Six Proven Business Models to Make Money Online

If you have always wanted to be an online entrepreneur, there are a number of different business models that have proven successful. Below are six of the most common online business models. Some online giants combine more than one of these to create an especially profitable Web business.

Consider how you could attract and serve a niche market—while making some cash for yourself.  These online business models will give you a place to start.

Affiliate Model—An affiliate model can be an especially lucrative business model for a website or blog that is getting lots of visitors. With the affiliate model, a website’s owner earns money anytime one of their visitors clicks on an ad appearing on their website or when a visitor clicks through to another site and makes a purchase. Google AdSense is one of the affiliate marketing networks available to website owners.

Advertising Model—With an advertising model, content is provided free of charge to the user, with advertisers providing the financial support for the enterprise. Examples include Yahoo.com and many online publications like newspapers and trade journals.

Brokerage Model—Do you want to broker business transactions between parties? (Example: Alibaba.com or Orbitz.com) Maybe you want to create a website that acts as a portal for businesses that want to sell products? (Example: Etsy.com or eBay.com)

Manufacturer Model—The Web has given manufacturers the ability to sell direct to end users, compressing marketing channels. A good example of this is Dell.com.

Merchant Model—In the merchant model, the business retails products through an online catalog and shopping cart application. Examples include Amazon.com and Macys.com.

Subscription Model—This model can be difficult to get started because website visitors typically only get access to what you are selling after they have purchased a subscription. Plan on using this model only if visitors have a reasonable expectation of what their subscription will get them. It is often used to sell information or downloads, and often it is necessary to provide a free trial subscription for some period of time. Good examples are NetFlix.com and AngiesList.com.