Don’t Just Make Money Online – Build Business Assets that Last

May 4, 2009 - Written by Gyutae Park  

computer cashThe Internet holds a giant online marketplace and there are obscene amounts of money to be made, especially as more and more people adapt and get accustomed to the web as a daily part of life. If you’re an entrepreneur, you know that opportunity abounds online. It’s just a matter of finding the right niches and focusing your efforts on the highest impact ideas.

But what exactly are the highest impact ideas? What’s worthwhile and what’s not? In my experience, I’ve found that there are two different categories of online business opportunities: money makers and assets. A money maker represents quick cash and not much else. You’re not necessarily building your own business or anything of value you can leverage later on. You’re simply making money. On the other hand, an asset is a real business that continues to grow in value as you invest your time and resources into the project.

Business Assets > Money Makers

So what’s better? What’s more worthwhile? In my opinion, business assets win over money makers every time. I’d much rather focus on investing in long term assets rather than making a quick buck off of the various online opportunities.

building constructionMoney makers may offer the potential of making money faster, but their long term outlook is severely limited. After a short while, you may have made some money, but you won’t have much to show for other than that.

Business assets are favorable because they represent solid business models with sustainable long term income potential. As you continue to invest your time and resources into the project, the site will grow and take on a life of its own. Compare that to money makers where you could easily have your income sources depleted and be forced to start again from scratch. Online business assets empower you with leverage as they open up new opportunities for marketing and future business ventures. In other words, you obtain bigger success with less work later on.

As you pursue online business opportunities, you should ask yourself a few important questions before getting involved. Will the opportunity allow you to build something valuable other than immediate income? What’s the future outlook? Can you leverage the site for future opportunities? You want an asset, not just a money maker. Let’s discuss a few guidelines to help you prevent the money maker pitfalls…

7 Don’ts of Making Money Online – How to build assets not just money makers

  • Don’t focus on fad niches with limited life spans (e.g. popular celebrities, fads for diets, toys). Build around a niche that has solid long term potential.
  • Don’t rely on black hat SEO (e.g. cloaking, obvious paid links) to provide you with traffic. You might be able to fool the engines and manipulate rankings for a short while but it’s not a battle you can win. Spend time using ethical SEO practices to build your site for the long haul.
  • Don’t build thin affiliate/Adsense sites that offer little value outside of what the merchants already have. Users will have no incentive to visit your sites and Google is working to eliminate these sorts of sites from both their organic and paid search listings. Build a branded affiliate site instead (read Rae Hoffman’s article on how to survive the affiliate evolution).
  • Don’t rely on PPC affiliate marketing for long term income. There are super affiliates who make a killing with it, but they’re not building assets. Here’s some proof. Paul Borque aka Uberaffiliate, tumbled from $300,000 per month to $182.64 profit in just one month after a few mistakes.
  • Don’t host your content on other people’s sites. Blogging networks like Blogger and WordPress.com might be easy to use, but they take away your control and ability to monetize your content. Similarly, don’t rely on e-commerce sites like eBay to run your business. You might be able to reach a larger audience in the beginning on a platform like eBay, but you severely limit your business potential. Sell products on your own domain and website. You never want to give up your assets to other people and do business on a platform you don’t have control over.
  • Don’t just drive traffic to your sites. Build a list of leads through RSS/email/Twitter and develop relationships with your potential customers. Your list is extremely valuable and allows you to continuously profit from your most loyal followers.
  • Don’t just work for money, build your personal brand . If you work for a company or do consulting for clients, the last thing you want to do is get comfortable with your monthly paycheck or steady income. What are you going to do if it disappears? Build your personal brand (blogging works great), build tools and processes, and develop relationships with effective networking (both online and off).

When it comes down to it, building business assets comes to down to branding. Learn how to build a brand and take control of your efforts – you want to have something to show for with your Internet marketing efforts after all, don’t you?

Are you building business assets or are you playing around with temporary money makers?

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Posted in Articles, Internet Marketing, Make Money Online
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22 Responses to “Don’t Just Make Money Online – Build Business Assets that Last”

Tom - StandOutBlogger.com on May 4th, 2009 Subscribed to comments via email

That is exactly it. We need to focus on long term sustainability!

Gyutae Park on May 5th, 2009

Hey Tom,
Long term sustainability is actually something that I’m working towards right now. I know that I could potentially make more money right now by focusing on affiliate marketing and selling advertising, but that’s not the route I want to take. I’d rather create my own products, build a brand, and start forming the foundation of an online empire.. and that’s what I’m doing. 🙂

 
 
Daehee on May 4th, 2009

Hey Gyutae, awesome post about long-term business strategies. I recently blogged about this issue as well: http://www.itmilk.com/2009/04/22/ethics-in-affiliate-marketing/

Gyutae Park on May 5th, 2009

Daehee,
Great post about ethics in affiliate marketing – that stuff is even more short lived than other affiliate offers and you don’t really feel good promoting it either. Personally, I try to stay away from anything that might even remotely smell of a scam.

 
 
Kahoong Lee on May 4th, 2009

Building personal brand is long way to go, personal logo is important as well. Besides of doing link exchange or build 1 way link, write up good content as well. You have great content, when you leave comment on blogs, people might be interested to visit their commentor’s blog, if they found your blog useful and interesting, they might be your next loyal readers too!
In Web 2.0, quality and fresh content is king. 🙂

Regards,
Lee

 
KushMoney on May 4th, 2009

I totally agree with this awesome article. I been working on my blog for the long term. Building assets is very important to live a great life later in life.

 
Sleepless in Sacaramento on May 4th, 2009 Subscribed to comments via email

That is unbelievable how the assets of Paul Borque crashed from 6 figures a month to basically … nothing! Right there, that should teach us a serious lesson. You are right about building assets, it takes hard work and you must be diligent about doing it. I agree about ‘branding yourself’ I will check out you link on how to do so, because I can certainly use all the help I can get.

Peace

Gyutae Park on May 5th, 2009

It is unbelievable isn’t it? The moment a super affiliate stops working or catches a bad break, everything could easily go down the drain. If you build a solid business with your own assets, you have much more control and this sort of thing is much less likely to happen.

Check out the link to the branding article when you get a chance and let me know if you ever have any questions!

 
 
Kai Lo on May 5th, 2009 Subscribed to comments via email

Although I’m not making any money yet on my blog, I noticed that I am meeting a lot of new friends. They help me in many ways to grow to become successful.

Gyutae Park on May 5th, 2009

Yep, friends and connections are assets too. Of course you shouldn’t tell them that, but you can leverage important relationships to help you profit in your business. 🙂

 
 
save gas on May 6th, 2009 Subscribed to comments via email

One more don’t for you don’t give up keep on trying until you are successful If one idea does not work try another create more the one site if you have a few sites/ideas you have a better chance of finding one that make money for you

 
samo on May 7th, 2009 Subscribed to comments via email

I think they are all very good suggestions, I think the main point is not to rely too heavily on one method to make money online. Spread your efforts and interact with that community to make a successful go of your website.

 
Mr. Ilarijs on May 7th, 2009 Subscribed to comments via email

I like Blogger, why not? It’s for entertainment anyway 😉

 
Bryan on May 7th, 2009 Subscribed to comments via email

Hi,

Great article. I completely agree that it is important to build a long lasting asset, otherwise, why even do any work at all if it is just going to disappear?

Anyway, I also think building relationships with your readers is also a huge asset. If they like you they will trust you.

Thanks,
Bryan
Free Report – Make $150+/day online

 
Matt Fracek on May 7th, 2009 Subscribed to comments via email

softwaremakerpro.sitepages.org Thanks for posting!

 
atul chatterjee on May 19th, 2009

I agree, build your own business. If you are building an affliate business do it as a cash generator. The other warning pointed out in a comment is to build two or three lines of business.
The only thing that I did not like about the articles were the lack of examples. When I see examples and theory meshed together I reccommend articles to friends freely.

 

I found your post informative , helpful and easy to digest.
You have got my best recommendation on this. Keep this coming!

 
Kevin Njoroge on August 20th, 2009 Subscribed to comments via email

Very true, my head is nodding right now. You need to build an ethical business with strong foundation. You need to build a list of subscribers which you can monetize over and over again while building a relationship with them.

Again content is king in the world of information marketing and if you only provide crap and floods of affiliate recommendations, the be prepared to see many backs.(walking away fro you and your business)

So remeber not to focus on making affiliate commissions or quick bucks, but on building a lasting business.

cheers

 
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