Simple Online Revenue Models

| September 21, 2013 | 0 Comments

f_2money7.jpgSetting up an online business is nothing new, consider the amount of new sites going live every day and you can be sure more than just a few of them going to produce some type return on investment. You can increase the odds of a positive return by selecting from a proven and simple revenue model such as advertising banners on a free dating site or using adsense and google on a free realestate site or selling a service such SEO and development. Travel is another huge online industry that returns commissions to website operators for traffic referrals that convert to a booking or sale.

Retail has been established online for years now with sites like amazon.com and the huge auction site ebay one of the biggest sites online. For the new players to the online world there are many established sites to study and model your web business on. Many of the hard lessons have already been learned and a wealth of information is available for those willing to seek it out and benefit from the experience of others.

Clearly you don’t have to have an established business to make money online, affiliate sales make up a huge percentage of online sales with many companies becoming specialists in this lucrative field of online enterprise. Typically a market and a product or service will be identified and the online affiliate will source traffic and funnel into their own website as a conduit to the main site. The customer is tracked along the way via a code and any purchase is tracked and credited to the affiliate who is in turn paid a pre determined percentage of that sale. It’s a very good system and there are thousands of niche industries now running affiliate programs for the products and services they offer. In effect there is something for almost everyone who has aspirations of selling to their online audience.

Another popular method is paid banner placement on your site, you simply charge an advertiser for the amount of impressions or click thrus on their banner placed on your site. Selling impressions in my opinion is the least fair with banner ads, click thru advertising represents better value for the advertiser as they only pay when a customer has a genuine interest in the product or service being advertised. I’ve been burned on impression advertising before, the numbers sound impressive but if you have a product such as blue widgets on a site where people are only looking for bright red widgets then sure your going to get lots of impressions but not many clicks. The result is the advertiser is not delivering value to the client and so the client only gets caught once.

Adsense is googles way of giving back to the people! The adsense program allows website owners to display google PPC ads on their sites and then pays then an undisclosed percentage of the going click through price. I’ve heard of some big cheques being written by google to their advertisers and some of the high paying keyword industries can deliver impressive single click prices if you have the right type of traffic. Examples include finance, medical, hosting, real estate and travel. Be prepared to forever wonder exactly how much google is actually making off your traffic if you adopt this model and always consider going direct to the advertiser if you have enough traffic, you may in fact make a lot more this way!

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Category: Moneymaking

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