Internet Marketing Business Models

Following Are The Most Common Online Business Models For The Purpose Of Generating Income Streams

This is going to be an overview, a sketch and so it cannot be complete and other eyes – could be you – will see it a bit different. The intent here is not to explain in detail all the different business opportunities, trends and schemes, but rather to give you an overview and show you the most broadly accepted terms, ideas and streams that the internet provides in order to make money.

Here you will NOT learn about different methods of traffic generation, it is about WHERE you are driving your traffic and visitors. It is about how you make money, how you will hopefully be paid at the end of the day.

As this is cleared, let’s go…

1. Digital Product Creation, Blogging

Digital products can be anything from a whole blog with lots of information, a single website with an article on it, a YouTube-video, a pdf-file, you name it.
You create something like this and bring it through internet marketing into the market. Sounds simple but to successfully do it, it usually takes a lot of work, time and – to be honest – it most likely is not for everyone.

2. Multi Level Marketing (MLM), Marketing Systems, Affiliation

This is the most popular way of monetizing your internet marketing efforts, and the diversity of opportunities and business models of different systems is huge and they cover all types of products and commissioning models you might ever be able to imagine.

Multi Level Marketing companies pay you on product sales and on product sales of people you bring in who also sell the products further on; and this through more than one level, often many levels. What makes MLM interesting to most people is that it can provide you with a residual income once you have enough people in your team doing the selling and recruiting, so that you earn without the need of action on your part. Problem: Based upon experience this is harder to achieve than you might think and as it may sound here, in these few words.

Marketing Systems, often referred to as sales funnels, are systems you can promote in order to find customers for your MLM or Direct Sales opportunity. The idea behind it is that people who join your opportunity through your Marketing System can now also utilize the Marketing System for the purpose of selling the opportunity, product or service. This is especially popular with MLM opportunities. Of course it is also possible to just promote the Marketing System. Problem: Can be a bit confusing, so that interested people may get lost along the way.

Affiliation, also known as Affiliate Marketing, is the sale of products for a third party company. Usually the products are ready to sell, there are marketing materials available for you, and often marketing sales pages. You get a commission on every product sale generated through you. this seems to be one of the easiest ways to make money online, but the challenges here are often a huge competition through other marketers and the commissions are often pretty low. Also it is usually harder with affiliate marketing to get into the area where you are earning a residual income, this of course depends on the product or the service that you are promoting and how it is billed. A monthly membership, for example may give you some residual income, once sold.

3. Investment Opportunities, Ponzi Schemes

The most passive, but also the most riskiest way of making money online are so called High Yield Investment Programs (HYIP). These programs offer high returns on an investment, often more than 1% per day, and also pay commissions for referring new members.

Although some of these services might be really investing and making high returns, most of them are ponzi schemes, paying old investors with the money of new investors; and as they usually do not openly tell people about it (Who would join a ponzi scheme, if he knew it was a ponzi scheme?), this schemes can be considered fraud.

At present many ponzi schemes masquerade as so called “Bitcoin Cloud Mining Services”, and although there are a couple of legit bitcoin cloud mining services who are really mining bitcoin and giving investors the opportunity to invest in their hardware and pay them from their mining gains, most of these services never mined and will never mine; they are just ponzi schemes.Investment opportunities on the internet can be very profitable, especially if you are able to refer a couple of new investors, but the problem is to spot the few good, honest and legit ones between all of the scams.

4. Scams

Last and least are scams. There are many of them, and I assume nearly everyone in internet marketing at a time fell pray to one or more scams. Scams usually promise a lot end never deliver. They ask for huge amounts of money for useless and worthless products and services, usually with the promise of making you rich. You do the hard work, but you will – of course – fail, because no-one buys useless, overpriced products; and no-one wants to sell them. Except those who have fallen pray to the web of illusions spun by the scam artists.

Nearly everyone long enough in the internet marketing game has fallen prey to a scammer, it nearly seems to be part of the learning curve. Experience will help you smell scammers a mile against the wind, but newbies and part-timers often have a hard time with them, especially in the beginning.It is helpful to do some research on your own before joining blindly into an opportunity or online system, and if it sounds too good to be true, it usually is.

Also make sure you have a reasonably priced product that might be used by people, and that you can test a system for free as long as you want to before spending some of your hard earned money on it.Another strong warning sign for a scam is, if you would only join an opportunity because of the sometimes absurd dreams of riches it wants to lead you to believe in.

In Closing

That’s it. these are the most common ways of monetizing your online marketing efforts, and the scam-thing that you need to be aware of before joining an opportunity.

Of course their a sideways and other methods, and new ways may arise in the future, but I think this short list here will give you an overview and might also help you in avoiding the darker side of the internet marketing branch represented by the scam artists. Scams may make a few people very rich fast, but it is a dirty way of getting money with lots of broken dreams in the backyard. I can only recommend to avoid them, and get out of them, once you realize you felt into one.