Home Based Internet Business Secrets

Home based Internet businesses are often a fine choice for a new entrepreneur. The start-up costs are typically low, and they have one of the best risk/reward ratios of any home based business. As with any home based business a home based Internet business will usually take a little while to get off the ground. In fact, the most common type of home based Internet businesses - information based Web sites - can take as much as a year to produce significant income.

There are other kinds of home based Internet businesses besides building a Web site, and these other kinds have some advantages of their own. For instance, one home based Internet business that can bring in some income almost immediately is a business based on pay per click advertising . Pay per click (or PPC for short) is the most common type of advertising on the Internet . Would-be advertisers place bids for various key word phrases. As an example, Ford might bid highly for the phrase "buy a new car" . It's probably a very expensive keyword . You might be able to find some other key words that work just as well for finding the targeted customers Ford is looking for, but which are much less expensive.

So, if you bid for an inexpensive key word phrase about buying new cars, and send the people who click on your ad to a page where they are likely to click on Ford's "buy a new car" ad, you can pocket the difference between the expensive key word phrase and the inexpensive keyword phrase. Of course this is an over-simplification of this business but it serves to give you the basic idea. Buy low and sell high (and of course, give Google a cut).

There are also other home based Internet businesses that revolve around PPC advertising. One of them involves another important Internet business concept - affiliate sales. An affiliate is someone who has an agreement with a merchant that they will get paid a commission for bringing a potential customer to the merchant.

Usually, the commission is only paid if the new customer buys something from the merchant. It should be pretty easy see how PPC advertising and affiliate commissions can be combined into home based Internet businesses. It all boils down to finding the right key word phrases, phrases that will bring in the right people for not much money. You then capitalize on this inexpensive traffic by sending it to the merchant with which you have an affiliate agreement. Again, buy low, sell high. So, you see, if you're not interested in building a home based business primarily around building a web site, there are other home based Internet businesses that may work well for you. This Web site is a great place to learn about the many choices.

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