The 3 Harsh Truths About Making Money Online

My readers know that I tell it like it is. And, I’m about to do it again.

… Because I get asked questions fairly often, and sometimes those questions make me want to bash my head up against the wall.

The typical template of that question goes something like this….

If I work X hours per day, how long will it take me to be making $____ per month?

Ugh.

So, time to dish out some truths. Once you understand these things and accept them, the closer you’ll be to actually creating the success that you want online.

So, here we go…

#1 – Time Does Not Equal Money

Yeah, I know. If you’ve been an employee of another all your life, it can be really hard to stop equating time to money. Some get paid by the hour, so it conditions you to equate time to money. But, even if you’re on salary, you are still expected to be in the office for a certain amount of time each day. So, either way, an employee is conditioned to think this way.

Problem is, that mindset is a HUGE hurdle when it comes to doing anything entrepreneurial – online or offline.

There is no amount of time which will guarantee a certain income stream. If you do stupid things, you could spend 6 months working full-time on something and have literally nothing to show for it.

On the flip side, there is no minimum time that it takes to build a certain level of income. Some people can build up really quickly because they’re creative, smart, and they bust ass. Others will never take off because they don’t take much action, make wrong moves, or try to blame people other than themselves.

During my recent Blog Masters Club launch, I was asked a few times how long it would take to build up to a certain income stream using the information I teach inside the Club. Each time, I turn the question back on them. Because it is the wrong question. The answer depends on you and you alone.

Time does not equal money. You can make money VERY fast online (I once generated over $18K in an hour). Or you can never make a dime. Only you determine that. Not the clock.

#2 – It Is Impossible To Remove All The Thinking

In internet marketing circles, we see a lot of products pitched on the idea that it is a “system”, a “blueprint”, a “step-by-step system which cannot fail”. Blah blah blah.

And, sure enough, there are a lot of people who buy these courses as a thing to depend on, hoping that the system will be the brain, remove all the guesswork, and that all you have to do is move a few pieces blindly as the course says and money will fall out of the sky.

That never works.

Just recently, the market saw the launch of a software system called the “Magic Bullet”. It sold for $3K, had some great marketing behind it, and was used by that company to become an INC 500 company. My suspicion is that their software is probably quite powerful and probably worth the price tag, but look at the marketing. They are CLEARLY trying to position that thing in the mind of the prospect as the thing responsible for creating an INC 500 company. And they called it “Magic Bullet”. Yet, I can GUARANTEE you that most people who buy that package will have absolutely no idea what to do with it. And that’s because….

It isn’t the system that does the work. You still need to understand what you’re doing, and combine that with being creative and thinking on your feet. No system can alleviate that.

If you don’t want to do any thinking and be responsible for your own decisions, then don’t try to make money online. In fact, don’t do anything entrepreneurial. Because, you need to be willing to stand on your own, think for yourself, and be responsible for your own successes and failures. A system can provide knowledge, but it cannot remove the need to think for yourself.

#3 – You Gotta Work Your Butt Off

Common sense tells each of us that this is true, yet it never stops people from falling prey to the “easy button” marketing out there – and buying it. There’s a REASON marketers market things that way… because it WORKS.

And those of us who insist on being honest about the fact that this stuff takes work (like me) see the hit in sales. Because people don’t want to be told they have to work hard. They want results, they want it now, and they don’t want to do anything for it.

How sad is that? They’ll never make it. They’ll just put themselves into debt chasing a dream and buying courses based on these empty promises.

You have to work – HARD – to create an online business from scratch. The trick (if you even want to call it that) is to not look at it as work. After all, if you’re doing something you truly enjoy, you do it for fun. That’s how I feel about what I do.

Where did people get into this idea that work has to be difficult and something you hate? Work isn’t something you have to get over with so you can enjoy the downtime. Life IS work. That’s why we’re here on this Earth! It is what you make of it, though, and if you’ve chosen to do something you hate, that’s your problem. But, don’t confuse that with work on a general basis.

.

.

OK, time to step off my soapbox. :) I hope this clarifies things for people who still cling to those self-destructive notions.

I frickin LOVE the idea of making money online. I think anybody can do it, and it has TONS of potential. That’s why I do it. But, you need to view it as what it is – REAL business taken to the Internet. The medium doesn’t change the facts.

If you have the right mindset, you can make any “system” work for you. But, once you decide that it is something exterior to yourself which is responsible for making that happen, you’ve already lost.

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  • http://www.jamienorthrup.com Jamie Northrup

    You are absolutely right, making money online is like making money offline, you gotta work hard or smart, or both!

  • http://live-your-love.com/ Brankica U

    I think those are the things that people don’t see when the see dollar signs all over the net. I am working 18 hrs a day on my blog and still not making money they dream of. If it was that easy there would be millions of online millionaires.
    People there is no such thing as “free money” so start working, and work some more and then work harder.

  • http://breakthewallsnow.com/ Dan Zubrzycki

    Here Here!

  • http://davidrisley.com David Risley

    More like…. work smarter. :-)

    Because, putting in more time isn’t usually the answer. It is just a matter of doing the right things which build assets, leverage, etc.

  • http://bloggersjournal.com Mark Bell

    Nice post DR. I’ve been around the whole making money thing online for about 8 months, and I’ve started to notice the difference between those who blog about building a business (eg yourself, Pat Flynn and Yaro Starak) and those who launch products which are the secret answers to making money.

    The reality I think of such systems is that the products make the owners money, which they can brag makes them 6 figures etc, but the buyer isn’t going to make much, if any money.

  • http://www.onelifethatshines.com Jackie Lee

    Amen David. I get asked the how much can I make if I work 2 hours a day question all the time. (except it’s usually 2 hours a week lol). I hate answering the question, because it just makes me cringe. I will now be sending people to this post. Thanks for telling it like it is. I really appreciate that about you.

  • Anonymous

    I always feel that you need to consistency monitor your results and how close they are to your goals. I started an online community of professionals that blog, do virtual events, etc. The idea is great, but it required a ton of work and a lot of “non-technical issues” like getting clients to use the product. I think the key in an online business is finding a couple different ways to keep your outer community engaged in your content.

  • http://www.azione-scopo.com Linda Deluca

    Thank you David!
    I am an executive coach for virtual and mobile workers and many of them are independent / entrepreneurs who have made the switch from being an employee to being their own boss. One of the biggest hurdles is the paradigm shift you speak of here – time does not equal money. Another is similar to your #2 about thinking – many individuals don’t realize they now have to take on all roles in their business. Yes, you can hire an accountant, but you still have to make the decisions and still have the responsibility.
    Thanks for being direct. Reality is always so much better ;-)
    Ciao
    ~Linda DeLuca

  • http://twitter.com/CodyBWheeler Cody B Wheeler

    It’s nice to see someone tell it like it is. It’s not all butterflies, rainbows, and unicorns. Kudos for taking the high road.

  • http://startupcrossing.com Todd @ Startup Crossing

    It seems like there are waves of people coming on line to make money. The first wave of people come, try things and most wash away. Then another wave comes, a couple more stick but most are washed away.

    This post should be mandatory reading for anyone looking to make a quick buck online.

  • http://startupcrossing.com Todd @ Startup Crossing

    It seems like there are waves of people coming on line to make money. The first wave of people come, try things and most wash away. Then another wave comes, a couple more stick but most are washed away.

    This post should be mandatory reading for anyone looking to make a quick buck online.

  • http://www.mattaboutmoney.com Matt Bell

    I appreciate your advice, David. When I started blogging I somehow thought if you build it they will come. I’m learning that’s not true. I’m passionate about my topic and am all about hard work. But you’re so right – time does not equal money. I’m finally learning all the behind the scenes things that are necessary to work smart.

  • http://www.mattaboutmoney.com Matt Bell

    I appreciate your advice, David. When I started blogging I somehow thought if you build it they will come. I’m learning that’s not true. I’m passionate about my topic and am all about hard work. But you’re so right – time does not equal money. I’m finally learning all the behind the scenes things that are necessary to work smart.

  • http://www.itarsenal.com/ Rob

    Spoken like one who’s been there before! It’s a new playground with a lot of the old rules…glad to be learning them with the tech support background I have.

  • http://www.itarsenal.com/ Rob

    Spoken like one who’s been there before! It’s a new playground with a lot of the old rules…glad to be learning them with the tech support background I have.

  • http://BlogWithSuccess.com Shannon_Herod

    Great Post David. This is one of the reasons I backed away from this market and went fully into niche marketing over a year ago. It drives me insane when people want it all with no work. It drives me further insane when people blame you for their lack of effort. Anyway, well said my friend.

    Shannon

  • http://BlogWithSuccess.com Shannon_Herod

    Great Post David. This is one of the reasons I backed away from this market and went fully into niche marketing over a year ago. It drives me insane when people want it all with no work. It drives me further insane when people blame you for their lack of effort. Anyway, well said my friend.

    Shannon

  • http://www.austinconcerttickets.net/category/whats-new Music Diva

    Hello!

    I absolutely agree with #’s 1 and 3.. Not so much #2, and here’s why:

    Business in a box systems can work, because, as we all know, it’s easy to get information overload. If we find a reputable, proven plan/system/formula that works, I say focus on THAT plan and stop getting distracted with a million different ideas.

  • http://internetmoneymap.com Mark

    Hey David
    It’s amazing how human nature can pull us into these areas of denial and doubt! The trick is to recognize when you are getting pulled and get out as soon as possible. The temptation never goes away, you just get better at recognizing it and kicking it in the ass…or not

    Mark

  • http://www.theunnaturalmother.com Deanna @ The Unnatural Mother

    I need to hear this, excellent!

  • Mike Haydon

    Oh David that’s brilliant (and so frickin obvious lol). Just the motivation I needed right now to keep doing what I’m doing rather than searching for the magic bullet, as tempting as that sounds :)

  • http://thewanderingheart.com Adrianne

    Great post. It is quite frustrating to read some of the marketing out there for different “get-rich-quick-online” schemes. Thats why I truly enjoy yours and other sites out there that have so much transparency. We see your success and failure and how much work goes into each product and idea.

    I think its great that you pointed out that you also have to/should enjoy it. Its always obvious when someone is just trying to create income and not actually 100% behind their work. If you are only in it for the money you are cutting yourself, your clients and your income potential short.

  • http://www.tonyteegarden.com Tony Teegarden

    Amen and all that jazz. You my friend, speak truth.

    This should be mandatory reading for anyone looking to start a business online (notice I start start a “business” online, not just “make money.) The only people I know that “make money” are those who work at.

    The lottery mentality of jumping on line and hitting the “easy button” is the same mental disease that I saw in the network marketing business. Attempting to make money without a fundamental business mentality or the basic skills

    Fundamentals first, strategies second, tactics third. (Most marketers are selling tactics instead of fundamentals or strategies)

    Great work man. Thanks for shedding light on this.

  • http://www.megabizflakes.com samuel

    Awesome post Dave, I agree with your points.Haha, sure we gotta work off our butt and stop relying on make money by clicking easy button! Thanks bro. Rock on :)

  • http://www.itinerantentrepreneur.com/journal/ Robert Dempsey

    Great points David. If you hit the Warrior Forums and see the questions asked by people there a lot of them revolve around the amount of effort they have to put in to make the “system” work and they get money. The product owners that are cool tell people straight up – you’ve gotta work.

    Either way once they get into it they’ll find that out. Too bad it’s typically AFTER buying product after product.

  • http://davidrisley.com David Risley

    What you say is correct, however it doesn’t mean the system does all the thinking and decision-making for you. I’ve seen some of the best “systems” in the world fall flat for people… often it is because they don’t take action… but many times, too, it is because they expected the “system” to make all the judgement calls and all the decisions, and they expected to just click on some buttons without understanding anything and have it work. It never works.

  • http://davidrisley.com David Risley

    Yeah… I don’t get into the Warrior Forum much anymore. :-) And, yeah, if those product owners are honest, they’ll say it takes work. Any marketer who pitches something as “3 hours per week” or some such garbage is full of crap. The only way you get to 3 hours per week is to work 60 hours a week for quite some time first.

  • http://pipingshark.com Joe

    Good post, we need more people in our industry telling the cold hard truth like you and a few others do. There are too many people willing to take advantage of people’s lack of understanding and in experience by bloating the possibilities and trying to sell everyone an easy button.

  • http://davidrisley.com David Risley

    Thanks, Tony. :-)

    Yeah, there’s still a big gold rush mentality online. People expect it to work differently than other things.

  • http://davidrisley.com David Risley

    Thanks, dude. Hope things are well on your end. :-)

    Yeah, I don’t plan to back away from the market. But, I do plan to do things ethically and tell the truth.

  • http://www.itinerantentrepreneur.com/journal/ Robert Dempsey

    I have yet to meet any entrepreneur working only 3 hours a week – they get bored too quick. And as for the Warrior Forum I’ve seen some good products there along with they hypey BS stuff. What I’m interested in is the people buying and their questions. Very telling and great for research.

  • http://davidrisley.com David Risley

    Yeah, wearing every hat in the business is a tough role to be in. Only the tigers survive this game.

  • http://davidrisley.com David Risley

    Yeah, perhaps it is a result of the whole “4 Hour Work Week” movement. I mean, it is a great book and a lot of solid advice in there, but the title (while catchy) is BS. Steers people into wrong expectations.

  • http://davidrisley.com David Risley

    Well, there’s a lot of that, yeah, but I’d also be careful not to cast too wide a net. Most of those programs WILL make you money… but you have to earnestly apply and use the thing. For example, I paid $2K for Jeff Walker’s Product Launch Formula some time ago. I know full-well that many people bought PLF, never used it to launch anything, and therefore never made a buck. I did a few launches and made tons of money. If somebody were to cast a shadow over Jeff Walker as just another one of those kinds of marketers, I’d say – WRONG.

    It depends on the person, but I find that some marketers do good work and honestly try to help, yet they get typecast and ridiculed by the very people who never did a damn thing with the product they bought.

    You can usually tell the difference from the marketing alone.

  • Ami McCain

    One of the best posts I’ve read in a while. I particularly like how you worded #2. I think some of that also comes with a bit of a perfectionist attitude, because I know speaking for myself, I want something that will show me what “works” and what converts. I want to take as much human error out of the equation as possible as to not waste my time. I’ve had to learn that even when I fall (and I’ve fallen quite a few times), each experience can be thought of as an exercise in what “not” to do so I won’t make the same mistakes again.

  • Diana

    Great article/post! It seems like Americans I think especially Americans seek the “magic” pill. It stems from the little child who is convinced that mommy’s kiss takes the pain away from the tumble all the way to the “magic” book that takes away the pounds. As much as we all wish we could win the lottery almost all of the wishers do not win, only the hard worker wins.

    Diana

  • http://blogmarketingexperts.com Bruce

    David,

    Right on about your views of making money online. I think first, the people who are buying the “magic bullet” products are in “desparation” mode…so right from the start, they have the wrong MINDSET.

    Starting any business takes mindset first. They have to read up on how to start and operate a small business. They have to know starting a business takes the time it takes….that there is no shortcuts…that there is patience, determination, consistent effort, and the inner desire to be a success.

    That is the main problem with the “make money” market out there. The people who buy these products have no prior SELF employment experience.

    Many successful people online have prior self employment experience in other businesses so they know the essence of the work involved. They know how to implement, to test, to tweak and continue the process until something either works or they validate that it doesn’t work. The majority of the buying market of make money online products don’t know this so they freeze and don’t do any action with it It is the same old story that repeats itself over and over again.

    With that said, the gurus and experts know this and unfortunately, take advantage of this naive market.

    There is a popular New York best selling author on making money, that stated a clear fact: you can write a crappy book with feel good stuff in it and basic common sense money making principles and it will sell like hotcakes. He knows his book will sell…what he also knows is that hardly anyone will read it because they “bought” the idea, the concept, the classy book cover design, and will probably never bother with reading the book. And so it sits up on the shelf gathering dust.

    David, it’s going to be a tough road to “educate” the market on exactly what your program, and other programs are going to do for them. Without the right mindset, they are going to ask more and more “dumb” questions because they just don’t get it!

    You offer so much value. I bought your “3 Day Money” when it first came out and it has practically doubled my income because of the methods and principles you gave in there.

    Bottom line, these people must DO ACTION!

  • http://www.atticmantrader.com atticman

    Hi David,
    As always a really well thought out and clear post. I’ve been following the MBS system launch with interest and I agree with where you are coming from. There will never be any substitute for hard work and creativity up front. The IM space is becoming more and more competitive and the affiliate launch for MBS just proved that (for example Andy Jenkins offered his $1,997 course as a bonus). It’s tough to find the balance between a ‘great marketing campaign’ and staying true to your own values.

    I’m in the trading game, one of the earliest ways to ‘make money online’ and in my opinion it’s a pretty good ‘view into the future of IM’. 90% of traders fail partly due to the marketing hype and educators selling systems that they claim can make you rich. The honest educators are few and far between. But when you find one, it’s worth sticking with them. David, in my opinion you are one of those guys in the blogging world. Keep writing from the heart and telling people like it is.

    Regards
    Daniel

  • Kathryn

    I totally resonated with your idea of not looking at your work AS work. Yes, if you’re doing something you really enjoy, you will do it ANYWAY, with or without pay… and it IS fun! Of couse, getting paid is waaay more fun! -Kathryn Kistner in Texas

  • Kasi

    I can agree with you Dave. That you do have to bust your ass in whatever you do.Whether you build your own product or you are apart of someones system.Making money online can be easy if you understand marketing at least a enough to approach IM with that mindset V.S. the hype.People buy things on a whim all the time offline and online based on a feeling. Marketers understand that.Marketing will always work on anyone in any industry.Thanks for this

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)

  • http://davidrisley.com David Risley

    Thanks, Daniel. Much appreciated.

    And… I would say that IM is already at that point. :-)