The Top Four Online Business Models
Hello dear friends and entrepreneurs! This online business is exciting! There is so many ways out there pulling at you to try and make money. So many paths available and lots of them will make money. However, there are a few that make MUCH more money and that's what we're going to focus on today. The top four online business models. But first, there is a certain criteria the ideal model should answer to. Jay Abraham calls them "Profit Activators". It's three simple things an online business needs to be able to do to make the best profits.
- It should be able to get more customers
- Do repeat business with those customers
- Sell higher-ticket products to increase revenue
These four models have all three of the Profit Activators.
1) Affiliate Marketing
Okay, the first model is affiliate marketing. I'd say most of you know what this is, but let me refresh your memory and maybe go a little beyond what you're thinking. Simply put, affiliate marketing is selling someone else's product or service and in return, for each sale you'll receive a commission. This is a great platform and I'd say most of the real successful people in the online marketing began with this model. There are lots of great reasons you should.
- no overhead
- you don't have to have your own product
- you don't have to handle shipping
- you don't need to worry about support
These make a good argument for affiliate marketing. But, to truly do good in this field, you need to take it farther. You need to make sure you concentrate on high ticket items. Why?
First of all, it takes the same amount of time and work to promote a low ticket item as it does a high ticket item. With that said, say you're goal is to start out making $1.000 a month and your product you're promoting is a $20 item and you make 50% commission. You'll have to make 100 sales that month to make your $1000. What if your product was a $200 item at 50%? All of a sudden, you only need to make 10 sales. What about a $1.000 or $2,000 item at 50%? Only two sales or one sale! Get the picture.
There's some other things to look for when choosing your affiliate product to promote and I'll cover that in an upcoming blog.
2) Digital Products
Did you know that self-education is becoming the new norm? The way of formal schooling, taking 4, 6, 10 years to learn a profession then spending your whole life paying off the student loan is coming to an end. More and more people are craving resources that they can teach themselves ways to bring in an income. Forbes recently published that the E-learning business, the knowledge business, where people are taking it upon themselves to go and consume the knowledge they want, is going to be a $320 billion dollar industry by 2025.
There's plenty of profits to go around people. You just need to take action. You can create a course, an Ebook, training someone in an area you are familiar with. And it doesn't have to be origninal. There is no copyright on knowledge. Just like in school days and you had to do a report, you read up on the subject and put it down in your own words, you couldn't copy, but you could express the subject in your own words. There are many books and courses out there in all kinds of subjects that are compilations of ideas from various sources and books and courses and they are re-introduced in the authors own words. People will pay for courses or books that saves them having to go and do all the research. And if you use a line or someone's idea, give credit where credit is due. This is just one area of a digital product.
You may think you don't know enough yet to write a course of any kind. BS. You don't have to be a guru. You just have to know one step more than the people behind you and believe me, there are thousands upon thousands behind you. Just being here reading this puts you ahead of about 90% of the online marketer want-to-be's. As long as you can train someone to get to the level you are, whatever level that is, you are giving value. True value. You're helping them avoid your mistakes, giving them a roadmap, so to speak. That is valuable to someone that truly wants to learn. Don't fall short giving yourself credit.
3) Coaching and Consulting
Once you've progressed and gained experience, you can take the idea from above and go one step farther than creating a book or couse. You can start coaching others to help them succeed at what you already have.
One thing that makes this part of the top four models is that there is no overhead. You don't need an office. You don't need employees. You can coach or consult from anywhere. Your home, from anywhere in the world, from your laptop, from your phone. You can go one-on-one using Skype, or Zoom or Facebook even has one-on-one chat now. Very little overhead.
And what's even better, you can charge high ticket prices the more you progress with the knowledge that your teaching or the knowledge of someone you're partnered with. Plus, not only can you do one-on-one coaching, you can do group coaching with Zoom or other platforms and train ten or 20 at a time, multiplying your income quickly.
4) Events and Masterminds
Here, you can charge high ticket prices because why? Because this is where you are most intimate with the ones you're training. They're actually coming to you and learning from you in person. Feeding off of each other, getting new ideas, inspirations, etc they can't get as much from a book, or course or even on the phone or Zoom call. And, with these two, you're having anywhere from 20 to 30 in a Mastermind meeting to hundreds or thousands to a big event. This should be your ultimate goal. It is mine.
So, there you have the top four online business models. And remember the value ladder we talked about in an earlier blog? These four models work nicely up that ladder. They even work nicely in the same sales funnel as a small value ladder as upsells and One Time Only offers, etc.
In my next blog, we will go over just what is affiliate marketing and how does it work. I still get questions about it so I'll try to explain it simply for those who still don't have a grasp on it. Then I'll follow with a blog giving you the five things to know before choosing an opportunity.
I know I went a little long on this one but I hope this blog helps some of you. If it helps just one person, I've done what I set out to do. Give someone some value.
Until next time...Take Action!
For more help and support on your journey, join my private FB group for affiliate marketers.