M.Farouk Radwan
Choosing the business model for your online business Hi nameHow are you?Today I am going to tell you about the different business models you can use to make money online.As a quick reminder of what I said last time you must remember that finding an unmet need is an essential before you start your online business.Unless you find out an unmet need that people want to fulfill you won’t be able to have a successful online businessThe different business models for making money online
1) The affiliate business model: Most people send me questions telling me that they don’t have products to sell and that they can’t create their own products. In fact most of those who make money online don’t sell their own products but they sell products created by other people.
This is what affiliate marketing is all about. You find a good product that someone else is selling and you sell his products in exchange for a commission. Some affiliates pay as high as 50% of their income others pay more!!
You can easily browse thousands of affiliate products through clickbank.com, a website created by Google that connects buyers, sellers and affiliates
2) The newsletter/PPC business model: In that business model you create something called a squeeze page which is a page that has the sole purpose of letting people subscribe and give you their mail in exchange for useful information that you are going to send them.
Here is an example of a squeeze page . After creating a squeeze page you can use pay per click advertising (PPC) to bring traffic to that page. Both Google and Facebook offer PPC services in addition to stumbleupon.com
The third and final step is to create a newsletter that people receive on regular basis after subscribing and every now and then you can promote an affiliate link within your mails.
You must understand that: people will lose trust in you if you promoted inferior products or products that you don’t believe in. Only promote products that you believe that they are great and only promote products while sending useful free content so that people who don’t want to buy from you don’t feel that you have no goal but selling to them.
3) The blog/product business model: In this business model you create a blog and market your products or affiliate products on it.
In such a case article marketing, marketing your blog on social networking websites, connecting with others bloggers and search engine optimization will be the methods you use to market your blog.
4) Hybrid business model : You can combine more than one business model in one site. For example on 2knowmyself I use both the The newsletter/PPC business model and the blog/product business model.
You can combine more than one business model in your site in order to maximize your profits.
5) The service business model: Some websites provide certain services that people need. For example Ebay is a perfect example of a website that uses the service business model. The website helps people buy and sell online because this is one of the unmet needs people used to have before that site was created.
How to chose the right business model for youBefore you can choose the right business model you need to find the unmet need your website is going to target. After you find that unmet need you might find yourself limited to one or two of the previous business models.Here is my advice about finding the unmet need:
1) Only start a website about a field that you know about well or at least a one that you are passionate about2) Your own unmet needs can help you know about the unmet needs other people have. Most successful business are started after the founder realizes that there is a certain important unmet need that people had. For example, paypal is forbidden here in egypt for a reason that I don’t understand. As a result there was an unmet need of using paypal from within egypt and some people took advantage of that unmet need and created a website that bought stuff from paypal for people on behalf of them while getting a commission for it.
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