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What kind of online business do you want to start? There are several ways that you can go with an online business. I can guarantee you that all the online business models in this section are the best online business model you can ever think of.
They all have the potential to provide a 6 figure business. You need to choose the one that you are most comfortable with.
A word of warning here – flitting around from one model to another is never going to turn out well. Many newcomers to online business start with one model and because they are not getting the results that they want they shift to another. There is always going to be someone that tells you that the grass is greener over here.
Once you have chosen your online business model you need to master it. There are always new things to learn about online business and it will be virtually impossible for you to keep up with all of the changes if you are dabbling with more than one model. So make your choice and stick to it.
What Niche do you want to be in?
There are literally thousands of niches where you can create a 6 figure online business. If you are an expert in a particular niche then this is always a good place to start. It doesn’t matter if you are not an expert in a chosen niche because you can always learn. When choosing a niche you need to consider two things:
- Is there a big demand?
- Is there money in the niche?
Both of these are very important. You do not want to enter a niche where there is little demand. You may be interested in a particular topic, but if nobody else is then your online business will fail. We suggest that you choose an evergreen niche. This is a niche where the demand is always there 365 a year, every year.
As far as we are concerned, these are the top 3 evergreen niches where there is always demand and the potential to make a lot of money:
- Wealth creation (making money)
- Health and fitness (weight loss is a classic niche)
- Personal development – relationships, self improvement, spirituality, Law of Attraction etc
There are other large evergreen niches as well and we are not saying that these are the only ones you should consider. But these are tried and tested and there will always be demand for them and money making opportunities.
If there is high demand for a niche but it is difficult to make money then you should avoid this. These days there are opportunities in most niches but you need to be sure that you can make good money from the niche that you choose.
If you are not familiar with affiliate marketing the concept is pretty simple. There are many vendors of products and services out there that will happily pay you a commission for bringing them new customers.
Your only job as an affiliate marketer is to promote the products and services of other vendors. You do not have to concern yourself with product delivery or customer service. All you have to do is drive targeted traffic to the affiliate offers.
You can promote physical products or digital products or both. Amazon has an affiliate program where you can make commissions by recommending physical products that they offer. The problem with this is that the commissions are low in the 3% to 5% range. If you choose the wrong products to promote you will only make pennies on each sale.
Digital products tend to offer much higher commissions. Typically a digital product will offer a 50% commission and this can go as high as 100%. The reason for this is that once a digital product is created it costs next to nothing to deliver it. So the vendors can pass on higher commission rates to you.
Some affiliate marketers promote both physical and digital products. Let’s say that you had a website providing health tips. There are so many products that you could offer to your visitors. You could promote exercise equipment or supplements as physical products, and guides and training for losing weight and getting healthy for digital products.
CPA stands for “cost per action”. There are a number of CPA networks that have clients who will pay you for promoting their offers. The difference between CPA marketing and affiliate marketing is that you do not need to make a sale to earn commissions with CPA marketing.
Some CPA offers only require the visitor to provide their email address or phone number for example. Other CPA offers are based on free trials of products. This is all lead generation for the businesses that are behind the CPA offers.
The biggest problem with CPA offers is that most of them pay low commissions. This means that you have to drive a great deal of traffic to the offers to make good money. But you are not relying on a sale so the conversion rates are a lot higher than they are with affiliate marketing.
Creating your own Product or Service
Creating the right products and services in your niche that answer the questions that the target market has is a great way to build a 6 figure business online. It does take time, effort and usually money to create your own products and services. But the advantage that you have over affiliate marketing is that you own the customer.
Do you have an idea for a great product or service? Maybe you have expertise in a specific niche and you know what people in this niche are looking for? Your product will fix the pain that they have.
Your product can be physical or digital. What is most important is that there will be demand for it. You do not want to spend time and money developing a product that nobody wants. There are online businesses that make millions of dollars each year through providing products and services that people need and will gladly pay for.
Do you like the idea of selling physical products from your own online store? Amazon makes gazillions doing this each year so why not you? As you are unlikely to have the same level of resources as Amazon, gazillions will be out of the question. But you can certainly create a 6 figure online business with ecommerce.
Setting up your own ecommerce store is now easier than it has ever been. There are solutions that you can use where you pay a monthly subscription such as Shopify. There are also themes and plugins for the WordPress blog platform that you can use which we will discuss in a later section.
Making your ecommerce store successful depends on being in the right niche and selling the right products. You will need to get the marketing right as well as there is a lot of competition these days. Ecommerce is not for the feint hearted. You have to deal with customer service, returns, sourcing products, stock outs and more.
The difference between dropshipping and a conventional ecommerce store is that you do not need to acquire any stock with dropshipping. There are dropshipping websites that will provide the product range and take care of the delivery to the customer as well.
Sounds perfect right? Well it can be good but you need to check the commission levels first. Most dropshipping websites are not too generous with their commissions so you will need to shift a high level of stock to make good income.
This is a relatively new term in online business but the concept has been around for a long time. You can make a great deal of money from this if you do it right. The old term for this was “service arbitrage”.
The concept of dropservicing is that you find the customers and charge them a high price for a service that they need and then you get a freelancer with the skills to provide the service at a lower cost.
Let’s look at logo design for example. If a business went to a fancy agency to have a logo design it would probably cost hundreds of dollars. You can sell them a logo design service for $200 and then get someone on Fiverr.com to design the logo for your customer for around $20.
If everything goes well (which it should) then you make $180 on the deal. The good thing is that the customer pays you upfront for the service and then you pay the freelancer. SO your only cost is to find the customers and take care of them.
You can use PPC ads or social media ads to find customers. With such a good markup you can afford to spend money on advertising. The customer is yours so you can promote more services to them and make even more money.
To be successful at dropservicing you must choose the right services to promote and find reliable freelancers that will do a great job for your customers. Here are some ideas for services you can promote:
- Design services – logos, website headers etc
- Writing services – SEO optimized posts and articles
- Copywriting services – sales pages, sales video scripts, email sequences etc
- Web development
- Search Engine Optimization (SEO)
- App development
Do you have a skill that is in demand? Are you a good content writer or copywriter? Are you an SEO expert that can rank websites and videos on YouTube? Do you have programming skills that are in demand?
There are lots of people providing freelance services to customers and creating 6 figure online businesses out of this. If you do not have any specific skills then you can either develop these or just go for dropservicing.
You can use a number of different techniques to market your services. There are freelancer websites such as Upwork.com and Freelancer.com where you can set up a profile and bid for jobs or projects that they have in their system.
There are also gig based sites such as Fiverr.com and PeoplePerHour.com where you can post gigs related to your skills and then customers can purchase them. Some freelancers make thousands a month from Fiverr.
You can use the power of Amazon to sell physical products. They have an FBA (fulfilled by Amazon) service where you can list products on their sites and they will fulfill the customer orders and deal with any customer service issues. You will have to pay a fee per product sold to do this but this model does have the potential to make you a lot of money.
Amazon receives a huge amount of traffic every month. If you can provide a product or products that people want then you can be very successful with the FBA model. It is down to you to source the products and deliver them to Amazon warehouses for shipping to customers.
A lot of people involved in FBA turn to China for low priced products that they can sell at a higher price in the United States, the United Kingdom, Western Europe, Australia and New Zealand and so on.
The Amazon FBA model does require you to make an investment in product acquisition. Unlike other online business models you will need to spend a few thousand on products before you can start to see a return. But if your products are popular on Amazon they will sell fast and it will not be long before you start to see a return on your investment.
There are a number of pitfalls with Amazon FBA. If you don’t know what you are doing then you can lose a lot of money. Amazon has a lot of rules and regulations that you have to comply with for example. But if you get it right you can easily create a 6 figure online business.
Are you a good writer? Do you have the next best selling fiction book whirring around in your head? Or maybe you are good at writing nonfiction books about business, personal development and other niches?
These days you can write a book and publish it yourself on Amazon Kindle and a lot of other self publishing websites. You do not need the websites to approve your book other than check that it does not violate their terms and conditions (they will have a list of book subjects that you cannot publish for example).
Once you have your book on Amazon Kindle or wherever it is all about marketing. You need to get as many people to check out your book as you can. If you get self publishing right then you can make 6 figures a year online and more.
This has been a long chapter and we make no apology for this. We have covered the main online business models here and you need to decide which of these is right for you. The easiest one to get started with is probably affiliate marketing.
In the next chapter we will talk about getting your 6 figure online business setup…