Online Business Models Overview

Introduction

• Many people claim certain business models are the best.
• The best model is unique to your circumstances and career stage.
• Skipping steps in your business journey can create difficulties.

Key Concepts to Understand

1. Equity

   • Ownership in a business or asset.
   • Wealth often comes from equity, not cash in bank accounts.

2. Leverage

   • Using skills, other people's skills, or capital to your advantage.

3. Vacation

   • Time off without income loss.

Sequential Business Models

1. Content Marketing

• Basic online business model.
• Involves creating or sharing content on social media.
• You can monetize through:
  • Engagement earnings (e.g., TikTok creator fund).
  • Sponsored posts.
  • Selling accounts.
• Example: Building Instagram accounts and selling promotions.

2. Affiliate Marketing

• Earn by promoting products through links.
• Amazon's affiliate program is an example but offers low compensation.
• Success requires combining affiliate programs with an established network (social media, emails).
• Best affiliates provide extra value to their audience (e.g., free templates).

3. Offering Digital Services

• Selling your skills/services online (e.g., copywriting, social media management).
• High demand for these services means substantial earnings potential.
• Initial stages are about gaining experience and building a client base.

4. Starting an Agency

• Leverage the skills of others while managing client relationships.
• Example: Hiring copywriters for email campaigns.
• As an agency owner, you can scale by managing multiple clients without direct workload.
• Combines equity, leverage, and vacation time potential.

5. Creating Digital Products

• Compile knowledge into digital formats (courses, guides).
• Information-based products are less valued than implementation services.
• Requires expertise and a solid sales strategy to scale.

6. Selling Physical Products

• Building a brand that sells physical items can create value.
• Requires significant capital, time, and infrastructure investment.
• Unlike digital products, physical product selling can be scalable but risky.
• Example: A personal experience of investing nearly a million dollars in a new brand.

7. Software Development

• The ultimate goal of online businesses.
• Requires more capital and skill than other models.
• Successful software products can generate recurring revenue and have significant value.

Conclusion

• There's no one-size-fits-all business model.
• Choose the right model that fits your current career stage.
• The journey of entrepreneurship is diverse, and the path can change over time.