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The idea of making money online is attractive to many, primarily because of the benefits it offers. Two main incentives are motivational factors here: The lucrative potential of the internet as well as the personal freedom that comes with working without a fixed schedule or geographic location.

One doesn’t need to suffer through monotonous day jobs which offer poor returns for the time invested.

Indeed, why make $7 an hour selling coffee behind a counter when you can easily earn the same amount by spending 10 minutes to write an article on your blog?

Even if you’re not looking to work full-time at home, the internet offers a viable source of money which can help to supplement your regular income.

Cataloging the Different Ways to Make Money Online

1. Set up a Blog or Website for Profit

One of the best ways to make money online is to create a website or blog which allows you to earn money from the display of advertisements or the sale of products and services.

There are many different types of money making blogs which will help you to make money and you’ll need to pick a model that suits your interests, schedule and skill levels. A simple no frills blog will allow you to easily pull in at least several hundred dollars in a month through the use of paid blogging websites alone.

For more information, check out Dosh Dosh’s archive of articles on how to make money blogging. Apart from blogs, other websites can easily help you to generate passive income as well. These can range from e-commerce websites, social communities and information portals to basic landing pages for affiliate programs.

2. Learn about Affiliate Marketing and The Art of Selling

This involves promoting a specific product or service and earning commissions whenever the referred user makes a purchase based on your recommendations.

Affiliate marketing is a big and profitable industry that covers a wide spectrum of topics and fields. If you’ve got an interest in fitness, you can make money promoting fitness videos or courses. In terms of fashion wear, you can earn commissions by recommending friends to clothing or t-shirt companies with affiliate programs.

The amount of money you make depends on what you are selling. Done correctly, affiliate marketing is one of the most powerful ways to make money from the web. Amazon, Commission Junction and ClickBank are three of the biggest affiliate marketplaces you can use if you’re branching out into affiliate marketing.

3. Start an Online Business

Starting your own online business or company allows you to make money off the provision of specific services or products you may have. Some examples of popular online trades include web design, copywriting and internet marketing.

It isn’t difficult to start a business. It’s all about hiring the right people or having enough knowledge and connections within a specific industry. You should do some in depth research before you decide to settle on a specific niche for your business. Entrepreneur.com has a good collection of tips on how to start an online business.

4. Try Out Domaining and the Online Real Estate Trade

This is the business of buying, selling, developing and making money from domain names. A domainer purchases many domain names and sells them to interested buyers. This is similar to real estate investing offline and domainers also make money by developing websites and reselling it to a buyer.

This practice is known as site flipping and can make you a tidy sum of money if you know how to build an attractive and profitable website. For a rough estimate of how much money you can earn from site flipping, check out the SitePoint Marketplace to browse through the collection of websites for sale.

5. Participate in Get-Paid-to Websites

There are hundreds of websites out there which you pay you to read emails, do surveys, sign up for trial subscriptions and surf the web. Websites that pay you to complete offers are worth examining because they usually include affiliate programs with recurring commissions to be earned.

The benefit of get paid to websites is that you don’t need to have your own website or any personal skills at all. The downside is that there are a lot of get-paid-to scams around and finding websites that are legitimate can be fairly difficult. Scam.com is a forum you should visit to learn if the get-paid-to website you’re interested in actually pays its members.

There are also several Web 2.0 or social media websites out there that will pay you to participate in their community. This collection of social media websites usually operate via a revenue-sharing system, which allows you to earn a share of the overall ad revenue. How much you earn depends on how much your submitted article, video or image is viewed.

6. Find a Virtual Job or Make Use of Your Expertise

Not only limited to data entry jobs, online jobs in the new economy include virtual assistants, gold farmers, online life coaching and support for open source software. Mini consultation networks like Bitwine and Ether allow you to easily set up shop and offer advice on specific topics through the web.

Most of these virtual jobs involve direct communication through electronic mediums like internet telephony, instant messengers and emails. Which means that all you need to get started is a home computer with an steady internet connection.

If you are an expert in a specific topic, you can offer consultation via websites like Jyve or Just Answers. Other skill or knowledge based vocations also include participation in online competitions in areas such as photography, writing, designing and even gaming.

7. Freelance and Work on a Contract Basis Online

If you have a skill such as web design, programming or copywriting you can offer your services online in exchange for money. Traditional freelancing jobs include transcription, proofreading, translation services on top of the ones already mentioned above.

Online marketplaces that you can use to offer your services include Guru.com and Elance. One of the best ways to find freelance jobs is to visit webmaster forums because webmasters usually require a variety of web-based services, which range from programming and content writing to design work.

If you’re focusing on writing if don’t own your own blog, you can still make some money by registering for websites which will pay for your content. Another alternative is get paid to write for other blogs either as a staff or guest writer.

8. Create Your Own Product and Sell it

Products you can create include website templates, sound clips or even your own ebook. Websites like Lulu allow you to easily develop and sell your own collection of electronic products like calenders, brochures, artwork, images and ebooks.

If your specialty is images and photography, citizen journalism websites like Spymedia and Citizen Image will pay for your images. You can also try using Shutterstock, the most established and lucrative micro-stock photography website. Illustrators and videographers are also welcome at Shutterstock.

This also ties in with the concept of creating your online business, which will allow you to sell the products you create or own without resorting to a third party website which will usually take a commission of the sale.

9. Get Involved in the Online Retail Trade

Ebay and Craigslist are the two of the most popular websites you can use if you are planning to get into the online retail trade. You can purchase products from either website to sell to the other.

Alternatively, you can specialize use site-specific methods of participating in the online retail trade. For example, Ebay dropshipping and arbitrage is a method whereby you’ll with offline retailers or exporters in other countries, or buy from one seller and sell to another.