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Top Ten Internet Business Models

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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