- October 24, 2019
- Posted by: Chowdhury Shahid Uz Zaman
- Category: Business
Have you thought about starting an online business? Surely yes! But despite having the motivation and latent idea, most likely you will encounter the problem that we all go to at the beginning: with what business can you succeed on the Internet?
There is no doubt that today, the Internet opens up endless possibilities for developing successful and much less expensive business models than traditional models.
Online businesses that require more or less investment in technology, but that, if done well, will allow us to succeed on the Internet.
Regardless of the business model we choose, there are a number of factors that we must consider when undertaking to achieve the expected success …
- Have worked well the development of the business idea. Improvisation does not fit.
- Eliminate the mentality of scarcity from which many entrepreneurs start. To succeed you have to invest.
- In online business, creativity will be a key factor to engage users and differentiate ourselves from fierce competition.
- Surround ourselves with good collaborators and experts to cover the different work areas necessary to address an online business: web design, programming, graphic design, digital marketing …
5 successful online business models
1. Live from online advertising
Bloggers, Youtubers, instagramers and influencers in general, who have a high number of followers and brands are raffled to promote their products.
It is not easy to succeed, but it can be achieved and there are many examples that can be found on the Internet.
The modalities of this online business model are diverse …
- Vlog Same as a blog, but in video format. Generally on YouTube, but now also on Instagram TV.
- Social networks. Most are on Instagram and additionally, they have a blog.
- YouTube channel where you publish videos of diverse themes.
What makes this business model more profitable, more than Google can pay you for inserting advertising in your channel, are the collaborations with the brands.
In exchange for showing or talking about a product on your online channel, companies can pay thousands of euros, depending on the degree of influence you have achieved.
In interviews conducted by different media or some of these influencers, everyone agrees that, to succeed in this type of business, you need:
- A lot of constancy and almost daily publications.
- Audiovisual content in high quality video or image format.
- Creativity and know how to contribute something different to hook your audience.
2. Have a successful blog
It’s not just about setting up a blog in WordPress and posting posts like churros. This does not generate benefits.
It’s about getting a blog with thousands of daily visits that we can monetize through the sale of our services or infoproducts.
With this business model, if done well, billing figures of up to more than 5 monthly can be achieved.
The keys to success are …
- Specialization, the more expert you are in a specific subject, the better.
- Again, we must publish constantly.
- Generate valuable and interesting content for your target audience.
- Work very well SEO and all areas of digital marketing to get many visits to your blog.
- Design digital services or products that may be useful for your audience.
3. Freemium, offers free + charges extra
Freemium is the abbreviation for Free + Premium.
It is about offering free products or services and charging for certain features.
It can be applied to different businesses:
- Video game. Donate you play for free, but you can buy extra lives or additional features.
- Software applications or services. It offers a basic free version, but if you want to improve the benefits, you will have to pay for them.
- Audiovisual content platforms. There are free movies, eBooks or music or with limited access and Premium version where you can access all the content or improve the service features.
What factors must you consider to succeed?
The value we offer for free vs. the payment value. In addition to offering a powerful and better free version than the competition, the payment option must be even better for the customer to be willing to pay for it.
Launch for a while only the free version, collect feedback from users and based on that, decide what features you can include in the Premium version.
The recruitment of users and customers will be key, you must work to the fullest all areas of digital marketing to get the most diffusion of your product or service and get the maximum possible users. Monitor the acquisition cost of each customer.
4. Online business model by subscription
It consists in finding within our business a repetitive pattern of purchase that is periodic.
A periodic, usually monthly, fee is charged through a subscription and users are offered a product or service that has a repetitive and periodic pattern of purchase.
The subscription models include …
- Fixed: paid for a certain number of uses or products known in advance. For example: a digital magazine, a box of beauty products every month, weekly home menus …
- Unlimited: you can use it unlimitedly. For example, unlimited access to a content platform or software application.
- Bounded: a certain number of products or services are purchased for later use. For example: bonuses for a gym, hotel, etc.
- Base and payment for use: it consists of the payment of a base fee that allows access to the service and after a payment for use or quantity of product. For example: the supply of gas or electricity.
For the entrepreneur it has many advantages, since it ensures sales in advance.
From the point of view of the consumer, they allow you to worry about being aware of making regular purchases of products that are consumed on a regular basis.
To get a successful subscription business model, you must think very well about these points …
- Define periodicity very well. It has to be a product or service that can be enjoyed over time repeatedly.
- How are you going to charge the subscription. Ideally, an annual fee and include some discount for it, although you can also offer the possibility of paying month by month.
- Loyalty to your customers. It is important to look for links that bind us to our client and keep them satisfied with the subscription service so that they continue to renew again and again.
- It influences the subscription decision. It offers a free trial period so that the client can try the service and decide to hire it.
- Online store, a more affordable option
Creating an online store is relatively easy, although the tricky thing is to succeed and succeed. Let’s see how to get it.
Among the options discussed above, investment at the technological level is one of the least expensive. Similar to setting up a blog, as long as we use an open source platform like WooCommerce or Prestashop.
To succeed online with this online business model, you have to work almost even more than the rest, since the competition is much greater.
To succeed with an online store, you must take into account the following factors …
- Specialization is a plus. Choose a specialized niche market, where competition is less and the interest of users for this type of products is greater.
- Before investing in the online store, if you have your own product, validate your product in the Amazon type marketplaces. It will give you feedback on the interest of online users in your product
- If you sell physical products, logistics will play a key role in customer satisfaction and in your income statement.
- Facilitate the shopping experience for your users, from when they search for the product on Google until it reaches their home.
- You must boost sales through promotions and discounts that encourage your users to buy. It is one of the deciding factors when buying online.
- The SEO of your online store will be decisive to capture visits and potential customers to your website. Think about how users will search your products on Google.
- The investment in online marketing must be periodic and constant. Try the different online promotion channels to determine which ones work best for you.
Of the 5 online business models we have reviewed, we summarize the main factors that you should consider to succeed on the Internet …
Validate your product, analyze the competition, collect feedback from users and identify what your differential values will be compared to the existing online market.
Offer quality content that is original and engages your users
Invest in Digital Marketing
Any of the business models we have seen, will not succeed in the online world if we do not use a good Digital Marketing strategy.
Success does not come instantaneously, you have to be very constant and analyze the results of the marketing actions that we carry out to optimize the business model and achieve the expected success.