Business models explain how a business will earn revenue, these online business models show three (3) things;
- How you will create and deliver value to your customers over the internet.
- How you will earn from delivering the value.
- The components (Branding, Technology, Tools, etc.) involved in the process.
Interestingly, there is no rocket science in working with business models as they are all set and all you need to do is adopt one of them or apply a combination of more than one, depending on your interest.
Here are Eight (8) practical, tried and tested online business models, that you can implement right away, to build a profitable and sustainable online business.
- The Freelancing Model
- The Digital Products Model
- The Software as a Service (SaaS) Model
- The Affiliate Marketing Model
- The Subscription Model
- The Paywall Model
- The Consultanting Model
- The Ecommerce Model
THE FREELANCING MODEL
Here, you work as an independent contractor, a self-employed individual who doesn’t have to commit to a single, long-term employer. You are free to work independently for several different clients. The must-have for this model is a skill, Persistence and a way of pricing your service.
As a Freelancer, you can write, Web Designer, provide virtual Freelance bookkeeper, proofread, Design Graphics, Manage social media, etc.
THE DIGITAL PRODUCTS MODEL
Developing a digital product may require serious sacrifice, but the earning potential is limitless.
If you have sufficient knowledge and you are able to put together content that answers the questions of a particular set of people, this model is for you. All you need is to figure out an idea that can work and come up with a strategy to market it. You can sell E-books, Online Courses, Audio Products, Video Products, Templates, Computer Programs, and Graphic Work.
THE SOFTWARE AS A SERVICE (SAAS) MODEL
Selling your own software as a service online can be an incredibly profitable online business, here you hosts applications and makes them available to customers over the Internet. The advantage of this model is that anybody can use your product from anywhere in the world as long as they connected to the internet.
THE AFFILIATE MARKETING MODEL
For the majority of people doing business online, affiliate marketing is the starting point. This model is all about promoting other people’s products, mostly via an affiliate network and earning commission referring clients. It’s based on revenue sharing and can be incredibly lucrative.
In Affiliate Marketing online business model, external parties receive a commission to promote products they don’t own.
There are four (4) main parties involved in this model and they are;
- The Owner (Producers of the product)
- The Affiliates (Promoters of the product)
- The Network (Intermediary)
- The Consumers (the end-users of the product)
THE SUBSCRIPTION MODEL
The subscription model is the most stable model and that is the dream of every online business. Here, there is an arrangement whereby the customer must pay a recurring price in advance at regular intervals for access to your product.
Magazine subscription, phone line or internet service, and organization membership are good examples.
THE PAYWALL MODEL
I call it the taste for free and pay for the satisfaction model. The paywall model uses a content monetization approach whereby publishers earn by restricting access to content through purchase or paid subscriptions.
Since this model uses a seduction technique that we are only really excited by what is denied us, by what we cannot possess in full.
The publisher must work to create quality and compelling content so that the audiences are willing to pay to access the content in full.
THE CONSULTING MODEL
In this online business model, you earn for your knowledge and experience not for doing something. You provide advice and guides that address issues to clients online (over the phone, through video meetings and text or photo-sharing) you don’t meet with clients in person.
Clients can find you online (your website, a blog, social media, web directories or in an online forum) or offline (during a networking event, onsite training or any gathering) but the service is provided online and you can charge per project, per unit or per contact, depending on what works best for you. To succeed using this model, A lot of people must know and believe in your experience and knowledge.
THE E-COMMERCE MODEL
E-commerce, also known as online retail, is a very popular model. This is simply selling physical products through an online store. You can sell a licensed product or your own tangible products like; Garments, Artwork, and Jewelry to earn.
I believe you find this article helpful. Remember to share it with your friends and don’t forget to subscribe to our email newsletter for more pleasing updates.