knowing whether what is being attempted will work.  Whether the website will become a success or not.  A webmaster’s motivation must simply be the hope that it will work. 
       

You Have No Idea What You Are Talking About

To have a informative website you need to know what your are doing.  You need to be a authority in the field.  But you are not.  You cannot be.  You just started your website.  Only when the website is a success and only after a few years can you claim to be an expert.  It is a catch-22.  You need to know what you are doing to become a success, but only by succeeding can you know what you are doing.

Fortunately the fact is that you do not need to know what you are doing.  You only need to appear like you know what you are doing.  All that matters is the audience believing that you have authority in your field.  It is an illusion that is not too difficult to produce.  Do your research and the audience can be convinced with ease.  Nobody will know that most of your information is coming from books and not your head. 

The real problem is that you actually do not know what you are doing.  This causes a confidence issue.  It is hard to wake up every morning with confidence in your efforts when you yourself know the truth – that you have no idea what you are doing.  Doubts begin to form about whether your website can work.  “How can I be a success, if I do know what I am talking about?”

The answer is that for all things new – for all things that where created first – like your website, the first person had no idea what they where doing either.  They were just bumbling along, making guesses, trying things.  But all along appearing to everybody else like the expert.  All creators need to sell the appearance of confidence and knowledge about their product.  And then if it works, and the product becomes a success, they become the true expert.  Just like your website.  When it becomes a success, after many years of writing about the topic and discussion, you too will be an expert.