EBay and auction sites;
One of the best known of web
business models, the principle means of creating income is through online
auctioning of goods. Ebay sellers might be private one time sellers, or a hobby
seller with regular listings, someone who has committed to an enthusiast niche
and has a small permanent ebay store with a loyal clientel, and increasingly
there are well known ‘real world’ big businesses who sell their own products
through Ebay.
An ebay seller is responsible for a series of
distinct actions. Duties include; locating product to sell, listing products to
sell, answering customer queries, fending off ebay management, packaging sold
goods and taking goods to the Post Office and other delivery services.
Regular Ebay sellers also sometimes use drop
shipping. This involves a remote warehouse, independent of the seller, providing
a catalog of goods they have in stock. The Ebay seller lists and sells these
items and the drop shipping warehouse fulfills and ships any order a seller
creates.
Increasingly commercial companies and
factories are also cutting out all middle men by selling items direct from the
production lines to the end user via ebay.
Advantages of using ebay or other auction sites include having access a
world wide network of customers, and a great deal of consumer research provided
by Ebay. Additionally a seller’s income has no upper limitations and very large
incomes are not only possible but relatively routine.
The primary disadvantage of
being an EBay seller is that the tasks can be time consuming, however you are
your own boss and can control your schedule.
Other streams of income are
possible within ebay. For example; locating buyers in locations other than EBay
and connecting them to a product for a fee or percentage, and also income can
be made from introducing new clients to EBay.
MLM, Multi Level Marketing or Network Marketing;
Widely known both on and off
line, income streams derive mainly from products that are offered to members at wholesale
prices that they then sell onwards at retail prices to create a profitable 'home
business'. Profits are developed further by introducing more and more new members to
the company in long down lines, all of whom use and sell 'the product'.
MLM's depend heavily on person
to person networking. A percentage of all profits flows uphill to founding
members, who reap the largest financial rewards. MLM's can extend over the world and can generate large incomes. The
advantages are that you are the boss of your own time, and that you’re
operating within a well developed sales model that provides plenty of support,
and if you’re a people person this will suit you well. Disadvantages include having to be an enthusiastic sales person if you’re not that way inclined.
Adsense by Google;
Google charges people to place their product ads on the internet. A
percentage of these fees is paid to web site owners who allow Google to place
the ads on their websites. The ads are put in place with a simple piece of HTML
code supplied by Google. It is pasted into place on a website and Google
programming reads the website for the subject of the material and supplies a
string of ads with the same theme as the website. This way visitors interested
in snowboarding will finds ads for snowboard products alongside the website
articles. The website owner is paid each time someone clicks on the ad. The
amount earned can range from a few cents to over a hundred dollars per click in
competitive markets such as credit cards and home loans.
A website owner can cleverly
fine tune the website to attract maximum paying ads and also to attract maximum
shopping visitors to the site. Once set up little maintenance is required. Google pays
automatically every month, and websites with a lot of traffic can create an
enormous income solely from people clicking on ads, all while you, the site owner, are at the beach in Hawaii.
This type of income can be very
hands off once set in place, and a smart website owner might have a number of
websites on many subjects.
Adwords by Google;
Google Adwords involves you having a product you want to sell on the internet through advertising with Google. Unlike Adsense which
places their ads on your site, Adwords places ads for your product on many topic related websites
across the internet. You can choose what country will see these ads, and sometimes what demographic.
Google Adwords supplies an accounting system online where you can monitor and modify your advertising campaigns. The seller's highest priority is paying as little as possible for ads and achieving the maximum sales. To get your advert placed high on the website page where customers will see it more readily is ideal, and Google have in place a bidding system where you compete with others for that spot by offering higher prices per customer click. A number one position on a small website might cost twenty cents per customer click, the same position on a high traffic site might cost one dollar to a hundred dollars per customer click.
At peak times sales can be brisk and
the profits high. It is also possible to automate the process so that only a
little daily maintenance is required. Large incomes can be created by selling
numerous products. Digital products like digitaly formated self help books can be very lucrative and can be set up so that the sale and product delivery all happen automaticley. The caution needed is that advertising can be expensive, and
a sound head for figures is necessary to keep fast moving costs under control.
Affiliate selling;
In online terms an affiliate is a person who
is marketing someone else's product for a commission. The products are often
digital instructional or self help books, but can also be solid products such as pharmaceticals and
vitamin supplements. Affiliate selling is a good way for a business to have
more sales people working for them, without the overhead of an employment
agreement.
As an affiliate seller you usually carry no product, and simply direct buyers to the sellers website. On this website the seller has provided you with either your own web page of products, or a piece of html code that identifies you. When the sale takes place the code identifies you and commissions are sent on a regular basis.
You are entirely your own boss,
and can work this full time or part time from your own home. It is not hard to
create a business that requires little daily management. How you locate and drive customers to the web site is all up to you. Writing articles about the item you're selling ie vitamins and submitting them to article publishing websites can bring a lot of free customers who are interested in your product.
Cost Per Action or CPC;
A person can place advertisements across the
internet to attract a certain type of interested party, ie home insurance. When
customers click on the advertisement they are taken to a site where they are
asked to enter their email address if they want more information. As the person paying for the ads and
bringing customers you are paid per email address that is gathered. Payment can
be a few cents to tens of dollars per email address.
Gathering names and email addresses and more to expand a businesses mailing list is common, can be lucrative, and can be set virtually on automatic. The caution is keeping your advertising costs down and locating interested customers as efficiently as possible.
Direct Sales
In this scenario a website is
put online either as a business entire, or as an adjunct to a real bricks and
mortar company. These function exactly in the manner of a regular business,
selling a product, service or information, the financial transaction takes
place online through a secure page at the website, and the website owner
arranges for the product to be delivered to the customer.
As the population becomes more comfortable doing business online a website is a crucial addition to a regular business. If one has a passion for something in particular, ie hand crafted bird cages, then starting a business like this that is fully engaging can be most rewarding.
Like real world businesses all internet businesses
can be built and sold as going concerns and there are websites dedicated to selling them for top dollar. You can even buy into a small web business if it appeals to you not to build from scratch, and build it into a much larger business, and then sell it again. Your choices on the internet are as wide as any business in the 'bricks and mortar' world.
Avoiding predatory websites
A-
When purchasing a product online and you are seeing the landing or
squeeze page, try to locate any 'contact us' information. If you cannot
find any 'contact us' information there or in the web pages, you can be
sure that there's no way to ask for your money back, or for help. Avoid
doing business with any company with no contact information.
B-
When paying, be alert to a landing or squeeze page that says thay they
accept clickbank or paypal, but when you are further in the payment
process somehow you are not on official pages of either of those
companies. You are being either the victim of an outright fraud, or the
company wants control of any refund process, or they have been banned
from using Clickbank or PayPal.
C-
Many products on google searches have headlines that announce person or
plan XXXX is a scam, a has been etc. These are not real reviews, only
advertising, ignore them.
D- In reading complaints filed with consumer organizations avoid a company that has changed interstate USA addresses constantly, they are probably avoiding the law.
E- Be wary of recently registered companies with Les Vegas, Nevada addresses. Consumer protection laws there are few. Many businesses moved to Nevada for this reason, to avoid being sued.
F- Be very wary of companies that have numerous requests for refunds, its an indicator either the product is not adequate, or the advertising has been misleading and the product is not what you expect.
They are free to join but if you want to upgrade for a variety of options you'll pay a membership fee of $20 to $100.
These sites take money from you by accumulating large numbers of membership fees and by selling banner advertising space to unsuspecting web owners who are impressed with their high traffic numbers.
They often use Paypal as a payment method. You'll discover in the paypal receipt after paying that the payment went to an individual in China, or east European countries, not to a registered company name.