Tuesday, October 10, 2006

Internet Business Models

From my search for a good online business, I have become aware that there are three main internet business models (maybe more but these are the ones I have noticed).

The first one (and this one seem to be growing) is the Membership Site Model. These sites can charge anywhere from $10 to $1000 a month. And for what you ask? Well this may range from tutorials, on going training, software or informational ebooks. With new quality content added each month.

The second is the Affiliate Model. The advantage of this model unlike the above model is that you don't have to create new products or content each month. You just have to come up with a creative way to get people to stop at the product landing page.

And if you find the right affiliate product to sell the owner of the product will already have a line of promotional tools to help you. If you pick a product that doesn't have these tools, then you will have to sit down with pen/paper and create your own unique sales tools.

The third is the eBay Power-seller/Super Store Model.
With this model you have to decide what you are going to sell, are you going to stock physical products or do the drop-ship thing.
How are you going to accept payment? Through Pay-Pal or take it one step further and go for a merchants account.

There are pro's and con's to each internet business model above. But first don't rush in to any home based business. There are a lot of people who want to sell you the perfect home based business and in many cases they are not using the information themselves.

Second remember that 90% of the time, you are not going to go from zero to millionaire in 15 mins to 45 days. If you really work at your business you may start to see some modest income in 4-6 months.

Third is don't quit to soon. It seem that we want things to happen right now or we quit. It may just be that you have to make minor changes to your plan. Changing then testing, learning from the effects of your changes. Then repeat!!!

Fourth thing is learn from the mistakes of others and from yourself. Don't be the dog chasing it's tail. Stay away from things that could get your site banded.

And if things are still not going your way. Go back to the basics, create new content, attract visitors through using new keywords, SEO and promotion.

Good Luck

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