If you are interested in starting an online business, knowing the different online business models that are out there helps in deciding which one is the best for you.
A lot of people think that having an online business must mean writing an eBook or having a blog. Whilst these two business models are popular, there’s more to having an online business than that.
Here we go…
The Different Online Business Models
1. The first is selling your own stuff – be that a digital product like an eBook or a video series, or a physical product like something you’ve crafted. You can sell these via your own website or via marketing platforms like Amazon.
2. Another popular business model is affiliate marketing. This means selling somebody else’s product in return for a commission. This could be a physical or digital product. Physical products tend to have lower rates of commission – typically around 4% – but have a higher price point. Digital products are cheaper, but typically have a much higher rate of commission – sometimes as high as 100%.
3. Going hand-in-hand with affiliate marketing is blog marketing. In this scenario your write information-filled articles on your blog and monetize it with advertisements for products – usually affiliate products. An example of this is making money with Google AdSense. The key here is to make your blog an information resource rather than just a massive sales pitch.
4. Another way to make money off other people’s products is through drop shipping. You have a website, you take customer orders through that website, transfers the orders and shipment details to the manufacturer who then ships the products to your customers.
5. Using your website as your hub, you can also offer a service online. Doing freelance writing, editing, graphics or video making is a fantastic way to make a living. You can sell to countries all over the world.
6. Operating a membership site is also a great online business model, although it can take a lot of work and probably not for the first-time online entrepreneur.
7. Not all businesses require having a website. E-mail marketing does exactly what it says on the tin. You send e-mails to your mailing list. These could be a short course (like this one) or a more general newsletter. You then subtly advertise products to your list.
These are the different online business models of today, different ways to make money online. You can choose one that fits you or you can make money from every single one of them if you want to.
Follow Your Passion
If we take a look at all those successful people out there, they’re passionate about what they do. If a big challenge comes their way, their love for what they do supersedes the hardships of the challenge they face.
Think about the things you love doing. If you can think of a business that’s related to your passion, make a reference to the business models we’ve discussed above.
Every business model discussed can be connected to a passion. Like for example, blogging. If you love grooming pets, then you can start a blog about grooming pets. Or, if you want to sell your own product, you can create an ebook about grooming pets.
So, that’s it for now. See you in my next blog post!
PS. I go into more details about all this in my Online Business Blueprint. Download your copy, it’s free!.
Gomer Magtibay a.k.a. Coach Gom blogs about home business ideas and answers questions (free coaching) about starting or growing a home-based business. If you would like to learn more about him or connect with him, click here.