The Brutal Truth About Making Money Online is Eye-Opening

A typical day in the digital world for the average person may include the following tasks- turning on one’s phone, scrolling through social media, and engaging with the post of a well-off person with a seemingly unattainable lifestyle. Social media is, after all, used as a form of escapism and wish fulfillment.

We love to hate ourselves with this type of aspirational engagement. The act of wealth voyeurism gives us a hit of dopamine but also hurts us in the long run. The act of developing parasocial relationships with these wealthy people (who may not be as wealthy as they let on) shifts our peer groups to create a skewed perception of where we should be in life.

To the scroller’s surprise, there appears to be an answer on the next swipe: one of these influencers or thought leaders has created an online course where they plan to give you all of their secrets to making big money- by making money online.

The ad placement of these messages are ingenious. They want you to believe that they want you to be just as rich as them… as quickly as possible! The placement of the ad in the middle of the feed takes advantage of that smidge of insecurity that you feel when you want to be in the same position as someone else. This insecurity is compounded by decision fatigue we experience from making countless decisions while scrolling:

Should I buy this?

Should I skip this video?

Should I take this opinion into consideration?

The scroller you have become acquainted to is well versed in financial literacy, so the “get rich quick” messaging did not sway any impulse decisions.

Had the scroller not had this information, perhaps because of youth or the financial illiteracy epidemic, they may have clicked the link to the “free training” that starts as a motivational video and then serves as a bait-and-switch for high-pressure sales.

These courses go for anywhere from $250 onward. They also provide little to no value because there is a simple truth:

There is no getting rich quick, even with an online business.

Many predatory people who want to bring in additional income spin webs of hype. Because these people employ tactics in behavioral psychology and predatory marketing (without disclosures, etc), it is easy to get caught up in the thrill of potential without stopping to think about implications of what the web-spinner is saying.

Online “gurus” claiming to have found the secret to easy online income are a fact of life online. They promise that with just a few clicks, you, too, can be a millionaire. But the reality is stark compared to these claims.

According to Tim Denning, an ethical educator in online income generation, only 1% of people who try to make money online are successful. The promises of easy online income are designed to lure you in but are not rooted in reality.

Why do so many people fall for these promises?

The answer is simple:

Hope.

This is exactly why hope was present in Pandora’s box: it can lead us directly into causing more turmoil for ourselves.

I must note that because of this element of trust and hope, I believe that people who fall for these schemes are victims. They are not deserving of derision. Most of the time, the people who sell these courses have to actively break down the resistance of the victims by focusing on that hope and taking advantage of our natural desire to trust.

We all want to believe that there’s a way to make money without struggling. We are hardwired to take the path of least resistance. Richard Thayler, award winning behavioral economist, brings up this point multiple times, specifically in his book Nudge, about directing behavior. If there seems to be a way to make money while putting in no effort, the our brain’s default is to take a chance.

As the old saying goes, “there’s no such thing as a free lunch.” Making money online requires hard work, dedication, and a willingness to learn and adapt.

It’s essential to cut through the hype and face the real challenges of making money online. The truth is, most people trying to earn online find themselves disappointed and financially strained.

Many individuals plunge into entrepreneurship without a financial safety net, lacking the savings that could act as a cushion during the initial stages of their venture. The emotional drive behind starting a business often overshadows the need for financial stability, leading to stress and health imbalances.

Financial health is inseparable from physical well-being, and the stress associated with monetary uncertainty can exacerbate health issues. This highlights the importance of saving before embarking on a money-making venture, as having a financial buffer can provide support during the inevitable waiting period for returns.

Another common pitfall contributing to financial strain is maintaining a highly leveraged position. Often, individuals invest money that should be allocated for essential expenses, leaving them financially stretched. There are many ways to start a business without going into debt, but it will require sweat equity to make up for the lack of capital.

For example, when I was 17, I did not have money for a marketing budget for my growing boutique. I stood on the street corner holding up a sign until a customer came in.

The equivalent to doing this online is creating an organic social media strategy, blogging, or building online relationships.

Many people forget that a business online is still a business. Just because you do not need to invest in a physical location does not mean you are free from investment. Beyond just savings, it’s crucial to save funds to cover operational expenses like marketing, supplies, and other non-negotiable aspects of running a business. Neglecting this aspect can lead to wearing thin financially and hampering the sustainability of the business.

Furthermore, dedicating all available free time to pursue a business endeavor might seem like a passionate approach, but it comes with its pitfalls. The excitement of starting a new business can quickly engulf every waking hour, leading to burnout. Burnout, a state of chronic physical and emotional exhaustion, can set individuals back significantly in their entrepreneurial journey. Recognizing the signs of burnout, defining its consequences, and understanding the importance of maintaining a balanced lifestyle are pivotal in sustaining long-term success.

With an awareness of the factors contributing to financial strain, let’s explore authentic online income streams:

1. Affiliate Marketing:

- Pros: Easy to start, requires minimal experience.

- Cons: Limited income potential, faces high market competition.

2. E-commerce:

- Pros: Medium profit, digital ads do most work

- Cons: Requires a significant investment of time and money, demands knowledge in various areas, instability

3. Digital Products:

- Pros: Requires little initial investment, high income potential, no on-hand inventory

- Cons: Time-consuming, needs expertise in specific niches.

Understanding the dynamics of each income stream empowers individuals to make informed decisions based on their skills, interests, and resources.

The Importance of Hard Work and Dedication

Making money online is akin to climbing a challenging mountain — a tough journey with a rewarding view at the top. Hard work and dedication are crucial for overcoming obstacles, setbacks, and failures along the way.

It takes time, effort, and money to nurture an online business, but once it starts growing, the rewards can be plentiful. Success in making money online involves setting goals, being consistent, and learning from mistakes. It’s about being resilient and persistent, even when faced with challenges.

Making money online is not a quick path to wealth; it requires hard work, dedication, and a commitment to learning. By understanding the reality of online income and approaching the challenges with a practical mindset, individuals can set themselves apart from the majority who falter. Armed with a realistic perspective and a strong work ethic, anyone can embark on the journey of building a profitable online business.

Aaliyah Kissick is Miss Illinois United States 2023. Her platform is Financial Literacy.

This information does not constitute financial advice. For individualized instruction, you should solicit a relationship with a financial advisor.