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Wednesday, November 3, 2021

How To Make Money Online - The 3 Levels



 when I was 12 years old I had this dream

of making money on the internet now 13

years later and with a ton of failures

and experience under my belt I make over

3 times as much money from the internet

on the side as I do in my full-time job

as a doctor in the NHS the UK's National

Health Service this is the video I wish

I would have had when I first got

started hey friends welcome back to the

channel if you new here my name is Ali

and on this channel we explore the

various principles strategies and tools

to help us live happier more productive

lives and we're talking about money in

this video because firstly more people

should do it and secondly because money

is such a massive source of stress in

most of our lives we often feel like we

don't have enough of it and most of us

trade more than 80 thousand hours of our

lives a huge chunk of our short time on

this earth to go to work so we can make

money which we need to live but being

able to make money online outside of our

day jobs is pretty cool it means that if

we're lucky enough to be doing a job

that we love then happy days we've got

some spare cash to go on holiday with

but if maybe we're not entirely happy

with working 40 to 80 hours a week then

we've got the option of going part-time

or taking a job that pays less but that

we enjoy more or even to stop working

altogether if that's what we want now

obviously this isn't an overnight thing

it takes a lot of time and effort and

luck to get to the point where we can

quit our jobs and stick it to the man

but to be honest I don't think anyone

watching this with say no to having an

extra few hundred dollars a month

kicking around and the process of

getting there isn't as mysterious as it

can sometimes feel so let's break it

down

basically there's only three ways three

legit ways of making money online but

before we go there we need to talk about

what money actually is and there's a

poem from the early 1900's that goes as

follows money is a matter of functions

for a medium a measure a standard a

store and so putting this all together

at its core money is just a medium for

exchanging value like we all use money

to buy things that we find valuable and

so if we want to make money or make

money online we need to be providing

some kind of value that someone else is

willing to pay for so there's basically

three forms of value that people will

pay for over the Internet and these are

are three levels of making money online

and that is level one services level two

products and level three attention I've

been doing variants of all three over

the last 13 years like I started off

selling services as a web and graphic

designer I then moved towards selling

product

so products for med school applicants

and online question banks and now it's

mostly through the attention that I've

got on platforms like YouTube that I can

leverage to superpower the sale of

services and products and those are sort

of the three levels of making money

online level one make money online by

selling your services this one's

probably the easiest way of making money

online it's the one I've recommend to

everyone to begin with and it was how I

got my start there's only two things we

need to do firstly we need to develop a

skill that people are willing to pay for

and secondly we need to find people who

are willing to pay for that skill

step one develop a skill that others are

willing to pay for if you're thinking

that I don't have any valuable skills

that's okay you've got the internet and

you can learn when I was 12 I decided I

wanted to be super cool and therefore

learn how to code through using Google

and finding a ton of free resources

online I taught myself HTML and CSS

which are the basic and a markup

languages of websites and then because I

wanted to make a videogame for my nerd

friends I decide to teach myself PHP

which is a server-side programming

language and I did that in 2006 with

just free information on the Internet

way back when all of these online

courses and stuff were a thing so you

can pretty much learn anything online

for free these days there's hundreds of

ways you can learn how to code online

I'd recommend starting with the basics

of HTML and CSS by following random

YouTube tutorials or by paying for

something like code school or code

Academy and then trying to build your

own personal website and if you want to

learn proper coding I'd recommend the

introduction to Python course over it

brilliant who are sponsoring this video

but I'll tell you more about them later

if you're not into coding there are

literally hundreds of services you can

offer online like if you just look on

the websites Fiverr or upwork and browse

their categories there are literally

hundreds if not thousands of different

things that people will pay you for some

of them are related to doing stuff on

the computer like coding and websites

and graphic design and illustration and

stuff but there's no other things like

writing and copywriting and data entry

and being a personal assistant and admin

service isn't and just there's just like

this whole world of stuff that you can

do on the internet wherever you are in

the world pretty much as long as you

have a reasonable internet connection

another easy ish one to learn is video

editing if you want you can check out my

skill share class on how to edit videos

in Final Cut and after working through

that you'll be pretty good like not

having a monetizable skill is not an

excuse anymore at all if you want to

actually make money online because you

can literally teach yourself anything

over the internet and then you can sell

that skill to other

a step to find people who will pay you

money for that skill or service now

there's two sorts of people who will pay

you for your services essentially

there's a people in real life or

secondly people in the internet I got

started with people in real life I

learned how to make websites when I was

twelve thirteen and then I sent an email

to like my eight email contact and told

all of my friends that I was gonna be

designing websites and I made this

really terrible looking banner thing to

advertise my services I had my home

phone number on it at the time don't

worry it's not my home phone number

anymore we've moved houses many times

since then but I actually found that one

of my friends dad's on to the web site

built and so my first web site that I

made was there's a janky looking HTML

CSS thingy that I made for my mates dad

and he paid me thirty pounds for it so

that was pretty solid alternatively and

a much more viable long-term solution is

that you can find people to pay you for

your services over the Internet now I've

got my start on a website called get a

coder com where you know people would

post projects saying they need a web

designer or a developer to do these

various things and I would bid on those

projects and say ah I'll do it for ten

dollars I'll do it for five dollars I

would basically undercut everyone else

in the market because I was like twelve

thirteen and for me five or ten dollars

was like oh my god I'm rich these days

this place is like upwork and fiber that

seemed to be the biggest ones and you

can just kind of browse through all the

different things people are looking for

and then you can sell your services

there you can say ah do it for a fiver

I'll do it for ten I'll do it for twenty

hundred fifty and over time as you get

better at the thing you can start

charging more and more especially as you

start getting decent reviews and you

start building up your own portfolio of

whatever the thing is that you're doing

and so I did this whole selling services

thing for a few years but I realized

pretty quickly that ultimately what I

was doing is I was trading my time for

money and that's ultimately not very

scalable model because obviously my time

our time is is limited and so if you

really want to make money online then we

want to get to level to level to make

money online by selling products when

you start selling products like physical

or digital goods then your ability to

make money online magnifies a lot

because it suddenly becomes scalable

like it's not directly tied to the

amount of time you're putting it now if

we want we could sell pretty much

anything online but the ideal thing that

we want to sell is something that has a

one-time cost of time or money to make

but then we can sell infinite copies of

and we want the cost of reproduction to

be zero and ideally we want the cost of

distribution to be zero

ideally we want the ongoing time

commitment to be as low as possible so

we can make the thing once and then we

can sell it like a million times without

having to spend much more time so the

ideal product category then is digital

goods or digital product now a digital

good is anything from a website to an

app or an online course or an e-book all

of these things have a one-time cost of

production a zero cost of reproduction

zero cost of distribution and hopefully

a zero cost of maintenance as well all

right so we can either sell digital or

physical stuff but obviously I think

digital is it's better but there's

basically two ways of selling it like we

can either sell other people's stuff or

we can sell our own stuff level two

basic is selling other people's products

now there's various different ways of

doing this but just to simplify for

clarity the two that we're going to talk

about today are firstly drop shipping

and secondly affiliate marketing let's

start with drop shipping the basic idea

is that we could make a pretty-looking

website that sells nice-looking watches

let's say for a hundred pounds apiece

when a customer orders that watch we

then buy it from a third party that's

actually selling the watch and we

arranged them to ship it to the customer

so we're making fifty pounds without

ever handling the watch at all now I've

never really done this myself and I

would recommend you probably stay away

from it as well just because I've seen

so many kind of online courses that seem

to seem a little bit scammy about how

you can make money online by drop

shipping I also don't like the fact that

drop shipping January focuses on

physical goods and as we've talked about

physical goods are just not as fun to

sell as digital stuff because you

actually have to pay for it you have to

arrange the logistics and the shipping

is just a massive bollock whereas

digital products really are the way to

go the second way of selling other

people's products is with affiliate

marketing affiliate marketing is when

you're selling someone else's stuff but

you're getting a commission from each

sale like there's a really good review

website called wirecutter and they do

reviews about the best electronics in

different categories and they have

Amazon affiliate links so when someone

clicks on that link and buys from Amazon

then wire car to the website will make I

don't know 1% 2% 3% Commission on that

sale and so if you get enough visitors

buying enough things you can make a load

of money from affiliate marketing or you

can do what I do which is to have

affiliate partnerships with certain

products like there is the paper like

screen protector who I've been

evangelizing for the last two years

because I genuinely love the product and

so if someone buys a paper like screen

protector for the iPad pro using my link

I will get some percentage Commission on

that sale and if enough

doing that that can make a reasonable

amount of money so that is how affiliate

marketing works you're selling someone

else's stuff but you're getting a

percentage Commission on the sale if

you're interested in learning more about

this there's a dude called Pat Flynn who

runs the website and a podcast called

smart passive income and they've got a

load of materials that teach you the ins

and outs of how to do affiliate

marketing properly but selling someone

else's stuff is absolutely fine but

really we want to be getting to the Holy

Grail and Holy Grail is level to expert

level to expert is when we're selling

our own products if we're selling our

own stuff then we control everything

from the aesthetics to the price to the

distribution to the logistics that are

the entire customer experience we are

controlling ourselves so here there's

kind of three broad categories of things

that you could sell you could try

selling physical products

Peter McKinnon has done very well

selling his camera bag Pat Flynn has

done really well selling this switch pod

which is a tripod for vloggers it's

quite hard selling a physical product

it's a lot of work you have to

manufacture it distribute like logistics

it costs a load of money

I wouldn't recommend doing the physical

product thing it's something I'm kind of

looking into myself when it comes to

selling merch but it's it's kind of hard

and I think personally more trouble than

it's probably worth secondly you could

make a website or an app and you could

sell access to that like for example

let's say you make an iOS game or

something and people buy it from the app

store you're making money off of that or

let's say you're making a website that's

offering some kind of service and you're

charging people a subscription fee or

something for access to that service

this is something that my brother and I

did in 2015 we both know how to code and

so in the summer of 2015 we built an

online question bank for students in the

UK applying to medical school taking

these certain exams and so we charge

people for access to the question back

and through the platform they could do

the questions they can mark their

answers right they could see solutions

but the problem with this whole I want

to build a website and make money off

that is that it's really quite hard to

do in general you need to know how to

code usually want to find some

co-founders you can go down the start-up

route this this kind of so much stuff

out there for essentially building an

app that makes money but if you're a

complete beginner to make money online

the very first thing you should do

probably shouldn't be to try and get

rich off making an ass it's really very

hard and it's kind of a more advanced

way of doing things point number three

is I think a much easier way that anyone

can make money online and that is by

selling info products so buy info

products I mean things like ebooks or

digital downloads or online courses

because if you can teach something and

you can teach it in a compelling an

interesting way online

increasingly it's becoming easier and

easier to find people who are willing to

pay you for that online education you

know more and more people are turning to

online education so if you can teach

something well you can make money off of

that so with me for example I've got a

series of online courses aimed at

medical school applicants that teach

them how to do well in these exams and

medical interviews so that makes some

money every week every month by selling

online without me having to put any more

effort in I've also got online courses

over on Skillshare like of course on how

to edit videos and a class on how to

study for your exams and again those

generate passive income ie

I've put the effort into creating the

course once and then it's just selling

itself repeatedly without me having to

do much else and to be honest it's

reasonably straightforward to develop

the sort of expertise that then means

you can teach the thing and I think a

lot of us really struggle with this

because we think oh I'm not an expert

therefore I can't teach online but you

can because if you're a beginner you can

teach other beginners right now if

you're thinking I want to make money

online you could very easily sign up to

a free trial of skill show and then you

could watch my course and how to edit

videos in Final Cut Pro and then you

could make your own course for complete

beginners on how to edit videos on Final

Cut Pro like it's it's so easy you could

literally learn anything online and then

you can make an online class teaching

that thing to other people and if you

want you can set it through your own

website or if you want you can scout it

through udemy course or a skill shed

there's all sorts of different platforms

that you can sell your expertise on and

as long as it's good obviously has to be

good because you know we make money

online by providing value if it's

valuable then people will buy it and

you'll just kind of make money and a

pretty kind of magical system really but

as you might be thinking you know we can

make all of the digital products that we

want the physical products that online

courses whatever the problem is we still

need to find people who are willing to

part with their hard-earned cash to buy

the thing that we're trying to sell them

so how do we do that and that's where

level 3 comes in level 3 is when we

supercharge our money making powers with

attention now there are all ways that

you can get your product in front of

people whatever it is you could try

running Facebook or Instagram ads you

can go around knocking on doors in your

neighborhood you can send a cold emails

to mailing list whatever you want but

really the easiest way of selling

anything online is by using attention

and that's the attention of people who

know like and trust you and by far the

easiest way of getting people to know

like and trust you is by providing

valuable content on the Internet

completely free of charge for example if

you wanted to write now you could start

a blog about productivity tips and every

week you could write one or two blog

posts sharing your favorite productivity

from books from academic papers from

articles from podcasts from your own

life and over time if you do this

consistently and provide value because

again this is an exchange of value we

all care about value there's no snake

oil you can sell here there is no

shortcut to making money online you're

providing value for free across the

internet over a long period of time and

then in three years time you build up a

mailing list of 20,000 people and now

when you want to run your own

productivity course you've got this

mailing list of 20,000 people who know

like and trust you from the value that

you've given them for free over an

extended period of time and now they're

far more likely to buy your thing you've

got an audience of people that you can

sell to as a guy called Gary Vaynerchuk

who you should definitely be following

across every single social platform if

you care about making money online and

you haven't heard of him

you know Gary Vaynerchuk loads of links

in him in the video description he's got

a book called Jab Jab Jab right hook and

the model for that is that a jab it's

like kind of a boxing analogy I think a

jab is when you give someone content and

valuable content for free and a right

hook is when you ask them for something

or try and sell them something and he

says and interviews that actually he

wished he could have called the book jab

dab dab dab dab dab dab like 25 times

and then right hook but obviously you

can't do that because it's a title of a

book because that's the ratio that free

content versus paid content needs to be

you need to be providing 25 pieces of

valuable free content for every right

hook that you're launching every time

you're asking someone to buy stuff and

really this is the exact playbook would

word for word that I've been following

with this YouTube channel since 2017

I've been following Gary Vaynerchuk for

years I've been following people like

Tim Ferriss who kind of modeled this

perfectly over time by just flooding the

market with a ton of really valuable

free content not really worrying about

trying to charge people for things and

then later on you know once you've got

this audience of people who know like

and trust you hopefully you know through

this YouTube channel I've managed to do

that now for me if I want to sell an

online course if I want to put a class

on Skillshare I automatically have this

audience of six hundred thousand people

who are willing to hear my message and

will be far more likely to buy the thing

from me and so if you can build up that

personal brand that professional

reputation this this audience of people

that know like and trust you at that

point you are supercharging your

abilities to make money online because

now you can sell goods now you can sell

services and in fact you can even sell

attention directly by doing sponsorships

and stuff like that like I do to an

audience of people that cares

there's just that that's it like

completely an utterly life-changing when

you've got this huge audience that you

can leverage to make money online and in

fact the audience doesn't even need to

be that that big like there's a load of

podcasts you know my friend Noah Kagan

runs one about marketing and he shows

that even with a very small amount of

people if you've got the right audience

following you you could easily sell a

product there's a guy called Kevin Kelly

who wrote a famous essay ages ago called

1,000 true fans where if you can just

get a thousand people following you on

the internet and those are your true

fans those are the people that let's say

you're a musician they're the people who

will you know go to every show they'll

buy the special edition of your album if

you can get a thousand people who like

you enough to potentially pay you $100 a

year for the stuff that you make you're

making $100,000 a year you've got a full

time living from a thousand true fans

and so the audience doesn't need to be

that big but the way of building any

kind of audience as Gary Vaynerchuk and

Tim Ferriss say is to just produce a ton

of really valuable free content over a

long period of time but only if I give

away content for free people won't buy

my paint stuff that's not how it works

people will buy your paid stuff but only

if you give them content for free you

don't build an audience by selling them

stuff you build an audience by giving

them a load of stuff for free and then

you can sell to them three years down

the line and so for me right now I'm at

the point with passive income where I

make so much more money on the side

through these online activities through

selling goods services and attention

online then I do in my day job of

working 60 hours a week of being a

doctor in the UK now honestly all of

this started thirteen years ago when I

decided that I wanted to be a super nerd

and learn how to code and so if you're

watching this right now and you're

thinking that you want to maybe stop

this journey one thing that I'd really

recommend is that you learn how to code

yes in this day and age you don't

absolutely have to learn how to code but

it's it's the sort of thing that really

helps if you're trying to sell any kind

of and a software product online and

honestly the best place that I'd

recommend you learning how to code is

firstly teach yourself HTML and CSS

using random free tutorials on YouTube

you can learn HTML in a single day you

can learn CSS in two days and then you

can try building your own personal

website then once you've done that you

should definitely go over to brilliant

for their online course on learning

Python and

fundamentals of computer science

brilliant or Connelly sponsoring this

video they're a fantastic online

platform for math science and computer

science courses and their introduction

to Python and also their kind of

advanced Python courses are really good

at learning Python which is the world's

most popular programming language and

with Python you can do anything from

making an app to making a website to

making even a question Bank that you

know gives people access to medical

questions which is sort of the things

that me and my brother did so if that

sounds good you should head over to

brilliant or forward slash alley and the

first 200 people to click on that link

will get 20% of the annual premium

subscription but yeah those are the

three levels of making money online if

you're interested in learning more I put

together a playlist for you right here

that has a lot of my other videos about

how to make money online to watch those

read the books I recommend and then I

promise you'll start on your path to you

know getting rich by making money on the

internet 

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