How to Make Money Online – Five Online Business Models

Many people are wondering how to make money online. When you are going to build your online business, the first thing is to select a business model. There are many kinds of online business models. Following are five most popular home based online business models in which many people already got success.

1. Dropshipping

When talking about making money online, many people’s first impression is building an online store. Yes, you can build an online store and sell products, like what Amazon.com is doing. First you need to have many products in warehouse, then build and maintain a website to sell them, and then handle sale, shipping and customer service issues. This is a very complicate system and is not suitable for a home business.

There is another model, dropshipping. Dropshipping is one kind of retailing method that the retailers do not actually keep the products in stock. After they receive an order from a customer, they pass the order and the shipment details to a wholesaler. The wholesaler ships the product to the customer and provides the customer service. The retailers get the profit from the difference between retail price and wholesale price. The great thing of this model is that the retailers do not need to have a warehouse to store all the products they are selling; also they don’t need to provide the customer service. So they can focus on building websites and bringing traffics.

There is a website, www.salehoo.com, which provides information about lots of wholesalers, including dropshipping wholesalers. You need to sign up for its membership to get the information.

There is another website, DropShipping Wholesalers, which even helps you build a dropshipping website. You sign up for its membership, and provide your domain information to it. It helps you build the website, maintain the website, sell products and provide customer services to the customers, and sends you payment after customer buy products. You can do some modifications on the website, such as removing some products you don’t want to promote, and changing the retail price. Most of your efforts can be focused on how to bring traffic to your website.

2. Google Adsense

This is a very popular online business model. You can apply for a Google Adsense account, and then generate a piece of code to embed into you websites. This code will display others’ advertisement in your website. If the viewer of your website clicks on the ads, you will get paid. If your website has high volume traffic, it will be very easy for you to make lots of money. The disadvantage is that it is not easy to get huge amount of traffics.

3. Ebay affiliate

You can sign up for Ebay affiliate. Then you can generate a clickable link and embed it into you website, and link to an ebay.com product. If somebody clicks on you link and buys a product from eBay, you can get a certain commission. The commission is from a few cents to thousands of dollars per sale. If you find a good niche, and get targeted traffic, you can get a decent amount of commission. There is a website, Build A Niche Store, which provides training on how to quickly build an eBay affiliate site, and generate targeted traffic to make money. Amazon.com also has the similar program called associate program. But due to some legal issues, Amazon.com does not allow people living in some states to join this program.

4. Join affiliate networks

There are many merchants put their products in the affiliate networks such as clickbank.com or cj.com. You can sign up these networks as an affiliate and promote those products. Similar to eBay affiliate, you can generate a link and put it in your website. Once a viewer of your website clicks on you link and buys a product from the merchant, you can get a certain commission. The commission amount is from a few dollars to a few hundred dollars per sale. Most of these affiliate sites are designed as review sites. Somebody may want to read the review before he buys the product. He may search the Google and go to a review site. There is an online training program called Affilorama, which provides online classes about how to select products to promote, how to build a website and how to bring the traffic to the website.

5. Trade websites, or build websites for sale

The key point of trading websites is to find websites whose value is underestimated. You can buy these websites, do some modifications to increase their value, and then sell these websites in higher price. There is a website, Sell Your Site for More, which provides training for selling websites.

Another alternate method is to build your own websites, and get traffic to it. After the websites have a certain volume of traffic, you can sell them. www.flippa.com is a good place for website trading.

Above are 5 most popular online business models about how to make money online. They are very good methods to start with. Once you find one model which is suitable for you, it will be easy for you to duplicate the success, and build up many websites to scale up your profits.

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