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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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