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7 Tried and Tested Online Business Models

Some people define a “method” as the activities one does in order to create tons of traffic or locate a market. It is important that a method need not be confused with a “model.”

For instance, pay-per-click is a method the same way affiliate marketing is, as well as blogging, SEO, list-building, Facebook ads or article marketing.  Essentially, your model is dictated by the product you intend to sell.  There exists 7 basic models for online business.

One such model are physical goods. These are items you need to deliver offline.  The second model are publishing or the sale of data. These could either be physical books, digital books, videos, entertainment, databases or software.

The third model is community. This is where one sells access to a certain group of people who have shared or similar interests.

The fourth model are leads. Once these are acquired, these could then be easily sold.

The fifth model is traffic. Essentially, this entails getting paid for sending visitors to a specific site, e.g. affiliate marketing.

The sixth model is advertising space. This refers to ads one gets paid for as based on the time posted or quantity of exposures.

The seventh model is services. These could be rendered personally or through software.

Do note that it is important to always work on your model. For instance, there are people who mistakenly create blogs or forums thinking that doing so will enable them to sell ads on their sites. However, it is actually a lot easier to create your income.

You can elect to create a forum using the community method in order to build an ad inventory. You could select to create pages using targeted content and then work on placing them high in search engines.

If you select a method and neglect the model, you can expect little or no return in your investment.  Worse, you might invest much in your selected method to the extent that you fail to even look or check on others which could similarly work. Remember that you have the freedom to test a slew of various roads to achieve your goal.

Believe it or not, you can also combine models. For instance, one who sells community site access could similarly sell software add-ons or ads in certain sections of a site.

Initially, it is highly advisable to work on a single model and then stick to it.  If you intend to blog, make sure you are an authority and put ads for certain affiliate products or your very own items on the site while you develop your target market.

The important thing is to ensure that your visitors are familiar with seeing advertisement on your site as well as to create income.  Doing so allows you to increase your profit and create a baseline value for a specific ad inventory.

If you intend to publish your own online products, make sure you create the site with your preferred ads in mind. As much as possible, do not wait until you have enough of an established traffic before posting ads. Feel free to have them out there from the beginning. If you still have no product, utilize affiliate products or purchase the rights to an item you find useful or relevant.

The most complicated of these models is the community model as these require a certain number of members or attention before one can charge for access.

Take note that a member site that provides access to a slew of information and software every month could not be considered a community. Essentially, community sites are determined by members’ interaction and not through published products acquired via subscription.

If you plan to begin an exclusive group and accept a limited number of members, you could charge right from the start. But if you intend to have a large group such as a dating site or discussion forums, it is important to first create a seed group.

This requires much thought because if you allow members in for free and then provide them with a slew of features, it could be difficult to sell them a product later on. As much as possible, do hold back on items which you are to differentiate as freely accessible and those you will charge for.

You could also be straightforward early on and advise people that a service or product is free for a specific time and will be a paid service later on.

You can learn more about making money online for free at the Internet Income Academy.

The Internet Income Academy is the #1 place to learn how to make money online.

About the Author

Make Money Online in 7 days video by http://www.Honest-HomeBusiness.com

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