Web Business Models – Generating Profits From Your Traffic

When you own a web based business, generating traffic is all well and good. However, unless you have a revenue stream, your traffic is worthless. This article provides an overview of methods that you can use to get paid for applying your online marketing skills.

E-Commerce

E-commerce is the lifeblood of online business. Those that sell products and services online are at the top of the food-chain. Ultimately, e-commerce businesses generate the bulk of the revenue that pays affiliates and online publishers. If it wasn’t for e-commerce Google stocks would be worth a fraction of what they are today. While established offline businesses have a strong advantage over online ones, in the form of resources and economies of scale, smart web marketers can use their skills to outperform public companies on the web. When you sell a product you own the customer relationship, and benefit from repeat business, which can help to create a solid business and sustainable revenue from each visitor who lands on your site. On the other hand, you need to stock inventory if you sell tangible products or pay staff wages if you provide a service.

Web Publishing

You can make money just from getting visitors to come to your website. The biggest success stories to come from the internet in the last 10 years have all relied on web publishing and free products as their business model. There’s Google, Yahoo, Hotmail, Myspace. The list goes on and on. However, away from the watchful eye of Wall Street many people have made millions online through having a publishing business of their own. Take, for example, John Chow. He runs a popular blog which gives people advice on how they can make money online. He makes more than $10,000 a month through selling advertising inventory and through his website visitors clicking on affiliate links. And then there’s Techcrunch.com. Techcrunch is a blog which covers internet business and it’s a multi-million pound business. If you write content on a topic, or pay writers to do it, or you offer a free product which can help advertisers to get their message across then your onto a winner.

Affiliate Marketing

Affiliate marketing is a way to make money from selling products without actually owning any inventory! When someone clicks on an ad you can make money if they go onto buy someone else’s product. If you have a list of email addresses, or you buy traffic for a cost-effective amount, then you can make millions per year from recommending someone else’s products. This is one of the most quickest ways to become a millionaire. When you are in the web publishing business your margins tend to be lower so you can’t spend as much money generating traffic. That means you have to wait for organic search traffic and viral marketing techniques to pay off. With affiliate marketing, if you spend $10 and generate $20 in commissions then you have basically cracked a technique that can make you a millionaire overnight. Just re-invest the profits, or get a loan, and keep on buying advertising inventory until such times as your buying $1,000,000 in traffic to generate $2,000,000 in commission. The only limiting factor is scalability and available, cost-effective, advertising inventory.