Online Business Models
Which Type Should You Start?

Which online business model is right for you? You may start with one model then expand to a combination of two or more.

It has never been easier or cheaper to start a successful online business. Domain names and hosting have reached the lowest prices in the history of the web. Your costs will be less than dinner at your favorite restaurant.

Running your enterprise as a business will help maximize your earnings. How are your business skills? Will you handle everything yourself or require assistance in some areas?

Part of planning your business includes deciding which model you will set up. Business models usually fall into one of three categories:

1. eCommerce
2. Subscription
3. Content

eCommerce

In ecommerce you will sell a product or service. You may sell products you make yourself, purchase at wholesale (you handle orders, packing and shipping, plus customer service), or obtain a drop-shipping arrangement.

Instead of handling sales and order processing yourself you can become a reseller using affiliate programs. As an affiliate you send your visitors to the merchant where you will receive a commission on sales resulting from traffic you send the merchant.

Subscription

In the subscription model you charge a recurring fee for your services. Hosting and Internet service providers are the best known subscription models, but far from the only ones.

Mentoring programs are often based on this model.

Some websites have an upgraded system for paid members offering premium information or services.

Content

Content sites provide information, usually in niche markets providing unique information focused on their niche.

Content sites earn by selling advertising and using pay-per-click advertising from Google, Yahoo, or Microsoft.

Combinations

You will probably use more than one model. Content sites usually include affiliate programs in their monetization mix. Subscription sites often use all three. eCommerce sites may use content to help attract natural search engine traffic.

Your job is to decide which model or combination best fits your skills and resources.

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