Tuesday, November 20, 2018

Decide on an Online Revenue Model to Start With

In my previous blog post, I did an overview of how to start your own business online. As a guide, I did list the basic steps to follow to get you started in earnest. In today’s blog post, I will discuss various forms of online revenue models and you can then make up your mind on the type to start with.

I have to emphasize that your choice of a revenue model should be mainly based on your passion, experience, knowledge or willingness to learn the secrets of any online business opportunity you are pitching tent with. On top of that, the niche market and/or your potential customers will also influence your choice. This is the only way you will see your work more of fun until you start making money online.

Broadly speaking, you can (i) sell products or services online, and/or (ii) offer web services for a fee.

Sell Products or Services Online


Selling of products and services on the internet can be in two ways. The first type is to create digital product or service yourself, build a website to sell it and then drive targeted traffic to it. In this case, you are expected to be an expert on a specific subject or topic which your potential customers are earnestly searching for solutions to solve.

It doesn’t matter whether you are creating physical or digital product. What matters is the ability of the product or service to solve the specific problem your target audience is having challenge with.

However, you don’t have to worry yourself if you’re a newbie without a product or service to sell as your own. You can become an affiliate marketer for someone else’s product or service and make money online in sales commission. That is, every time you make a sale through an affiliate link given to you by the merchant you are promoting, you earn commission. Your affiliate commission can be fixed or as a percentage of the selling price.

Offer Web Services 


Offering services on the internet simply means selling your skills, talents or efforts for a fee when you deliver value to your clients. What are you good at? Is it marketable or sellable? Will people willingly pay you when you do such service for them? These are the pertinent questions you have to find honest answers to before you start offering any web services to your target niche market.

For instance, I am a freelance content writer for hire. I write blog posts, landing pages, guest posts, newsletter content, ghostwriting services, etc, for my clients. Every time I finish creating value for then, I get paid to write. So, freelance business of any type falls within this ambit of web services offering.  These include freelance writing business, web design, graphic design, brokerage, membership site coaching, just to mention a few.

Now, I will list and explain some of the popular online revenue models you have to consider starting with.

Create and Sell Digital Information Products or Services


Selling information products and services on the internet is big and lucrative business. Your profit is almost one hundred percent if you create the product or service yourself. A lot of internet entrepreneurs are making full-time income from creating and selling info products digitally. The smart entrepreneurs even take it a step further by recruiting army of affiliate marketers to do the promotion and selling for them. Affiliates are only paid when they successfully close every sale. So, payment is based on performance i.e. no sales, no commission.

For instance, you can create and sell an ebook on a subject you know something about. The basic steps will follow this:

1.    Determine a niche market you wish to target for your electronic book.
2.    Research a problem which your target market desperately want to solve or desire to satisfy.
3.    Assess the volume of potential customers to determine if it is worth the time and efforts required to create an ebook to sell. You can do this with keyword research tool and/or niche forums.
4.    Create an outline of your e-book from your research above.
5.    Write the draft of your electronic book using the above outline as your guide.
6.    Proofread and edit your work to make necessary corrections and revisions.
7.    Convert your ebook in document format to PDF to make it easy for your customers to download.
8.    Write your sales letter to sell your product or hire freelance copywriter.
9.    Register a domain name to sell your ebook or sign up with platforms selling ebooks and list your ebook for sale at a fee.
10.    Sign up with reliable web hosting service provider if you are selling from your website. Thereafter, upload your materials for easy downloads by your customers.
11.    Upload your sales letter on the landing page after integrating your preferred payment processor such as PayPal.com to take payments from customers.
12.    Drive targeted traffic to your website and make money online.

To be frank with you, the above steps are easier than you think. You can do it! I have created and sold ebooks in the past. If you are not selling ebooks online, you can create software, develop an app, create tutorial videos, etc to sell. It is all about knowing what you are good at and doing it to make money on the internet in exchange for value.

Advertising


Advertising is an online revenue model that requires you to own one or more websites with lots of quality content published on it. Over time, when you start getting volumes of targeted website visitors from search engines, you will then place adverts in strategic places on the site such as the side bar, above the fold, and so on.

You can get adverts to place on your websites by signing up with contextual advertising companies like Google Adsense program which will enable you to get codes to place on your website if you are approved. You can also sell advertising spaces at strategic positions on your blog. With constant traffic coming to your website, you can be rest assured that business owners will approach you to sell advertising spaces to them.

Affiliate Marketing


Affiliate marketing is simply promoting and selling merchants’ products and services for a commission. By signing up with a merchant and getting specific code for a product, you can be identified with every sale you are able to close.

There are thousands of merchants who have put in place affiliate programs for willing and able affiliate marketers to make money from. There are also affiliate networks too that create platforms for merchants and digital marketers to sign up and sell their products. Clickbank is a popular affiliate network program where affiliate marketers can sign up and make money online.

Buying and Selling Domain Names


This is a simple online revenue model to start with but it requires foresight on your part in order to buy and sell domain names for profit. You can hand register or buy expired domain name for resale. However, in domain investing you must think like your potential customers before picking up any domain to resell. If you cannot think of any feasible business idea for a name, don’t buy or register it.

Here are some of the questions to ask yourself before registering a domain name. What can my potential buyer do with the domain? Is the name rich in your target market’s keyword phrase? If the domain has expired or dropped, is it still indexed in Google search engine? Is the cost per click (CPC) for the keyword in the domain high? What about the traffic ranking of the expired domain? How much is similar domain names sold for in the past?

In conclusion, there are other online revenue models like membership coaching and mentoring, freelance business, drop shipping, and so forth. In my next blog post, I will discuss how to set up a blog website to reach out to your target audience. Stay tuned!

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