1. Sell your own products. The main advantage to selling your own products is that you ultimately control how much profit you make on every sale and you therefore have the potential for the biggest profit margin. You know exactly what each product costs, and you can try out different price points to see what works the best. People appreciate good value, and removing the middleman is a great way to provide your customers with competitive prices that keep them coming back for more.

2. Sell your own services. Whether you're a small-town dentist, a high-priced online legal consultant, a real estate agent, a tutor, a landscaper, a bed and breakfast owner, an auto-mechanic, a caterer, a fitness trainer or anything in between, you can profit from selling your service online. It's easy to get started selling a service online, but your revenue potential, in most cases, is limited. That's because, unlike someone selling a physical product that can be stored and shipped on demand, you can only provide as many services as your time allows.

When you sell a service, you're essentially selling a relationship with yourself. And this requires that you spend more time and effort establishing your credibility and developing rapport with your visitors than is typically required on a site selling a physical product. You not only need to establish the benefits of the service you're offering, you also need to establish the value of you providing this service.

3. Drop ship products. If you want to sell products without the hassles of tracking your inventory, setting up warehouse space and maintaining a confusing shipping/receiving infrastructure, drop-shipping may be the choice for you. Drop shipping lets you sell quality, brand-name products on your site for a hefty profit, while the drop shipper takes care of fulfilling the order. They warehouse the stock, pack the orders and ship them out to your customers.