Online Business Models
So, you have a great online business idea to start ? Now, you should understand the different online business models that exist. Here are the more common ways to make money on the Internet:
Sell a Product
Most money in e-commerce is made by selling products - either physical or digital. Many of the same common sense rules apply whether you are selling online or "offline." Look for products with high margins, high demand, low competition, etc. If you’ve ever been interested in retail but are not interested in opening up a brick and mortar type store this online business is for you! You actually have two ways to go when you sell products on the internet:
- You can sell products that you’ve made like candles, jewelry, Santa letters, costumes, pet treats etc., or you can find companies that dropship.
- Dropshipping means the manufacturer or wholesaler will ship the product directly to your customers upon ordering. Again, the sky is the limit here, you can find just about any type of product you’re passionate about and start selling.
Sell a Service
Selling a service is a great way to get started in internet business. Many businesses sell services on the Internet. There is nothing to ship or store you simply provide a service like coaching, copywriting, bookkeeping, web hosting, domain name registration, hosted software applications, and comparison shopping services etc to your clients. Here are a few questions to ask yourself to see if a service type business would work best for you.Do you enjoy working with people? Do you often have advice for others on a particular area of interest?
Sell Information
Are you passionate about a particular subject? Share your knowledge and experience. This can take one of two forms:
- Subscription sites: For a subscription site you must provide valuable, timely information that is difficult to get elsewhere.
One example is Consumer Reports. Some articles are available for free online, but a user must subscribe to an annual or monthly plan to get access to all the content.
- E-books: E-books are popular because they can be downloaded instantly. If you are an expert on a topic that others want to learn about, consider writing your own e-book. Once the writing is done, the cost to produce and deliver an e-book is minimal.
Sell Advertising
Advertising makes big money on the Internet, but it can be hard for the little guy. If you have a site with a lot of traffic, though, you may be able to make some money by joining an ad network or incorporating Google AdSense into your site.
Become an Affiliate
An affiliate makes money by sending buyers to another merchant's web site. The merchant pays the affiliate either a flat fee per sale or a percentage of sales originating from the affiliate. To succeed you'll need expertise in search engine marketing or a web site that already attracts a lot of traffic. Affiliate models require little up-front investment and no inventory. |
