Before I provide you with the Internet Business Model list, let’s first define the phrase business model.
busi·ness mod·el: A design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing
There’s a number of different ways to structure and name an internet business, but the basics of operating it and the desired end results are pretty much the same.
Most all internet business models operate by using the same techniques that are found in Network Marketing, Affiliate Marketing, and Internet Marketing.
You could say that some business models are really ways to advertise, like blogging, but online, we call them business models.
So that’s what I’m going with in this blog post as well. 🙂
Is a business model in which a distributor network is needed to build the business. Familiar companies that use this business model are Avon, Tupperware, Mary Kay, The Pampered Chef, etc.
While these types of businesses are built using a network of independent distributors and functions mostly offline, they’re becoming popular as an internet business model.
Social media has helped bring this offline business online.
Is a business model in which an individual partners with a company and uses their own methods of advertising that promotes the company’s products and/or services.
For example, a makeup and hair style blogger would use their blog as a source of advertising. They can create video tutorials that promotes a company’s makeup and hair care products. They’re assigned an affiliate ID.
When they provide a link to a specific product on their blog or video page, and the customer purchases an item using the link that contains their unique affiliate ID, they earn a commission.
Is a business model in which an individual promotes a brand, products or services using the Internet. There are a number of tactics and resources that internet marketers use to advertise online.
Some of these include paid advertisements, content marketing (blog), email marketing, podcasting, video marketing, etc.
Internet Business Model List
Blogging: Is a business model in which an individual using a blogging platform, such as WordPress to share content. This content can come in a variety of formats.
Their blog could include written content, video and/or podcast recordings. Bloggers earn income with paid ads, sponsor donations, and through product affiliations.
Podcasting: Is a business model in which an individual uses the podcasting platform, such as iTunes to share audio/video content.
They provide recorded audio or video material on a particular topic that gets uploaded or what’s considered hosted on an online podcasting platform.
Listeners are able to listen to the recorded messages online, on their mobile devices or download them to listen to on demand. Podcasters earn income with paid ads, sponsor donations, and through product affiliations.
YouTubers: This business model encompasses what’s called video marketing. Which goes back to what I said earlier or how the different internet business models use the same advertising tactics.
With Youtube as a business model, individuals create videos that get uploaded to the Youtube hosting platform.
Viewers can watch their videos 24/7, which makes video marketing a very viable form of marketing online. Some Youtubers earn income by advertising or selling their own products or by earning affiliate commissions.
Some might also be members of Youtube’s Partner Program, where they have ads placed on their videos and when a viewer clicks on the ad, they earn money.
Kindle Publishing: Is a business model that has put many unknown authors on the map. No longer do those desiring to become the next Stephen King have to go through a publishing house in order to get approved to have their book published.
The Kindle platform is a part of Amazon.com. It allows individuals to host copies of their digital books on the Amazon storefront. These books can be published by anyone with a desire to sell them.
Kindle publishing sounds simple, but it still requires good writing skills. storytelling, and advertising.
Amazon Product Seller: This business model allows you to sell a variety of products on Amazon. Amazon’s fulfillment services allow you to mail your products to their warehouse, where they prep and ship them for you. Your customer won’t even know that they product came from you.
Sellers can sell their own products that they make such as jewelry. They can buy products and at wholesale and sell them at retail prices. It’s up to the seller how they choose to manage and grow their Amazon business. What makes this so great is that Amazon does the advertising for you!
eBay Store Owner: This business model allows you to sell a variety of products on eBay. These items can be hand-made by you or you could keep an inventory of the particular items you wish to sell.
Another option is to have items drop shipped. This is where the customer pays you for the product. You in turn pay the merchandiser, retain your portion of the sale, and the drop shipper mails the item to the purchaser or you can mail the item yourself.
With eBay you’re responsible for how you manage and grow your store.
eCommerce Store: Is a business model that to me is very similar to having a brick and mortar store, with the exception of an actual physical store. There are a variety of e-commerce storefronts online. One you might be familiar with is Etsy, Zazzle, Cafe Press, Spreadshirt, and Shopify to name a few.
Depending upon the e-commerce website, you can either have items created upon purchased, which is considered “on demand,” meaning the item isn’t made until the customer orders. Zazzle, Cafe Press, and Spreadshirt use the on demand business model.
However, with Etsy you have to supply the goods you sell. They can either be in tangible or digital format. If you sell tangible items, you’ll be responsible for packaging and shipping. For digital products, you simply upload to their site. Once a purchase is made, the buyer gains access to the digital files.
Another option in having an e-commerce store is where you have an independent website. The website platform is built using software that allows you to add items to your shop. You’ll also set up a payment processor to handle payments.
With online shops like Etsy, Zazzle, Cafe Press and Shopify, you’re required to pay various fees. Some fees include product listings, and payment processing.
With your own independent shop, you’re required to pay fees associated with building your shop, which are minimal, along with payment processing fees.
All e-commerce style shops require the shop owner to handle their own marketing and advertising. You as the shop owner have the option to set your own prices, but with hosted shops where you compete with other sellers, the prices will be competitive.
Coaching: Is a business model in which an individual offers assistance on a paid basis to their customers. Coaching is often found in a variety of niches, such as health & fitness, nutrition, money management, online business, social media management, etc.
Coaches often offer a set number of sessions or packages which contain recorded video/audio, written, or live training. Prices vary per coach based on their specific terms.
Paid Courses: Online courses have really taken off in the past couple of years! Online or what some call paid courses is a business model in which an individual creates a course on a specific topic that’s hosted on their own personal website or on a website such as Skillshare, Udemy, or Lynda.com along with countless others.
Courses often come in a variety of topics and can be taught on any subject an individual feels they have information they can charge a fee for that’s helpful and can benefit someone else.
Sites such as Skillshare and Lynda.com offer a flat monthly fee to it’s members, where sites such as Udemy charges a different prices per course.
When you host courses on your own website, you have the ability to prices them as you desire. I’ve seen courses that cost us high as $1497. When courses are hosted on your own website, you have the ability to offer discounts, and adjust the price as you desire.
Sites that host your courses, have the ability to set prices at their discretion. The course is created by you, but essentially it’s owned by the website that’s hosting your course.
Most courses are in digital format and include written materials that can be printed out along with video and audio recordings.
Consulting: Is a business model that is synonymous with coaching.
Services: Is a business model in which an individual offers their services not for a product, but for performing a specific task. This could be building someone’s website, designing their logo, creating and designing a branding strategy, creating a sales video for their website, copywriting, and ghostwriting to name a few.
When offering a service, the business owner can offer it through their website, which serves as their storefront. They structure and price their services according to package pricing, options, and pretty much how they desire.
Offering services is the way a lot of online entrepreneurs get started.
Which Business Model will You Choose
As you can see, there are a number of Internet business models. Each model requires knowledge of managing and running that specific business, along with learning how to grow it using online advertising.
A lot of internet entrepreneurs have more than one business model and normally utilize a variety of advertising methods.
It might sound a bit confusing and I sincerely hope I’m not making it sound that way. It’s actually quite understandable once you’ve dipped your toe in the internet business pool.
I hope you’ve gained an understanding of the different types of businesses that can be run online.
If you’re someone who’s interested in starting an online business you’ll need the most important aspect of all – training!
I still remember what a failure my eBay store was years ago. I was so excited about having a “virtual” store that didn’t require inventory, I jumped in with both feet!
Why did it fail?
Let’s see. I didn’t do any research, so I didn’t know what the market desired.
I didn’t see if there was any competition selling the same items.
eBay was swamped with the same products.
I didn’t know anything about advertising, leveraging my products, branding or much else for that matter!
Having a desire to start, grow, and succeed at having an online business is great, cause you will need all that and more, but the most important thing for any business to be successful is training!
Not just any training, but the basics of structuring and starting an online business.
If you’re someone who’s been thinking of getting started with an online business, but don’t know how to begin, I invite you to take a look at the Elite Marketing Pro Training System.
Here’s what Elite Marketing Pro Business Training Offers
- Access to their Marketing & Automated Sales System where you gain upfront and residual commissions when other’s create their own training membership
- Access to Traffic Generation & Marketing Tools such as an instant blogging system, 5 minute Capture page creator, and the Content Marketing Tool
- Access to Advanced black-belt monthly training webinars & Ignition Coaching calls
- Access to the Private Mastermind Group on Facebook where you connect with other members
- Access to Exclusive Elite Training, Daily LIVE Facebook calls where you’ll receive Motivation and Inspiration, along with the weekly Monday Mojo calls that are now LIVE on Facebook, plus so much more!
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