Top Online Business Models

[linkB2B]

1) Ecommerce Site

The classic ecommerce site, designed to make money online by selling products, has both an online catalogue and a shopping cart. You can set up your own online store from scratch or choose one of the many complete online store solutions to start an online business such as bytrade's ProStores, Moneris Solutions' MyEbiz.ca, Canada Post's Sell Online Stores, or osCommerce. (Note that these are just four of the many options available.)
The great advantage of using a "prefab" online store to make money online is that hosting, Internet merchant accounts and the ability to accept payments online is often included in your online store package.

Tricks to Success: multiple payment options, attractive, easy-to-use catalogue
2) Sales Letter Ecommerce Website

Like the infomercials on TV, these websites make the pitch, focusing on educating potential customers on the benefits of the products or services being sold. Unlike television infomercials, this type of online business model is long on copy and short on pictures.
As a website visitor, you can often recognize this way to make money online at a glance; the copy often begins with a question directed at the potential customer (such as "Would you like to increase your sales by fifty percent?"), and involves a lot of scrolling as benefit after benefit is revealed, usually backed by testimonials from satisfied customers. Time-limited and special offers are common.
If you're thinking of starting an online business, do not shy away from using this online business model if it's suited to your products and/or services. The reason that so many sites like this still exist on the 'Net is that the model works. And many professionals now use tasteful versions of this type of site to sell their services, particularly professional speakers, coaches and consultants

Tricks to Success: sincerity, well crafted copy
3) bytrade Auction Model

This is a variation of the first online business model I presented, but instead of using an ecommerce site to make money online, you use someone else's. Although bytrade Stores are available, you don't actually need one to sell products through bytrade - you can sell online by using bytrade's auction system. Getting set up to sell on bytrade is easy; as you'll see on this bytrade.ca How to Start Selling Page, all you have to do is register, sign up for PayPal if you wish, and fill out your first Sell Your Item form.
The bytrade auction model is especially attractive to people just starting an online business. People who want to make money online often use the bytrade auction system as a cheap and easy way to get started and test demand for the products they want to sell. Then, if things go well, they move on to an online store through bytrade or some other provider, or develop one themselves.
If this online business model appeals to you, 7 Tips for Selling On bytrade will get your bytrade selling efforts off to a good start.
Tricks to Success: well crafted copy, good product photos, excellent feedback
4) Stand-Alone Blog

Blogs are popping up all over the 'Net like mushrooms on a damp forest floor. The beauty of blogs is that anyone can self-publish their work online easily and cheaply. While many blogs exist just to get a person's thoughts and ideas out there, others are attempts to make money online.
The standard online business model for blogging is to run ads on the blog pages. Google AdSense, for instance, is a popular choice. There are, however, other ways to make money online through a blog.
If you're new to blogging but want to use the model to start an online business, my Blog FAQs for Businesses explains how to get started.
Tricks to Success: having an engaging voice, being part of the blog community


So how else could you make money online? You could use one of these online business models:
5) Service Business Website

The typical service business website, properly done, combines a portfolio with persuasive copy. To make money online, a good service business website has to answer the question "Why should you hire this person to do that?"
Often, what's being sold is the talents and skills of an individual, but these are difficult to show online so the mainstays of service business websites are biographies and testimonials. (Photo) samples of a person's work may be included if possible. If you're starting an online business of this type, I recommend soliciting testimonials from satisfied customers as a first step.
It's become almost standard for those seeking to sell their services online to offer prospective customers free content, such as a newsletter, email tips or ebook. These are, of course, great ways to get to collect customer data and stay in touch.
Some service business websites also sell products, typically the books and/or tapes of the individual involved, but sometimes other things.
Tricks to Success: powerful testimonials, personalization and professionalism
6) Info-Site

The info-site, as I've dubbed it, is a website that focuses on presenting information, often on a specific topic. The various sites on the About network, such as my About Small Business Canada website, are examples of this online business model. So are portal sites such as Yahoo and Excite that serve as directories to the 'Net and online magazines.
Info-sites are predicated on the theory that enough people will be interested in the information to seek it out, visit the website and support it by clicking on or buying something.
While some info-sites make money online by selling their content, through subscription or syndication, others make money through advertising and/or affiliate programs. Some info-sites also include an ecommerce component, directly selling products related to the information the site provides. A gardening info-site, for example, may also sell gardening tools.
If the info-site business model interests you as a way to make money online, don't be discouraged by the size of some of the sites that I've used as examples. An info-site doesn't have to be huge to be successful.


Tricks to Success: strong, engaging content
7) Brochure Site

The brochure site is basically an online business card. It presents the name of the business, some information about the products or services the business provides and contact information. People interested in learning more are asked to call, visit and/or sometimes to fill out an online form.
The brochure site is the online business model least likely to make money online in and of itself. Such a site is best suited as an adjunct to a business with a strong offline presence. Many small businesses use this kind of website as a Internet billboard for their customers, providing yet another way for their customers to get basic information about their business such as phone numbers or directions to their premises. The website is actually part of the business's customer service rather than a money making venture in itself.
As an online business model, the brochure site does excel as an event registration site. Businesses and government agencies often create separate brochure sites for specific conferences or trade shows.
Tricks to Success: having other sites and/or channels set up to direct traffic to the brochure site

speakers, coaches and consultantsspeakers, coaches and consultants

[DraftPick]

I'd be interested to know what business owners' opinions are of online service businesses:
e.g.
- whether there is any hesitation because of the combination of "online" + "services", and
- whether a physical presence/location tends to lend credibility.

[OnefortheMoney]

I'd be interested to know what business owners' opinions are of online service businesses:
e.g.
- whether there is any hesitation because of the combination of "online" + "services", and
- whether a physical presence/location tends to lend credibility.

The first part of your post poses a great question. There is no doubt that services can be (and are frequently) offered online. The issue of hesitation arguably reflects on the second part of your post. It's all about credibility and if an online service can reinforce that credibility, there will rarely be any hesitation in using that service.

Take eBay as an example. By and large, people are buying somebody elses old tat for money. The people involved in these transactions are complete strangers and there are no established levels of trust between them. It's the credibility of the site itself that makes the 'service' work and this has been built out of a strict membership policy, an integrated feedback system, continuous growth, payment protection and many other factors. People trust eBay. There is rarely an hesitiation in using the site.

As for location, does anybody know where the main offices of eBay are located? I don't, but I use the 'service' anyway. eBay has a strong reputation so I don't hesitate to use it. However, my thinking might be different on a new website and a geographical location (especially a local one) would arguably reinforce any credentials that the website might have.

Horses for courses, I guess. I doubt that there's a definitive answer to either of your questions, unfortunately.

[HWT]

You're missing Software as a service (SAAS), which is pretty common these days. Offer something hosted online that costs money per month to use. Great model, and even better if you have a free tier.

I have a few business ideas on the boil, one is subscription with a free tier, one is possibly SAAS but more likely we'll have free for personal and $XXX.00 for commercial with SAAS if it takes off, and another that is likely to be $XXX.00 for personal and $XXXX.00 for commercial but with a free period. Yet another that I don't have the cash to continue with is a 'skimming' model, where people buy and sell to each other via the site and I take a percentage.

One is already written and ready to go, one I officially started this year, one I stalled from lack of money and the other we've been working on in various forms for years and will never finish at this rate

Too many ideas, not enough money

[bre123]

This is nice post. I want to know more about Ecommerce websites.

[maxweber04]

One of my fellow member given example of eBay. Its more than simple e-commerce site. The website has its own protocols. Credibility and superfine secure Gateway. Perfect example to explore.