If you have stuck with me thus far you have probably made the decision that you definitely are ready to begin the steps necessary to start earning an online income.
The time has come now to explore several different types of home business models.
First off, this is not an all-inclusive list. There are as many ways to earn money online as there are creative minds to make it happen.
However, this list does include the most of the popular home business models.
Look through these and then, if you see one that interests you, do your own due diligence… research that business model thoroughly. Understand that every business model has strengths and weaknesses. You need to find one that matches your own skills and experience
Running A Service Oriented Business Out Of Your Home
This business model closely resembles conventional “brick and mortar” business… it is just run out of your home instead of from an office or other building. Service oriented businesses might include a hair salon or a heat and air business.
Pro’s: Business owners who have learned a trade can put those skills to use and be their own boss.
Con’s: Often requires a large investment in tools and materials. Also might require additions or remodeling to the home to accommodate the business needs.
The business owner might need to acquire licenses. Business “zoning” laws may come into play in order to operate the business from your home. In the end, you are basically still working a job every day… if you don’t work, you don’t get paid.
Selling Products Via Online Auctions or Online Classified Sites
Who needs a store? If you can buy low and sell high, your marketplace covers the entire globe. You can sell and ship products yourself, or find drop shippers to deliver your products for you. Some business owners specialize in certain product niches, such as musical instruments, electronics, or antiques.
Pro’s: Does not require a lot of start-up capital, especially for drop shippers, as you never physically handle the products.
Con’s: Can be very competitive with low profit margins, especially for drop shippers. Very time consuming if you ship yourself. Where will you store your product inventory? Again, it is much like having a job in many respects. If you aren’t buying and selling consistently, there is no income.
Information Product Marketing
This model takes on many forms. You may be creating information products like eBooks, audios, and videos that can be digitally delivered over the Internet. You may be creating information websites or blogs that are monetized by selling ad space or promoting other physical or digital products. You might be creating eBooks for the Amazon Kindle or other electronic readers or tablets. You may be selling individual products, or collections of products in a “membership” site.
Pro’s: There is never any inventory or products to ship. You create the products yourself or you can outsource it (think “ghost writer”). Once a product is created, you can sell it over and over again as long as there is a market for it.
Con’s: You must continuously come up with new, in-demand products to market. There are a lot of behind the scenes marketing and promotional costs involved. The competition in a “large-market” niche is intense.
Affiliate and Cost Per Action Marketing
These are both similar in the activities required to make money. Basically, the marketer promotes a product or service through product review websites, blogs, and/or online or offline advertising.
In affiliate marketing, you get paid when a customer purchases the product. CPA marketers get paid by providing leads to other business owners, whether they buy or not. Affiliate/CPA marketers may promote digital or physical products for other individual marketers, or for corporations like Walmart or Amazon.
Pro’s: You never have to develop or support a product yourself… all you do is come up with creative ways to promote.
Con’s: Again, the market is cut-throat… lots of competition in the most lucrative niches. Lots of rules must be followed in the CPA marketing model. You may have your business adversely affected or simply destroyed by changes in policy by Google or YouTube, or other search engine sites.
Network Marketing
A lot of companies have used this model to market a multitude of products and services. Instead of paying millions in advertising, they pay home business owners very well to build armies of distributors. Entrepreneurs who work hard and develop great communication skills can build huge teams.
Pro’s: Small investment capital needed to start up. Training and mentorship are usually included and a vital part of the business model. The marketing concept is quite simple… you sell products or services and recruit a team that does what you do… sell and recruit. By building a team, you leverage other people’s efforts and investments. As they build their businesses, they are also building yours. You can build a true walk-away residual income by building a strong team of leaders.
Con’s: Although the network marketing business model is simple, it is not easy. You must learn to recruit, teach, and motivate to succeed.
Before you go to the next step, take a few minutes to view this video by Robert Kyosaki, author of “Rich Dad, Poor Dad”.
If Robert Kiyosaki, best selling author and “world renowned” entrepreneur recommends the network marketing business model, I really think you need to take a very close look.
These are the most popular business models you will find in the home business industry. Again, you will probably find many more examples… some good, and some bad.
You need to take inventory of your knowledge and skills. If you are not good at writing, for example, it will be more difficult for you to build affiliate, CPA, or information product business model. If you are not interested in putting in the hours necessary to buy, sell, and ship products via eBay or Craigslist, pick another model. In order to provide an appliance repair business, you better know something about repairing appliances.
In short, there is probably a business model that fits everyone. Explore what is out there and evaluate them thoroughly before making a decision. Once you make your choice, stick to it and make it work.
The best business model for me is a combination of the Network Marketing and Affiliate Marketing models.
I have found a business opportunity that combines the best of both of these models… and I will discuss it further in section nine later.
I know that if I really commit myself consistently, I will soon build a team and build my own walk-away residual income. Work I do today will pay me for the rest of my life.
In the next step we will look at what type of product is best… just click the “NEXT” button below…
