Profitability, in the business world, is like the holy grail. And it is that all pursue it but almost nobody is able to find it. In fact, even if they do, it can go the same way it came. This is why, when choosing a particular online business model, it is necessary to analyze in depth its pros and cons.
Don’t think only of profit
Evidently, there is no one who creates a business for any purpose other than to earn money. However, if you are thinking of creating one, especially if you have thought that it is best to operate through the Internet, you have to take into account many other things.
The first is that you always opt for the model that best suits your characteristics, your academic background and your way of acting and thinking.
And it is worthless that you are the owner of a business that you don’t like because, probably, with the passage of time you will abandon it or you won’t devote enough attention to it. This will not only bring its closure, but also an important hole in your pocket, do not forget.
Elements that define a business as profitable
You should not take the title of this epigraph literally because there is no formula that ensures the success of a business through the Internet. However, there are a number of mandatory aspects that do increase the chances of reaching the desired profitability and that this is maintained over time. They are these:
- The business model must solve a need that is demanded by a segment of society. There must be a tangible and quantifiable target audience.
- The model must also be replicable, i.e. it must cover as many users as possible.
- Finally, the business has to be scalable. This last point is the most important when it comes to business over the Internet. It should not be forgotten that these require minimal investments in infrastructure and personnel, especially when compared to physical ones. In many cases, it is enough to check free domains, choose one, design the web and start operating.
The most profitable business models on the Internet
As it could not be otherwise, here we are going to comment on a series of business models that, at the moment, are the ones that generate the greatest profitability on the Internet. However, it is necessary to make a previous consideration.
Keep in mind that we live in an online environment where competition is growing. Therefore, betting one hundred percent on just one of these models doesn’t usually end well. Without a doubt, the best thing to do is to take elements from several of them and then design your own, authentic and personalised one. This is the only way to increase your chances of success.
Setting up a virtual franchise
When we think of franchises, large chains such as McDonald’s or Vips generally come to mind. However, this business model has also flourished on the Internet and, frankly, is becoming increasingly profitable. True, it requires an investment, but it has the advantage of being able to start working from the first moment with a brand that works.
In addition, they do not require renting premises or hiring employees or hostesses. You won’t even have to use a free domain search engine to find one that leads to your website. In this sense, the range of options ranges from online shops to real estate through travel agencies, classified ad portals, etc..
Multilevel marketing is not only fashionable, but in some cases works extraordinarily well over the Internet. Specifically, it is based on highly hierarchical models in which you will have to focus on creating your own network of distributors. Every time they sell a product you will receive a commission.
One of its main benefits is that the initial investment required is usually quite low. However, the revenue usually takes a long time to arrive as it requires a lengthy acquisition process. In addition, you must have a good sense of smell to smell the scams, which abound in this sector.
Survey, PTC and navigation platforms
It is quite difficult to imagine that anyone can live solely and exclusively from this type of online business. However, this doesn’t mean that you can’t get a bonus from them and easily complement them with other professional activities.
At the moment, there are a great variety of platforms that, in order to carry out market studies, offer the possibility to their users to carry out surveys. The income is low, but to obtain it you don’t have to make any investment and its complexity is null.
There are also portals that offer you small sums of money for viewing ads or other advertising content. However, always be careful when choosing because not all of them are reliable.
This is probably the most traditional business model on the Internet. However, this does not mean that it is not profitable or outdated. Quite the contrary. And it seems that consumers have finally lost the fear of making purchases through this medium.
You only have to take a look at the results that each year have large ‘marketplaces’ such as, for example, eBay or Amazon to realize it. By the way, through these platforms you can also set up your own company. Even, if you want, earn passive income through their affiliate programs.
At this point, it is necessary to talk about the modality known as ‘dropshipping’. Under this term, that although it may sound like Chinese to you, there is an increasingly common practice. Specifically, this consists of selling, always through the Internet, a product that is not directly owned.
What those who trust in this system do is, once the customer has chosen the product and paid for it, to order it from a supplier and pay it at the distributor’s price. This is where the profit lies and where you will be able to offer a very competitive value. It is then shipped via a freight forwarder, which is paid for using the shipping costs paid by the customer.
This is another simple and widespread system through which it is possible to generate income passively. All you have to do is create a blog or a web portal and insert advertising in it. If you get good traffic, the benefits can be quite interesting. However, you will need to position yourself well by creating quality content to attract the attention of users.
This is a bit of a special concept. In general, it does not refer to physical products, but to digital products. This has the benefit of low costs, but it also often makes it difficult to sell.
To give you an idea, an infoproduct is, fundamentally, a digital product that you can sell as many times as you want through your online store, your website or your blog. This presents, among other advantages, the possibility of selling the same article an indefinite number of times.
But, in case you are still not sure, we are going to give you some examples so that you can understand it better.
If you have created a book and you want to sell it in ‘ebook’ format, you have done a video tutorial or you have developed a mobile application or a ‘software’, you have created an infoproduct. All you have to do is give your users the chance to buy it and give them a platform to download it.
This online business model has very few drawbacks. However, the most outstanding of them is that, probably, you will need to dedicate enough time to the creation of the infoproduct and, in addition, to look for channels through which to promote them.
Combine and you will end up hitting with the key
These are the business models that currently generate the greatest volume of profits on the Internet. However, as we have already mentioned, you must know how to combine them to offer a unique product or service that differentiates you from your competition and allows you to reach the public.
In addition, all of them can be developed comfortably from home with just an Internet connection. You may end up quitting your job to dedicate yourself to them or you may simply have the chance to earn additional income that, like everyone else, suits you very well. It all depends on the decisions you make.
In short, the Internet gives you many options for entrepreneurship. In your hand is to take them or let them pass.