What online business gives you the best chance at quickly turning your energy, enthusiasm and desire to escape your current job into reality?Most often the choices we struggle with are between:
1. Creating and Marketing Information Products (ebooks, reports, paid newsletters, audio and video products)
2. Affiliate marketing where you earn a commission on referrals
3. Adsense and other paid advertising modelsNow, it’s certainly common for many people considering online business opportunities to have not considered these questions yet.
Instead, questions such as what website should they launch, what business opportunity should they join, which product they should promote or choose between marketing tactics seem to dominate their time.
If you fall into this category then its critical that you take one step back in an effort to make many steps forward by considering the three questions listed above.
Now, before the thought crosses your mind, of course it is possible to integrate all three of these business models into your online business, and in fact that is the business model of many successful online businesses, including our own.
However, it is critical that you select one business model as your primary focus as you build your own online business.
How do you reach a decision on which model is best for you?
Here are 3 important factors that will help you decide on the best business model for your own internet business:
1. How much control do you want to have? If you’re like most entrepreneurs, control over your ideas, creativity, energy and future is a primary, if not THE most important, factor in making choices about your future. When you consider different online business models and strategies, ask yourself the question, “How much control do I really have over the various aspects of a particular online business” Ownership and control applies to product and distribution, marketing, cashing out, relationships and licensing opportunities, and your work environment. Of course, equally important in assessing control is to perform a quick risk assessment by listing the risks associated with areas where you may lose control. As an example, if you resell someone else’s product, what happens if they discontinue the product, no longer allow you to sell it or reduce your profits?
2. What are your strengths? Even though playing to your strengths is a commonly understood concept, when it comes to analyzing online business opportunities, somehow common sense gets thrown out the window. We like to give all of our clients a life and careers skills assessment as a critical step to making a success of their online business. Do you have strengths in research, writing, speaking, motivating other people, managing people, or a focus on technical skill-set? You want any business option you consider to play into your strengths, that way you have a built-in advantage over your competition.
3. What is your ultimate goal? Your goals factor heavily in your online business opportunity selection. Some internet businesses lend themselves to a quick start, part-time hobby income while others take a little longer to accelerate, but have the opportunity to go well beyond your current income. Unfortunately, too many people pick a model based on immediate income potential ignoring the fact that they can’t seem to move beyond a hobby return on their effort. You want to keep in mind that most traditional businesses are tracked through a market valuation estimate. At the basis of this valuation is the assumption that company X is worth Y if it were to be sold on the open market. You should be thinking about your online business the same way, even if your intention is not to sell it.
Its worth repeating, you can incorporate all 3 business models in your online business over time, but by choosing one model to lead with gives you an added advantage of focus allowing you to ramp up your profits faster with greater ease.
For example, choosing to produce your own course, workbook, ebook or information product in your chosen market is a good choice fulfilling the requirements of ultimate control (through product ownership), lending toward your strengths (many different formats of products depending on your strengths) and allows you to build equity in your business which means it is actually worth something substantial on the market.
Now, once you launch your online business offering your information products, you can naturally add related affiliate marketing and strategically placed advertising as additional ways of monetizing your traffic.
Whatever your choice, be sure to consciously consider your online business model, it is the one missing step that leads to the most disappointing for those choosing internet marketing as their vehicle to wealth today.