Image by Kristina B via Flickr

Okay, so if you have decided that “YES” you want to make money on the internet you are probably now a bit confused on what to do. Hopefully you have figured out at least a direction that you want to start, be it online auction or being an affiliate marketer. Of course you can sell your own products, but I believe it is much easier to sell somebody else’s product before trying to sell your own. That way, you can learn a lot about internet marketing first plus make some money without the worries of shipping and support of the product.

So, let’s take a look at three of the mistakes that many newcomers make when they are new to the making money on the internet game.

1. Lack of Direction
2. Lack of Research
3. Lack of Action

Usually one of the first mistakes that beginners make in trying to make money online is that they do not put enough thought into it. Ten years ago or so as long as you had a great idea, you had a chance to be found. Well, those days are over. You have to do some research and find a niche that you you know something about and would be willing to write about on a continual basis or at least willing to learn all about. Plus you have to learn the ins and outs of Internet Marketing and be willing to continue to learn as these “rules” change all the time.

Now this may seem funny, but when I started I had the worst time figuring out exactly what a niche was. So, I am going to explain it here and for those of you who are rolling your eyes right about now, then just skip over this.

A Niche: According to the dictionary, a niche is a hallowed out place of a wall to put a statue; job or position for which one is best suited. Well, a niche in internet marketing/making money on the internet is somewhat of a combination of the two. It is a place that is hallowed out but instead of in an wall it is on the Internet. This is a place where people looking for exactly what you have come. It can also be thought of as a job or position in that when starting out picking an area (or a niche if you will) in which you have at least a little expertise or education is easiest…or at least a desire to learn about it.

But wait a minute…what if you do not have any special area of expertise or knowledge?

While you may not know everything on any subject, I am sure you know something about at least one subject. For instance, let’s take pets. Pets, in general, is much too broad of an area to be considered a niche. But a type of pet is a little more specific. But even that can get overwhelming. Just think of how many different types of dogs there are out there. So take it a bit further. Maybe a site just on dachshunds. That is pretty specific. And that, my friend, is considered a niche.

From there you could find items that are suited just for that breed, the problems owners have with that breed, and any other information that you may be able to tie a product. This can include dachshund supplies and/or dachshund gifts.

So once you have your niche, you will need to begin your research.

Once again I am going to assume that the reason you are getting into the “make money online” arena is that you want to make more money. Hence, you do not want to or maybe cannot afford to put out a bunch of money to get started. I totally understand. I was once right where you are. But you have to do some research. You need to research your competition if you ever want to be seen in the vastness of the web. You can take this quite deep, but for this article, we will just hit the surface of your research.

The first thing to do is to think of what you would type in a search engine to find out information about dachshunds. These are known as keywords and are very important if you plan on making money on the internet.

Let’s say – dachshund puppy, raising dachshunds, toys for dachshunds. You get the idea. See what comes up. Look at the sites. See what they are doing. If you plan on using one of the free sites such as Squidoo or Hubpages, hop on over to those sites and take a look. See what you like and take note of what you do not like. What makes you want to click on a link or read further? These are things you want to replicate. But do not steal any content, just get a feel for what works visually for you and what you like.

And please do not rush these important first steps. I know you are probably eager to get out there and start a site, but if you neglect the basic research part, you are going to have a difficult time making money on the internet. No matter how good your site is or how much information you give out. If you do not look and see what other people are doing that works, you will be wasting a lot of time “chasing your tail.”

And take action. Do these steps I listed above and get started. And if you absolutely cannot come up with one simple idea (niche) that you can start on, ask your friends and/or family what they think you are good at or know a lot about. Sit down and write out any special characteristics you may have (i.e. over 30, overweight, mother/father, tennis player – you get the idea).

Next: How to Find Good Keywords