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2 Successful Internet Business Models

basketful_of_eggs

Are all your eggs in one basket, or in many baskets?

In the previous article we covered 21 different online business models. Here we’re going to cover two potentially successful internet business models you can be in. These two are:

1) Limited products or services, sometimes only one.

2) Going deep and wide with products and services.

We’re going to go into lots of detail on the benefits and drawbacks of each of these methods of marketing and business building.

Limited Products or Services Business Model

This method has you focus on selling one thing. It still counts if you have one main front end offers and a couple on the back end. But the keyword is focus.

The Benefits

When you have one product you’re trying to sell you can devote 100% of your efforts, meaning your time, energy and money on marketing the product more. This often means you’ll tap into multiple sales channels, and be able to tweak ads and methods as needed to maximize your returns.

Along with that you’re going to be able to test much better. Not only is it easier to setup testing when you have a single funnel, but you can figure out your conversions at every step of the way.

The Drawbacks

If you only have one or a few offerings, your best customers will have it all, and you’ll have nothing left to sell them. Basically you leave money on the table doing this. It is easier to sell to a customer then to convert a new prospect into a customer.

You best make sure your product is really good if you’re going this route. If you spend lots of effort marketing a product that isn’t great it just won’t take off. You can always update it too so this shouldn’t be a big issue that stops you.

In order for this method to work you need a product that sells to a big population. It needs to have some mass appeal, or else you can literally run out of customers.

How to Make It Even Better

It’s great to spend all your efforts on bringing people into your funnel to sell one product. But then offer more after that. Upsells or otherwise having some backend can easily double your profits or even more. You don’t need a whole lot but just a few select things will do it.

Also while you do this you’re going to build a big customer and prospect list. Even if you choose not to create a bunch of products you can do affiliates sales. It’s almost like having a backend, without doing almost any work.

Questions to Ask Yourself

“How can I make this offer convert even better?
“Where else can I find people that this offer would be perfect for?”

An Example

One of the best examples of this is Mike Geary with his Truth About Abs. These days he has a backend but early on I believe he was doing 7 figures off this one book alone without selling anything else.

His ebook has mass appeal (who doesn’t want 6 pack abs?). He truly optimized the funnel and focused everything on making more sales.

Going Deep and Wide Internet Business Model

This really is the opposite approach, where you make as many offerings as possible, the idea being to cover every aspect of everything that your market could want.

The Benefits

As already mentioned, it’s easier to sell to someone who is already a customer (assuming they like your stuff). This model capitalizes on this. If someone buys one thing on a topic, they’re likely to buy much more, so why not be the one to sell it to them.

As you build up your customers and prospects every time you offer something new it will mean more money coming in pretty much guaranteed. Even if one product doesn’t perform well, you can have hundreds more.

With this you can target tiny niches and still make money. While you may not be able to retire off any one product alone, they all begin to add up. The more you release the more you make.

The Drawbacks

If you’re creating lots of products that takes time. Even if you’re fast at it, this is where your time and energy is being spent. It’s going to be time you don’t spend on marketing.

You can get caught in the trap of continually releasing new stuff because that’s how money comes in, and not working on new advertising, marketing, and making sure you’re offers are converting.

Speaking of that, while it’s still possible, it’s hard to test and track everything if you go this route. In some cases you may not even have enough data points to make it work.

How to Make It Even Better

Although you may want to go deep and wide it’s important to spend time with a funnel in the beginning to get people in. Test and tweak this so you have a steady stream of new prospects and customers. Use your best and most widely appealing offers to get started. With advertising as an example you know that if you can break even on the front end, you’ll make a killing on the backend.

Once you have this then you can go deep into the niche making as many offers as possible.

Don’t just do one off launches and move on. Set them up so that you can continually make solid sales from these things.

Questions to Ask Yourself

“What else could I offer that’s related that they’d want?”
“How can I sell more to the same people?”

An Example

Me. It would be difficult to count all the products I have these days. Some may only make a few sales a month but it all adds up. I started with one hand balancing book, then I added several more. From there I went into related areas like tumbling, parkour, strength training with bodyweight exercises and more. After having success there I’ve started offering products and coaching in the online business space, that I knew some of the same customers would want.

Specifically now I’m working more on the “how to make it even better” part for myself in this model. If you’re just starting out, since you’re not going to immediately have a diverse product line, you should start with the first model. Once that is running the choice is yours.

Two ways you can look at these different business models which apply to more than just the internet (think Apple store vs. Walmart) is just a focus on the front end versus a focus on the backend. You can also think of them as focused or varied.

Which of these successful internet business models are you following (or planning to follow) with your business? What small changes might you make based on this article that would help you become even more effective and make more money?

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21 Different Types of Online Businesses

How many different business models can be done online? Any one or more of the following can be grown into a large business.

When you are planning on creating a business, it is helpful to look at your model for monetizing it. After all the game of business is to bring in money. That is how the online business models listed here are broken up, in methods and ways of bringing in money.

Another useful thing to do would be to look at models for gaining traffic, but that will have to be covered another time. Without traffic you can’t monetize, but also there are lots of places that get tons of traffic without pulling in money. Both are important.

If you’re not looking at starting a business this list can still be helpful to you. How? You might find something that could be added to your current business that could increase revenues.

1 – Info-products

This is my personal favorite and where I make the most of my money online. What you do is package any form of how-to information and then sell that package. This can be in many forms the two main branches are below.

2 – Digital goods

Digital goods are all online. The great part about this is that there is no hassles with shipping or returned goods. Also many people want instant gratification which immediate downloads give them.

3 – Hard copy goods

Info-products can also be sold as hard goods. While everyone seems to be moving away from this, there are still many people that prefer hard goods over digital, especially when it comes to books (although the kindle and related readers are now swaying that another direction too). One advantage here is that they can often be sold for more then digital goods.

4 – Selling on Amazon

Amazon has basically become the largest retailer of just about everything online. If you’re doing info-products you’d be wise to have them here at least in some form. I have a whole Amazon publishing course for books in hard copy and on the Kindle available here.

5 – Selling on eBay

eBay is another huge sales channel. There have been many six figure businesses built through eBay alone. It is a place where buyers are looking to buy.

6 – Buying and Reselling Wholesale Goods

Select your niche then find a company to buy wholesale goods from. Create a website or use some of the big sales channels online to sell these products. Your profit will be the sales price minus what you paid for the item and any expenses you had.

7 – Dropshipping products

Dropshipping involves you selling someone else’s goods. But instead of having to stock and ship things yourself, you’ll simply send them the order information and they take care of it. Since selling is the most important aspect of a business, a lot of money can be made here. Although the profits are less then buying wholesale most of the time, not having to deal with shipping and stocking is often worth it.

8 – Affiliate Sales

Wholesale is really hands on. Dropshipping is less so. Affiliate sales are even easier then that. You don’t need to process orders yourself, just direct the traffic. They’ll take orders, do customer service, deliver the products and everything. You gain a commission just for sending the customer over.

9 – CPA

Affiliate sales are one type of CPA offer, which stands for cost-per-action. That is you get a commission when someone buys. But that’s not the only way you can earn. Often times with bigger companies, especially when you join a CPA network, you can find offers where you’ll be paid for newsletter signups, or even something as simple as a zip code and a click of a button.

10 – Evergreen Sales

The common way to sell is to have your products always available. The advantage of this is that you will continually make money as new sales come in regularly.

11 – Product Launch Method

The Product Launch Formula as created by Jeff Walker has certainly changed the landscape of internet sales, especially info-products. Instead of just releasing a product, you turn the whole launch into an event. And often times the product is only available for a limited time. The scarcity plays in your favor for the time, and can result in huge paydays in a short amount of time.

12 – Membership

What is better than selling a product? Selling it once and getting paid over and over and over again for it. Although not as easy to setup and run and some people make them sound, any version of a membership where you get paid over and over for the life of the customer until they cancel is very attractive. This is often done with info-products but many hard goods as well.

13 – Coaching/Consulting

High end coaching is often added on top of many of the other business models. If people like your information then what is better then getting help from you one on one (or if you’re super popular from your trained coaches). A related area is creating Mastermind groups where you coach a group of people and they also get the benefits of help from the whole network. Similar to coaching, in certain fields a business may bring you in as a consultant. I have my own coaching offer here on the website and it’s by far the best value thing I offer.

14 – Advertising

There are websites that don’t sell a thing, but make their money off of advertising. Even popular youtube videos can make money this way. You bring traffic to a place, especially traffic that keeps returning, and you either work on getting them to click your ads, or just hope that they do. A common form of this you’ll see on websites is Google’s Adsense. With different forms of advertising you can make money from the clicks or just impressions.

15 – Service Business

If you offer any type of service then you can get all your traffic and leads from online sources. It’s like selling a product except that then the work comes after you’ve done so.

16 – Software

Software is different then info-products or hard goods. Usually it is something that will help someone to do something or at least entertain them. There are all sorts of models for this, the most popular being a limited trail or freeware version, that then tries to sell them on buying the whole thing. It can also include the services that people will need to run their own online business like hosting or a shopping cart.

17 – Apps

If software and games are old-school, then apps for the iPhone, iPad, Android and related tablets and smart phones are new. Lots can be made if your app becomes popular. You can also work on selling apps to other people and businesses.

18 – Building to Sell

I wouldn’t recommend going this route. It will be a long time before you see money, if it ever happens. Sure you can hope to be bought out for millions of dollars. The social networks that do that tend to be big and cost a lot of investor money from the beginning. While building something to sell it later on is good, I would find some method of monetizing it, and making it profitable in the meantime. After all, at the very least that would make it more attractive to would-be buyers.

19 – Capturing Leads to Sell

If you’re great at generating traffic and converting them into leads those leads by themselves can be sold. This is usually done with businesses that can make a lot of money off of each lead, like real estate or insurance for example.

20 – Flipping Websites

Create a website using any of the before establish business models then sell it on a website like Flippa. Or buy a site that is already started, make some tweaks to it to make it even better, and then re-sell it at a higher price. Websites and online business are like real estate. And if you’re an expert or even halfway decent online a lot of money can be made this way.

21 – Online Leads to Offline Sales

Just because we’ve focused online here doesn’t mean you have to. In fact, only selling online may just be leaving money on the table. It will depend on your business, but driving traffic from online into a brick and mortar store may be exactly what you’re looking to do.

While this is a large list, it is by no means complete. Feel free to add ideas in the comments below.

In my next article I’m going to go deeper on two different structures your business can follow, that would apply to almost everything we‘ve covered here.

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3 Important Social Media Tactics

Facebook Like BoxI resisted it for a long, long time…social media.

I still am not a huge fan, nor a social media expert, but I’m starting to see some results from it.

A couple years back I created a facebook account and twitter just to have them, though I never really used them. But this year I’ve been working to see some real results from Facebook and I want to share three important ideas and tactics I’ve learned along the way.

Important Social Media Point #1

This is BIG. Instead of being spread out on fifty social media sites (Pinterest, Twitter, Google Plus, Instagram, and hundreds more I can’t even name) I’ve chosen to do just one…and do it well.

By focusing on one I can start to get some great results there. When that is doing very well, I may choose to move onto the next thing.

Now if social media is your thing, and for some people it is, like Gary Vaynerchuk, then feel free to go all out. But if you’re like me I’d suggest mastering one media at a time.

Facebook is huge and a dominant player so I figured that was a good place to start.

Important Social Media Point #2

The second point is to integrate with your main media.

My websites starting being based in html and with email newsletters. Then they transferred to the blog format I use today. That’s still how my business is run for the most part.

I’m not going to abandon my sites and just base what I do off Facebook. Instead I want to integrate the two.

There are many ways you can do this. From like buttons to facebook commenting.

In this video I show you how to put up a Facebook Social Widget so your blog is always connected to your facebook profile or page.

There are many other ways you can integrate as well like including a link to your social media sites in your emails and more.

Important Social Media Point #3

Now the truth is I do have twitter and regular updates go out on that, but I never touch it. How is that?

Automation!

My facebook updates go out on twitter automatically. This is actually very easy to setup within your facebook and twitter accounts.

The same can be done with most other social media too.

It can also be run the other way where your twitter goes to facebook. Some people like this option more.

Now there are those that say twitter and facebook have different languages (things like #hashtags and of course the 140 character limit on twitter change how you communicate, compared to facebook).

Once again if you want to do it all, then do them individually. But if you want to make your life easier, choose one platform and cross-publish automatically.

You’ll also see every blog post go out immediately to Facebook and then from there to twitter.

What’s Next?

As I mentioned I’m working a lot more with Facebook then I’ve mentioned right here.

There’s a lot more you need to do to grow real fans like being interactive and publishing more then your automatic content.

But these three points will give you a good base.

I’m starting to test out much more, and seeing what gets results and what does not.

There’s lots of incredible things you can do like targeted ads with Facebook. You do those right and you can watch you likes and even sales skyrocket.

Also with the search engines giving so much weight to social media links these days, and probably even more in the future, if I want to stay in that game I need to join this one.

I’ll be sharing more on this in the future. And won’t you do me a favor and like my page over in the new box if you haven’t already? 🙂

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Founder Fly Review

I’ve been following Ryan Lee for a long time. First his fitness information and now his business building info.

He continually pushes the boundaries and his new membership site Founder Fly is no different.

It’s a tremendous amount of content and more for a tiny price. My video Founder Fly review is below so you can see inside.

Click here to read more and sign up.

I’ve only began to dig into all the videos and content. I really hope the masterminds become successful. For the monthly price of $9.95 you’re going to get so much.

This has to be one of the easiest decisions to make a purchase if you’re looking to start an online business or add to an already successful one.

I hope you’ve enjoyed this short Founder Fly review and I sincerely hope you sign up. If you have any specific questions be sure to ask me in the comments below and I’ll answer as fast as I can.

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Make Money Publishing On Kindle

Amazon KindleThis article is all about making money publishing on kindle. Can you do it? Absolutely and in a minute I’m going to show you proof.

I got started with Kindle as a simple test. When you’re in the internet marketing space you’re always hearing about what other people are doing and you have to try out new things. Some of them fail. But some work.

In fact that’s how I got started with publishing books on Amazon in the first place using Createspace. I decided to throw a couple books up on there. They sold. I made a few dollars so I continued to do it. As it grew I gained more profit and have worked on expanding what I was doing there.

Kindle was the same thing. I don’t even own a kindle and I much prefer physical books. But I’m not the market. So I took those …click to read more

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Physical vs. Digital Products

blank book

Your physical or digital info product?

The physical vs. digital product debate is very important when it comes to your information marketing business. We sell information, but how is that delivered?

There are a number of ways you can deliver your product. Before we talk about physical vs. digital we need to talk about the main types of product.

There are text based products.

There are audio based products.

And there are video based products.

These are the mainstays for the information marketing business. Sure there are other things like mind maps, but that would fit into the text based area.

Another area is …click to read more

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Make Money with Public Domain

Part of me doesn’t want to write this article. I make money with public domain books. A good amount of money. In fact, I don’t know if I ever would have started my business without it. It certainly wouldn’t have the success it’s had without it. So that part of me is worried Ill be creating more competition for myself.

But the truth is the public domain works are out there, literally free for the taking. I have 6 different products that regularly sell (some better then others) that are either completely based on public domain works or at least in part.

Then I have a growing side business in releasing many, many more …click to read more

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Start Your Own Information Marketing Business

infoDo you want to start your own information marketing business? It’s probably not so much that, but you wan the benefits this kind of business can bring.

There are promises of big wealth and not having to work at all once it’s setup…Well, I’m going to tell you the truth. While it is possible, by just about anyone, it isn’t easy, it isn’t fast, and while there is some degree of automation, it’s far from complete, depending on what you do.

Still when you start your own information marketing business and get it up and running you’ll likely go through a number of different stages. These too depend on what you’re going after and what you’re doing.

If Dan Kennedy started a new info-business today he wouldn’t have to go through these stages, because of his assets in place he could immediately make a huge success.

But for the average person they’re looking to …click to read more.

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Money DOES Grow On Trees

Money TreeWhen you were a child did your parents ever tell you “Money doesn’t grow on trees”? I heard it many, many times. Thanks for the negative conditioning 🙁

At this point in my life I believe they are wrong. Money DOES grow on trees and in this article I aim to give you a few examples.

First of all, and this one was obvious to me even as a child, money is printed on paper (at least a lot of it is). What is paper made of? I’m sure they have a wide variety of chemicals, and possibly things I don‘t know about, but the vast majority of it still comes from trees, or perhaps recycled paper that once was a tree. Yes, it’s a logical jump but it’s true and it makes sense doesn’t it?

The other day I was at the …click to read more.

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Online Product Surveys

check for surveysIn this article I want to give you the best ideas on online product surveys, that is how to collect data from people, that you can then turn around and make money off of. As always in these articles I’ll be showing you real examples from my real business, not some theory or just non-usable information.

To start with you need a way to do a survey. This requires two things.

1) A way to survey people
2) People to survey

Let’s tackle number one first. I love Survey Monkey. I have always used them for my surveys and probably always will. They’re free to …Click here to read more.

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