5 Internet Based Business Models To Consider For Your New Start-up
Looking to start an internet based business? Here are 5 internet based business models to consider when you are starting out.
Hi Pete Harris here and today it is my objective to inspire you with some internet based business models.
New businesses are born every day. What sets successful start-ups apart is their ability to find a solution that solves an unaddressed problem in the market.
It’s this insight and understanding of your target audience that will get you one step closer to launching a successful business venture.
In order to develop an effective business model, there are several internet based business models you can use as inspiration for your own start-up.
These models offer different ways of working, streamlining services or products and achieving efficiency.
These models aren’t restricted to technology businesses alone. They can be used by any company with almost any service or product.
So read on for some useful tips and pointers.
Internet Based Business Models – The Free To Use Model
The free-to-use model is commonly used by content-based businesses, such as blogs and social media platforms. The model allows users to access the platform for free, with the option to pay for a ‘premium’ subscription or for extra features.
The model works beautifully for social media platforms, as the majority of their users are driven by the interaction. Users want to be part of a community and feel as though their contributions are valuable.
If a social media platform is solely focused on making money, it will quickly lose users. For blogs, the free-to-use model is used to increase traffic to the website and ultimately generate revenue.
The model has proven successful due to the large amount of internet users who are willing to read articles but unwilling to pay for them.
Freemium Internet Based Business Model
A combination of the free-to-use model and subscription-based. The ‘freemium’ model allows users to access a portion of a product or service for free. Then the user will be prompted to upgrade to a paid version if they require more from the platform.
Freemium is commonly seen in the gaming industry, with games such as ‘Roblox’ allowing players to make a character. Then to explore the virtual world, and interact with other players for free.
Typically, the free version of the product or service will be the bare minimum needed for the user to get started. The user will then be prompted to upgrade to the paid version once they are satisfied with the initial product.
Subscription Based Business Model
The subscription model is commonly used by service-based businesses. The model involves users paying a subscription fee to access a certain product or service on a regular basis.
The model is most commonly associated with media, such as written articles, video content and TV shows.
However, it can be applied to almost any industry and can be used to offer a range of products and services. Services such as insurance, internet connections and office cleaning.
Depending on the product or service, the subscription fee can either be a one-off payment or a recurring payment. The recurring payment is then taken from a customer’s account every month.
If you’re looking to use this model, it’s essential to get your subscription fee right. I say that because that’s what will determine whether or not customers are willing to pay for your product or service.
Before deciding on a subscription fee, it’s a good idea to conduct some market research. Then consider how your product or service compares to your competitors.
Internet Based Business Models – Affiliate Marketing
Affiliate marketing is a form of online marketing. It’s where an online retailer offers payment to website owners or bloggers who refer customers to them.
Affiliate marketers promote their affiliate links either through social media or through their blogs. Customers who click on the affiliate links will be taken to the retailer’s website and are often redirected to the product page they were searching for.
What makes affiliate marketing so appealing is that it doesn’t require any upfront investment. Instead, affiliates are paid a commission after a customer makes a purchase through the affiliate link they have shared.
The majority of affiliate marketing companies offer a free program that allows you to join and begin promoting products immediately.
While each program will vary, most affiliate marketing companies will take a commission of between 10% and 50% from each sale referred by an affiliate.
For more information on affiliate marketing check out my free training program here. Or click the image below.
eCommerce Or Internet Shopping Platform
An eCommerce business consists of an online store where consumers can purchase a range of products. These products often including electronics, clothing and cosmetics.
For many aspiring entrepreneurs, the eCommerce business model is an attractive option. It allows businesses to reduce the initial investment required, because the majority of the stock is stored online and not in a physical warehouse.
However, eCommerce businesses do require a significant amount of upfront research. Especially when it comes to selecting a shopping platform. Popular shopping cart systems include Shopify and BigCommerce.
Conclusion
Internet based business models provide a great starting point for any entrepreneur looking to launch a new company.
However, before you can start building your business, it’s important to first understand your target audience and find a problem worth solving.
Once you have done this, you can start to decide on the best model for your business. I hope that you have taken inspiration from some of the examples listed above.
To your success
Pete Harris