Do you know that 95% of the people starting out in their internet businesses fail? In the
middle of all the noise and hype on the internet today, not many people realize that all
the ideas and techniques you can find are useless if you don’t first understand what your
business model is or how are you going to make money on the internet. Even the most
remarkable internet marketing technique will not work if you don’t understand how to
apply it to your business.

The 3 most popular business models are:

1) Affiliate  Marketing

Perhaps the most popular one out there, affiliate marketing provides a good
start for newbies. Almost anyone can sign-up for an affiliate program for free and start
promoting the chosen product or service. Commissions start coming in if someone will buy
or participate in the programs promoted. Affiliate marketers don’t carry any risk, since
they do not pay for the creation of the product, they do not handle customer service,
they need not know the innards of internet transactions, like merchant accounts,
autoresponder (what is that?), reciprocal linking, etc. It’s also possible to be an
affiliate even without a website.

Some affiliate marketing programs you may participate
in require little up-front investment. Some are free. It’s no surprise therefore that
almost everyone and their neighbor promotes an affiliate program or another. In fact, if
there is a single reason why the Internet today is so proliferated with ads and banners, it’s because of affiliate programs.

With the millions out there involve in affiliate marketing, only 5% ever make any money and only 1% makes really big money. The “Super Affiliates,” so they are called, do it very differently from the rest, therefore they earn the big checks.

2) Writing an eBook or other type of information product, recording an information CD.

This is a great strategy because there are thousands of possibilities for the type of product that you can create. There are so many niche markets that you can write about. It could be a course on Japanese gardens, how to start your own babysitting business, how to sell your artwork, taking care of your dog’s ears … there are endless topics and still many that have not yet been explored by online marketers. You don’t have to write the information yourself, you can get a ghost writer or hire someone to produce the CD.

EBook authors need to invest more than affiliates do. While affiliates can get something for nothing, the same is not true for
the eBook type of business. EBook authors need to learn a lot more than affiliates are
required to. They need to spend some amount of money getting the business up and running. However, when done right, the payoff in this online business model is much more rewarding.

These marketers make more money because they have very, very low production and maintenance costs. Once the product is produced, it doesn’t cost a cent to reproduce thousands of copies. Start-up costs can be covered by selling just a few copies of very high-margin eBooks. You can even recruit hordes of affiliates to do the selling for you.

3) Adsense

This has taken the internet by storm. There are tons of testimonials from people making outrageous income from adsense.

Adsense is Google’s advertising program wherein webmasters display ads from Google’s extensive list of advertisers. Unobtrusive text-based ads are served in member sites, who then earn a commission every time someone clicks on the advertisers’ links.

Google Adsense uses a technology to deliver ads that are highly relevant to the content of a page. Google’s engine will scan through the content of the page to determine its topic, and will then
serve ads that are relevant to the page’s content. Running Google Adsense is quite simple.
First build a website full of content of your desired niche or topic, and then register
in Google’s adsense program. Once approved, you then paste a code in your page, and the
ads start appearing immediately after you upload the changes to your server.

Google is
silent on how it shares the revenue per click with their partners, but how much you will
earn per click depends on the topic and the product being advertised. Products with
profit margins of $10 for the advertiser will most likely give you a smaller pay per
click than a product with a $100 margin. Similarly, ads with high conversion rates will
normally give you higher payouts than less effective ads, since they can afford to pay
more dollars per click, with a portion of that money going to you.

These are the top 3
most popular online business models today. No matter which model you choose, make sure
you understand the basics. Stop buying courses or information not applicable to your
business. Information overload can stop you before you even get started.



Before starting out an internet business, the online entrepreneur must know his business model or how is he going to make money on his internet business.


I hope this was helpful?
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