If you are considering venturing into the world of e-commerce or are failing to make any money online, it is worth spending time posing the question “do I have an effective online business model”. So many people are sucked into the world of e- commerce with big promises of making fast cash on demand, without paying proper attention to their business concept and their business model.Any business, whether that be online or offline needs to have an effective business model for it to be successful, it is the very back bone of your business. The following business model is my preferred business model that can be used across many different niches and markets online. It also works extremely well for offline ventures as well, for people who are independent contractors / self- employed.An effective online business model – the three parts you need.The following business model is made up of three parts that work together to form the overall business income, as said before it can be applied in any market or niche.1) Residual Income – This is income that comes to you in the form of a recurring payment over a set time period, usually monthly. This may come to you in the form of recommending people to a particular membership site, can come from continued use of a product that you have already sold to the customer once or even as part of an agreed contract package, all most like a retainer salary. This is income that comes in day after day, week after week, month after month, for work that you have done once.2) Joint Venture or affiliate income – This is where you make sales of other people’s products and you will receive a commission for the sale. It is a one off payment on a per sale per product basis. You could for example sell a training course or guide, tickets to an event, physical products such as books or DVD’s anything really that pays you a commission per sale.3) High Ticket – This is where it really gets interesting and this one concept has the ability to transform your income online and even offline. A high ticket product is something that carries with it a price tag that is four figure or more and is a direct sale to you (i.e. you keep all the profits) or a very generous commission on other peoples products (four figures or above commissions). Typically your high ticket income will come in the form of a product, service that someone considers extremely valuable. An example online could be a business opportunity to join, a membership of a community, a coaching and mentoring package the list goes on. An example offline could be a sports coach selling a large package of lessons and coaching to one individual e.g. a golf professional selling a twenty lesson package instead of his usual four lesson or five lesson package.The above three points I believe are absolutely crucial in creating an effective online business model and therefore a profitable online business. If one or more of the components are out of harmony with the rest then you will find yourself struggling to generate the kind of income you are looking from your e-commerce efforts.To find out more on how you can create your own effective online business model using the above concepts as your road map to success, visit the link below.
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