Do you know that 95% of the people starting out in their



internet businesses fail? In the middle of all the noise and

hype on the internet today, not many people realize that all

the ideas and techniques you can find are useless if you don't

first understand what your business model is or how are you

going to make money on the internet. Even the most remarkable

internet marketing technique will not work if you don't

understand how to apply it to your business.

The 3 most popular business models are:

1) Affiliate Marketing

Perhaps the most popular one out there, affiliate marketing

provides a good start for new entrants. Almost anyone can

sign-up for an affiliate program for free and start promoting

the chosen product or service. Commissions start coming in if

someone will buy or participate in the such programs.Affiliate

marketers don't carry any risk, since they do not pay for the

creation of the product, they do not handle customer service,

they need not know the innards of internet transactions, like

merchant accounts, autoresponder (what is that?), reciprocal

linking, etc. It’s also possible to be an affiliate even

without a website.

Some affiliate marketing programs you may participate in

require little up-front investment. Some are free. It's no

surprise therefore that almost everyone and their neighbor

promotes an affiliate program or another. In fact, if there

is a single reason why the Internet today is so proliferated

with ads and banners, it's because of affiliate programs.

With the thousands out there involve in affiliate marketing,

only 5% ever make any money and only 1% makes really big money.

The "Super Affiliates," so they are called, do it very

differently from the rest, therefore they earn the big checks.

2) Writing an eBook or other type of information product,

recording an information CD.

This is a great strategy because there are thousands of

possibilities for the type of product that you can create.

There are so many niche markets that you can write about.

It could be a course on Japanese gardens, how to start your

own babysitting business, how to sell your artwork, taking

care of your dog’s ears … there are endless topics and

still many that have not yet been explored by online marketers.

You don't have to write the information yourself, you can get

a ghost writer or hire someone to produce the CD.

EBook authors need to invest more than affiliates do. While

affiliates can get something for nothing, the same is not true

for the eBook type of business. EBook authors need to learn a

lot more than affiliates are required to. They need to spend

some amount of money getting the business up and running.

However, when done right, the payoff in this online business

model is much more rewarding.

These marketers make more money because they have very,

very low production and maintenance costs. Once the product

is produced, it doesn't cost a cent to reproduce thousands

of copies. Start-up costs can be covered by selling just a

few copies of very high-margin eBooks. You can even recruit

hordes of affiliates to do the selling for you.

3) Adsense

This has taken the internet by storm. There are tons of testimonials

from people making outrageous income from adsense.

Adsense is Google's advertising program wherein webmasters

display ads from Google's extensive list of advertisers. Unobtrusive

text-based ads are served in member sites, who then earn a commission

every time someone clicks on the advertisers' links.

Google Adsense uses a technology to deliver ads that are highly

relevant to the content of a page. Google's engine will scan

through the content of the page to determine its topic, and will

then serve ads that are relevant to the page's content. Running

Google Adsense is quite simple. First build a website full of

content of your desired niche or topic, and then register in Google’s

adsense program. Once approved, you then paste a code in your page,

and the ads start appearing immediately after you upload the

changes to your server.

Google is silent on how it shares the revenue per click with

their partners, but how much you will earn per click depends

on the topic and the product being advertised. Products with

profit margins of $10 for the advertiser will most likely give

you a smaller pay per click than a product with a $100 margin.

Similarly, ads with high conversion rates will normally give

you higher payouts than less effective ads, since they can

afford to pay more dollars per click, with a portion of that

money going to you.

These are the top 3 most popular online business models

today. No matter which model you choose, make sure you

understand the basics. Stop buying courses or information

not applicable to your business. Information overload can

stop you before you even get started.