Different Types of Online Business Models

There are many different ways to make money on the internet. Instead of trying to reinvent the wheel, the fastest and easiest way to ensure your success is to replicate a model that’s already proven to make money. Here are five such models.

The Informational Website

The informational website is based on giving away free information. It’s primary source of income is AdSense, advertising and affiliate product sales.
For example, if you were to start a small website on fishing, put up 50 articles about various fishing tips and techniques and populated it with AdSense ads, you’d very likely get decent traffic as well as make a decent amount of money.

Affiliate Marketing

Affiliate marketing is when you’re making money by selling other people’s products. Instead of having to create a product, a detailed website, setup billing and handle customer service, all you need to do is bring in traffic.
Once you get the traffic to their website, their job is to make the sale. Once the sale is made, you get a percentage of the sale price. For physical products, the commission is usually between 5% and 20%. For digital products, the commission is usually between 50% and 75%.

eCommerce Stores

Another way to make money online is to actually sell products from an eCommerce store. Here, you would actually own a web store where customers would place orders and then ship them a physical product.
At first you might start out by having a dropshipping relationship with manufacturers so you don’t have to warehouse your own products. Then, as you become more successful you’ll want to start housing some of your own products to reduce your per item costs.

Infoproduct Marketing

Infoproduct marketing is when you’re selling products that teach people how to do things. These products can be anything from “How to Get a Girlfriend” to “How to Get a Babysitting Job” to “How to Increase Your Miles Per Gallon.”
The possibilities are endless. You need three primary skills to succeed in information marketing:

1) The ability to bring traffic to your website.
2) The ability to create good content in a specific area.
3) The ability to convince people online that your infoproduct is a good investment that will help them solve their problem.

Once you have these three skills, you’ll be able to produce many profitable infoproduct websites.

The Made for Acquisition Model

If you’re looking to build something larger than a website that’s making a few thousand dollars a month, then you’re looking at building a real company that’s meant for acquisitions or IPOs.

These are companies like LinkExchange (acquired for $250 million,) Facebook (valued at over a billion.)

The trick to building such a company is to find a market need to serve and to serve that need. In the process, you’ll generally have to learn how to raise capital from Venture Capitalists and angel investors.

Before trying to build such a business, it’s usually a good idea to build at least a couple smaller successful online bsuiensses using the models above.

There you have it – Five different online business models with a proven history of success. Just pick the one that sound smost actionable to you now and get started today!

Julianne Alvarez-Wish is a military wife, mother, business owner, professional writer, blogger and legislative advocate. She is the Director of Communications for Our Milk Money, the Colorado State Leader for the National Association for Moms in Business and the owner of Buy By Mom and Buy By Mom Blog. She is the Colorado Springs Stay-at-Home Mom Examiner for Examiner.com. She also blogs at A Wishful Thought. Her passion, purpose and goal is to help parents work from home so they can be home with their children.

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About A Wishful Thought

I am a military wife, mother, business owner, professional writer, blogger and legislative advocate. I am an entrepreneur. At Villanova University I studied Operations Management specializing in Program and Project Management. I worked at various oil refineries honing my skills and ultimately opened my own consulting firm. I consulted on Environmental Restoration and defense projects including software development, satellite development and programming, phased array radars, helicopter and tank development, etc. I decided to take new direction in life when I became pregnant in 2000. I founded my own corporation, Wish Enterprises, Inc., to fulfill my own wish of being able to stay home with my son while contributing to the family income. With my husband’s full support, I developed and founded The Wish Place. I now also own Buy By Mom to continue to my mission of assisting parents who want to be successful in their businesses. I am the Director of Communications for Our Milk Money, the Colorado State Leader for the National Association for Moms in Business and the Colorado State Coordinator for Smart Girl Politics. I am a professional writer and blogger. I am the Colorado Springs Stay-at-Home Moms Examiner for Examiner.com. I write articles for work at home parents on my blog associated with The Wish Place. I review products produced by moms and dads and feature businesses run by moms and dads on my Buy By Mom blog. I write for various online publications and am also a political writer. My specialty is connecting people with great home business opportunities and providing unmatched one-on-one mentorship to those starting a home business. My passion, purpose and goal is to help parents work from home so they can be home with their children. To that end, I am a Legislative Advocate at the National and State levels to influence policy so that it is favorable to those in business.
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2 Responses to Different Types of Online Business Models

  1. Thanks to the Internet and all the technology that is available now it is quite possible for you to start an online business without having any type of experience. The Internet is a place that is full of information and it will guide you in all that you need to know. The information is out there for you to seek and learn. Believe me when I tell you that your curiosity will increase and your interest in the online world will increase as well. This article will further inform you in the kind of online business you can start with no experience needed.

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