Online Revenue Streams

Posted by admin on May 16, 2011 in Affiliate Marketing |

Online Revenue Streams for Your Home Business

One of the most difficult decisions a newcomer to the world of online marketing has to make is what sort or online revenue streams are you going to focus on? It’s a really involved decision that requires a lot of thought and consideration as it’ll probably be something you’ll be committing to for the long term! There are obvious advantages and disadvantages for all three of the primary revenue models and its crucial that all new webmasters or marketers understand these.

The main three online revenue streams are from Advertising (Google Adsense), Virtual products (e-products) and physical products (actual sales). The way you set up and run your website will be greatly influenced by the type of online revenue streams you decide to chase. You will notice that most websites will dedicate the site to one particular stream of income. You will also find instances where some sites will sell physical products and then add an up-sell of a tightly linked virtual product. Virtual products can be as simple as how-to guides for physical products.

3 Online Revenue Streams to Choose From:

Online advertising through the Google Adsense program is a great place for brand new marketers to start. It requires no capital to start, is maintained free of charge by Google, and easy to use. That said, the content you create has to be of good quality and you absolutely have to have a decent level of traffic to your site. Why? Because the percentage Google pays the webmaster per click is very low. You can expect to earn between 5 cents and $2 per click depending on the subject matter, so with an average click through rate of only 2-5%, you can see that you’ll need a lot of traffic to earn any decent money. However the program does allow you to spend your time concentrating on your site content rather than dealing with sales.

Virtual products are a good possibility; they often do not require any capital as the products you are selling are computer-generated. Once you have your virtual product created you will always have it in stock; we are talking about things like e-books and software. There’s often a cost to have the product created and then to advertise through pay per click programs. With virtual products is it likely that you will find your sales to be fewer and further in between, but your profit margin will be higher than with the Adsense program. On another note, as to virtual products, if you don’t want to create your own product ClickBank or TripleClicks are a couple of examples of where you can find other peoples virtual products that you can sell for a commission.

Physical products are probably the hardest and most expensive of the three revenue types to concentrate on. However, the upside is that the profits are much larger than the previous two streams and you will often be selling your own product. This offers greater control but don’t forget if you decide to do this, you have to consider the shipping costs and time it will take to pick and pack your order! You could sell physical products through Amazon’s affiliate program but once more the commission is only around 5% of the sale. Selling your own product is by far the most lucrative but also the most expensive to set up and time consuming to maintain!

Affiliate Programs: How to Make Money Online with Other People’s Products

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