The internet has opened up the floodgates of opportunity and offers many a budding entrepreneur the chance they need to strike out on their own. If you are looking to become a billionaire or just make a few extra dollars to pay those pesky bills, I’ve identified seven arenas you can enter that will put you on the road to making money online.
With this setup, clients are charged a reoccurring fee for access to a product or service. This fee is usually collected upfront before the service or product is rendered and can be charged on a monthly, semi-yearly and yearly basis although daily and weekly models exist as well.
Subscriptions can be set up for manual renewal where the customer is required to send in or authorize payment or automatic renewal where a customer’s credit card or checking account is charged automatically when the subscription period ends.
An example of the subscription model is the dating service eHarmony.
This is similar to the subscription model except in this case, instead of charging up front for the information or services, this model relies on the good graces of their users to help them out.
This is mostly seen in nonprofit organizations and blogs where owners solicit donations to help defray costs and is not really a reliable or sustainable way to make money on the internet as you must rely on the end user’s sense of giving.
This is the most common form of money generation especially in industries that provide content to end users freely or at a deeply discounted price. A premium is paid for a “space” where the advertiser can promote their product or service. This would be a page in a magazine or newspaper. Online this would be space on the website.
Generally, the more a resource is used, the higher the premium the source can obtain. It is not unheard of for a frequently trafficked website to command tens of thousands of dollars per month in advertising revenue.
4. Affiliate sales
Affiliate programs represent a partnership between the business and the individual. The individual promotes the business’ product or service and in exchange the business gives the individual a cut of each sale made. This is usually between 10-15% of the sale price but can be more depending on the program.
The difference between affiliate sales and general advertisement that if there is no sale of the product then the individual gets no money whereas with general advertisement, the individual gets paid whether there is a sale or not. This is otherwise known as the pay per performance model.
5. Corporate Sponsorship
This is where a company invests in the product or service offered by the webpreneur in exchange for a percentage of the profit and/or other benefits that come from being affiliated with the project.
6. Sales of products
Another common form of internet moneymaking, you can sell one product exclusively such as software or operate an entire web store in the spirit of Amazon.com. And the product doesn’t even have to be new. Ebay, which specializes in internet auctions, has helped many an entrepreneur make a mint selling used goods.
7. Sales of services
Otherwise known as freelancing, this is the third most common way of making money on the internet. In this model, the individual exchanges their specialized skills for money. This can range anywhere from a web designer selling design services to a book author selling motivational speaking engagements.
By no means are these categories exclusive. Feel free to mix and match or do them all in your quest to make money online. In the next article, we will look at how you can make money selling subscription services.
Other articles in the series: