What Is An Online Business Model And Why You Need One!

When you make the decision to start an online business sometimes you have an idea. More often than not though the idea to start an online business comes before you have an idea for the actual online business you want to start. You just simply know you want an online business and that’s it. So, for those of you looking for an online business I want to help you in your search. The best way to get an idea is to look at what online business models are already out there.

First, let’s define what a business model is. Dictionary.com defines a business model as: a design for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.

So, an online business model is the way you will run a certain online business. The things you will do to get it setup, how you will make money with it, how you will get people into it, etc.Click To Tweet

The first thing you need to do is start researching. If you go to Google and search for online business models you will find a lot of options. I recommend you start there and take notes of all the online business models that you find. If you come across one that you don’t know about, then Google it specifically. Spend some time researching it so you understand it.

For example, when I did this, I found “software as a service” and had no idea what that business model was, so I Googled it and within about 15 minutes I knew exactly what it was all about.

So, spend some time on Google, do your research, and make a list of any business models that sound interesting to you.

Hot Tip: You can also use sites like Flippa.com to find business models. Flippa.com is a site people use to sell their online businesses, but it’s a great research resource too. You may not want to buy an online business, but you can use the site to generate ideas for an online business.

I’m going to save you some time and give you a short list of general online business models right here. Again, if you don’t know what one of these is then do some research and see if it sounds good for you.

The Short List Of General Online Business Models

Affiliate Marketing
Digital Product Creator
Physical Product Creator
Freelancer
Dropshipping
Coach/Consultant
FBA (Fulfilled By Amazon)
Service Provider
Developer
Influencer

Now those are general business models and it’s by no means a complete list. For each of those there are several different business models you could choose. You’ll see this as you start doing some research.

For example, with affiliate marketing. You could create a content site, you could create a funnel, you could create a review site, etc. When you find a general business model that you have an interest in then you need to research and find the specific business model you want to use.

After you’ve done your research and you’ve made a big list of business model options, take each option, and write it on a piece of paper. Make a list of things you will need to do to get that business model setup and working for you. Remember Google is your friend, so you may have to research the setup and running processes for each business model on your list.

After you’ve done this exercise, I recommend that you step back, don’t think about it anymore for 24-48 hours. Let it all just marinate in your brain. Do anything except think about all of these business models you’ve just researched.

Then after 24-48 hours, you will come back and go through all of your pages of business models and notes and throw out any business models that you do not want to pursue. Really think on each one. I know you’ve put some time into researching each of these but throwing them away is a great exercise to do so that you just get it all out of your mind. You’re going to need that “brain space” to choose the business model you actually want to pursue!

Now, at this point you should have just a few business model notes left. Now it’s time to make your final choice on what business model you will pick. You can take your time and think on it, however, don’t let that keep you from making a decision. Also keep in mind that just because you pick a business model doesn’t mean you have to stick with it. Nothing is in stone. Yes, you might spend some time and money on getting a certain business model setup, but that’s all part of the learning process. You don’t have to stick with something you don’t like or want to do. You can always pick a different one if you’re not happy with what you’re doing. The flip side to that is you also don’t want to flip flop between business models. If you find yourself going through a couple and you keep starting over, you’re never going to get that end result which is actually having an online business that makes you money.

What I’ve given you here is a great exercise. It will allow you to thoroughly research different business models to help you make your decision on what business model to start. It will give you ideas for business models. And more importantly you’ll end up picking ONE business model to follow. This will keep you laser focused as long as you keep in mind that if it’s not related to your business model it doesn’t matter.

For example, if you’re going to start a blog and use affiliate marketing to make money with it. You don’t need to know anything that’s not related to that. You can cut through the noise by being very precise in what you give your attention to when you have a fully planned business model.

Hopefully this has given you a plan for how to get started finding your dream business model to get started with for your own online business. If you would like at a few business model options I teach from A-Z then click here. I have coaching programs for several different business models and would love to become your mentor and lead you through creating the business model of your dreams!

Liz Tomey is a crazy redhead with an entrepreneurial spirit that shines out in everything she does. Her teachings have helped many create online businesses that fund the extraordinary lives they love. Since 2004 Liz has created and successfully ran many different online businesses in several different niches and shares her passion for online business in hopes to change the lives of those who are searching for a life they truly want to live!

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