What Is And Different Models Of Internet Marketing?

In my last article I shared about myself and how I got started in internet marketing. Today here I will be explaining what internet marketing is and different models related to that even though all these can be run with just your PC, laptop, iPhone and internet WiFi connection.

At first glance to most people, it is about selling things and making money online. But when I asked them further on what else they know, most give me a blank look and have no idea to answer further.

Because in my country Singapore – especially despite it being developed with high home ownership and infrastructure, many people – in particular baby boomers and senior generations – are very new to technology and preferred to be in their comfort zone of learning through printed books, classrooms and networking events since the last 2 provided them with more personal touch as compared to learning on their own online despite the vast information they can find and learnt from Google and YouTube.

What I can say is though internet marketing gives you the complete flexibilty, it also has different models underneath just like traditional businesses which can be run in cafes, factories, offices and shops. Under which I will highlight, explain and highlighted the pros and cons.

1. Affiliate Marketing

This is by far the most basic and what I feel everyone should start off if they are new and eager to make their first dollar online like me 10 years ago.

By definition, it is promoting other people’s products for share of commissions.

They can be digital or information products as in e-learning programs comprising of e-books, videos and software in membership sites as well as physical consumer goods that people like you and me buy everyday from shops and e-commerce stores.

They can also be services like autoresponder or certified email promo and service provider, domain registry and web hosting packages.

As to where and how to promote and get paid, you can sign up at online marketplaces and networks like Amazon, ClickBank, Market Health, JVZoo, Warrior Plus and many others you can find through diligent Google and YouTube research.

2. Info Product Creation

This is where you create your own info product or e-learning courses.

As in e-book, videos, software and other resources you can compile into membership sites before selling as your own program and even coaching.

The beauty of this is not only you have full ownership in changing and promoting, you can recruit other people to promote for you as affiliates.

For this, I recommend Optimize Press and WordPress as best combined platforms even though you can create HTML pages as well using a free Kompozer tool.

3. E-Commerce And Dropshipping

Besides info, you can promote physical goods as well.

Anything you can buy from shops and stores can be marketed as well on the web.

Clothing, computers, electronics, furniture, home appliances, toys and video games just to name the most popular choices.

4. Local Businesses Consulting

If you are good in either 2 or all 3 I mentioned above, you can offer your services to small and medium enterprises who require professional looking websites, social media channels and advertising for maximum exposure, leads and sales.

Should the respective bosses saw and recognized the value of what you are providing, they do not mind paying you more so long as you continued to help them generate more customers, sales and revenues.

5. Mobile Apps Design

Besides websites, social media channels and advertising, mobile apps also played an important role in today’s economy.

Because nowadays most people preferred to surf websites through their iPhones and also instead of just searching through Google for websites, they can download and proceed straight to the apps to access whatever information they need and want.

If you can also excel in this, you can also provide as part of your marketing package to companies, restaurants and shops.

6. E-Book Publishing

Suppose you do not like to talk to people face-to-face, you may consider this along with affiiiate marketing and info product creation instead of approaching local bosses.

All you need is a Microsoft Word or Open Office and type in what you know a lot about and can help others before publishing into PDF through e-book directories or to Amazon Kindle Store.

7. Freelance Jobs

You can offer to be employed by internet marketers for things they do not want to do and prefer to outsource.

Like writing articles, designing graphics and producing videos.

But unless you are into software and app development, your fixed pay will be low from the start.

8. Selling Domains And Websites

This is by far the most lucrative of the 8 models I highlighted.

As all you need is to sell keyword-rich or impressive domains and profitable websites to ready buyers on sites like Flippa and Empire Flippers.

Whichever model you choose, you can run from anywhere anytime you want be it so long as you have computer and internet connection. That is the real beauty of internet marketing!

Internet Marketing–Various Online Business Models

There are many different methods of making an online income. In reality, they are all very similar to the business models you see in the offline world. You can sell goods and services, you can produce products for wholesale distribution, you can sell information, you can sell tools to help people in their own business model, you can sell advertising, or you can provide consulting services.

Do you see a common theme in all of these models? That’s right—to have a viable business, you have to literally provide some kind of a good or service that adds value to someone or something, either online or offline.

I think that when people think about going into business offline, they look for a need in their community and try to fill it. Online, they tend to think, OK, what can I do to make a lot of money? There is a huge difference between the two. Online, I think people really believe that if they put up a web site and sell something, the money will just come in. It is simply not an accurate thought, but I think that just about everybody has thought it at one time or another.

So to create an income online, you must meet a need, just like you would in the offline world. You meet that need by producing, developing, distributing, or brokering a product or service. That is just about it. You will never earn long-term viable income from schemes and scams, no more than a bank robber will earn a long-term viable income robbing banks.

Here are some of the basic business models you can find on the web:

1) Production model. This is a company that produces value by transforming one good into another for online consumption. An offline equivalent would be a shoemaker or a gold mining firm. The online equivalent might be the development of new software or search technology, or the development of online technology that aids in the execution of some of the other online business models.

2) Merchant model. This is a company that specializes in the sales and organizes the delivery of goods and services to an online market. This can be compared to the offline equivalent of a merchant. Some examples online are bookstores, food stores, catalog web sites and other goods and services sales organizations.

3) Advertising model. This is a company that specializes in providing the service of advertising or promotion to other online firms, for example, those firms that operate using the production or merchant model. This model charges these companies a fee to advertise the goods and services provided by the other online business models.

4) Affiliate model. This is a model that resembles the advertising model, but is different in that it focuses on recruiting many individual companies or individuals to do the advertising in a systematic and piecemeal way. Whereas in the advertising model, the advertiser is paid based on the amount of advertising distributed, the affiliate model pays the affiliate marketer when a sale or step in a sales process is completed. This step may be an online visit, a request for more information, or the actual sale itself.

5) Brokerage model. This model is one that compensates the broker for bringing together buyer and seller, usually in the form of a personal, one-on-one introduction. An example of this might be an online auction or a processor of online payments.

6) Information model. The information business model is one in which the company provides information to a specific field or niche market. This information would typically instruct another company or individual on an easier or more efficient method of performing a task, or actually teach the task or the implementation of the task.

7) Subscription model. This is an overlay model, one which is generally incorporated into one of the other models. This model would provide a good or service over a protracted period of time, and provide a guaranteed and generally consistent level of that good or service for a period of time, for example over the course of several months. Two products that fit into this subscription model might be that of online monthly video rentals or services like food or medicines which are delivered on a regular basis by commitment.

8) Utility model. This model operates in much the same way as an offline utility might operate, offering a product that has, through its use, become a necessity and is often tightly controlled. An example of an online utility model would be that of internet access or telephone service via an online network.

9) Community model. This is a business model that focuses on bringing together individuals or companies of similar interest for the purpose of developing relationships and sharing information. Two examples of the community web phenomenon are the recently created Myspace and the older online forum.

When deciding to go into business online, it is important to determine which of these business models most interest you. To which of these models are you best suited? In which of these models are you most likely to be considered an expert, or in which would you have the willingness to become an expert?