There are so many ways to make money online, however, you have to figure out what you’re passionate about first. Personally, I love blogging so I have set up 4-5 personal blogs to help people with blogging, mental awareness, and more. The funny thing is, I know people in my niche who have done the same thing, but continued to make a better living through selling SEO tools. I must admit that this is really a lucrative business if you implement the strategies the right way. In recent years, this business has grown bigger, and much of this has to do with the expansion of the Internet. For example,
People are able to set up blogs quickly, and with very little investment. This means they require tools to help them build their online profiles through social media, keyword research, and writing content. There are even tools to help you find HOT trending topics online so you can create something better. It’s amazing how I’ve seen things changed within the last 10 years. Look at the evolution of search engines, and you’ll know how they have transformed over the last several years…right?
With that said, I’ll like to explore this question: Is Creating Tools Better than Writing Content?
You’ll be surprised by why creating tools might be the direction to take if you want to explode online. Let’s get started.
With the right tools, you are NOT limited to the audience you have. When you focus on a niche, you’ll have to attract people and other bloggers who are in the same niche. You’ll have to write content catered to them, and even focus on attracting the same type of people going forward. However, with the right marketing tools, you’ll be able to attract people from all different types of niches. For example,
If I create an online keyword research tool, then I have every blogger at my disposal simply because everyone needs to research keywords. This doesn’t matter if you are in the health niche, online marketing, money, relationship, MLM, etc. You’ll need to research your competition to find out how you can get an edge on your competition…right?
The same applies to tools that have been developed for “website backup and speed”. No matter what niche you’re in, you’ll need these tools to ensure your website is running optimally, and that all your data is backed up. It is estimated that the Internet is available to over 75% of the world, and this means you have more people going online to search or even start a business. This is probably why search engines like Google blew up quickly because everyone is getting Internet access, with all of them having to search for information.
When you look at things more broadly, you’ll understand how the right Internet tools can make a huge difference online. They’re even massive for the bottom-line.
One thing I’ve noticed is that when you develop a tool, the retention rate is very high. Hosting companies probably have the highest retention rates because once you start a website, you’ll probably have it for the rest of your life. This means you’ll have to host online, and have a domain name…right? Even if you are NOT starting a website for business reasons, you’ll have a personal blog or host your resume online. The thing to remember is whatever reason you have to go online, you’re MOST likely going to stay online for a long time. Hosting companies are very smart because they understand how important customer retention is for their business.
When I first started to host with GoDaddy 7-8 years ago, I never knew I would still be their client. I’ve found way better deals, but it’s the work involved to switch that threw me completely off. For me to switch over, I would have to move my domains, databases, website files, email accounts, etc. This was way too much work for the difference of a few dollars. Here’s my point,
I consider hosting companies an online tool because you won’t be able to do anything withinout the right hosting plan. With so many reseller hosting accounts available, it’s NO wonder anyone can jump into the hosting business. Writing content doesn’t retain customers as much as online marketing tools.
This is NOT limited to just hosting, but even auditing tools, backups, link trackers, etc. The value they provide is so high that once you’ve started using them, it’s hard to move away.
When writing content, the only options you have is how to write the title, body, and conclusion. You have to make sure you’ve targeted your niche so your audience will find your content engaging…right? When they find your content engaging, then you’ll start to grow as a business, but this is NOT the case when creating online marketing tools.
You have such a huge market because there are so many niches online that I can’t keep track of them all. For example, here are just a few from the top of my head:
- Online marketing
All of the ones I’ve mentioned above can be narrowed even further. However, you understand the point I’m making as it applies to niches. If you are creating a SEO tool, you’ll have the option to target any of those niches. I can create an online app to count weight loss calories, or even create a keyword research tool, which targeted all of them. I’ve noticed there are so many tools that target all the niches at once, and this goes back to my first point of “Audience”. You truly have no limitation when businesses decide to go online. Here’s another example,
If you create a link building tool, you can pretty much target every single niche…right?
Depending on your passion, you can shift your efforts to focus on creating the right tool for your niche. You’ll notice that most tools are online because they are easier to access compared to conventional tools.
You’d be surprised what the profit margins are when creating your own online tool. Some products are anywhere between $20/month to $199/month, and this is even more when they upgrade their plans. I know this might not seem like a lot at first glance, but remember that once the tool is created, it’s all about maintenance. For example,
The highest investment for anyone is to actually develop the product because after that, you don’t have to upgrade on a daily basis. You are NOT shipping anything, and you don’t have to make cold-calls unless you have time to burn. This is why once the product has been developed, you’re able to cash in almost immediately once it hits the market.
Imagine selling a product for $199.00/month on a recurring subscription, and having more than 1,000 customers. Let’s do the math…
This works out to $199,000 per month every month as long as the customer stays a subscriber. However, again, keep in mind this is NOT including the upsells with each product. If you’re a smart business, then you’ll know how to get the MOST out of your customers. With that said, here are a few things you should consider:
First, make sure you create a product high in demand because this will help you gain access to a bigger market. No point in creating a market that won’t appeal to the masses because you’re cutting into your market share. Secondly, you should always tap into a growing niche like health, wealth, and love. If you take a close look at these “3” niches, then you’ll know these categories have been growing almost every year, and access to the Internet has only helped them expand. Third,
Make sure you create a product that is significantly better than your competition. You’re only going to be able to excel when you know you can destroy your competition. In content marketing the first lesson we learn is to research our competition so we find ways to make our product better than everyone else. We need to add elements that others are missing, which will allow us to get a competitive edge over our competition. When this happens, we know we’ll be able to succeed where others have failed.
Wrapping it up
In the end, you have to think about the two options you have in front of you. I’ve often been asked about writing content or developing a product, and I always answer this way. What are you more passionate about? Next, even though you’re passionate, do you have enough resources to set up a product that will transform your niche? I’ll admit, starting your own product will take enormous time, and it will require loads of money, which many people don’t have right now. With that said,
Let’s look at the following things:
Niche – Is your niche big enough that your product will translate into enormous profits down the line? I know many niches that are too small so whether if you have a product or not, you’ll still have a hard time making money. The way you can answer this question is by researching your niche, and finding what other types of products are available.
What will work? – This is another common question you should ask before getting started. There are so any products on the market, and you have to create something unique or better. Before you can, it’s important to find out if your product is needed within your niche or if it will just sit there without anyone seeing its importance. The more of a sensitive area it touches with customers, the better chances you’ll have of selling your product.
Profit margins – It’s all about the bottom line so I always think: How much can I make from this product? For example, what should I sell my product for so it’s attractive in price? Too expensive, and people won’t be able to afford it but too low, and you won’t be making a profit going forward…right?
I would research different products, and see how they have priced their products, and then see where you fall in between. It might even take some trial and error to find what price range gets the most conversions.
It’s time to go back through this content, and make a list of the important elements discussed. Go back through, and answer some of the questions I’ve asked so you can see how they apply to your niche. As you start to research your niche, you’ll get good idea of what you want to do going forward. Either you want to stick to writing content for your readers, and convert them by selling someone else’s product, or, you know you have a huge enough audience to start developing your own product, which is a completely different ball game.
I would start by doing a quick search on Google so you can find resources on effectively start your own online product. Freelancer.com is a great place to find people to get started with because people can be found from all over the world with different levels of experience.