How To Choose Your Internet Business Models

internet business modelsLearning about internet business models and applying one that works are essential for running a successful online business.

Some of the internet business start-ups failed because their business models didn’t work. They were unable to generate enough revenues to be able to stay in business.

For that reason, you’ll want to check your business model regularly. It includes reviewing how the current model generates sales and spotting opportunities for implementing a better revenue model as well.

If you’re looking for the right business model for your business, learn about the three business models below. Take a look at how they can help create a low risk and profitable online business.

Major Internet Business Models

There are three major internet business models that you can build a business around:

1. Sell a physical or digital good

There are many ways to goods. Some businesses create a mini site with just a few pages and then direct paid traffic from search engines or social media to their sales page.

Some others make significant content pages to get free search engine traffic and then direct the visitors to their sales page.

Both of the sellers may handle all the sales processes by themselves, or take orders from their sites and outsource the order fulfillment to a dropship business partner.

2. Sell a service

Offering a service is another way to do business online, if you have expertise in a certain field. Even if your service can only be delivered offline you can still reach a much wider audience. All you need to do is to differentiate your service.

For example, you can build an informative and entertaining website with an emphasis on the uniqueness of your service offerings. Or you may want to offer a contract service to handle your client’s project as a whole and not as separated tasks.

The goal is to make the clients hire you and not your competition.

3. Market affiliate programs

This model may look easier than the other two models. Primarily you don’t need to provide a product or a service to sell.

But as a reseller of other people’s product you still have to market it. And one way to do this is to build a website that caters a specific niche market.

As an affiliate business person you’ll have to build an expertise on that particular niche. Once you gain trust from your visitors you can recommend them to your affiliated merchants. If you can reach this stage, you’ll be able to generate revenues from different sources.

Choosing The Best Business Model

Now it’s time to evaluate your options. You want to take a look at your core strengths and how far you want to go in your business.

For example, you have an offline business that sell goods and you want to get the business online. What you’re actually doing is open a new sales outlet with your web presence, to reach online prospects.

But it can go further than that. You can add more product lines to your current items. If you source the goods from wholesalers, find out whether they offer fulfillment services. Or if you don’t want the hassles of order handling and shipping, just have a drop shipping company to do it for you.

Let’s say you’re starting a business that offers a professional or a consumer service covering your local area.

Do you prefer to provide a service to local market or online audience? The beauty of this model is that your income is not limited by your time and your ability to deliver the service.

You can sell digital goods to visitors from different localities. It may also give you additional online advertising revenue through relevant affiliate programs and contextual ads.


Overall, there are at least three internet business models to create multiple streams of online revenue. If you want to integrate the business model with your strategy, just take a look the tips for aligning your business models with your strategy.

But, no matter what business model you use, make sure you leverage your strengths and go into the right niche market. These are keys for building close relationship with customers and securing long-term profitability for your business.

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How To Choose Your Internet Business Models was last modified: November 23rd, 2016 by Paul Sarwana