A business model, put simple, is the way a company makes its money. An online business model, then is the way a website raises revenues.
Not every web site is designed to make money. Personal web pages, blogs and hobby sites may be funded by their owners, or hosted on free hosting platforms such as wordpress.com or blogger.com. The lure of the internet fortune is strong, though, and many bloggers, hobbyists and amateur webmasters sooner or later attempt to monetize their sites.
There are many subtle variations on the three basic online business models, which are:
â€￠ Sell a product of service of your own
â€￠ Make money by selling or referring the product or service of someone else
â€￠ Charge for advertising, or linking to another site
Let’s take a closer look at each of these in reverse order, the order of ease of entry to the market:
Advertising
The easiest way to start making money from a website is to start including advertising or paid links Autel Maxivideo MV101. A blogger can set up an Adsense account with Google, and within minutes be showing ad on their pages, and potentially earning income from them. In reality, the winner in this advertising model is of course Google, with the vast majority of smaller publishers making pennies while they rake in the dollars, but the power of adsense, and other advertising aggregators such as Kontera, is that it shows the website owner it is possible to make money online. And, as the saying goes, if you can make one dollar online, you can make a fortune, given time and testing.
Other advertising models include paid for inclusion directories, Pay Per Click (PPC) listings, classified listings and ads used as splash screens while sites or software load. (Think here of the ads that display while facebook games apps load in the background.)
Referral Commissions
Most often called affiliate marketing, the practice of making money by connecting willing buyers with sellers of a product or service is nothing new Autel Autolink AL609, but has exploded since they internet went mainstream.
Some affiliates make referrals through classified ads, or PPC ads placed on low competition keywords, and some even do this without building a site of their own, using article directories like ezinearticles.com or even tapping into the power of social sites like facebook or youtube. Most, though, build their own sites and use these to generate leads who they can market to on a regular basis. In order to be successful at this, the affiliate has to cultivate a reputation
Related Links
