Internet Business Models – How to Make Money in 3 Easy Ways

With the advent of the internet and the limitless opportunities if offers to business men only a few realize that several concepts and techniques that can be found are useless without realizing beforehand your business model. When starting an internet business, this realization should be considered vitally. Simply put, not even the most effective technique of marketing on the internet will work for you if you do not know how you can employ it to your own business.

What are the 3 Most Popular Business Models?

1. Affiliate Marketing – This is one of the most popular that you can find. This is well known to internet marketers because there will no barriers to enter. Anyone can register for an affiliate program for free and can immediately begin to promote the product or service online with anticipation that someone would avail of it in order for them to get instant commissions. The best part about this is as an affiliate marketer, you will not be carrying any risk because you will be pay for the production of the goods and would not also handle customer service as well as investments upfront.

Considering that those are the three things that people wish to avoid, there is no wondering why almost everyone in the community is promoting an affiliate program or another. As a matter of fact, the only reason why there are so many ads and banners proliferating these days is because of affiliate programs.

Though there are lot of affiliate marketers today, merely 5% make money and 1% makes really BIG money. The reason why Super Affiliates are earning bigger is because they do it in the most effective way.

2. E-book and Publishing of Information – Looking on the other side, authors of e-book needs to be disciplined with their approach to marketing online. But they also need to invest greater than how affiliates do. Affiliates do it this way, they want to get something out of nothing which is not true in the e-book type of business.

If you are planning to publish and then sell your own e-book on the internet thinking that this can be easy, well, take the time to think again. It is essential to learn more than affiliates are required to. You still have to spend money to set up your business and get it running. If you do it right, there will be greater reward that you will get for your business online.

E-book marketers as well as “Infopreneurs” can generate higher income is because they have low costs on production and maintenance. Because we are talking here about digital, this would not cost even a single cent to produce millions. Whatever the business startup costs spend can easily be covered through selling few copies of e-books. One can even engage army affiliates who are eager to sell for you.

But of it does not necessarily mean easy as how you would view it. However, when you have this done properly, you can truly find this model to be profitable or income-generating.

3. Online Based Network Marketing – There are lots of people saying that when the internet and network marketing are combined, it makes a perfect match. For me, well, almost 90% of them do not get it right when talking about Internet based network marketing. All the while they though they are doing network marketing, but reality speaking, they are doing more about affiliate marketing.

They let the internet do the work for them. They thought that everything would do them well. What they concentrate more is selling greater and greater in a month. They have complicated systems that only they can understand. I think this is not how network marketing works for me.

This model is not as complicated as it seems at first.

If you understand and know what it is and if you are willing to exert more effort for it to be successful then definitely you would be able to achieve what you are aiming for. Basically, the role of the internet will help you find customers and the way to contact them and do business with them. Every visitor to your site could be a prospective customer…

It does not require for you to have a state-of-the-art system considering that the auto-responder can help build a business relationship with your client or customers. Having a simple system is the key..

No matter what some e-book authors say, they have no obligation to teach to others the “Secret Strategies to Be Millionaires”. The simple reason is that they do not want to tell you the truth; otherwise, you can become one of their competitors. Of course no one needs competitors.

The internet based network marketing is opposite with this because you NEED to tell everything to people what you know. This alone made me decide to recommend that if you are a newbie in the world of internet, you have to join an internet based network marketing business to learn somehow. This ensures that everything will be delivered, and no secrets will be left unrevealed.

Whatever model you might want to choose, you should start with the basics. You can learn and be good in starting an internet business.

How Are You Going To Finance Your New Business?

If you are considering starting up your own business or if you have already created your business plan and are already moving forward, your most important task is to obtain funding for your business. This can be the most stressful part of starting a new business and you don’t want to risk your own personal investments to get your business started, which usually isn’t enough to start a business anyway.

A great resource to go to find funding is your local chapter of the Small Business Administration (SBA). The SBA is successful in helping businesses obtain the financial help they need to launch a business and keep it maintained. The SBA will help you research financial assistance such as grants, small business loans, SBA loans, surety bonds and other loan options. SBA loans usually offer longer terms and might even have lower down payments.

Another way to get starting funds and to avoid high-interest loans is to get venture capitalists to invest in your business. These venture capitalists will get a small percentage (stock) of your business. Fine-tune your business plan and create a presentation to potential investors to let them know why they should be investing in your business. Online you can find a number of angel investor networks where you can find an investor for your business.

You can also check your eligibility for government grants to help finance your new business. There are thousands of government grants available to all sorts of businesses. Research different grants available and find the ones that give grants to businesses like yours. Many grants go to nonprofits and research oriented businesses. Put in the time apply for grants before trying to get any other sort of funding. The best thing about grants is that you don’t have to pay them back.

Be creative when it comes to finding funding for your business. Apply for all government grants that have anything at all to do with your business. You can apply for grants and loans at the same time. SBA loans are probably your best option. There are also a number of small business loans available, so compare loans and see which ones work best for you. Also, do not be afraid to seek help from someone who has been through the process before. Ask them to be a mentor to you and give you guidance in your funding decisions.

This Business Owner Leads His Own Recovery

When I coached Little League, I always tried to say the right things. Like “Just meet the ball.” Or “A walk’s as good as a hit.” Or “Hey, catcher, did you wear your cup?” But, like every good Little League coach, I was full of baloney. Sure, this stuff was important, particularly the cup part. Singles and getting on base are nice. But everyone loves the home-run hitter. He’s the guy who brings the fans into the park. He’s the guy whom the parents on the sidelines talk about when they’re not complaining their own kid isn’t getting enough playing time.

This year my business, like many of my clients’, will not be hitting many home runs. It’s becoming a repeat of last year. Sure, we’re playing small ball. We’ve got lots of little jobs all over the place. They’re paying the bills. Keeping my people busy. Covering my salary. But my cash flow is like watching a Little League game when the kids first learn how to pitch: slow and agonizing. That’s because, unlike the years before the recession, we don’t have those dozen or so big-money projects that really bring the big bucks in. Is there really a recovery? Many of us aren’t really seeing it. And I think I know why.

Capital Equipment

For starters, most of my customers are still not making significant spends on capital equipment. Especially when compared with years before. Small businesses that provide products and services that fill a customer’s operational needs continue to do O.K. That’s why my friend who runs a tax preparation business isn’t feeling a lot of pain-people still need to do their taxes. And my client who sells raw materials into the food processing industry is doing fine. People still need to eat. And my neighbor whose company provides computer hardware support is not hurting too much. That’s because companies have computers and (being a technology consultant myself) I can confirm they don’t work very well.

Some of my company’s software products are moving, but our big-ticket software products are sucking wind. I’m not alone. I have a customer whose six-figure printing equipment line is not moving. And my cousin’s construction business is standing still. None of us are going out of business. And we’re still making money (I’ll explain how shortly). But because we sell products and services that are purchased by people who are making capital investments, we’re seeing a lot less demand right now. That’s because our customers, both big and small, don’t seem to be making many large investments. And like facing a 12-year-old throwing his first curveball, there are just too many scary things out there.

For example, the political rhetoric is scaring them. The President calling our bankers “fat cats” is not exactly a business-friendly posture. Hoards of angry Tea Partying lunatics crying socialism is a little disconcerting. A senator who’s vilified for taking a stand against unemployment expenditures that can’t be funded spooks them and me. A fall election looms in front of us that could see a significant change in both the House and Senate and that gives me pause. And the pundits yelling on cable TV don’t help the situation either. Many businesspeople I know don’t feel it’s a great time to make an investment.

Business Uncertainty

Deficits are scaring our customers. The numbers are so huge and the government’s seeming lack of concern scares them and me even more. We run businesses. We coach Little League teams. We do budgets. We know which kids will pitch and which kids will never in their lifetimes be able to catch a ball. We also know when revenues can’t cover expenses. We can’t figure out how the government is going to pay for these deficits without increasing taxes. Many of the businesspeople I speak to feel that this is inevitable. My customers don’t like uncertainties. They’re not thrilled about making investments in this kind of environment. So they don’t. And my revenues suffer. No home runs for me this year.

My customers aren’t hiring. Neither am I. I’ve written about this before. Our economy is going to be stuck at 10% unemployment for a while. This is bad for all those unemployed people. And it’s also bad for my business. Unemployed people don’t spend money. And when money isn’t being spent, my customers don’t make as much money. And they certainly don’t expand. So, while they’re happy to pay to cover the cost of their operations, they’re much less inclined to make the capital investments (which in my case means software) to meet the needs of their business.

The overall environment is not conducive for investments. In the current cycle (and these things are cyclical), greed is bad. Poverty is good. Wall Street financiers are criticized for taking home bonuses and legislation is proposed to stop them. Big car and insurance companies that should have been left to fail are taken over by the government. The mob rules right now. My customers do not want to give their shareholders or that public any indication that they’re spending on “unnecessary” things like technology or infrastructure. So they stay put. So how do we, as business owners, respond to this? The same way that a Little League coach deals with his left fielder who keeps standing in foul territory. We adapt.

Small Jobs

For starters, no job is too small. Until we’re able to shoot a moose, my company lives on nuts and berries. Jobs that many of us would have laughed at a few years ago are now putting gas in our tanks. Two hours here. A few hours there. It’s all good. It keeps my guys busy. Every customer is valuable. Every job is important. It’s actually embarrassing to admit to myself that I didn’t think this way during the boom times. Shame on me. As I mentioned, we’re definitely not hiring. And neither are most of my customers. And I won’t hire until my people are screaming for mercy. We’re nowhere near that stage right now. If I do need an extra set of hands, I’ll outsource first. There are too many good contractors out there to do the work for me and too many easy ways to connect and communicate with them. When I do decide to hire more employees, it will be because my customer demand is forcing me to do it and it makes good economic sense. Tax credits are zero incentive for me. And for most of my customers, too.

If we’re spending anywhere, it’s on marketing. Lead generation. Web site upgrades. Social media. E-mail campaigns. Telemarketers. Business owners are hustling now more than ever before. The work isn’t coming in like it used to. We now need to go out and hunt it down. We’re returning calls quickly. We’re not delaying our quotes. We set appointments fast and visit prospective and current customers way more often than we did in the past. Because, other than those mediocre guys we hired in the past, we know that we have the ability to make that sale. And more than ever, we’re looking, looking, looking for that next prospect, that next deal, that next job. They’re fewer and far between for some of us right now. So we’re getting up earlier to find them.

My kids are older and my Little League coaching days are over. I was a pretty decent Little League coach. I made sure everyone got in the game equally. I never argued an umpire’s call. I learned which kids to stick on the mound…and which kids to hide in right field. And I always, always stressed the importance of base runners, hitting for average, playing small ball. But I loved that one kid who, at the age of 12, could hit a ball 300 feet. I’m looking forward to a few homers like that for my business someday, too.