Online business models vary depending on the nature of the business, the market and the product. To start with a business model is the way a company or business makes money. In our case, we will discuss business models that are best suited for making money online.
Making money online is a possibility. With the right online business model, that suits your personality, you are on your way to making lots of money online. A match between the entrepreneur’s personality and the business model is important to ensure that the interest last longer. You might find that there are thousands of online business models, but all of them all fall under one of the ten below. Take time and analyze the models below and see the one that match your personality. The following 10 models can make you money, online.
- Online Training – Delivering of information materials online through text, audio or video format. It’s effectively done through e-books, emails, website, podcasts and webinars. If you are a specialist in a certain area, this model can be idea for you. Teachers, trainers and educators are usually thrilled by this model.
- Online Coaching and Mentorship – This is a one-on-one process where you conduct on-job training and take your apprentice through the whole online business process. This is a model exclusive for those who are quite knowledgeable and experienced in a certain field. Most professionals and entrepreneurs fall into this space.
- Online Services – Provision of online services. These services includes and are not limited to web design and development, graphic design, website optimization, content development etc The best people who make it in this model are the professionals and the skilled.
- Online Products – This is production and sale of online products. An example is e-books, podcasts, videos, software and applications. The innovators are best suited here.
- Memberships – Membership business make money through provision of access. You pay for access either as a one-off fee or through a regular recurring subscription. People in human resource or people development field are better in maintaining membership businesses and communities.
- Affiliate Business or Affiliate Marketing business – This is where you make money by marketing products or services that belong to others. People with sales and marketing acumen are the best in this business model.
- Advertising – This business model is ideal for those people who own websites (also referred to a publishers) and is based on renting out advertising spaces to advertisers like google adsense, chitika, adbrite etc Content developers, bloggers and writers succeed better in advertising model.
- Forex Trading – This is Foreign Exchange trading, also referred as FX trading. Here, you get a return on your investment by buying and selling foreign currencies, online. The mathematicians, statisticians, accountants and people who have a scientific mind and background make very good forex traders.
- Drop Shipping is a business model that involves buying products at a lower price (usually wholesale price) and selling them at a margin, without necessarily handling them. The owner of the product is the one who delivers the product once it’s bought. This business can be done by anyone but people with experience in marketing do it better.
- Reselling – Reselling involves selling a product or service on behalf of the owner. You can resell a product with or without owners branding. The person who delivers the product is the reseller. Resellers are marketers, therefore marketing skills are necessary.
Of course there are many more models that you could adopt for your online business. But what I will discuss here are the models that I have already tried, tested and trust that they can build you an online empire and fortune. I loathe the quick cash schemes that I usually find being advertised through splashy sales pages. You will find them with the following headings
- Make $10k with 15 minutes work per day
- How I made $360,584 in 10 days
- How you can make $10000 in 48 hours
Every business is a mix of strategy, hard work, patience and persistence. Online business is no exception. Every time you find a program that promise you to get thousands of dollars without any investment in time and resources, hit the backspace and run. It’s a quick money scheme and eventually they die as fast as they came. Don’t be cheated, you have to invest your time and resources into your online business and you will have to be patient as you wait for it grow.
Online Business Vs Quick money schemes
Quick money schemes are those businesses that promise you to make money without investing in your time and/or resources. These ‘businesses’ will make you a few dollars for a very short time. In most cases, these schemes will make money for you initially then take it from you through sale of an expensive product or subscription of a service. They do not last long. This is not a business you can say you are building for your future generation. It’s not what you can turn into a global business.
On the other hand, businesses founded on solid fundamentals and white hat strategies tend to become empires and make money in long run. These online businesses take a lot of time and resources to build. They are tested and reinvented around a lot of failures and experiences. With a test of time, they emerge to be the online empires that rule the game for years. These businesses not only make the owners billions of money but also build several millionaires along its operations.
I would rather make $10 per day consistently for 100 years than make $1000 dollars just for a day.
Which is the best online business model?
Online business models are dependent on the entrepreneur personality and passion. The model-personality match is very important because it marks the right business for each person.
For instance, a scientific personality might be thrilled by scientific based online business models like forex trading and software. An artistic person might be comfortable with blogging, graphic and web design.
If you have a passion, talent or skills, then starting a business based on your capability is a better idea.
If you can evolve your business around the above ten models, you have a high chance of making money online. These models are usually backed up by giant companies like google, amazon, Microsoft, yahoo, ebay, alibaba etc. Therefore if your business could piggyback on these giants, then it will definitely succeed.
Just remember that a solid online business model must be based on basic business fundamentals of capital, people and time. You need to allocate capital resources to materialize your business, organize people (staff and clients) and dedicate sufficient time to run your business. I will also add that patience pays. An online business will not break even overnight. It will need time to build up.