Basic Business ModelsSo let's talk about the basic online business models that are generally available to people wanting to start home businesses online. Please keep in mind that there are many other online business models. I've only included the ones here because these models are the ones that will bring you the best likelihood of success as a home business entrepreneur. One more thing... As you read each description, keep in mind what we just talked about with regard to how money is made online. Retail Model - This business model generally refers to any business that sells products or services to customers. These products can be physical products like clothing, books, sports equipment, etc. or they can be digital products like ebooks. Business to Business Model - A business to business type model is exactly the same as the retail model, except that the website sells products and services to other business, rather than consumers. Broker Model - This is simply the idea of bringing buyers and sellers together. An online auction would be a good example of this type of business model. Subscription Model - The subscription business model is based on the idea that a website charges a monthly (or weekly, quarterly, etc.) fee for access to some kind of information or service. A good example of this model is scrapbooking website that sells a monthly membership to their exclusive printable backgrounds and images. Community Model - This business model is built on the idea that a website brings people together to discuss and trade ideas. A couple of good examples of this would be YouTube or iVillage. Blogs can also operate as a community model if there is two way interaction within the blog comments. Directory Model - This is a really simple business model where the entire website is dedicated to providing a directory of something that is important to others online. An example of a directory model is a website directory of international dog breeders. Content Model - This is my favorite online business model for people just getting started in their own business... that's why I saved it for last. The idea behind this business model is to provide information on a particular subject and then use the money making strategies we discussed earlier to monetize that content. Some examples of this type of model would be a blog about homeschooling or an informational website about home landscaping. Creating Business Model HybridsJust as you can combine money making strategies, you can also combine business models in your online business. For example, I have a children's craft website that is primarily based on the Informational Business Model, but it also sells a couple of my own products (the Retail Model), has a directory of craft ideas, and creates a community through a forum and children's craft blog. Although your online business may not be able to combine this many business models into one website, you should keep in mind that it's entirely possible to create your own hybrid business model. You are not tied to one particular model... in fact, you may start with one particular type of business model and slowly add other aspects of other models as your business grows. Okay, we've talked about how money is made online and what kind of business models are generally available to online and home businesses... are you ready to start thinking about your own online business? Well, get over to the Home Business Startup Guide and start reading up on it! If there's something that you don't find here and you're looking for more information, ask me! I'm happy to provide you with as much information and resources as I'm able, so just drop me a note and I'll do my best!
Arvada Yates Selling Products/Services | Recommending Affiliate Products | Selling Website Advertising |
                    
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