Online Business Model Options for Local Business

There are seven main Online Business Model options that an existing or wanna be local business owner should consider. All of these options can be integrated into just about any brick and mortar business with an open mind and a little imagination. Combining two or more of the below options can create a well rounded online business model.

An example of that would be to integrate the affiliate and merchant models where you would market a combination of your own products and services with those of a 3rd party that you earn a commission on each sale you make.

Another possibility would be to combine the community, subscription and information models together. You might have a free community based on your market that has multiple paid levels of participation that provide graduating amounts of digital information products every month.

Advertising Model
Most widely used of all business models online.
Main focus is either cost per impression or cost per click.
Fixed cost ad placement

Affiliates Model
Sell other people’s products and or services
Get paid when actual sale is made
Affiliate concentrate 100% on product sales
Product owner handles refunds and support

Brokerage Model
Brokerages bring sellers and buyers together
Usually these are transaction brokers
Charge a fee for each transactions processed
Control only transaction management technology and not the products being sold

Merchant Model
Online wholesalers and retailers
Have control over the prices and margins
Keep the biggest portion of profits
Provides product support and delivery

Subscription Model
Charge a weekly, monthly or annual fee
Most often used to deliver web content and applications
Common using membership sites, blogs and forums
Owner earns ongoing income—Customer can cancel anytime

Information Model
Earn money by charging for information
Most popular of these are digital products—eBooks
Products delivered to the buyer with a download
Expenses involved are virtually non-existent

Community Model
Users interacting with each other
Some solicit donations to help pay expenses
Fee charged for certain premium content/features
Users invest a high level of time and emotion

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