There are several ways to make money online. Hopefully this article will help you decide which method is best for you.

Need Money Quickly?

Before you even read this article, please watch my video below about having the right mentality before you begin.

Too many people come to this site looking for an "easy" or "quick" way to make money and there is no such thing. So please watch this video for a reality check.

Below the video you'll find different ways you can make money on the Internet.

1. Become an Affiliate

This is the only way I've ever made money on the Internet and one of the most convenient. As an affiliate you refer your audience to various company websites, and when a sale is made you earn a commission.

You are the middleman (or middlewoman) so you don't have to deal with customer service, taking orders, etc. The companies you become affiliated with provide you with a tracking link to use to link to their site. That's how they track how many sales you've generated.

Almost all affiliate programs are free to join. It usually involves filling out a sign-up form and within moments the company sends you the links you need to use on your site or blog.

The key is to choose a subject you love (hobby, passion, topic, etc.) and build a content-rich, informative site or blog about it.

Finally, you can go to sites like AssociatePrograms.com to search for related affiliate programs to join and promote from your site.

Here's an example. Say you love fishing. You could create a "how to" site on fishing that provides all the tips and techniques one needs to become a successful fisherman.

First you'd have to read up on SEO (search engine optimization) to learn how to get your pages ranked high in Google, Yahoo, Live, etc.

Then you'd make money by joining affiliate programs that offer fishing related products. Link to these products from your site and earn commissions when your visitors buy through your links.

You can also earn money from programs like Google AdSense or having other Webmasters advertise on your site. The possibilities are endless! Thousands of people (including myself) make a living from affiliate marketing.

Watch a Video on How Affiliate Marketing Works

2. Sell Your Own Product (Hard Goods)

This is often the most common method people think of when it comes to making money online. In fact, many people think it's the best way to earn a solid, long-term income.

I do agree that it can be the most lucrative approach, since having your own product means you directly control how much profit you make.

However, there can be some headaches with this method. For example, you are in charge ofeverything. Selling your own product means you are responsible for customer service, collecting orders/payments (credit cards), developing and shipping the product, etc.

Note: Thanks to companies like PayPal, the "collecting payment" part has gotten a lot easier.

In addition, it's usually a good idea to setup some kind of business name, although it is not necessary.

Selling a product can be a lot of work, especially if you're new to marketing. However, once those sales start rolling in, you can build a steady, long-term income.

3. Sell Your Own Product (E-Goods)

An e-good (short for electronic good) is a digital product that can be easily transferred or downloaded via the Internet.

No need to worry about running out of inventory because the digital format rewards you with an unlimited supply of your product!

Lots of Netpreneurs sell e-goods because they are much easier to manage. You don't have to ship the products. Customers can either download the product immediately after ordering, or they can be sent via e-mail.

E-books are the most common type of digital good sold on the Internet. They are often created with software like Adobe Professional (PDF) and then uploaded to the Net with ease.

Jim Edwards created a useful guide that shows you how to create your own e-book in 7 days.

When I bought the book, I had to admit I was a little surprised. I am normally very suspicious of these "how to" books because they often contain regurgitated facts you can find anywhere on the web for free.

Jim's book is different. There are over 180 pages of useful information and even interviews from other authors sharing their experiences with selling their own e-books. So you can learn and get ideas from them.

Jim also gives you excellent advice on how to pick the right topic for your e-book. So if you're thinking, "I don't know enough about anything to write a good book." Think again. I bet Jim will change your view and fill your head with ideas.

I highly recommend getting this book if this option entices you. You can download the book right after you order. Click here for details.

4. Start an eBay Auction

Who doesn't have excess stuff they need to get rid of? A lot of people make money on the internet by opening up an eBay auction site and selling things from their home.

With this method, no website is needed. All you need to do is sign up for an eBay account and go from there.

I won't even pretend to be an expert on this subject. I'm an affiliate marketer at heart so I'll let the eBay experts have this one.

Speaking of experts, John Thornhill wrote a book on how to profit off eBay and become a successful PowerSeller like did.

You may find this book useful if this is the approach you want to take. Nothing like learning from someone who has actually been there, done that.

5. Sell a Service

Are you a writer? Web programmer? Consultant? Do you perform any sort of service? If so, you can sell your services right through Elance.com.

What's cool is that Elance facilitates the entire work process from hiring to collaboration to payment. In other words, they will connect you with people who need you!

6. Dropshipping

Dropshipping is where the retailer does not keep goods in stock, but instead transfers customer orders and shipment information directly to wholesalers, who then ship the goods directly to the customer.

So let's say you want to sell handbags from a certain company. You would buy the products at the wholesale price, collect the money from your customs and the manufacturer then ships it to them.

WordWideBrands.com is a company that helps you do the research to find what people are buying, tells you where to buy it and finally how to sell it.

Need More Ideas?

This is just a small listing of the various ways you can make money online. You can do so much more, but these are some of the most common options.

If you want to see even more examples of successful websites earning money online, see this site.

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