5 Common Online Business Models Simplified
Who are new to internet marketing tend to get overwhelmed by the sheer number of
ways one can make money online. Unfortunately, all money-making approaches are NOT made equivalent.
Survey Websites, performing microtasks for pennies, etc., are mostly a waste of time and effort. Whereas other methods such as affiliate marketing, arbitrage, product development, etc. are very lucrative.
Knowing Which business model to choose is imperative to succeeding online. You don’t wantto devote some time and effort trying to ice skate uphill. It’s best to go with the 5 recognized internet business models below.
If you are on a tight budget, it’s better to begin with freelancing. The fantastic thing about freelancing is that it forces you to master a skill which you can use to generate an income online.
Ideally, your skills must be related to internet marketing. For example, Digital graphic design, content creation, search engine optimization, video
Go to freelance sites like Fiverr, Upwork, Legiit, etc. to get an idea
of what the popular gigs are. As long as you have the skills to deliver similar
services, you’ll be able to make money.
It may take you a while to gain traction, but sooner or later clients
Will hire you, and if you do a good job and deliver the work on time or sooner, you can bet you’ll have repeat customers.
As you become more popular, you can raise your rates and so on. The Money you earn from freelancing can be used to finance your other online
- Product creation
Product creation is among the fastest and most lucrative ways to build
An online income. Once again, you may need skills and expertise.
For example, if you’re into fitness or survival or you’re really good at Building niche sites, you can write a book or create a course on what you are good at.
From there, it’s only a matter of marketing to your niche audience.
While this description simplifies things a lot, the point you should note is
that creating and launching your own infoproducts or tangible products is one
of the best ways to make an income online.
- Affiliate marketing
If you don’t wish to create products and deal with customer service, that is understandable. You’ll likely be interested in affiliate marketing. This business model is relatively hands-off.
You’ll be promoting other people’s products and be getting a commission
Each time you make a sale. There are thousands of products to market on ClickBank, Amazon, Commission Junction, etc..
As long as you can drive traffic to the sales pages, a percentage of
Your traffic will convert into sales and commissions for you.
Ecommerce has seen a boom because of the COVID pandemic. Millions of people are shopping online and getting used to it.
In ecommerce, you can either sell tangible products you create or you
May dropship products produced by providers together with your own branding.
Another sort of ecommerce is called’Print On Demand’. In this
Business model, you are going to create designs that will be printed on hats, mugs, shirts, etc.. Websites like Custom Cat, Gear Bubble, etc will create the products
with your designs and ship them out. It’s a very hands-free process.
Ecommerce does require a budget to begin. You’re looking at
Anywhere from 1k to 4k when you are starting out. You will want to run advertisingand so forth.
This is a VERY profitable business model when you move on to a winning
product. There are many marketers making 6-figure amounts with dropshipping/print on demand.
- Kindle publishing
Kindle publishing is best suited for those who have always wanted to be
writers and publish their own book. If you’re skilful, you’ll be able to
generate 6 figures .
You will also need to know how to outsource some of your writing so that
You can scale up faster. The secret to increasing your profits is to not only write yourself, but to employ other people to write for you.
Selling on the Kindle marketplace requires marketing skills too. It’s
Not all about being a good writer.
These 5 business models are a good place to start from. If none of them
Look like your cup of tea, you may research other business models such as
domaining, arbitrage, etc..
If you Pick a legitimate business model and you’re focused and
Consistent, you will reap the benefits and have an online business you can be proud of.