Do You know what’s your business model?
Here are 4 most common internet business models. You can fit almost any online activity into these 4 categories. I’ve compared them side by side so you can immediately see which online business model is best for you. See explanation below the image.
1. Trading Hours for $
This is the fastest, easiest, lowest risk way to make money online. On websites like fiverr.com, freelancer.com, elance.com and forums you can offer your services in exchange for money. You can get paid in 24-48 hours from placing your offer.
There is nothing to invest and you don’t have to worry about getting traffic. You get exposure simply by posting your offer on the website. If you can write articles, design logos, do research or something else, than you can make money using this business model.
You won’t get rich using this business model, but it’s a great way to get started and earn your first dollars online.
2. Selling Ad Space
This is one of the most popular business models. If you have a blog or a website that gets traffic, you can sell advertising space. Advertising Networks such as Google Adsense or Chitika will sell your ad space for you.
If you are starting from scratch it will take you about 3 months to see first results, but rather count on working 6 to 12 months before you see any serious money.
You will need to invest in domain name and web hosting, which is around $100 a year. Since main traffic source for bloggers are search engines, this business model depends on changes of their rankings / algorithms.
Even though competition is high, you can still find some niches that are completely overlooked.
What I love about this business model is that it can run completely on autopilot. I’ve built a network of websites 3 years ago and haven’t touched them since then, but they still bring in money every month.
3. Affiliate Marketing
Next business model is Affiliate Marketing. If you are selling someone else’s product or service you are an affiliate. Top affiliate networks I use are Commission Junction, Amazon, Clickbank, Booking.com, HotelsCombined, Godaddy Affiliate, Hostgator. I received my first affiliate commission in 2006. It takes about a month to get your first payout and you can start by placing an affiliate link in your signature file or your website.
But if you want fast results, you need to BUY TRAFFIC and send it to your sales funnel. Set aside $500 and spend it on advertising. It’s the best way to learn.
Even though there is lots of competition, you can still make money with affiliate marketing. Work smart and raise above the noise by using your own promotion materials and marketing angle.
4. Your Own Product
The last and in my opinion the best business model is creating your own product. You get to keep 100% of your profits!
This is not for newbies. It takes a lot of time to create the product, sales funnel, write copy and learn how to convert visitors to buyers, but it is the most rewarding one. Top tier internet marketers make millions of dollars during their product launches.
It will cost you at least $3000 to create and promote your product properly, but you can start from scratch on small scale and build up. Main traffic source in this business model is paid traffic and JV traffic – your launch partners / affiliates.
I just love creating products, because I can share my knowledge with others!
Let me help you pick the best business model for you. I would love to hear from you!
P.S: If you want to share this, here’s a PDF that you can share with your subscribers or on social media.