So how did I do it – I got really serious about studying and finding out what worked.  I also thought about the requirements of my business.  I didn’t want to have to worry about shipping a lot of products (I didn’t want to have to pay for and store inventory, plus it’s not easy to run a warehouse with two little kids around).  I wanted it to be something that I liked and was good at – I wanted it to resolve around my interests.  The business would need to function pretty much entirely over the internet, with internet marketing tools.  Low start up costs, no employees (I do use independent contractors and interns for some things, but I am pretty much a one woman show….)

That’s why I settled on blogging and affiliate marketing.  I decided to start blogs around subjects I was interested in an monetize them by selling other people’s products for a commission.  For some of them, I also sell my e-book products.   The key is to not have to ship a product – I would rather take a smaller cut of a commission or advertising revenue than have to worry about running to the post office or tracking down a ship tracking number.

So how did I find out which areas to start my blogs in?  As you can see, I thought about the business I wanted to create and what attributes it needed – and then decided on the business model that would best suit those needs.   In my next post, I will talk about how to discover what areas are best for YOU (yes you, not me) to start your business in.

First, think about how people use the internet.  Why do you go online? Entertainment, sure.  News, probably.  Finding an answer – most definitiely.  Shopping – yes.  Now think about the last two.  Everyday millions of people use the Internet to find out information – how to solve a problem they’re having, how to do something.  They use the internet for research and this is also true when people go shopping.  Typically you go to the store to browse, but when you go online to shop, you’re usually looking for something specific – you’re researching before you buy – even if you’re going to buy in the store.

Keeping in mind that when people use the internet to find solutions – whether it’s for a problem or a product will go along way in helping you pick your niche.  Your niche needs to be focused around a problem are trying to solve – whether it’s how to cure acne, lose weight or stop their child from bedwetting, or which model of camera to buy.

Say for instance you love jewelry and want to start a business in that area.  Now jewelry is too broad, but perhaps you really love making your own glass bead jewelry.  Are there lots of other people who like to do that too?  Do they have blogs, websites and forums they go to?  Arre peole who like to make and buy bead jewelry easy to find and identify on the internet?  Yes – and that is why a market niche defined like that makes sense.

Now you’re probably saying – but there are already tons of people online in the bead jewelry space – how could I make money there?  If it’s big enough market you can – you only need a small percentage of the active buyers to buy from you.  But remember – most of the people in this market might not be looking for jewelry that is already made – they’re looking for supplies, how to books, how to videos, etc.

And this is where you come in – are you an expert in this area?  Could you become one by reading a few books, taking a few more classes?  Could you start a blog about bead jewelry and put Google Adsense on there?  Could you write an e-book about how to make bead jewlery and sell it for $9?  Could you find someone else who’s already done it and sell their product as an affiliate.  Does Amazon have a lot of products about bead jewelry that you could promote, weaved into your blog content about bead jewelry?

Do you get the idea?

The goal is to build an online business that yields $1000 in revenue a month, with minimal start up costs, overhead, and expenses, in one month.  Other requirements include:  It has to be something I can build and run in my “spare time” since I already have a business, a family and lots of other responsibilites.  Also, no shipping of product.  The money has to come from advertising and product referrals (otherwise known as affiliate marketing).  And the subject can’t be about how to make money on the internet.  And startup expenses (inclusding advertising) can’t be more than $500.   And as I said, at the end of the month, I want it to be generating $1000 in revenue from advertising and affiliate marketing.  And I am going to follow a course or book step by step  – to see if I can do it too.

So up for the challenge – you can comment below or sign up for the email newsletter to stay up to date.