A reader asks:

Can I make good money by setting up an information website?

My idea is to create a website specialising in a particular niche.

Is it a good business idea?

How could I make good money from this idea?

Yes you can make good money from informational websites. How much largely depends on the size of the niche, your ability to provide good information that is targeted at the niche and to promote the site within the niche. So the secret to making good money is to pick a niche you can compete effectively in, which is still big enough to provide the level of earnings you’d like to achieve.

Making money online with informational websites is in my opinion a good business idea. It’s just the kind of business I like – very low start-up costs, very low overheads and minimal risks. Using a company like Heart Internet you can register a domain name for £2.79 and get hosting for £2.49 per month (at the time of writing) – you can start-up for under £10 and your first year running costs are less than £50. Sure you can spend a lot more on web design, branding, advertising and copywriting, but you don’t need to.

The only other cost is your time, how you value that is up to you, but if you start off by swapping an hour in front of the TV every evening for an hour working on your website you’ll soon find out if your time is worth investing in the site.

How do you make money from informational websites

There are a number of ways to make money from informational websites, such as:

  • Advertising – sell advertising space on the site. Google Adsense is a good place to start, although for some niches it’s not particularly effective. You can also approach companies that serve the same niche and offer them advertising space on the site.
  • Affiliate marketing – promote products and services of interest to your niche market. You receive commission on any sales they make as a result of your site.
  • Sell your own product – sell your own product such as a book.
  • Offering consulting – use the site to  sell your own expertise.
  • Create a members only section and charge for access – if the niche is big enough and your information good enough you might be able to offer a special members only area of the site and charge for access to the information in it. This subscription model is often used by newspapers.

There are other options too, but they are generally variations of one or more of these approaches.

Asking John:
Do you have a business question you would like me to answer? If so you can Ask John or or you can ask on the forums where you’ll get both my input and that of your fellow entrepreneurs.

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