How to monetize an online business & profit from it

It is really important you understand the different ways you could be earning money from an online business. You also need to understand that there is not an only way and that you can choose more than one too. It seems that websites like a blog can’t make money, and that’s a wrong way of thinking. A blog could be monetized in different ways, and if you master this skill you could be making a lot of money.

Even if you are not into blogs, there are other types of web pages. We are going to cover the revenue models an e-business could adopt. It is important to highlight that you can choose more than one to increase your earning.

 

These are the most common types of revenue models for online businesses

1 Advertising

One of the most common ways of monetizing your web business.

Basically consists of a website that provides a space on the page to let advertisers display ads on them. The webpage’s owner/s could earn money just by letting other people advertise on their website or by the times a visitor clicks on them.

If someone pays to display an ad on someone else’s site then he would pay a monthly fee (which is fixed). Otherwise, if the owner gets paid by clicks, then they would get a profit depending on the volume of clicks (which is variable).

2 Subscription model

Businesses which use this model, offer content or services and earn a subscription fee. With this subscription, users can have access to the content the company offers.

These businesses have a premium version where people have to pay. And they could also have a freemium version, where people can access some of the information for free.

Memberships are included here. They could offer online courses or maybe entertaining content. Netflix and Spotify are two great examples of e-commerce with this model.

3 Transaction fee

In this case, internet businesses collect a fee by letting a transaction to occur or by making it itself. This means that the business could either facilitate the transaction or it could be the business itself which makes it.

A clear example is eBay, which lets people make transactions on their websites (buy and selling) and earns a commission from every one of them.

4 Sales

This has to be the very first thing we think when we hear the word e-commerce. Sales of products (goods), services or info products is a way to monetize a site. For example a physical product or a digital one, like an ebook.

Amazon is a site which has this model.

5 Affiliate

This one is another appealing way of monetizing an online business as well.

This is about promoting other people’s products. It is about recommending what other people offer and facilitating the transaction. The products, services or whatever the business offers, don’t belong to them. By doing this, every time a customer buys a product, the business which doesn’t own the product will still earn a commission from it.

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