How to make money online using web 2.0 is a common question I get today.

I’ll be covering the three key rules how to make money online using web 2.0 the right way.  The same approach is used for small or big businesses, even home businesses.  It really comes down to how to demonstrate value to your network using web 2.0.

Rule #1:  Would I do this at a party?

First I’ll tell you how to make money online using web 2.0 the wrong way.  Nothing turns people off more than people writing on another person’s social networking site about a product or service or self promoting.  It’s kind of like spray painting graffiti on your friends’ house; chances are you won’t be invited back or treating people as prospects instead of friends.  If the first part of this article applies to you than you may want to reconsider how you’ve been doing things and issue an apology letter.

The first key to learning how to make money online using web 2.0 is developing a relationship with someone.  This is no different than if you were right in front of them.  Treat your Twitter, MySpace, Facebook and YouTube accounts as a place to socialize, not make money; social networking sites are made for socializing – like a party.  Would you go to a party with your product or service and start shoving it in someone’s face? So why would you do it online?

Be the life of the party by offering content of value that people want and they will likely hang out with you outside the party; this is on your blog.

Think of it this way: at the last Super Bowl Party Robyn went to not everyone there was a diehard football fan, but it was pretty easy to see the ones who were; Bill, the guy waving the terrible towel kind of gives it away.  Along the same lines, you could let everyone know you’re a die-hard football fan through your pages on Twitter, MySpace, Facebook and YouTube or several other social networking sites by posting information that is of value to everyone at the party.

At work on Monday Robyn might have mentioned the guy waving the terrible towel being a diehard Steelers fan; not knowing the person she’s talking to, Mike, is another diehard Steelers fan.  Mike says, “Hey, sounds like my kind of guy!”  The virtual, online version of this conversation would read something like this: Robyn tweets: “Bill is a crazy Steeler’s fan”.  Mike replies to Robyn’s Tweet with a Tweet of his own: “Sounds like my kind of guy”.

In this example, can you see how Robyn did Bill’s advertising for him?  Instead of one person at the water cooler, thousands of people who follow Robyn on Twitter now know that Bill is a crazy Steeler’s fan.  Bill now has people that he doesn’t even know following him on Twitter and requesting to be his friend on Facebook and MySpace all because of Robyn’s post.

Rule #2:  When I have friends over does it give me the right to shove my business in their face?

Now they send you a request to be your friend, follow you, subscribe to your channel – does that mean it is now ok to now start spamming them with your product or service?

Of course not, start a relationship with them and invite them over to your home to watch the next big game.  Your home is your blog where you hang your terrible towel, Steelers Posters and things about you.  Give people a reason to come over, though, because you’ve got cool stuff in common or you can solve their problem.  Simply offer valuable information that they want to find on your web 2.0 social site and your house, aka blog, will become the after-party where people come to hang out.

Not everyone who comes over to your home will be interested in your product or service but those who do will ask.  That is the key with how to make money online using web 2.0, people simply ask you “What do you do?” and then recommend you to their friends.

You may ask well how are they supposed to know what I do?  They are on your blog and will be able to tell what you do and share it with others.  They may not even be interested in your product or service but it’s always fun to recommend a friend and with Twitter, MySpace, Facebook and YouTube; it’s easy to do.

The most important part of how to make money online using web 2.0 is offering value with your content through blogging.  It’s also a benefit if you have free information for people; give away free tips, add a place for people to ask questions, subscribe to a newsletter.  This will help you build the relationship even further.  This is where most people are doing it wrong; if you have made the effort to gain the traffic to your website you better have a reason for people to come back.  Having the biggest flat screen TV doesn’t cut it anymore, you need the best salsa & chips too.

Rule #3:  How do you know it’s ok to start marketing to people online?

That’s the head fake.  You’ve been doing it all along using web 2.0.  You’ve developed trust and confidence through your network of sites with the content you’ve posted.  Once someone trusts you they are more likely to use or buy from you and tell everyone else to buy from you, too, because you now are answering their questions and solving their problems.  People will visit your blog to find the product or services you have offered to their friend and read up on it and possibly buy it from your online store.

Going back to how they will find you, your new ‘friends’ (not you) will be posting it on their social networking sites, which will increase the chances of sales because a friend recommended it.

In summary, treat web 2.0 like a party, your home as your blog, and people will reach out to you when they want your product or service because you are their trusted guru; it’s like recommending a friend you know who throws a killer Super Bowl Party. Don’t set out to make money using web 2.0, set out to solve people’s problems and you will become the life of the party.

So if you know a friend that’s been doing this please share this post with the.  You might help them make that much needed sale that keeps their home; with one click you could save a family in this economy.

Your Top 3% Leader,
Daryl Hill