In this blog post, we’re going to look at some proven internet marketing business models.
If you are interested in internet marketing and starting an online business, then you definitely need to know what business models are out there and how to choose the best one for you.
There are 7 different business models that we will cover in this post, and you can make money from every single one of them if you follow them correctly.
But first you have to choose the right one and that not only will take some thought, it also takes a great deal of information. That’s exactly what this blog post is going to give you.
Introduction to Internet Marketing
Before we get into the business models, let’s talk about internet marketing in general.
Loosely defined, internet marketing is any type of business that you do online to make money.
Internet marketing got started in earnest when people realized that they could sell products and services online, and thus create a business without all the costs and logistics that a traditional offline business has.
Internet marketing is a wonderful business to get in for several reasons.
First, you have unlimited income potential. Internet marketing has made quite a few millionaires and there are tons and tons of people making six-figure incomes from their online business. In addition, internet marketing can be a residual, passive form of income. That means that you can be doing something else – even having a full-time job – and still be making money with your internet marketing efforts.
Defining Business Models
Internet marketing is composed of various business models which are simply methods of making money online. People are also creating more opportunities daily to make money on the internet, but most of them fall under one of the 7 online business models outlined below.
I’ve explained each one in some detail so that hopefully you’ll understand how they work. In future blog posts, I will give you some advice on how to choose the right one for you. But you must understand the model before you can determine if you want to get into that business.
Affiliate marketing is the first internet marketing business model we’ll be discussing. Have you heard of the website Clickbank? Clickbank is a well-known site where affiliates can find products to promote. Clickbank is by no means the only website that offers this service, and others such as JV Zoo and Warrior Forum are also very popular.
With affiliate marketing, you are basically promoting someone else’s product using marketing methods such as email marketing, PPC, content marketing, and review sites. If, as a result of your marketing efforts, someone clicks on the link which includes your affiliate ID, and they buy the product, you receive a commission. This can vary from 10% all the way to 100% of the purchase price depending on how the product vendor has set up their sales funnel.
While the previous model related to digital and downloadable products, the Amazon affiliate program relates mainly to physical products, including household goods, pet products, toys, and clothing.
The reason that the Amazon program isn’t lumped in with the other affiliate marketing programs listed above is simple: it’s so good that it deserves its own section. Amazon has everything that you could possibly want listed on their website.
It doesn’t matter what product someone is looking for, Amazon almost certainly has it. The great thing is: if you send someone to Amazon to buy a product that they were looking for anyway, Amazon pays you a commission.
Blogging is something that nearly every major online marketer or company does on their website and there is a really good reason for that – it works.
There are several reasons that someone might start a blog for commercial products and services, with the first being that it builds credibility. If people read a blog post about your industry or niche and you know what you are talking about, then they are much more likely to buy something from you.
The second major advantage is that it builds the number of keywords that you’re indexed in the search engines for, which means more traffic.
Finally, it allows you to build a following, and more specifically an email list. If someone reads your blog, enjoys it, and subscribes to your email list, you can invite them to revisit whenever you create a new post.
SaaS is a business model which may require more technical knowledge than some of the others, but if you have this, or know someone who does, then it can be a very lucrative business. It involves charging someone either a one-off fee or preferably a monthly fee, to use your software.
You obviously need to create useful software that people will pay for, and there are all sorts that can make money each month from customers. One of the best ways to use this business model is to provide someone something that they can use to make money online, such as a keyword research tool, or a WordPress plugin that shares blog content on social media.
The next model that we’re going to discuss is drop shipping. Drop shipping is very similar to retail in the way that it works. You buy a product for a wholesale cost, then mark it up and sell it to the consumer.
The difference with drop shipping is that when you are a retailer, you normally have to pay for the products upfront and then hope that they sell. When you do drop shipping, you do not pay for the product until someone actually orders it. Your supplier then ships to the customer and your profit is the difference between what you paid for the goods, and what your customer paid.
Next, we’ll cover ecommerce websites. Ecommerce websites should not be a mystery to anyone since nearly everyone shops online these days. An ecommerce website is simply a website that sells products or services.
Usually, these are products that you have purchased yourself, or in many cases created, so it is different from both affiliate sites and drop shipping in that regard. However, drop shipping sites and many affiliate sites can be considered ecommerce sites if you use the broader definition.
You can either build your own ecommerce website or there are plenty of sites like Etsy, WordPress templates, Shopify and a whole lot more to help you create a website to sell online. The biggest of all is Amazon, who will take care of all the warehousing and distribution of your products for a percentage of your sales revenue.
Ecommerce does take a bit more work than some of these other models, because you have to first create a product, deal with suppliers, constantly refresh your inventory, market it and also deal with customer service on a daily basis.
Your Own Info-Products
Creating your own digital info products is one of the most sustainable and lucrative business models online. There are many different digital products that you could create to make money.
You could write an eBook, create audio products, create a video course, create a mega-course that has all three, or you could create a membership site where subscribers pay you every month.
Where there is even more scope, to the point of it almost being unlimited, are the niches or topics the info-product you create could relate to. Just think of all the hobbies, pastimes, skills, vocations, sports, business subjects, and personal development niches out there, and even then you won’t have scratched the surface. The options are limitless.
The beauty of digital products is that the costs involved to create them are tiny compared to a physical product, and it can be delivered to customers instantly as a download.
How to Choose the Right One for You
So, how do you choose the right one out of all of these business models?
You have to decide which one appeals to you the most. You may want to actually start with your product instead.
If you know what kind of products you are going to be selling, you can choose the business model that fits them the best.
Find something that you are passionate about and then find products or services that you can pour that passion into.
If you find the right one, then you will find it very easy to create content or market your products online.
People have been able to use these methods to build successful businesses, and it is not unrealistic to think that you can have a high six-figure income by using these methods.
But you need to pick one and get started because nothing is going to happen overnight, nor are any of them going to make money without you putting in the work required.