Which Web Business Model Is Right For You?

By Valerie Tay
Posted Wednesday, December 15, 2004

Let's say you're a furniture dealer and you’ve decided to sell your products online. What sort of web business model is most suitable for you?

Web business models differ as to the kind of skills and the specific responsibilities involved. Each model also has a particular source of profit. The three most common web business models are:

=>selling physical products
=>offering services
=>information delivery.

Product Sales

This is the web business model that comes to people’s mind most easily thanks to major product sales sites like amazon.com or online malls like neimanmarcus.com. This model is about selling physical products that the merchant must ship to his customer upon receiving an online order.

The three main ways to carry on a business under this model is by web storefront, auction site and online mall (a site that sells products from different vendors).

Service Sales

Besides selling products, you can also sell services online. For example, many web designers have their “shops” which market their web designing service set up in cyberspace. With the popularity of small businesses, especially home-based ones, conducting business via the Internet, there are a number of sites offering services for web business owners. For instance, screensaverbranding.com designs a screensaver that you can offer as a free download to web users to brand and market your web business. Another example is websites offering to write your web copy, so that your site is filled with language and emotion that will entice your prospects to click on the “buy” button.

Information Delivery

There are several ways, which you can make money by delivering information online. The most common method is making people pay in order to view the information you have posted on your website. This method is used by major companies such as lexisnexis.com as well as home based business owners. On the latter, examples include:

=>Cory Rudl’s “Secrets to their success” site where customers pay for an online subscription to Cory’s in-depth interviews of webmasters who have made it. “Making it” is defined broadly to mean webmasters who have cracked the search engines to those who make $300,000++ a year.

=>Neil Shearing’s private site that includes amongst other articles and tools his ad testing reports. These reports share vital information on where to advertise online and where not to put your money. Jim Daniels’ private members site that comes with his Make A Living Online package also has a section reporting on his web advertising results. See (http://adhomebase.com/make-a-living.htm) for more information.

=>The Affiliate Bootcamp, which covers extensively all angles related to how to earn a paycheck every month marketing other merchants’ products. For more information, visit: (http://www.AffiliateBootcamp.com/g.o/valtay)

Of course, e-commerce possibilities are only limited by the boundaries of your imagination. And there is no rule saying that one or two or even all of the above models cannot be combined. If you come across a model that I haven't mentioned, you are most welcome to email me at clientservices@adhomebase.com. I will share your insights with the other readers together with a plug for your site too. ;-)

About the Author
Valerie Tay is the editor of BizBytes Newsletter. Written in an easy-reading style, this ezine is packed with practical and powerful tips on building, growing and marketing your business. New subscribers receive a FREE bonus eCourse. (http://adhomebase.com/bizbytes.htm)