Successful Internet Business Models:
On the internet I'm sure you have come across many articles, advertisements, and even spam emails promising you ways to make money online. Most of these are scams trying to make a profit on your ignorance of internet business. They usually bait you in with promises of 3000 dollars a day or month or whatever, and then make you sign up to their program not really knowing what to do. I'm here to tell you that 90% of people who sign up to programs like that fail with in just a few months. The reasons they fail vary, but usually it comes down to the fact that they don't really understand internet business. That is why I am going to list the basic internet business models so you can see what program is right for you, and hopefully give you a better understanding of how people really make money online. Go to Home
Commission Based:
These websites charge for brokerage or intermediary services and add value by providing expertise, and/or a wide variety of useful alternatives. You can make a website like this by making a basic website, and becoming an affiliate of programs or products you wish to sell. A good place to find affiliate programs is the commission junction website. They have thousands of free affiliate programs for you to choose from. Affiliate programs usually pay you between 2%-10% commission on the products or services you sell, depending on the product and of course who you are an affiliate of. Just make a website, and fill your pages with information on whatever products you are trying to sell, and that's it.
Advertising Based:
These websites sell their own content to advertisers. To make this business model successful you have to start by writing quality content that other websites are going to want. Then you have to let other websites know that you are there, and that your content is available for purchase. A good example of a place to sell your content is a newspaper or magazine. These businesses get paid to have advertisements on them, and use your content to attract readers. All you have to do is convince them your content will attract readers, and get your content listed on their pages.
Mark Up Based:
This is probably one of the most commonly used business models out there today. That being said, there is a lot of competition in this field. What you have to do is find a whole seller who sells products for cheap. Then you obtain these products either through drop shipping or by purchasing them directly, and you mark them up a percentage and keep the profit. This model is used in almost every online store. The trick is to find a product as cheap as possible and mark it up so that you make some profit, but not mark it up so much that people can just go to a store and buy it for almost the same price. You are going to want to try and start with a well known brand name to quickly access a wide customer base who is already familiar with your product or company.
Referral Based:
These businesses make money by referring customers to other businesses. An example of this model is all those free computer ads you see everywhere. If you have ever clicked on one of these ads you will quickly notice that the computer or other promised free product is not actually free. You have to sign up for other peoples products and/or services. You can choose anything from memberships to music stores to credit cards. Companies pay to have this referral based company make people sign up for their services. The referral company then turns around and makes a deal with another company to get their product for a low price. The referral company then offers this product to anyone who signs up for a set number of offers that they decide. You can make some decent money with this model, but there are a lot of businesses like this already out there, and most people just disregard this type of business as spam. Go to Home
Subscription Based:
This type of business charges a fee for services rendered. People sign up for whatever service you are offering, and they pay a monthly or yearly fee to keep it. You have to make sure that you offer either a service or content that people are going to be interested in. A good example is a music website where people pay you a monthly fee to download music from your website. Music is probably one of the more popular subscription based internet businesses out there today. That being said, if you plan to make a website that is subscription based you have to consider your competition. See what they offer for services and additional features, and see how much they charge for a subscription fee. You have to make your site special if you plan to compete with these already established online businesses.
Fee For Service Based:
This kind of website makes money off a service that it performs. An example of this is a website review and rate business. There are internet based businesses out there that you can pay to have them review your site. They can check it for spelling and grammar errors, site overall design, and even SEO stuff like meta tag flaws, keyword stuffing, and overall page rank by search engines. Most of these websites also offer advice on how to better optimize your website so that you can attract more visitors and get better ranked in the search engines. In order to be successful as a fee for service based business, the first thing you have to do is find a service that you can offer. Once you do that you just have to put time and effort in to getting more customers, and of course performing the service that your website promotes.
These are the most commonly used ways to make money online. Don't fall for those scams that promise you can start making 3000 dollars a month in your first year. I'm not saying that doesn't occasionally happen, I'm saying that chances are it is not going to work for you. Just like everything else in life, you have to put time and effort in to something if you plan on it being successful. Don't expect to make a lot of money quickly for doing nothing, but plan on possibly making a decent amount of money after 6 months to a year of hard work. If you stick with it for a few years you may actually find that you can be financially independent off your internet business.
Also important to having a successful internet business is Search Engine Optimization (SEO). I also have an article on this which you can find a link to in the source box, or in the reviews and articles section of my website. Hope this guide helps you on your journey to owning your own web based business, and I wish you the best of luck. Go to Home
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Sunday, October 5, 2008
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