Online Business Model

As most know, there are a myriad of different methods of producing personal income online. Online business models are all very similar to those that you are familiar with in the offline world. Online people can sell goods and services, sell information, produce or promote products for wholesale distribution, advertise, consult and much more just as they can in the offline world. All online business models revolve around the business owner being able to provide products or services that add value to peoples' lives, whether provided on or offline.

The first basic business model we will review is the merchant model. Like the offline merchant, online merchants will specialize in the selling and delivering of products and services to an online market. Some examples are catalog web sites, grocery stores and various other product and service sale organizations. The production model is a basic online business model wherein a company or business will manufacture products or make goods available in some fashion for online consumption. An example of this business model online would be a company or business that develops software or other online technology that aids companies and individuals online with some online task or activity. Another basic online business model is the advertising model. Online advertising companies and businesses will provide the service of advertising and promoting other online businesses and companies. Online merchants and merchandise producers will often seek the aid of these online advertisers to boost business and recognition. The advertising model charges their customers a fee to advertise the customers' products and services.

The next basic online business model up for review is the affiliate model, which has some similarities to the advertising business model. They are similar because advertising is an important aspect of both models. The main difference in these models is the method of how advertisers create their income. In the advertising business model, the advertiser will be paid based on the amount of advertising being distributed. In the affiliate business model, the affiliate will advertise for the company by promoting their products and services for sale, but they will have to actually sell the products or services to gain a commission. More online business models also exist, but these models are always wise to review first.