Choosing A Business Model For Your Online Business (c)Copyright 2004 by Leigh Butler http://www.onlinebusinessresources.netWhether you already have an online business or would like to start one, developing a business model is a must. A business model spells out how you are going to generate revenue from your business.
If you really want to succeed online, then your must determine how you are going to generate revenue and make profit. Otherwise you won't be in business very long.
According to
small business administration, about 50% of small businesses fail each year, and 95% of small businesses fail within
first 5 years. I'm sure you don't want to be included in those statistics.
That's why if you haven't done it already, you should choose a business model, now. Ask yourself, how will my online business generate revenue?
Here are 3 business models frequently used for online businesses.
1)The Ecommerce Model
Revenue is generated by selling goods or services over
Internet. Examples of goods and services include products such as ebooks or candles and service such as consulting or virtual assistance. Selling products from affiliate programs would also be considered ecommerce. This is not an exhaustive list but it should give you an idea of what ecommerce is.
2) Content-Rich Model
Revenue is generated by selling advertising on your site or in your ezine. Lots of quality content is provided to visitors/subscribers to attract them and to keep them returning to your site or subscribed to your ezine.