For all the popularity of Google Adsense and similar contextual advertising programs, perhaps the very best ways to monetize a website are through list building and lead generation.

Why? Well, first of all, lead generation is big business, and if you find the right programs to promote, you stand to make much more per click than with many contextual advertisements. That isn't always the case, of course, but more often than not, it is. Just look at some of the prices quoted at the big CPA networks like Azoogle.

Granted, it is tougher to get people to fill out a form than it is to click on an ad, since the latter is anonymous, whereas filling out a form means giving your personal information in exchange for whatever it is you want (e.g., an insurance quote, mortgage quote, or more information about dental plans).

On the other hand, those and many other types of leads are in high demand, and the supply is limited, which means good prices for you, the supplier. If you know how to do it, you can put yourself in a position, however, to generate a good flow of leads, and earn steady income for your website with it. Seriously – lead generation is one of the best ways to monetize a website.

The other side of this coin is list building. You've probably heard it said a thousand times – "the money is in the list".

The reason people say that is simple. 99% of the people who visit your site won't buy your product or fill out your lead generation form on the first visit. Many will forget about your website within a day or two. A few will remember you and come back again.

But what if 10%, 20% or more of your site visitors signed up for your free mailing list or newsletter, maybe because you offered them a free report of some kind on that interested them? Of course, that is delivered via email, so they have to at least give you their first name and email address.

Now you have a LIST. You have the names and email addresses of people who are interested in the "theme" of your site. You can send them reminders to come back and visit, tell them about new content you've added to your site, or send them offers for various products that you promote through an affiiate link.

Instead of having one shot at 1% of your site visitors, you now have multiple opportunities to promote things to a much higher percentage of your visitors. The fact they did not buy anything on the first visit just makes them human. It is widely reported that 80% of sales of any product take place after the potential customer has been exposed to the product at least 5 to 7 times. Your list is what gives you that opportunity.

So there you have it. The best thing you can do for yourself is to build a web site in an area where there is a degree of interest, but not too much competition (i.e., a "niche"). Once you have that, then the two best ways to monetize a website are by collecting and selling leads, and by building your own email list, after you learn direct email marketing.

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