An online business model allows you to generate profits cheaper and faster than a brick-and-mortar business. Since this model replicates traditional business services, you can potentially earn as much or more revenue. Instead of working at an office or a store, you’ll work remotely from a service-oriented website or an e-commerce platform.
Some successful business models are personal branding, e-commerce, and affiliate marketing.
An online personal brand business model is for professionals who want to profit from their expertise. This business model is becoming the new social norm as more people realize that they don’t have to work for a corporation to enjoy economic security. By finding their own clients online, they can become far more successful than spending years climbing up a corporate ladder.
Here are two examples:
Accountants deliver value to their clients by offering a full range of services, including tax preparation. They help clients resolve financial problems and make smart decisions about how to manage their money.
Outsourced accounting may very well become the next generation of mainstream accounting. It provides exactly the same services that a traditional accountant’s office would offer, with a few minor differences:
Outsourcing accounting work is on the rise. Virtual accountants often make more money than traditional accountants because they have lower office-related overhead. They usually charge each client a monthly retainer, ranging between $600 to $900, rather than charging hourly rates for each service.
The personal training industry is booming because people are becoming more health-conscious. This increases the demand for personal trainers, both traditional and virtual personal ones.
Traditional personal trainers show clients how to exercise at a gym. Virtual personal trainers send clients exercise routines on video that they can watch on their mobile device, tablet, or computer and workout at home or at their own gym.
Starting an e-commerce business in a popular retail niche eliminates the need for an expensive storefront and high overhead costs. Products purchased on an e-commerce website are drop shipped directly to customers' doorsteps.
Increasing competition in the retail market has led to high demand for this business model. While big-box retailers use a hybrid model, selling from a brick-and-mortar store as well as maintaining an e-commerce division, many individual entrepreneurs thrive with just a virtual store.
This model offers many economic advantages, such as reduced distribution costs, faster delivery, and better customer service. Online retailing can also send products to customers in rural areas and small towns.
Affiliate marketing is the simplest type of online business model. With this model, an affiliate marketer provides a link to a product on a site rather than sell their own merchandise. When someone clicks on it, they go to a merchant’s website. If a visitor buys something from a destination website, affiliate marketers make a commission. Examples of affiliate marketing sites include Amazon Associates and eBay Partners.
If you’re a solopreneur or an entrepreneur with a team who wants to launch a business, there are many advantages to using an online model, such as low risk, low startup costs, and the ability to operate around the clock.
To drive traffic to your website and turn visitors into customers, it’s advisable to use a combination of search engine optimization, pay-per-click advertising, email marketing, content marketing, and social media networking.