Various Online Business Models

Of the various means in which to generate income using the Internet there are certain ways that are not only fast but easy. There is no need to come up with a whole new way when there are existing models that have been proven to be successful. Take a look at 5 examples:

1. The Informational Website

The purpose of this is to provide information free of charge. The main income is generated through AdSense, advertising and affiliate product sales.

An example of this would be a website devoted to the topic of fishing. You would need to post around 50 articles all dealing with different tips, techniques, and advice and populated with AdSense ads. This will generate quite a substantial amount of traffic while simultaneously generating a decent income.

2. Affiliate Marketing

This means that you generate income by selling the products of others. Rather than creating a product, a website, set up billing and handle customer service, your only objective it to attract traffic to the site.

You bring the traffic to the website and they make the sales. When the sales are made you then receive a certain percentage of the sale price. Percentages vary depending on whether it is physical products, in which case the commission is usually between 5 and 20 percent. With digital products the commission is higher, usually between 50 and 75 percent.

3. E Commerce Stores

This option involves selling the products from an e Commerce store. This means you own a web store where customers can place orders. You then ship them the product.

You might begin by having a drop shipping relationship with manufacturers which means you are spared having to warehouse the products. Once you become successful you will want to begin housing some of the products in order to lessen your per item costs.

4. Info-product Marketing

This means you sell products that instruct others on how to do things such as "How to Get a Girlfriend" or "How to Get a Babysitting Job".

This option carries endless possibilities but you will require 3 main skills in order to make a success of information marketing:

1. Ability to attract traffic to your website.

2. Ability to create effective content in a certain area.

3. Ability to persuade others that the info-product is a sound investment that will aid them in solving their particular problem.

If you possess these abovementioned skills you will soon be able to produce lots of profitable info-product websites.

5. The Made for Acquisition Model

If you want to create something bigger than a website that will make a few thousand dollars each month you will need to consider creating a legitimate company that is designed for acquisitions or IPOs.

Such companies include Link Exchange (bought for over $200 million), Facebook, which is valued in excess of a billion dollars.

The way to succeed at this model is to identify a market need and then service that need. In the process you will have to acquire the necessary knowledge regarding raising capital from Venture Capitalists and angel investors.

But a word of caution: Prior to choosing this model it is advisable that you first garner experience with creating a few smaller but successful online businesses by making use of the models already described.

And that is basically it. These are 5 online business models that have a proven track record when it comes to success. Simply choose the one that most suits you and get started immediately.