How to Fail At Making Money Online

by 5buckguy

Did the title of this post make you look twice? I hope so…

For every successful online entrepreneur, many have completely failed. In order to become one of those success stories you need to understand why it happens.

A good way to do that is by taking a look at how people fail miserably at making money online. It may seem like a backward approach, but if we look at what you shouldn’t do, then you will be headed in the right direction toward what you should do to succeed in your online venture.

So, in this post, I will take a look at what you should avoid when starting up an online business. This guide will be a great reference to reflect back upon as you journey forward with your online moneymaking adventure. If you always use this as a reference, then you will avoid making these terrible mistakes that will eventually lead to bad endings for businesspersons.

Trying To Get Rich Quick

You can’t jump into any online business venture with the idea that you will wake up the next day a millionaire. Regardless if you’ve created the most innovative information product out there, or your blog is the blog that kills all other blogs, you can’t expect that you will instantly gain fame and fortune.

Like anything worth pursuing, making money online comes with a lot of trial and error. You have to be willing to fail (and fail often) in order to achieve true success.

Don’t lose hope if you try something out and it doesn’t work. I guarantee most, if not all, of the successful online business owners had a lot of “firsts” flop. It’s all part of the learning process.

Come into your new business with the mindset that you will succeed, but it’s going to take some time. You will invest tons of hours, lots of sweat, and even a few tears; but it will all come together for you.

Forgetting You’re Running a Business

Sadly, this happens more often than not. Many people pursuing online businesses forget to treat it like a business. This is especially prevalent among bloggers. Once you start treating your venture like a business, you will start to see more success.
Running a blog, website, or any other online business requires the following:

Time: Yes, you will read tons of literature out there with people claiming they make thousands of dollars by only working 4 hours a week.

This may very well be true, but it didn’t start out that way. You have to be willing to put in lots of hours if you want to get to that level. When you initially start out, you will likely put in a full 40 hours a week.

Some people literally work 100 hours a week in those first couple of months. It all depends on how fast you want to make things happen.

Money: Okay, so starting an online business doesn’t require as much as it would to start something brick and mortar. But, you still need to be willing to put up some cash.

You will need at the least a web hosting service, web design, a domain name, and an emailing service. You can get all of these things for a few hundred dollars, so you aren’t going to break the bank, hopefully.

Labor: You can’t just sit around waiting for something big to happen. You are going to have to put forth the effort and create your own success. Take action and go after what you want. That is the only way you will achieve your goals.

Learning The Wrong Way

Many people fail because they go out there and soak up any information they can get; and it ends up being the wrong information. If you go out and survey in the streets, you will get all sorts of information thrown at you.

It’s important to really learn the basics behind your business. If you are a blogger, read what the foremost authorities on blogging have written. Don’t go ask your son’s best friend who runs a blog on World of Warcraft.

If you want to sell your crafts online, find a community of those who successfully do so. The biggest advice I can give you is learn from the best in your niche. Sure, there are tons of experts out there with great information, but if it has nothing to do with your area, then it is likely only going to confuse you.

Learn your niche, get to know your market, and find the right community to help you build your business. Shut out all of the information that doesn’t pertain to you. The more garbage you ingest, the more likely you are to just give up.

Waiting For Things To Happen

I expressed this earlier, but I think it is so important that I need to stress it again. Never sit around and wait for things to happen for you. Lazy people rarely ever succeed.

Take action and spend at least 5 hours a day learning your new business. Study as much as you can about your market and niche. Write content everyday. Come up with new product ideas weekly.

It is important to constantly evolve your business if you want to make money online. The Internet is growing faster than we can keep up. If you miss a beat, you may kill your business. Stick with it, and success will come your way.

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Facebook comments:

  • Robert Blake

    Dennis,

    Very timely post on internal policies I realize, but can use an end of the year reminder of to move more purposefully and successfully into 2011.

    Thanks. :-)

    [Reply]

  • http://creating-internet-income.com Dax L’Amour, Ph.D

    Thanks, Dennis, for this post!

    I’m so glad you tell it like it really is, rather
    than like the “other guys” do, who are in the business of misleading people.
    Thanks again for this wonderful, insightful post!

    [Reply]

  • http://graham-dearing-online.com Graham Dearing

    As one who originally thought it would be a license to print money on the internet. It is very sobering when you finally realise it does require a lot of work, as all businesses do.
    I found it very illuminating to have it pointed out that I am not alone in my struggles to succeed, even at my age (65).
    A thoroughly interesting article

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Dax L’Amour, Ph.D wrote:

    Thanks, Dennis, for this post!
    I’m so glad you tell it like it really is, rather
    than like the “other guys” do, who are in the business of misleading people.
    Thanks again for this wonderful, insightful post!

    Thanks, Dax, I try to tell it like it is, and often, like in this case, I’ve lived the story. Wow, did I make a lot of mistakes in the beginning (and still)).

    I also tell people not to be afraid to fail, because I truly believe that “failure is your friend”.

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Graham Dearing wrote:

    As one who originally thought it would be a license to print money on the internet. It is very sobering when you finally realise it does require a lot of work, as all businesses do.
    I found it very illuminating to have it pointed out that I am not alone in my struggles to succeed, even at my age (65).
    A thoroughly interesting article

    Graham, if being online was a license to print money, there would be so much competition that nobody could succeed.

    Those of us who want it bad enough will succeed, those that don’t want to put in the effort won’t.

    And that’s the way it should be, right?

    [Reply]

  • http://www.norenebroyton.com Norene

    Hi Dennis! I especially like “forgetting that it’s a business” and “waiting for things to happen.” I think I got caught up in both of these several times. The hype of overnight riches can really keep folks from focusing on their business and can get them discouraged when things do not happen quickly. This post is a great reminder of how to keep focused and keep on keeping on. -Norene

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Norene wrote:

    Hi Dennis! I especially like “forgetting that it’s a business” and “waiting for things to happen.” I think I got caught up in both of these several times. The hype of overnight riches can really keep folks from focusing on their business and can get them discouraged when things do not happen quickly. This post is a great reminder of how to keep focused and keep on keeping on. -Norene

    You got that right, Norene, don’t let discouragement turn into defeat.

    Discouragement is healthy also, if it doesn’t get in the way of taking further action.

    [Reply]

  • http://www.claimdomainnames.com Jeannie Crabtree

    Dennis, good post. So many think this should be an easy thing, do a little work, wait a couple months and the money should come pouring in.

    And there is much not to do, just as there are things that are important to do.

    It takes hard work and most usually some time to become the “overnight success” many people think they are seeing.

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Jeannie Crabtree wrote:

    Dennis, good post. So many think this should be an easy thing, do a little work, wait a couple months and the money should come pouring in.
    And there is much not to do, just as there are things that are important to do.
    It takes hard work and most usually some time to become the “overnight success” many people think they are seeing.

    Right, Jeannie. I’m reminded of the saying “it isn’t easy but it’s simple”. Too many people think it’s easy, and they don’t have to do a lot of work. You do have to do a lot of work, but when you systematize it, all the work is fairly simple, in a lot of cases.

    [Reply]

  • http:www.BuyBringTheFresh.com Michael

    Thanks Dennis,

    Finally something that I am good at – failing.

    Fail quick – fail often.

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Michael wrote:

    Thanks Dennis,
    Finally something that I am good at – failing.
    Fail quick – fail often.

    You got that right, Michael. Fail quick, fail often, and occasionally you’ll fail to fail (in other words succeed).

    Even 1 nice success out of 10 attempts can be life changing, assuming you fail quickly enough and get them out of the way.

    [Reply]

  • http://getoffyourassinternetmarketing.com/ John

    How true! I think we’ve all believed…or wanted to believe the hype, but really knew that you have to put in the time and effort. There ain’t no free lunch!

    [Reply]

  • http://1webdiva.com/blog Leanne Boyd

    Dennis, yes, I love your ever-honest approach and telling things the way they are. Great post! Hmmm. I disagree on only one point. I say often… It’s never easy, and it’s never quick. But for me, it does not take sitting down and spending 5 hours a day learning the craft(s). IMHO, it takes 25 hours a day!!

    I’ve been in all this since 1989 (computing) and 1994 (Internet). If anything, the time warp has terribly increased, and the learning curve has gone from a daily thing to an hourly thing. If anything, we, as marketers, have got to seek and TELL the truths to new peeps coming in, or we do all of us a terrible disservice. I applaud you. And I am telling you… for months now, I’ve been on a “cancellation rampage” of those who lead us down a primrose path. You are now in a small group of highly respected mentors, primarily because of your manner of “truth prevails.”

    I used to worry primarily about the info overload issue. For the past year, what has crept in is the exhaustion factor. Trying to keep up with it all. No way, cannot be done. So I’ve forged the new (to me) skill of applying tremendous focus on the things that matter most to me and my businesses. It is so hard to shut out the clamor!

    Enuf. I very much look forward to your mails.

    Leanne

    [Reply]

  • http://pcvaluware.com Stephen

    Thanks Dennis. Your first section on “Trying to get rich quick” really hit home. I never went into the online marketing game expecting miracles. But I have watched for years as Internet Marketers get rich selling Pipe Dreams and Hokum, garbage software, blueprints and systems, all with one single goal: Take money from unsuspecting newbies and desperate for some cash influx.

    Best advice for increasing your chance of success: Unsubscribe from all mailing lists from Internet Marketers who sell or promote such items.

    [Reply]

  • Chas

    Thanks Denis,
    This is just what the doctor ordered. I am in the first few weeks of my Great Internet Marketing Adventure. I have sifted through a ton of rubbish and have identified great SEO (Market Samauri), Marketing (Kim Roach) and Copywriting (Bob Bly) resources. I am studing my market and closing in on my niche. This post has served to remind me that even with the best laid plans success is not guaranteed. Thanks again and I look forward to the next post.

    [Reply]

  • Dacia Stuckey

    Thanks for your post on “How to Fail at Making Money Online”. I am in the process of starting a blog and my inbox is flooded with so called gurus that claims I have the potential to make $10,000 per month basically doing nothing. I am thankful that you are one of a few experts that are honest with your readers and by reading this post, it makes me want to get into this business even more.

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    @ Leanne Boyd:
    Thanks for your very kind words, Leanne, I’m glad I made the cut.

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Dacia Stuckey wrote:

    Thanks for your post on “How to Fail at Making Money Online”. I am in the process of starting a blog and my inbox is flooded with so called gurus that claims I have the potential to make $10,000 per month basically doing nothing. I am thankful that you are one of a few experts that are honest with your readers and by reading this post, it makes me want to get into this business even more.

    That’s a good point, Dacia. I followed “so called gurus” for years myself, and it never got me anywhere. Then I started following one or two people that didn’t call themselves gurus, but to me they were.

    By watching what people actually do, rather than listening to what they say, you can weed out a lot of the overblown hype, I’ve found.

    [Reply]

  • http://www.RachelRofe.com Rachel

    Someone once said that many people work 16 hour days to “make money while they sleep”… it definitely made me laugh. ;)

    [Reply]

  • http://www.RachelRofe.com Rachel
  • http://www.RachelRofe.com Rachel

    I’m really glad you like it!! Dennis and I definitely don’t want to be like the “other guys”… at ALL. :)

    [Reply]

  • http://www.jeannekolenda.com Jeanne Kolenda

    Dennis, I wrote an article last year on almost the same subject. It is so true. I am glad I had years under my belt of working at home, and being a successful business owner. If I had not, I would have given up on online marketing. I knew it was just a matter of learning, learning, learning, and then putting the puzzle pieces together. It took almost a year, and now things are clicking. Your writing and products have been a welcome addition to my education. You also have made yourself very accessible and approachable, and those are, indeed, wonderful qualities. It is too easy to forget that behind the auto-responders and the emails, there are real people worth getting to know. That has been a huge delight for me this past year. Hats off to a fabulous 2011!

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Jeanne, you’re so correct. You can’t ever let yourself stop learning. And thanks so much for the kind words.

    [Reply]

  • Lynne

    Dennis,

    Thanks for the posting. Even though I do not have the funds to start up my business, I am working diligently every day on smaller feeder programs and saving up the money when I cash out. When the time is right, everything will fall into place and I have learned that patience, passion and persistence will ultimately lead to perfection in all aspects of life. Happy New Year 2011!!

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    That’s a great saying, Lynne, I’ll try to remember it. Happy New Year to you also. :-)

    [Reply]

  • http://www.powersellingonline.com Sam England

    Dennis,

    If my vote counted I would say this is the BEST article you have written this year…

    Brings back memories when I was first getting started online years ago and all the trial and error that I had to go through to finally be successful online and make a full time income at it…and it didn’t happen overnight…took many of late nights and a lot of mistakes to learn how to make money online…and I still have to learn new techniques to keep a step ahead of my competition…its part of the game…

    Heck back then I did not even have anyone to learn from, I did it on my own…so all of you out there have an advantage now a days…you have people who can coach you and plenty of blogs to learn from so take advantage of it and learn from others…

    If you are LAZY, then the best thing for you to do is right now is go to the fridge, grab you a sandwich and a drink and get your LAZY butt back on the couch to watch some more of Judge Judy…

    Keep it real Dennis and Happy New Year to you and your family…

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Wow, thanks Sam, I guess. You haven’t read everything I’ve written though, I hope, because I like some of the others.

    Let me know what you think of the post I make on Thursday.

    But yep, mistakes are part of the game, for sure.

    [Reply]

  • http://www.powersellingonline.com Sam England

    I know your stuff is always good Dennis…was actually talking to someone about the same thing earlier today and how NOT to fail at Internet Marketing…LOL

    [Reply]

  • http://www.PLRValues.com Ally Woodrum

    What a good reminder of some of the most important but least sexy things about making money online — it is very easy to forget to treat your business LIKE a business. Guess I should spend the evening going over my business plans for 2011. Thanks for the push/prod/reminder!!

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Yep, this is a good time to start thinking about 2011. Rachel and I were discussing this very thing on the phone today, and will have another mastermind session on Friday about it.

    [Reply]

  • http://inmyhomeoffice.com/ Ian McConnell

    Great post Dennis,

    I agree totally… Fail fast… Because as entrepreneurs we don’t learn until we have personally made the mistake. Experts can tell us over and over not to make certain mistakes, but, until we actually make the mistake ourselves it doesn’t actually register.

    I believe this is a critical part of putting in the 10,000 hours required to succeed in this business… Fail fast!

    Have the most prosperous 2011 everyone.

    Ian McConnell
    Western Australia

    [Reply]

  • Joel

    Dennis:

    Thanks for this ¨Straight to the Point¨ advice,
    also it is very important to learn a method first,
    that could be affiliate marketing, adsense, etc.
    and stick to it until it works and then go and try
    another thing, well, that is my point of view because
    i am not the kind of person that can do many things
    at once because i feel overwhelmed.

    My wishes for you and all the people is that you
    can set high goals for this year and that you are
    able to achieve it.

    Joel Rodriguez

    [Reply]

  • http://www.5bucksaday.com 5buckguy

    Right on, Joel, exactly what I talk about in my book, 5 Bucks a Day, the old Focus habit.

    [Reply]

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