The Hard Truth About Making Money Online

Is it really possible to make money online? Yes, it is definitely possible to make money online. Is it possible to lose money trying to make money online? Yes, there are plenty of online scams, schemes that don't work, and businesses that fail, just like in the real world.

Given that making money online is not a given, but is a possibility, let me offer a little information that might help you succeed. First, there are plenty of ways to do business using the Internet. Here are a few:

-Freelancing. A number of websites act as clearinghouses for matching skilled people with individuals and organizations in need of their skills. On sites such as Elance.com and Guru.com buyers can post projects that require any of a wide range of skills, from writing and editing to website or graphic designing to telemarketing. Freelancers with the requisite skills bid on the jobs. Skilled freelancers can make a good living working through these sites.

-Survey-taking. If you're looking for pocket change, taking online surveys is a relatively painless way to earn a little money. A bunch of survey companies out there in cyberspace ask you to fill out a questionnaire about your interests, and then they match you up with surveys.

-Buying and selling. If you are a savvy consumer, you can buy online from an auction site or e-commerce site and resell online. You might find a niche for yourself with a particular product, or you might buy in bulk and re-sell in small quantities.

-Affiliate marketing. Affiliate marketing is an increasingly common business arrangement between an online merchant and a website owner in which the merchant pays the website owner a commission for helping to sell the merchant's products or services. In a relatively short amount of time affiliate marketing has become a major force in online commerce and one of the easiest ways to use the Internet to make money.

-Franchises and other online businesses. There are legitimate business deals and there are scams out there. Read the fine print and ask a lot of questions. Make sure you know what you have to pay upfront and what you will have to pay along the way. Talk to other people who have bought into the business to find out if they have made the expected earnings. Ask to see the company's financials. Talk with a lawyer, accountant, or business consultant before you sign anything. Many federal, state, and local agencies and organizations offer free business consulting.

Words to the wise

Before you sign anything or commit any of your money or other resources, make sure you completely understand what is expected of you and what you can expect from the other party. Ask around, read reviews, use your common sense. Don't believe anyone who offers a get-rich-without-any-work scheme. Earning money takes effort, and that includes earning money online. If you are looking for free money, you are not any more likely to find it online as you are in the bricks and mortar world. If you can make informed decisions and work toward a goal, you can probably find ways to make money using the Internet.