95% of people starting an internet business fail. There is a lot of noise and hype on the internet these days, but not many people realize that all the ideas and techniques you can find are useless if you don’t first understand what your business model is or how you’re going to make money online. It doesn’t matter how remarkable your internet marketing technique is if you don’t understand how to use it.
The 3 most popular business models are:
Affiliate Marketing
Affiliate marketing is one of the most popular programs out there, and is a good place to start for newbies. Anyone can sign up for an affiliate program for free and promote a product or service. Commissions begin to accrue if someone purchases the product or participates in the program. As affiliate marketers, there are no risks involved, since they are not responsible for creating the product, they handle customer service, and they do not need to know the intricacies of internet transactions, like merchant accounts, autoresponders, reciprocal links, etc. Even without a website, it is possible to become an affiliate.
Affiliate programs may not require a large investment up front. Many are free. That is why almost everyone promotes affiliate programs at some point. The Internet is so overrun with banner ads and ads today due to affiliate programs, and that is no surprise.
Affiliate marketing is a huge industry with millions of marketers, but only 5% ever make any money and only 1% make really big money. The “Super Affiliates,” as they are referred to, do things very differently, so they make a lot of money.
Writing an eBook or other type of information product, recording an information CD.
This is a great strategy because there are thousands of possibilities for the type of product that you can create. There are so many niche markets that you can write about. There are endless topics that online marketers could cover, including Japanese gardens, how to start your own babysitting business, how to sell your artwork, how to take care of your dog’s ears, and many others that have not yet been covered. If you don’t want to write the information yourself, you can hire a ghostwriter or hire someone to produce the CD for you.
Compared to affiliates, eBook authors must invest more. Affiliates are able to get something for free, but eBook authors need to learn a lot more than affiliates do. It is necessary for them to spend some money to get the business up and running, but when done correctly, this online business model pays off very well.
A very, very low production and maintenance cost allows these marketers to make more money. Once a product is produced, it costs nothing to produce thousands of copies. By selling a few copies of very high-margin eBooks, you can cover your start-up costs. You can even recruit hordes of affiliates to take care of the selling.
Adsense
There are tons of testimonials from people making outrageous incomes from AdSense.
Webmasters can display advertising from Google’s extensive list of advertisers on their sites, and when someone clicks on the ads, Google pays them a commission.
With Google Adsense, ads are delivered that are highly relevant to the content of a page using technology. By scanning the page’s content, Google’s engine determines its topic, and then it serves relevant ads. You only need to build a website filled with content related to your desired niche or topic, and then register in Google Adsense to get started. Following approval, you paste a code into your page, and the ads appear immediately after uploading the changes.
Google is silent on how it shares revenue per click with its partners, but how much you will earn depends on the topic and the product you are advertising. You will most likely get a lower pay per click with products with profit margins of $10 for the advertiser than with products with profit margins of $100. Additionally, high-converting ads will usually pay you more than less effective ads, since they can afford to pay more per click, with some of that money going to you.
Whatever business model you choose, ensure you understand the basics. Stop buying courses or information that is not applicable to your business. Information overload can stop you from starting.