I get a lot of questions everyday but one question that I get asked almost every single day is: How do I start working online? What’s the first step? How do I do what you’re doing? So today I’m going to attempt to answer that question.

For most people working online means earning a few bucks, or doing something for zero or little effort. That’s not what I’m about or what I teach. I can’t help you get started working online by clicking on ads, or by filling surveys and questionnaires, or by mailing envelopes, or whatever else kind of menial work is being advertised to make you millions.

When someone asks me how to start working online, I assume that they are asking me for a viable sustainable online business that they’d like to start. It could be a part time business, it could be weekends only, but you have to be serious about it. If you don’t ask me seriously then no matter what advice I give, you will not be able to earn money online.

So assuming that you are serious about making money online, here’s what I would say are the first few steps in this order:

Step 1: Know what kind of work you’d like to do online

Example #1: Perhaps you’re a musician with extensive knowledge about learning to play an instrument (or various instruments) – you could perhaps start a website that gives guitar tutorials. Or maybe you’re a singer songwriter who wants to compose music for international clients – you could become a music producer on a freelance website.

Example #2: Maybe you’re a graphic designer fresh out of school and looking for online work. Maybe you could advertise your design services online and start to get work through the internet.

Example #3: What if you’re a doctor. Can you work online? Well, yes, but that depends on what kind of work you want to do. There are many reputable publications in the health, nutrition and fitness fields that require content for their websites, newsletters, advice columns, etc and would maybe want to hire you as an expert. Alternative therapy and natural medicines is also a fast growing field with not a lot of qualified practitioners; you could maybe get work with them as a side income project.

Example #4: You have an existing t-shirt designing business and would like to find a market for your products online. Can you do that? Yes, and it will depend on finding international buyers ready to stock your products at agreed upon rates. You can do that through various online companies such as www.alibaba.com that specialize in providing physical products via an online medium.

Example #5: You are a journalist, looking for ways to earn some extra money. Perhaps you can start a blog, or write a book, or look for a gig writing for an international column.

These are just five examples; basically you can work online in just about any capacity that doesn’t require your physical presence and you’ll be surprised how few those are. Are you an engineer? You can find work online as a contract manufacturer. Are you a housewife? You can find work online leveraging your expertise in cooking, designing, parenting, etc. There’s online work awaiting you in almost every conceivable field from financial to legal to engineering to writing to design to web programming.

So do you know what you want to do? Figure that out first and then move to step 2.

Step 2: Find your market

The assumption here is that you have a skill or a product that you’d like to make money from. Once you have identified that skill or product, you must find a market that will buy your services/products.

Here are some ideas to get you started:

1. You can sell your existing products using affiliates. Affiliates are people that sell your product on your behalf for a small commission. You can join an affiliate network and get your product listed for sale. Examples of affiliate networks are www.clickbank.com, www.commissionjunction.com, www.amazon.com/associates and plenty more – just do a search for affiliate networks to get a more comprehensive list.
2. You can sell your services in a freelance marketplace such as www.elance.com, www.guru.com, www.odesk.com etc.
3. You can get your products sold globally through international vendors and drop-shippers such as www.alibaba.com, www.wordwidebrands.com, www.thomasnet.com, www.housewares.org, www.expoeast.com and www.expowest.com.
4. You can start your own WordPress website by registering a domain name through www.namecheap.com, buying hosting from www.godaddy.com and installing WordPress through www.wordpress.org. If you don’t feel confident you can do this on your own, you can start with a free www.WordPress.com account which just requires a username and password to use. Else, you can hire a company such as www.customsocialpages.com to set it up for you.
5. You can use social media to find prospective buyers and clients, although that is a less direct way and you will have to invest some time in it. It is recommended if you are not in a hurry and are good at having online conversations. Social sites that would be a good fit for finding leads include www.linkedin.com, www.twitter.com, niche forums (search for your niche + “forum” on google), and www.facebook.com (pages and ads).

Step 3: Determine how you’ll get paid

Once you have found your market, you need to sort out payment details. There’s a comprehensive list of payment processors that you can work with here, but only some of these are compatible with Pakistan. Those that work in Pakistan include www.payoneer.com, www.alertpay.com, www.2checkout.com, www.westernunion.com, www.moneybookers.com, and sites that pay you via direct deposits and through checks (such as most freelance sites do).

Payment processors help you determine how you will charge prospective customers and how the money will get transferred into your bank account.

So, I hope this list has given you a starting point. Essentially there’s just a few ways to run an online business, such as you can see in this online business info-graphic. You just need to find the tools and resources that will help you and chart a path that is unique to your skills, products and abilities.

Questions? Mail me at ask@wordpl.net with your very specific question or just write it out in the comments below so that your question and my answer benefits lots of people. Good luck!

p.s. For more in-depth information, check out my presentation How to Start an Online Business (from Pakistan).

Probably the most scammed and written about topic is the allure of making money from the comfort of your home using nothing but the internet to do so. So what’s the answer, can you really make money from home or is it just a pipe dream?

Short answer: yes you can.

Long answer: you can, provided you find legitimate sources to work with.

Detailed answer: I’m going to list here in this post, and in general in this entire site, legitimate ways that you can work from home and support yourself and your family. How can I say this with such surety? Because I’m doing it. I work from home and that’s how my spouse and I run a 2-income household. But I’m going to be talking exclusively about online work (as opposed to setting up a home business) and most of the items on my list do not fall into the job category but really the career category. I’m going to show you ways to build an online business and a career while working from home.

A word of caution before I provide the list.

There is no easy, quick and effortless way to make money online. And anyone who tells you that is a liar and a scammer. Making money online is almost exactly the same as making money in a regular brick and mortar world; it takes hard work, dedication, perseverance and smarts. But once you get the ball rolling, the internet allows you to make money with many different kinds of income streams (which is not possible in a 9-5 job). Some of these streams can even be residual in nature, meaning that you earn while you’re not actively working (but you’d have already put in the hard work to set it up).

Oh and another quick word: the list I’m going to show you can work anywhere in the world. That’s right you don’t have to worry about which country you reside in. So long as you have a computer and an internet connection, you’re good to go in the online world.

Right so let’s get to the list of ways in which you can make money and build your online business:

1. Freelance Bidding Sites

Bidding sites such as Elance, Guru, oDesk, ScriptLance, Get-A-Freelancer, Rent-A-Coder etc all function in basically the same way. Think of them as auction houses; they bring together buyers (companies or individuals) who have work to outsource and providers (like you) who are looking for work in their specialized field. Bidding sites are the middlemen in this exchange; they will hold the money in escrow, they will provide a place for the buyers and providers to talk shop, upload files, negotiate disputes and conduct their business by providing some level of confidentiality and security.

Bidding sites are called that because again, like an auction house, you must place a bid to be considered for a project. The buyer selects the winning bid and work commences.

Some bidding sites cater to one specialized category while others offer work opportunities in several different fields such as graphic design, web development, web design, content development, engineering, finance, law, sales and marketing, etc.

Some sites offer a free membership with limited views or limited access to projects, while others don’t have any free option. Most offer membership categories, which can start from $10 – $20 per month. You use your credit card (or PayPal account if you have one) to buy a membership.

The money you earn is usually deposited directly in your bank account (via SWIFT code for international transfers). Or again if you have a PayPal account, you can choose to have the money sent to that account. Once the system is set up, bank transfers can take as long as a week or be as quick as 24 hours, depending on where in the world you live.

Since I work mainly on Elance, I’m going to be sharing many of my Elance experiences with you here. You can start by reading the 7 Secrets for Elance Success.

2. Content Sites

Examples of content sites are Suite101, eHow, Helium, Associated Content, About, Examiner, Constant Content, and many more!

These sites usually incorporate either in part or in full the concept of residual income. They are sites which hire freelance writers to create content for them. Writers get paid either upfront for each article, according to the page views their article receives or according to a revenue ad-share program. The ad-share program basically displays relevant ads to your article. When a reader clicks on an ad, you get paid a percentage of what the advertiser is paying to have his ad displayed on the site.

This type of earning is usually a slow trickle in the beginning but it can really add up with some time investment and learning the tricks of writing for the web to generate maximum revenue.

Payment is usually made via PayPal. If you’re in a country where PayPal doesn’t operate, you can look into options of having someone trusted in a PayPal-approved country set up an account for you, using your email address so you get all the notifications, etc.

Since I work mainly for Suite101 from the above list, I’m going to be sharing my experiences writing for them and will detail all the pros and cons for you.

Content sites can exist in areas other than writing too; for example, photography sites which pool together photos taken by different photographers and offer them as stock images work on the same principles as the writing sites mentioned above.

3. Blogging

To be a successful money-making blogger, you must own your own domain name website. No ifs and buts to this rule! Don’t think you can successfully monetize your blog using a free site such as Blogger.com or WordPress.com (see this post for the distinction between wordpress.com and wordpress.org). While you can earn some moderate amount from free sites which allow ads to be displayed (such as Blogger now does), there are limits to your earning potential.

To make money as a blogger, you need to be operating in a niche market that you are familiar with and can offer unique insights on. You will earn money mostly through online ads, your own product sales (such as an e-book), your own membership sites and anything else that you can successfully monetize.

This route to online riches is anything but easy and obstacle-free. The amount of discipline required is immense since no one is driving you to work hard (or work at all), and the pressure to drive traffic to your site (so people can click on your ads or buy your stuff) is pretty intense. You’ve got to know or learn about search engine optimization (SEO) and how to rank highly so that people interested in reading what you’re offering will find your site. You’ve also got be a master promoter and learn a bit of marketing since you’ll mostly be doing it all yourself.

Successful bloggers, like Darren Rowse or Brian Clark, who make a living via blogging have been at it for years and are only now reaping the rewards of their hard work. It would be a good idea to study them and their blogs, read what they have to offer, and soak up all the useful advice and tips presented on their blogs.

4. Affiliate Marketing

Affiliate marketing works on the same concept as a referral program. In the brick and mortar world, you can earn a commission based on recommendations. In the online world, you can earn commissions based on directing traffic and sales to the company or product you choose to affiliate yourself with.

Here’s an example: suppose I really liked a book I read recently and thought it would help my readers in setting up their online business. I would go to where this book was being sold and become an affiliate for it. Once approved, I’ll write an honest review of the book containing both its benefits and any criticisms. In the review I will place my affiliate link. When someone clicks on my affiliate link and buys the book based on my recommendation, I get a percentage commission of the sale.

Affiliate marketing can be incorporated into your online business ideas in 2 ways: either via blogging where you place your affiliate links in your blog posts, or via a dedicated product review website which reviews affiliate products.

These were the big 4 ways in which to start making money and building an online business right now. Obviously there are many smaller schemes and many sub-schemes within these niche areas, but if you can master even one or two of the above, you’re off to a great start! And remember it’s never a good idea to keep all your eggs in one basket, so as soon as you’re comfortable with one money-making idea, start exploring how you can use the others.

Got a tip you want to share about making money online the legitimate way? Have a question about any of the freelance sites outlined above? Want to add your own success story to building an online business? Drop me a line (or several lines) below!