Three Online Business Models That Can Make You Rich

There are a ton of business models that you can use to make money online. New Internet marketers generally settle on affiliate marketing, or creating their own information products. Both models have advantages and disadvantages.

The Affiliate Marketing Model

The affiliate marketing model offers extremely low start-up cost compared to any other business models. It’s possible to start with zero since most affiliate networks don’t charge to be an affiliate. Other advantages include:

  • No need to create your own products.
  • The vendor handles all the hard work like delivery, invoicing, customer support, etc.
  • You can do this from any where in the world.
  • Easy to set up and get started.
  • Fairly easy to scale.
  • Works while you’re sleeping.

When done correctly, affiliate marketing is one of the best online business models you can use. I have been an affiliate marketer since 2000 and have made millions from it, but you have to know what you’re doing. Unfortunately, most new Internet marketers do affiliate marketing the wrong way and end up losing money.

Creating Your Own Information Product

By far the most profitable Internet business model is to create your own information products. Unlike physical products, information products offer a very high profit margin because the cost of goods sold is nearly zero. For example, my web host gives me ten Terabytes of monthly data. That’s 10,000 Gigabytes, or enough data to download over two million copies of my eBook every month. So whether I sell one copy or two million copies, my cost is the same.

My information products include IM John Chow, Blogging with John Chow, WP Blog Videos, and Work From No Home. Combined, these products have generated over $1 million in sales in the past year.

Even though it’s the most profitable online business model, most Internet marketers shy away from creating their own products because of high start-up cost, and lack of a brand to sell it.

The Third Option

What if there was a business model that combines the low start-up cost of affiliate marketing with the high profit potential of having your own products? Well, there is, and it’s the subject of my newest eBook, the Ultimate Online Profit Model.

This business model is so profitable that in just the past three months (from September 16 to December 16), it has deposited nearly $280,000 into my eWallet account.

3monthsdeposit

It is beyond of the scope of this blog post to fully explain all three business models and teach you how to use them profitably. That’s why I wrote the Ultimate Online Profit Model. It’s completely free to download and use. I recommend you grab your copy and add it to your Christmas reading list.

Download The Ultimate Online Profit Model


26 thoughts on “Three Online Business Models That Can Make You Rich”

  1. This article is an excellent read, filled with beneficial useful information. Thank you for sharing.

  2. Hi John,

    Any model which acts like a hybrid between affiliate marketing and putting out your own information rocks. As noted, super low start up costs combined with having the power to tailor your offering offers you the best of both worlds. 280K in profits is nothing to sneeze at either 😉

    Well done!

  3. metz says:

    I am much interested with the last subtitle “The Third Option”. I agree that there is a combined low start-up cost of affiliate marketing with the high profit potential. The Ultimate Online Profit Model is a must have eBook. We know that some are being practical and wise. And having this model is great.

    This comment was left in kingged.com where this post was already “kingged” and shared for Internet marketers.

  4. inderjeet says:

    Really very useful article of online business. Your blog is great in field of content. Keep it up

  5. Amazing Stats man. Though affiliate marketing Rocks!! ..its hard to believe a model that combines affiliate marketing and my own information product. I hope there is no catch in here. gotta read the eBook.

  6. Tetsu says:

    Hi, John Chow. I really love this post. Love the way you write your posts. The information in this article is really unique and useful for me. After reading this article, I think I have some ideas for myself. I do follow your articles recently. Thanks for sharing this post. Hope to read more interesting information from you. Have a nice day.

  7. I. C. Daniel says:

    J. C. I already read the eBook!

  8. faisal says:

    What about freelacing, web design, etc?

  9. I’ve been making lots of money with these models.

  10. Always enjoy reading your articles. I’m still reading your new ebook. I look forward to having a great year online in 2014.

  11. Dk Patel says:

    Its always awesome to read your articles John .. But. I am still struggling to make my first Dollar Online and Never get success in anyone of them .. Let’s see Whats next..

  12. Jon Mcdonald says:

    Really great article, I’ve read almost all of your ebooks and have really learned a lot.

  13. Abhishek says:

    WOW this is just awesome and I am gonna try this for my next affiliate campaign. Thanks a lot for this John

  14. Dan Dollars says:

    Thank you Jon.

    I look forward to reading the ebook and implementing new ideas in 2014.

    Cheers

  15. hi, i am a website owner but not generating huge income. Will you please help me how can i generate huge income from my website.

  16. chris says:

    I am your Affiliate and I enjoy this a lot. I always love your posts, keep it up John

  17. I’ve heard of all except the last and WOW those are amazing results!

  18. Hi John,

    All three models you presented are great in their own unique ways. However, each has it’s advantages and disadvantages that may or may not suite Internet merketers at different stages of skill and expertise.

    It is my belief that the affiliate model is best for beginners while the ‘hybrid’ model is great for those who are experienced and know exactly what they are doing.

    Do have a great day!

    Always,
    Terungwa

  19. rakesh kumar says:

    creating own info product is not easy but it will surely give anyone an edge to earn money online but if we are able to find out the right type of niche that people are ready to pay then i am 100% sure anybody can earn a lots of money. Do you know any such tools that can give is idea how to find out any such niche, most of the time problogger post only those niche tool links they are affiliate of. waiting for your kind reply.

  20. Mark Ford says:

    Please help me make money!!! I’m proper broke & last night I had to eat beans on toast. God only knows what I’ll be eating for Christmas lunch, if I’m lucky I’ll find some dog chocolate down the back of the sofa. ;(

  21. Vev says:

    I’m new at this and looking to make a lot of money. I need a landing page on my website. Any more suggestions?

  22. Great stuff here…The secret of online success is simple learn the internet marketing basics and then apply them. If you learn the internet marketing basics you will learn a skill that will be transformed into a significant income.

  23. Nedu says:

    Hi john,

    You are right. Creating your own information products can cost a huge amount of money and that’s the main reason why most internet marketers shy away from it.

    The alternative which is affiliate marketing also requires some funds if you want to really do it the right way.

  24. I don’t like going for one or the other model, either affiliate or own products, I say do both. They compliment each other really well.

    Launch your own products to get buyers on your list and then promote affiliate offers on the back end. Works really well.

    The benefit of your own products is they are unique to you (of course you can get affiliates promoting them for you too and bringing in nice sales volumes) and it makes you different from people who are just affiliates. It obviously takes more work to create products and go through the launch process than promoting aff products does but it really is worth it if done correctly.

    I think people see those who launch their own products as more of an authority than the people who just promote other peoples products.

    The good thing about affiliate marketing is no start up or product creation costs, no having to shell out for copywriters and praying they nail it, no networking to get launch partners, no hoping everything goes smoothly on launch day (stressful), all the work is done for you and you can get stats on sales and conversions which is nice.

    So yeah I say do both and you’re sorted, multiple income streams, it’s what I do at http://www.nichehacks.com/

  25. I say that if you can handle the 3rd business model, go for it! What’s better than being an affiliate? A reseller. And yes the book can serve as a great refresher to any who may have fallen off track.

  26. Elaine says:

    Great article and very effective suggestions these are indeed!! I wanted to become rich by utilizing such two online business websites properly. And these ways are going to help me out significantly!! Thanks for these handy notes.

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