The different type of home businesses models on the Internet run the gamut from a mom and pop online eBay store to Webmasters who own hundreds of niche sites that generate cash from AdSense only. There are other strategic business models that can be added to an existing home business to diversify income.
Home Business Model #1 Affiliate Marketing
Affiliate marketing is perhaps the easiest way to diversify the products and services that you sell from your website. Because the website, product, sales letter and marketing strategies are already defined, you as the owner of a website can display the product and get paid when someone purchases.
If you have your own products, the alternate route is to set up your own affiliate network. Starting an affiliate network like Linkshare, Commission Junction or using Clickbank as a way to pay affiliates is a popular and lucrative way to increase your income and market share.
Home Business Model #2 Creating Information Products
Creating products for other webmasters. Creating information products, recording information on CD’s for other webmaster’s or internet marketers to sell as their own. Using videos is the new online marketing strategy.
Creating products for the information starved Internet Community is a great way to expand your business. This strategy offers infinite possibilities depending on the type of product that you create. There are so many niche markets that need new and unique products.
Research a niche market to find the competition. Create an E-book, DVD or video series to either sell direct to customers online or resell the rights to your creation to website owners who can resell your product to the public.
Home Business Model # 3 Service Business
If your primary home business is involved in selling products, either through an affiliate program that you join or one that you own, you may want to add a service related product to your business mix. A service business could include, search engine optimization, niche legal services, web design, or writing articles.
The problem with a service business is that they require huge blocks of time. This business model can not be automated. However, if time is a consideration, you could outsource the service side of the business to high school or college students who are always searching for ways to make extra money.
Home Business Model # 4 Lead Generation – Survey Sites
Thousands of people are involved in the market research industry. Knowing why people buy a particular product or service is worth money to legitimate companies. Opinions are worth money. As a result, survey sites are very popular on the Internet.
Survey sites are also a unique way to generate leads for specific types of companies. If you can create sites that generate leads for realtors, mortgage brokers or other industries that want to know what consumers are thinking, you can earn money by using the survey site model to gather consumer information and sell the leads to companies.
Choose The Model that Suits You Best
Each home business model involves a different approach to marketing and creating a profit. There are advantages and of course disadvantages to each model. Some of the home based business models listed will eventually become automated (i.e., a survey site). However a service business will always require hands on management.
Diversification is always a wise business strategy especially with small home businesses. Combining different business models under one umbrella can insulate the business owner from the highs and low in income. The challenge is the management of each entity.
Prior to adding an additional profit center, make sure that the initial business model you are involved in is extracting the maximum amount of profit from your marketing and sales activities. Once you have reached a peak in your present business, that is the time to consider adding additional income centers.
Source by Ken Shorey
