In the past companies invest most of their capital on advertising. If you get to see their budget plan, marketing probably holds the biggest share after operating expense. But with the dawn of the internet this was changed. The internet has brought many unique benefits to marketing, one of which being lower in costs and greater capabilities for the distribution of information and media to a global audience.

Here are some ways wherein you can advertise your online business:

1. Network. Was there a time that you received a message from someone asking you to send that same message to 10 of your associates? If you pass along emails to your associates who are in your address book whether it is about a virus alert, crime alert, and stories — you can use the same strategy to promote your business. Inform your family, relatives and friends about your new online business, and then ask them to do the same thing and let their friends know about your online business. Compose an email that will describe your business and how people can benefit from it. Hopefully, your email will be passed on to some more of your friends’ friends. This is an effective way of getting the word out about your site. Do not forget to ask for their comments and suggestions on how make your site better.

2. Viral marketing. Another effective way of marketing on the internet is through viral marketing. Viral marketing is a strategy that relies on individuals rather than traditional campaigns to pass along a message to others. Two of the most successful online businesses who used this strategy were Hotmail and BlueMountain.com.

Referrals are also an effective way of using viral marketing. If you are one of those sites who offer content service, you can place a “Tell a Friend” button that will enable customers to recommend products or web pages via email to their friends. Some services that you can use are Recommend-It and BigNoseBird.com. These services will allow you to keep track of those who recommended your online business and to whom did they recommended it to.

3. Start your own newsletter. Formulating your own newsletter is an effective way of making people come back for more. Newsletters and e-zines have become valuable tools in building loyalty and repeat visitors to your online business. You have the option to develop the content of your newsletter, or use articles provided by other authors. Establish your mailing list as you go along, but remember that you should never send unsolicited letters. Spam is simply not worth it.

4. Participate in forums. A lot of websites provide message boards because this is a good way of attracting traffic. You can post messages and invites to your site, but of course make sure that the forum you will join is relevant to the product/services that you sell. Participate in the discussion, and end your post with a link to your site.

Do not throw away your hard earned profit on advertising. Find cheaper means and ways to let people know your online business exist. In doing so, you can use the money on other important things that will benefit your business in the long run.