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 You can earn  thousands of dollars or  more by doing business on the internet, if  you spend some time understanding how it works and analyzing how successful web entrepreneurs made their money online. Compared to offline businesses, the investment required  to start an online business is minimal . While most people are worried about the scams on the internet , there are a variety of business models you can adopt to legitimately make money on the internet.

The most widely used  online business models are as follows:
1. Providing useful information on your website

a. You can earn from from banner advertising and contextual advertising networks. However banner advertising networks may have a minimum traffic requirement. Traffic is usually specified in terms of unique visitors per month or number of page views . You can also sell advertising directly to companies selling products which are relevant to your website visitors.

b. Affiliate Programs - you are paid per lead generated or per sale and a commission is paid after the specified task is completed.  Due to inherent problems in tracking software , not all leads or sales are accurately recorded and often underreported. This is a loss for the publisher of the website

c. Subscription - many newsmagazines and websites offer only limited access to free visitors, i.e.  only a snippet or summary of  a news or research report can be freely viewed on the website. For a detailed report or to access archives, the visitor will have to either pay a one time fee or may pay a subscription for a period of a month or year. After payment is made, a login id and password is assigned to give access to the restricted area.

2. Selling products on the internet  - Large online stores  like Amazon stock and sell thousands of  products like books, CDs . Smaller specialized websites may offer customized products like candles, hand painted crafts. Most

You can either sell products online:

(a) by installing third party applications linked to  your website

(b)  through your own store installed on your website using a payment gateway like PayPal or Google Checkout

(c) sell through online auctions like eBay or Amazon auctions

(d) Listing on free online classifieds like Craigslist and paying through conventional methods

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