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Since the invention of the internet, people have been creating online businesses from scratch and often with minimal start up costs. There’s no argument that the internet has given ordinary people like you and me the opportunity to create a virtual online business. But what is the most profitable online business model that any ordinary person can start today?.
Well, I already know the answer to this because it’s the route I took and I believe it to be the best option available online that gives ordinary family members, stay at home dads, 9-5 ers etc the chance to do something that once was not a reality.
Live a life of freedom!.
Quick Links To Info On This Page
- 0.1 Business Models A Entrepreneur Could Pursue
- 0.2 The Most Profitable Online Business Model For Me Is…..
- 0.3 How Profitable Is Affiliate Marketing?
- 0.4 Does This Business Model Interest You?
- 0.5 See Real Wealthy Affiliate Success Stories Now!
- 0.6 Next Step Up – eCommerce
- 0.7 Domain Flipping Business Model
- 0.8 The Bottom Line – Making A Profitable Online Business
- 0.9 Want To End The Financial Struggle?
- 0.10 This Is EXACTLY How I Make $6000+
- 1 Per Month EVERY Month!
Business Models A Entrepreneur Could Pursue
It’s important to be aware that any business model can be profitable online. How much any of these methods make will depend greatly on your commitment, skills and ability to learn. Some require more skill and upfront costs than others, while others have greater chances of loosing it all. Whatever route you take will probably be a match on your personality.
For example, In general life I am a pretty easy going and patient person. This reflects in the SEO niche business I have built up to over 10k month. People that have short attention spans and love giving money away to scams would not be interested in spending months learning and building a strong ongoing business. That’s just how it is.
So without further ado, lets talk about what I do online and how I make money online from my business. Following that are other options you could take to build a profitable online business.
Slow And Steady Wins The Race
The Most Profitable Online Business Model For Me Is…..
Affiliate marketing is my go to business model. The reason I find it so profitable is that there are very few overheads which therefore leads to more profit. Doesn’t that sound like a profitable business venture to you?.
Affiliate marketing in it’s simplest form is simply referring a person onto another website to buy something. Then you make commission for referring that person to the company’s website.
For example, lets say I recommend to you a great gold club to improve your golf swing. When you click on the link to check out this golf club you are taken through to the place where I am an affiliate for. Lets say Amazon (Because they are awesome). The person lands on the product page for this golf club on amazon. From there they can buy this golf club, or just about anything on the amazon website within 24 hours and I would make money.
That’s as simple as affiliate marketing can be. There is a whole new world out there if you are new to affiliate marketing, one which can be very profitable.
Want To Learn More & Get Started Today? – Learn more about online marketing here.
How Profitable Is Affiliate Marketing?
Just how much money can you make with affiliate marketing? To answer this you must understand the key concept of affiliate marketing. With this business model, you don’t need inventory, staff, overheads etc. Once set up, it can produce passive income 24 hours a day.
Affiliate marketing is NOT like a traditional business where you minus expenses from revenue through the sale of items. Because there is no cost in buying stock/inventory!. So the answer is: However much money YOU want to make!. There is no cap, no salary or and limits.
If I put in 10% effort and you put in 100% effort, guess what. Most likely you’re going to earn ten times more than me. It’s that simple. Continuously put in the effort and you will build your business to heights once never thought possible.
Get A Slice Of The $136 Billion Dollar Amazon Pie
OK, its time to let the cat out of the bag. My main affiliate program is through the amazon associates program. So I may be slightly biased towards promoting their products. I make 10k+ a month by promoting products found on the amazon.com website. There’s millions to choose from, so I have barely touched the surface!.
So according to Market Share, amazon’s revenue for 2016 was $135.99 BILLION. That’s not profit, but the total amount of sales made. As an amazon affiliate, you can earn up to 10% commission on various products sold on their website.
For the sake of this experiment, lets say we can make an average of 6% commission. So what is 6% of 136B?. Answer $8.16 Billion. That’s a nice slice of the pie don’t you think.
Also according to Market Share, the Amazon affiliate liability for 2016 was just 96 Million. What does this tell me?. It tells me that there is plenty of room inside the 8.16 Billion dollars available in affiliate commissions. With only 96 million dollars in commissions being paid to affiliates, it leaves much more room for people like you and me to get our foot in the door and get a slice of that 8.16 billion.
Does This Business Model Interest You?
I dedicated a rather large section to affiliate marketing because it’s what I do and what I recommend to others looking to start an online business from scratch. The overheads are low, the skills required are low and best of all you can make passive recurring income.
In regards to being the most profitable business model the thing is this. When you first start out, you are starting from scratch. So in the beginning you are going to be earning little, just like an ordinary offline business trying to get started. But the more you do it and the more you push out. The greater income you could make.
For example, I am making over 10k month online at the moment from the Amazon affiliate program. My 2017/2018 goal is to reach $20k month or a quarter of a million dollars for the financial year. Will I get there?. Possibly. But I have to keep working.
Then maybe in 2019 I want to increase it to 30k a month, 50k a month etc. This is the reality of affiliate marketing when done right. But you MUST go through the learning phase and building phase first before you see the dollar signs.
Ok, so if you are still interested even after trying to scare you off with the notion of work, I HIGHLY suggest you get started like I did online. Back in 2012 I first found Wealthy Affiliate, 5 years later I am still a member and loving every moment of it. So if you want to be taught affiliate marketing the correct way, then please do yourself a favor and read my Wealthy Affiliate Review.
Next Step Up – eCommerce
To me, eCommerce or drop shipping should be a business model pursued AFTER becoming a successful affiliate marketer. Why?. Well, when you sell 2000+ items every month on amazon through affiliate marketing, you get a good idea on which products sell the best.
So in theory, I could replace my affiliate links to popular products with a ‘buy now’ button where the consumer could buy directly from my website. Alternatively I could use the amazon FBA platform to host my products. Then I send the customers to amazon to buy from me.
By using the eCommerce platform where I buy low from warehouses etc and sell higher (Either on my site or on eBay/amazon etc) I could make more money per sale than via affiliate marketing.
BUT, and this is a very big but. You need the money upfront to buy the inventory and the risk of loosing money is a lot higher. What if you buy 100 items at $5 each and don’t sell any?. You are out of pocket $500. But if you knew 100% that these items would sell you could make double the amount. By already experiencing affiliate marketing, you can find out what is selling without loosing money, plus also make money at the same time.
Domain Flipping Business Model
Domain flipping is a business model that has always interested me, but I have always neglected pursuing it. Fear of over saturation and lose of investment are the reasons I never went the domain flipping business model.
So a domain is the website’s address. The domain you are on right now is learnhowtoearnfromhome.com which is my website. A domain is online real estate. Just like real estate offline, domains can grow in value like a house would.
But the problem with domains is that there are limited numbers available. This is because the .com is the most famous domain extension and the most profitable. So with the amount of people buying domains to hold onto them and flip into profit, all the good domains are already taken. For example, all the one word domains are sold. To buy a one word domain off someone would cost you a hefty amount of money.
This is not to say you can’t make money domain flipping. one could buy a domain for say $1000, hold onto it for 6-12 months and perhaps the value has increased. According to Wiki, insurance.com sold for just under 36 million dollars back in 2010. In 7 yeas since the sale, the new owner could have increased the customer base and overall value of the site. Perhaps today it is worth over 40 Million?. Not bad considering someone way back when domains were new probably bought for under $10.
The Bottom Line – Making A Profitable Online Business
So that was just 3 online businesses you could pursue and make profits from. Some more riskier than others, but completely legitimate businesses nonetheless. I didn’t mention trading shares/stocks, forex etc because in my opinion only a very very small percentage of people actually make money from this business model. I was in binary trading for a while and while some days I made money, overall I would loose more than I would make.
Which is why I think affiliate marketing is the best online business model for someone to start from scratch with. Far less risk of loosing money and the only way you can fail is by not learning and essentially giving up.
Even tho I am making 6 figures a year online, I have no plans to pursue any other business model at this stage. I am quite content on growing my business over the next few years to potentially a million dollar online business. This is all thanks to the training I learned at Wealthy Affiliate and after the action I took from the learning.
Want To End The Financial Struggle?