How to Make Money Online with a Proven 3-Step System

Are you wanting to make money online but getting tired of advice that only scratches the surface? In this post, you’ll learn a proven 3-step process you can use to start making money online with a digital skill.

This is the exact same process I’ve used to make thousands of dollars online using just my laptop and an internet connection. Nobody showed me how to do it. So I made tons of mistakes along the way, many of which could’ve been avoided.

This is the guide I wish I had when I got my start. I’m writing this guide with the hope of helping you find success much faster than I ever did.

Let’s get into it.

How This Post is Different From the Usual Advice
Step 1: Get Into a Stable Career as a Safety Net
Step 2: Learn a Digital Skill on the Side
Step 3: Get People to Pay for Your Digital Skill
Conclusion

How This Post is Different From the Usual Advice

The internet is full of articles on how to make money online. So I’m not going to waste your time listing off a bunch of side hustle ideas in this post. If that’s what you’re looking for, you can read this, this, or this.

Instead, think of this article as a how-to guide to help you break free from being broke. It’s based on my own personal experience and is a reflection of what’s worked for me in the real world.

It’s not a get-rich-quick scam and it’s not sensational. But it is actionable, and it works.

So, if that sounds good to you, then read on.

Step 1: Get Into a Stable Career as a Safety Net

Here’s the deal: if you’re anything like me, then you weren’t born with a silver spoon in your mouth. And you also don’t have a rich uncle who can fund your lifestyle. All you’ve got are bills and a job that doesn’t pay enough.

If this is the case for you, then your first move is to stabilize your situation. And the best way you can do that is by getting into a stable career and landing a better-paying job.

If you’ve already got a decent day job, then you can skip to Step 2.

The Ideal Career

In my opinion, the best career is one you can get into without taking on any debt and start making money from relatively quickly. If want to attend a traditional four-year college, and can do so for cheap (or even free), then by all means go for it.

It also helps to be somewhat interested in whatever you decide to do for work. Going to school for something, even if it is mostly for the money, is a sure-fire way to end up more stressed than when you started.

A lot of people these days think a college education isn’t worth getting anymore. And there may be some merit to this viewpoint.

Yes, the world is changing, and lots of big companies are hiring people without formal degrees. But data shows that the job market still values a formal college education by a pretty wide margin. For instance, if you have a bachelor’s degree, you’ll earn an average of 2x the amount of someone with just a high school diploma.

Median household income in the United States in 2023, by educational attainment of householder (in U.S. dollars) - Statista

Median household income in the US in 2023, by education level. Source

For some of us though, going to college is either not possible or simply not a good fit. If you fall into this category, then your next best option is getting certified in a skilled labor trade.

While learning how to become a plumber or electrician might not be glamorous, these trades are some of the most historically stable careers you can get into. And the cost of a trade school education is half that of a four-year degree.

Some good trades to get into include the following:

If you’re working a dead-end job and aren’t planning to attend college, then consider learning one of these trades. In the United States, most of these trades are offered as certificate programs at local trade schools. You may also be able to find a local union or company willing to pay for your education to get you started.

Once you’re able to support yourself, it’s time to move on to the next step.

Step 2: Learn a Digital Skill on the Side

For most of you, this is where the rubber will meet the road. It’s this point where you’ll find out whether you’re really serious about making money online or if you were just living in a fantasy world.

The reason this step is so crucial is because, if you followed step 1, you should already be making a halfway decent living.

It’s much easier to believe you’ll execute on your dream of making money online when you’re broke and have more time than money. It’s way harder to find the will to do it when you’ve got a day job that’s keeping your bills paid and you fat and happy.

Motivation to Learn Digital Skill vs. Money in the Bank

Motivation to Learn a Digital Skill vs. Money in the Bank

Breaking free from being broke doesn’t mean you need to make millions of dollars. For most people it simply means being able to put a little away in savings, pay down some debts, and take a vacation every now and then.

If you’ve got a stable job and are still motivated to do this, then it’s time to for you to choose a digital skill to learn.

Choosing Your Favorite Digital Trade

Choosing which digital skill to learn is one of the most important decisions you’ll make if you want to start making money online. Picking the wrong skill to learn can mean many months or even years of wasted effort.

The good news is it’s super easy to get started. And you can learn a good amount of these skills online for free, so you don’t need to spend any money to test different options.

For the purposes of this post, I’m defining digital skills as any work you can do and/or make money from using the internet. They can be either “digitally-enabled” skills like web development or “digitally-enhanced” services like copywriting and photography.

Digitally-enabled skills require the internet, while digitally-enhanced services use the internet to make their delivery more efficient.

To keep things simple, though, I’ll call them all “digital skills” or “digital trades”.

Here are 28 digital skills for you to consider:

How to Pick the Right Digital Trade for You

So, how do you choose the right digital trade? And how do you even define “right” in the first place? The answers to these questions are very subjective. However, you can ask yourself the following questions to help you decide which digital skills might be best for you.

1. Is [digital skill] something I can see myself being curious enough to stick with for at least one year? (Interest)

To test your curiosity, start by exploring free or affordable courses on platforms like Coursera and Udemy, where you can sample a digital skill before committing to it. YouTube channels like Traversy Media for web development or The Futur for design also offer valuable insights into day-to-day work in these fields. These resources can help you see if a digital skill piques your interest enough to stick with it.

2. Is the market demand for [digital skill] growing? (Income)

Knowing the demand for a skill is key to making money online. Sites like the U.S. Bureau of Labor Statistics give detailed job outlooks on many digital trades. Searching job listings on LinkedIn or Indeed can also reveal the current hiring trends and salary expectations for specific skills. If you want a quick snapshot of public interest in a skill, Google Trends is another great tool to check whether interest in that skill is rising over time.

3. Do I see myself wanting to connect with the type of people who do [digital skill]? (Personality)

The right work environment is as important as the skill itself. Platforms like Reddit have subreddits dedicated to different digital skills (e.g., r/learnprogramming or r/freelance) that reveal more about the people, challenges, and personalities within each field. You might also consider attending virtual meetups through Meetup or Eventbrite, where you can interact with industry professionals and get a feel for the culture. Listening to podcasts like Developer Tea (tech) or The Futur (design) is another way to get a sense of the personalities within these industries.

When you answer all three questions with “yes”, add that digital skill to your list of skills to pursue. Having more than one skill as an option gives you greater flexibility. As you gain more experience, you may even be able to combine your skills and increase the demand for your work.

Interest + Income + Personality = The Sweet Spot

Interest + Income + Personality = Sweet Spot

3 Examples of Digital Entrepreneurs Making Tons of Money Online

When all you have is a dream of what it’s like to make money online, it can be hard to match those dreams with reality. When I was starting out, my friends and I would constantly share profiles of software developers we admired who were making a killing online. It helped keep us motivated and showed us what was really possible.

Maybe all you want right now is to make $3,000 per month to pay your bills and have a comfortable life. And there’s nothing wrong with that. But there might come a time when you want more. Below are a few people I’ve come across over the years who I find inspiring.

No matter your goal, it’s always nice to see what’s possible. Hopefully seeing what they’re doing inspires you too.

1. Namya • Copywriting & Web Design: Charges over $4,000/mo per client.

Good copy + Good design = $$$

Before → After pic.twitter.com/EOE7WaQlYY
— Namya @ Supafast (@namyakhann) October 25, 2024

2. Pieter Levels • Indiehacker: Makes over $3M/year.

🍰 Only 4 out of 70+ projects I ever did made money and grew

📉 >95% of everything I ever did failed

📈 My hit rate is only about ~5%

🚀 So...ship more pic.twitter.com/oAn2rdRpFT
— @levelsio (@levelsio) November 7, 2021

3. Tim Bennetto • Indiehacker: Makes over $74k/mo.

Today is my last day being a solo founder.

Here's how I've built Pallyy to $74K MRR solo:

➜ Learning to code

Spent 6 months or so learning HTML, CSS, JS and Nuxt.

Every evening would spend a few hrs doing this with CodeCademy (a free learning platform).

➜ Building an MVP… pic.twitter.com/yjO3DLKKR5
— Tim Bennetto (@Timb03) October 1, 2023

Invest in Tools to Support Your Digital Trade

Once you’ve picked a digital skill to learn, it’s time to invest in the right tools and resources to make progress.

The reason I strongly suggest you get into a stable career in the beginning is because it costs money to learn a digital skill. Sure, as I said earlier, you can learn for free on YouTube and there are plenty of other websites with free courses you can take. But you’ll need a decent laptop to watch those videos on. You’ll also need a quiet place where you can learn on a regular basis.

If you can’t afford a place to live or the means to get to a place to study, you’ve got bigger things to worry about than how to make extra money online.

The tools you need will largely depend on the digital skill you choose to learn. That said, there are two high-level categories of tools that are necessary no matter which route you take.

Those categories are: (1) hardware tools, and (2) software tools.

1. Hardware Tools

MacBook Air M2

MacBook Air with M2 chip

The single most important hardware tool you’ll possess for making money online will be your computer. Depending on the digital skill you decide to pursue, you shouldn’t need anything fancy to get started. But you will definitely need to get a computer if you don’t already have one.

“If Apple charged $20,000 for [this MacBook Pro], I would buy it. It just blows my mind that in 2024 now that you can build a billion dollar business from one laptop and one idea.”

Pat Walls, Founder & Host of Starter Story

When I got serious about learning to code, I had a crappy old Panasonic Toughbook with only 1.5 GB of RAM. It wasn’t great but it got me far enough. What’s more important than any computer or piece of tech is the energy and determination you bring to the table everyday.

My personal favorite computer these days is Apple’s MacBook Air. I have an M1 Air. If you can afford it, I highly recommend getting a new MacBook.

No matter the brand you choose, be sure to look at the following specs whenever buying a computer:

RAM
Model year
CPU
GPU
Weight
Peripherals needed (e.g. My Apple MacBook M1 has only two USB-C ports so I need an extension for additional peripherals.)

Here’s a breakdown of each spec so you know roughly what to look for.

1. RAM

Recommendation: 16 GB minimum for most digital work (design, development, video editing), and 32 GB if budget allows, especially if you’re running intensive applications.

Why: Higher RAM allows more applications to run smoothly at once, especially important for multitasking across software like Adobe Creative Cloud or multiple development environments.

I only have 8 GB of RAM in my laptop, so you can get by with less if your budget is tight. But definitely expect to upgrade in a few years depending on the digital trade you choose.

2. Model Year

Recommendation: Models released within the last 2–3 years. For Apple users, this would include the M1 (2020) and M2 (2022) chip models, or Intel 11th Gen and newer for PCs.

Why: This ensures compatibility with the latest software, security updates, and optimal hardware efficiency.

3. CPU

Recommendation:

Apple: M1 or M2 chips are sufficient and energy-efficient for digital skills.
PC: Intel Core i7 (11th Gen or newer) or AMD Ryzen 7 for a balance of power and multitasking.
High-Performance Need: Intel i9 or Ryzen 9 for intensive tasks like video editing or 3D rendering.
Why: These CPUs handle demanding applications without slowdowns, enhancing productivity.

4. GPU

Recommendation:

Integrated: Apple’s M1 and M2 integrated GPUs are strong performers for most graphic needs.
Dedicated GPU (PC): NVIDIA GTX 1660, RTX 3060 or higher for graphic-intensive work like gaming or 3D rendering.
Why: High-quality GPUs support smoother rendering, crucial for design, 3D modeling, or video work.

5. Weight

Recommendation: Look for under 3.5 lbs (1.6 kg) if portability is key. Apple’s MacBook Air models and many Dell XPS or Lenovo ThinkPad models fall in this range.
Why: Light laptops enhance mobility, ideal for digital nomads or users who frequently work remotely.

6. Peripherals Needed

USB-C Ports: Ensure at least two USB-C/Thunderbolt ports; four is ideal for flexibility.
Extension Recommendation: A USB-C hub or docking station to add USB-A, HDMI, and Ethernet ports.
External Drive: Consider an external SSD if storage space is limited (256 GB minimum internal storage recommended).
Headphone Jack: Important for those working in audio or video.

Once you have a decent computer, you might want to consider getting an external monitor. But this might not be necessary depending on the type of digital work you choose to do.

The last hardware tool I highly recommend you get is an ergonomic mouse. It makes a huge difference when you’re spending hours switching between screens and working in a digital environment. I currently use the MX Master 3 for Mac personally.

2. Software Tools

Everyone has their own unique set of favorite apps and software they prefer, and I’m willing to bet good money you’re no different in this regard. So I’m not going to write a laundry list of different apps and software here. Instead, I’m going to list some of the most commonly used apps for a handful of digital skills from the section on Choosing Your Favorite Digital Trade.

Don’t worry too much about this area. You’ll no doubt find your own favorite set of software tools once you’ve gotten some skin in the game.

Web Development & Computer Programming

If you’re diving into web development, these tools will help streamline your process and boost productivity.

Visual Studio Code: A free, open-source code editor with an extensive marketplace for plugins and customizations. Great for everything from HTML and CSS to JavaScript and Python.
Git: A version control system for tracking changes in code. Essential for collaborating with other developers or managing your own projects.
Chrome DevTools: Built into the Chrome browser, DevTools help you inspect and debug HTML, CSS, and JavaScript in real time.
Node.js: A runtime environment that allows you to run JavaScript on the server. It’s also the foundation for many popular frameworks, like Express.
Figma: Great for collaborating with designers and creating web layouts. Figma is a cloud-based design tool with a range of features to support prototyping and UI design.

Digital marketing relies on data, and these tools will help you gather insights, optimize content, and reach your target audience.

Google Analytics: A must-have for tracking website traffic, understanding user behavior, and optimizing site performance.
Ahrefs: A comprehensive SEO tool for keyword research, backlink analysis, and site audits. Known for its large database and in-depth insights on competitive analysis.
Hootsuite: Manages all your social media accounts in one place. You can schedule posts, track engagement, and get insights on your social performance.
Mailchimp: Popular for email marketing, helping you create campaigns, segment audiences, and automate emails.
Google Keyword Planner: Part of Google Ads, this tool helps you find keywords and assess their search volumes for better targeting in both SEO and SEM.

Graphic Design

For anyone interested in graphic design, these tools provide all the functionality you need to create eye-catching visuals.

Adobe Photoshop: Industry-standard for photo editing and graphic design, perfect for everything from image retouching to complex compositions.
Adobe Illustrator: Ideal for creating vector graphics, including logos, icons, and illustrations that scale without losing quality.
Canva: A more user-friendly graphic design tool that’s great for beginners. Canva offers pre-made templates for social media graphics, presentations, and more.
Affinity Designer: A powerful and affordable alternative to Adobe Illustrator, with a range of vector and raster design tools.
Procreate: A digital illustration app popular with iPad users, particularly good for creating custom illustrations and hand-drawn graphics.

Content Creation & Management

Whether you’re blogging, managing social media, or running a YouTube channel, these tools can help you plan, create, and publish content effectively.

WordPress: A popular CMS for bloggers and website owners, known for its flexibility and extensive plugin library.
Buffer: Schedules social media posts across platforms, allowing you to plan your content calendar and measure engagement.
Trello: Helps you organize content ideas, track progress, and collaborate with team members using boards, lists, and cards.
Notion: A versatile tool for managing content, planning, and note-taking. Many content creators use it to keep track of projects, ideas, and deadlines.
Grammarly: A writing assistant that checks for grammar, punctuation, and style errors, ensuring polished and professional content.

Copywriting

Copywriting requires clarity, creativity, and precision. Here are the top tools to help you refine your writing and reach your audience.

Hemingway Editor: Helps you write more clearly by highlighting complex sentences, adverbs, and passive voice.
Grammarly: Checks grammar, punctuation, and style. It’s great for spotting errors and improving readability.
Google Docs: A free, collaborative writing tool that allows you to write and edit documents online, making it easy to share with clients or editors.
Thesaurus.com: Perfect for finding synonyms, expanding your vocabulary, and avoiding repetition in your writing.
Airstory: A tool that allows you to clip and save research, making it easier to reference sources and data when writing.

Invest in Your Health

Alright, this next question might sting a bit… But what good is making more money if you’re too fat, sick, or nearly dead to enjoy it?

If there’s one idea I want you to take away from this post it’s this: money is like oxygen.

Just as you don’t live for oxygen but need oxygen to live, you don’t live for money but need money to support your life.

It’s the difference between working to live and living to work.

People always talk about wanting to be “successful”. When I was a kid I used to tell people my biggest fear was not being successful. To me success simply meant having a lot of money. The problem with this thinking as you get older though is that it’s not specific enough to act on.

True Wealth = Good Health + Meaningful Relationships

As I got older, I challenged myself to define what success means to me. Here’s what I came up with: success, or true wealth, is a function of good health and meaningful relationships.

Think about it this way. If you were sick from preventable illness and on your deathbed, would you want more money or more of your loved ones to be there for you? And what would you recall more fondly, making tons of money while working 80+ hours a week or those laughter-filled moments shared with your sweetheart?

As you begin your journey into making money online from a digital skill, be sure to prioritize your health and wellbeing. And don’t forget to spend time with those you care about.

I’m not perfect at this. And you don’t have to be either. But as long as you strive to get 1% better everyday, you’ll be well on your way to a life you can really be proud of.

To cite the heavily paraphrased words of Y Combinator co-founder and tech uber mentor Paul Graham:

“Build the product, talk to customers, exercise.”

Step 3: Get People to Pay for Your Digital Skill

Getting customers is arguably the hardest thing for new entrepreneurs. Hell, it’s one of the hardest things for established Fortune 500 corporations.

If you’re wanting to start earning money online and on your own accord, then learning how to get people to pay you is a skill you’re going to need to develop. Fortunately, there’s an easy way to do this: focus on solving real problems for people.

When I was starting my freelance web development career, I didn’t focus on building custom websites or applications. Instead, I focused on getting anyone with a pulse and a business need to pay me $500 for Wix websites.

At the time, I was planning on opening a coworking space with a buddy of mine. The goal was for us to earn $5,000 each, so we’d have $10K of runway to rent a retail space. And since we were both relatively inexperienced building professional websites, I figured we needed to focus on speed rather than the novelty of getting paid to further our web development educations.

Of course I’m reporting on this with the clarity of hindsight. But the conclusion is still valid. This unilateral focus on getting clients at all costs and not on building custom websites gave me invaluable opportunities to learn client acquisition and account management skills. Your technical skills may help you sell your services confidently, but it’s your human relations abilities that ultimately transplant greenbacks from the wallets of others into your own.

So as soon as you feel good enough, start putting yourself out there and alerting the world to what you have to offer. Always seek to solve a problem and be of service to others, and you won’t be without paying customers very long.

Conclusion

To recap, my three step process for making money online is:

Get a stable career as a safety net.
Learn a digital skill.
Get people to pay you for your digital skill.

While simple in theory, most people usually drop off at step two. Inertia from the comfort of having a stable day job and your bills paid can sap your desire for further expansion.

If you’re goal is to make money online while keeping a day job, then you’re good to go. But if you’re goal is to earn money online and free yourself from the shackles of an overbearing boss or your dreaded 5:00 AM alarm clock, then you’re going to need to work at it.

Simple? Yes. Easy? No.

Either way, it’s your life and the choice is yours to make it what you want. Godspeed.