There are a ton of business models that you can use to make money online. New Internet marketers generally settle on affiliate marketing, or creating their own information products. Both models have advantages and disadvantages.
The Affiliate Marketing Model
The affiliate marketing model offers extremely low start-up cost compared to any other business models. It’s possible to start with zero since most affiliate networks don’t charge to be an affiliate. Other advantages include:
- No need to create your own products.
- The vendor handles all the hard work like delivery, invoicing, customer support, etc.
- You can do this from any where in the world.
- Easy to set up and get started.
- Fairly easy to scale.
- Works while you’re sleeping.
When done correctly, affiliate marketing is one of the best online business models you can use. I have been an affiliate marketer since 2000 and have made millions from it, but you have to know what you’re doing. Unfortunately, most new Internet marketers do affiliate marketing the wrong way and end up losing money.
Creating Your Own Information Product
By far the most profitable Internet business model is to create your own information products. Unlike physical products, information products offer a very high profit margin because the cost of goods sold is nearly zero. For example, my web host gives me ten Terabytes of monthly data. That’s 10,000 Gigabytes, or enough data to download over two million copies of my eBook every month. So whether I sell one copy or two million copies, my cost is the same.
My information products include IM John Chow, Blogging with John Chow, WP Blog Videos, and Work From No Home. Combined, these products have generated over $1 million in sales in the past year.
Even though it’s the most profitable online business model, most Internet marketers shy away from creating their own products because of high start-up cost, and lack of a brand to sell it.
The Third Option
What if there was a business model that combines the low start-up cost of affiliate marketing with the high profit potential of having your own products? Well, there is, and it’s the subject of my newest eBook, the Ultimate Online Profit Model.
This business model is so profitable that in just the past three months (from September 16 to December 16), it has deposited nearly $280,000 into my eWallet account.
It is beyond of the scope of this blog post to fully explain all three business models and teach you how to use them profitably. That’s why I wrote the Ultimate Online Profit Model. It’s completely free to download and use. I recommend you grab your copy and add it to your Christmas reading list.