Would you love to learn legitimate online business model?
When you hear “Business Model”, what does it mean to you?
Not to worry, I will share everything you need to know about that here…
A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
That said. The online business models I have enlisted below will help you in determining what you should venture into as your niche is concerned.
So in a recent data published by Internet Retailer reveals that online sales totaled $304.91 billion in 2014, a 15.4% increase from 2013, and that an estimated $350 billion will be spent online at the end of this year (2015). This is in the US alone.
While we’re all obsessed with the Mark Zuckerbergs, Steph Obis, Jeff Bullas, Victor Basseys, Neil Patels, Larry Pages and Sergey Brins of this world, the fact remains that there are a lot of average people making a difference, and ensuring a comfortable living for themselves without necessarily having to create the next big thing.
If you are yet to start an online business, all data and indications show that now is the right time to start. If you’re confused about what to start, don’t worry, I’ll show you ten practical and proven business models, with relevant examples that you can implement immediately.
Top 10 Legitimate Online Business Model for Startups
Legitimate Online Business Model #1 – Creating a Weblog Business Model
One of the foremost ways of making money online is to actually start a business online by creating your own weblog and that’s why I have decided to make it the first on this list.
Trust me it is a very powerful and profitable online business model you will want to turn to if you want to become a thought leader in your field.
That said. You can create a business website, an entertainment website, or perhaps an education website. The list is actually endless.
So for instance, Deji Sobanjo blogs about developing your innate ability to teach others how to get from where they are to where they ought to be while John Obidi share about Social Media and how to leverage it to build a formidable business.
Now, that’s two different niches right there, and these two juggernauts have taken that niche and made it their own, hence the reason for the rise and success of their respective websites.
Internet Marketing Experts often advice, be it on their blogs or at conferences to ‘start your own blog’ if you dream of making huge money online.
They are very right and the good thing about creating a blog is that there’s the free option and there’s of course the paid option, which is the coolest.
You just have to choose from one, depending on your needs and what you’re trying to achieve with that blog.
Linda Ikeji is a brand that has become a household name in the African Diaspora as far as blogging is concerned.
Linda’s success online is evident that you can in fact make money online in Nigeria. That I believe tells why every young Nigerians today wants to start a blog of their own.
The iron lady blogs on a .blogspot.com extension, which is not so professional, yet has achieved remarkable success plying her trade in the entertainment blog industry.
It is believed that the Queen of Blogging in Africa makes a staggering #20m+ every month. Do I hear you ask how she’s able to pull that off?
N.B: And for the record, Linda now blogs on her own self-hosted domain here.
However, the side effect of a .blogspot extension is that you will not be taking serious by serious minded bloggers with a .com extension.
More so, you are limited in your money making strategies as potential clients will find it difficult to trust you, because they feel your outfit is not professional enough.
“But Linda is making huge money despite being on a .blogspot.com extension. So what is the hassle for?” You quizzed.
That’s Linda and you should remember that Linda was already a brand in the modelling outfit before she dabbles into blogging having discovered about the phenomenon from BellaNaija.
So you know it’s easy for her to pull traffic (paid traffic of course) to her blog and of course get direct advertisement for her blog from top juggernauts in different work industries.
That said. Creating a website or say a blog of means and quality is a sure-fire way of making money online.
You can start a self-hosted website doing anything (tech, fashion, motivation) for less than $4/month on any of the Web Hosting below;
Let me quickly share my success story with you being one who ported from a wordpress.com blog to my own self-hosted site, known then as Promotivator (dot) info
I blogged for three (3) solid years on Samuelkermis (dot) wordpress (dot) com and during those times, I never made a dime despite the huge number of traffics to my blog.
You might ask “why didn’t you make money despite the huge traffic your blog gets?”
Truth is my not making money with that blog is not because of the extension but because I didn’t think outside the box or maybe because I didn’t understand too well the technicalities of blog monetization.
I know now though that had my blog been on a .com extension, it would have attracted potential customers mailing me to do business with my blog, which might come as reviews or sponsored post or anything else.
However, the moment I made that port to a self-hosted wordpress site, things took a different turn and I made my first $100 in just 5months and then got my first sponsored post and later sold that blog to start other blogs. The experience has been pretty wonderful since then. 🙂
So you see how creating a self-hosted blog makes the difference in the quest of making money online with your online business?
Think, plan, buy the domain and create a website in the area of your passion.
Design the website
Pull quality/targeted traffic to it
Monetize it with Google Adsense, Affiliate Marketing, blog setup and the likes.
Getting started shouldn’t cost you more than a few $100 or so.
Recommended: Quick Tips of Online Contents That Go Viral
Legitimate Online Business Model #2 – The Freelancing Business Model
I’ve been online for over 5 years now, and one thing I’ve noticed among people who want to start online businesses is the desire for quick income.
I won’t necessarily sell you a “quick cash” dream, because most people who start with such mindset don’t last, but I can tell you that the fastest route to income online is to be a freelancer.
By becoming a freelancer, you can very well be making an income within a few days of starting your business. For instance, I made $36 in just 48hours. That’s a meager amount of money, yes I know but some people can’t even boast of making that in a month.
You need to first have a viable skill you can use to serve potential clients; perhaps you’re good at using Photoshop, drawing illustrations or cartoons, designing plugins and themes, or in my case writing and customizing websites, etc.
Then you could have a successful freelance business in no time.
I’m an example of someone who built a successful online business through freelance writing, and Daniel and Ali’s Freelance Writing Course is one of the best resources if you decide to go this route.
Have something to offer: The fact that quick income is possible by freelancing doesn’t mean it is effortless; you have to offer real value to clients, and you should forget about some “passive income” dream.
“Freelance writing is not easy and hence earning from freelancing requires real effort.” – Sam Adeyinka
Learn from the best: If you’re a freelance writer, Daniel and Ali’s course for freelance writers is a good place to start, and it’s extraordinarily affordable as a career investment. If you want to do other forms of freelancing, seek the best people doing the freelancing of your choice and learn from them (Feel free to ask me questions on this).
Recommended: Learn Authentic Ways to Make Money Online in 2016
Legitimate Online Business Model #3 – The Consultant Business Model
The consultant business model is very similar to the freelancing business model, but it’s different in that your role is to provide guidance to your clients instead of to execute their projects.
Perhaps you have some specialized knowledge you can use to help other organizations grow or achieve certain results that would have been impossible otherwise? Then you might want to start consulting.
Ross Simmonds was able to generate $160k in revenue, and $120k in profit, for his consulting business within a year of starting. He did $250k in revenue his second year, and that’s without him having to employ anyone.
Legitimate Online Business Model #4 – The Digital Products Business Model
Selling your own products can be a profitable source of income, and this can eventually lead to a source of semi-passive income.
There are lots of success stories online that prove the efficacy of selling digital products, and a renowned example is Yaro Starav who rose to fame and built a 7 figure business within 5 years of starting online.
The key to creating successful information products lies in knowing what people want, and then giving it to them; if you can master this, and learn some basic marketing, then you’ll experience above average success.
Legitimate Online Business Model #5 – The Affiliate Marketing Business Model
A lot of people doesn’t want to be a “slave to their time” so to speak, and they detest having their income rely on them working all day non-stop.
For these people, freelancing or consulting won’t work, and they might also not want to invest the upfront time required in creating an information product.
If you’re in this camp, then affiliate marketing could be your business model of choice.
With affiliate marketing, you can promote a product created by someone else and get paid a percentage of the income generated from the sale you make.
A notable example of a successful affiliate marketer is Pat Flynn, who has made millions from affiliate marketing since he started around 9 years ago.
According to Pat, the key to affiliate marketing success lies in finding products that convert best for your audience and traffic source and focusing on them.
Legitimate Online Business Model #6 – The Subscription Business Model
Now, this is the dream business model for most people; you put in the initial upfront effort and, with some maintenance effort, you can guarantee a consistent, or increasing, income every month.
The benefit of a subscription business model lies in the fact that people only need to register once, and they will be billed month after month; depending on how well you’re able to maintain your subscription site and how well you can attract new users, this can be a massive source of income.
Carol Tice is one person that uses this technique well. She started the Freelance Writers Den, her community for freelance writers in 2011, and it’s since grown to thousands of users that pay $25 monthly to be a part of the community.
Legitimate Online Business Model #7 – The Paywall Business Model
The Paywall business model is quickly becoming a choice among publications and media sites as a way to increase revenue without relying on ads.
The paywall business model involves you giving people access to a certain number of content on your site, or restricting access to a certain percentage of your content, so that people can pay to access the remaining content.
Several reputable news sites like The New York Times and Boston Globe rely on this as their main source of online revenue.
Legitimate Online Business Model #8 – The E-Commerce Website Business Model
E-commerce sites focus on buying and selling products through an electronic medium.
Some good examples of e-commerce sites are Ebay, Amazon, Alibaba, and Macy’s.
These type of sites can produce large amounts of income, but tend to require the most work to build and maintain.
Storage (fulfilment services), shipping and delivering, product refunds and a whole list of other responsibilities fall under running an e-commerce site.
Communication with buyers and sellers is vital and gaining traffic and converting prospects into buyers also plays a primary role in e-commerce.
Unless you have a dedicated staff you may find yourself spending a lot of your time running and maintaining this type of online business model.
E-commerce can be a great business model if you understand how e-commerce works and are able to shift responsibilities to other staff members to alleviate your time consumption, but if you aren’t familiar with e-commerce you can always get your feet wet by practicing and getting familiar with websites such as Ebay, and Amazon.
Legitimate Online Business Model #9 – The Podcasting Business Model
Podcasting is one of the coolest things that have happened to online business. Trust me I know what I’m saying!
Pat Flynn among many others is one person killing this model of online business.
What you should know:
You should have an adept speaking skills
You should have a good listening skills to 1) be able to respond and ask your experts followup questions 2) be able to edit your work well.
To learn how to write a good show note.
To choose a recording tool you want to use. Audacity (Free) or Adobe Audition (Paid). I personally use Audacity because asides that I’m familiar with it, it does much the same thing Adobe Audition does.
Podcasting is a very fantastic form of becoming an expert or say a thought leader in your chosen field (Let me know if you need help in this area).
Legitimate Online Business Model #10 – The Membership Site Business Model
Membership sites can be a great way to build an income because monthly and/or annual payments can be made to generate an income on a continuous basis.
This can be very appealing as a business model because you aren’t selling a one-time product but creating a continuous revenue stream which requires far fewer people to maintain a good source of income.
Membership sites are usually paid monthly subscriptions that allow the person purchasing the membership to become part of a community, gain valuable information on a topic that they consider important, learn valuable skills through multimedia such as video, text, and images, and gain exclusive offers and promotions.
Ravi Kumar and Sefa Tsegha are two people doing well in this area. Matter of fact, I am planning on taking lessons from Sefa from next month.
By the way, he did shared some great tips with Vicky Law, in this post. You should totally check with it.
Wrapping Up on Legitimate Online Business Model
That’s it on 5 Legitimate Online Business Model for Startups. I am sure if you keenly read and religiously work on each of the online business model mentioned above, you will soon start to smile to the bank to cash out huge money week-in-week-out. 🙂
Over to you!
Let me know which of these models is convenient for you and we’d talk about getting you started in the comment section.
By the way, I’d love to use this medium to quickly introduce you to Power Affiliate Marketing – PAC Community.
It is a place where relationships are built and nurtured by visiting and dropping comment on each others blog.
Hence, a community of engaged users is built. It’s totally free to join, though you can always upgrade to get access to some premium opportunities such as making money as a PAC Affiliate.