Understanding The internet Business Model – Part One

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If you are thinking about starting an internet business then I would just like to give you a basic understanding of what the internet business model is all about. With the internet you have instant access to a global market 24 hours a day, 7 days a week, 365 days a year.

So when it’s time for you to go to bed, other parts of the world are wide awake and this is why you can literally make money while you sleep! You can wake up in the morning and check how many sales you’ve made.

The internet is mainly an information medium. Most people that search the internet are looking for information on something, whether it be about their hobby, interest, sport, life experiences or work related stuff. So it stands to reason that if you want to start an internet business then you have to provide information.

If you give value to people by giving them free information then people will value you. The more you give, the more money you will make! Now this may sound contradictory because how can you make money from giving stuff away for free?

Well although you give free information to people then the people that read your information will start to connect with you and will become more likely to buy products from you. What products should you sell?… Information products!

These are the best products to sell on the internet and although you are giving away free information, people will buy more information from you once they value you free stuff. Hope this is making sense to you.

An internet business uses universal marketing/business principles so what works in an offline business works online too. But with the internet it allows you to duplicate income indefinitely without taking up more of your time!

Building Blocks Of your Internet Business

Here are 4 simple building blocks of your internet business.

  1. Every business needs an address for people to find you. With an online business this is a domain name e. g., yourbusiness.com

There are many places where you can register a domain name. Just type in domain registration into any search engine.

  1. Every business needs a piece of land to put your store on. With an online business this is hosting.

You can find many reliable hosting companies. Again just type in hosting services or companies into any search engine.

  1. Every business needs a building or store to put on their land. With the internet this is your website.

People come to your business/web address to find your store/website where visitors can come and visit and purchase products from you.

  1. Every business needs a sales person or team. With the internet this is your auto responder. With an auto responder you can follow up with your customers and keep in touch to build a relationship with them. Then they are most likely to buy other products from you in the future.

I recommend Aweber for managing your emails as it is one of the best on the market.

Follow A proven System

When starting on the internet it is important to follow a proven system. Don’t go at it alone and do your own thing. You need to find something that is working and copy that system.

There are quite a few systems on the internet for making money and it’s the simple systems that always seem to work much better. Let’s take a look at a simple 5 step system.

  1. Select your main market
  2. Provide an offer
  3. Generate targeted traffic
  4. Have a back end
  5. Duplicate system

Now you must incorporate the top 3 things into your business in any system because if you don’t have a market then there’s nobody to sell to… if you have no offer then you can’t make any money… if you don’t have traffic then you won’t have any customers!

The last 2 things you must incorporate into your business because the back end is the difference between a little bit of money and a lot of money and once it is making a lot of money then you can duplicate the system and make even more!

So I hope this gives you a good basic understanding of how the internet business model works. It’s really quite simple and easy to set up. Have a look at the above sites and have a think about a domain name and go from there. Also look out for part 2 where I’ll explain the 5 steps in more detail.

I will also cover the easiest way to get started on the internet with no product of your own!

This article is published on http://www.the-business-mag.com/