Top Ten Internet Business Models
By Akinniyi Osho
When it comes to setting up an internet-based business, identifying the right business
model is the key to success. However, results may vary from one person to another due to
certain factors. The factors that you should consider when selecting the most appropriate
business model include your skills, experience, your personality, your preference, the
amount of time and capital you can dedicate towards the business.
The following are the top ten Internet business models. They are proven business models
that are winners time and time again.
1. Selling Internet Download Type Products
Selling products in digital form that are downloadable on the internet is the fastest
moving commodity among internet businesses. The product could be eBooks, software, music,
movies, photos and computer games. As the entrepreneur, you may be the one that creates
the product or you could buy the product and sell on at a profit.
You may sell the product yourself or collaborate with resellers to increase your
distribution channels. This type of business model has low capital outlay, high profit
margins and works best when you can sell the product in volumes. Overheads in this
top ten Internet business model are minimal as the process of product delivery fully automated.
2. Affiliate Marketing
In this model, you market the goods and services of another person. It is similar to
multilevel marketing for non-internet based businesses. To set up this internet business
model, you will need to first own a website. You then create links from your website to
the website of the business whose product you are marketing. You receive payment when a
visitor to your website clicks and buys a product the website you are promoting. Third
party websites such as ClickBank.com handles the payment process to make ensure you are paid.
3. AdSense Model
AdSense model among the clearly proven business models because it is one of Google's
primary sources of income. All you do is register for the service and then have Google
strategically position Google advertisements on you web pages. Google will pay you each
time someone clicks on an advert on your website. For best results, you have to grow the
user traffic to your website using various search engine optimization techniques.
4. Click per action (CPA Model)
Click per action (CPA) business model is a deviation from affiliate marketing. You get
payment when leads from your website go to another website -and they take a specific
action on the final website. The person may only be required to join an email list,
subscribe to a free newsletter or join a free e-learning training module. The key to
success here is you and the advertisers have agreed on payment and terms...hence the name
cost per action. This is a recent top internet business model that is growing in
popularity because it is easier to get your prospects to subscribe to a free service than
it is to make them buy a product.
5. Membership Model
This proven business model involves having visitors to your website pay a regular fee
in order to access the information or services you have available. This is a popular model
with many of the larger internet businesses such as websites of mainstream newspapers,
magazines and professional associations. The greatest benefit of this model is you have
consistent income streams.
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