How Do Websites Generate Revenue for the Owners?

By | June 24, 2011

If you’re new to the world of buying domain names at sites like, then there’s a good chance that one very fundamental question still has to be answered for you. It’s the question posed in the title of this article, and the question that we’ll be working on answering over the next several paragraphs.

Why can’t it be answered with a single word? Well, because the truth is that there are a number of ways websites generate revenue for their owners. It’s like asking how anyone can make money, period. There are lots of ways to make money in the offline world, just like there are lots of ways to make money in the online world. Answering the question posed in this title means taking a look at different strategies people can employ to generate revenue. And if you find something new in the process, well, we’ve done our job.

Method #1: Ad revenue.

One of the most basic ways for anyone with an audience to earn money, selling ad space or ad time is a brilliant way to earn money. Sure, sometimes people don’t appreciate ads on websites, just as they don’t like watching commercials on TV. But that doesn’t mean there isn’t money to be made in advertisements – some people succeed with a lot of ads, and others succeed with minimal ad placement.

When it comes to the domain name world, ad revenue can happen from a number of different sources. You can place a banner link to a company on your site, getting paid by that company directly. You can use ad services like Google’s AdSense in order to have automatically-generated ads appear on your site. And you can work out independent deals for other ad placements in your online endeavors, such as newsletters and forums.

Method #2: Subscriptions.

A great way to earn money directly – and regularly – is to provide content on your website that people will pay for. This can include subscriptions, or paid memberships. Some people will pay for subscriptions to your community forums, while others will be willing to pay you for exclusive content, such as newsletters and blog posts. It can be tough to sell a lot of subscriptions, but when you’re able to attract a big audience, it’s a sure-fire way to earn a stable income.

In order to make money from subscriptions, you’ll have to make sure that what you’re selling is truly worth it. People won’t buy subscriptions simply because you want them to. You have to give them content that is truly worth paying even a small amount every month. In this day and age, it can be tough to get people to take out their credit cards.

Method #3: Selling directly.

Some people, of course, simply opt to build stores out of their websites, selling everything under the sun in order to turn a profit. This can be a great way to establish a business before you have to buy any commercial space, and also test the waters in order to see if there’s a market for what you provide. Selling directly to your visitors can include everything from digital information like music and Ebooks to real products like cookies or hand-sewn clothes.