Now that you’ve learned from Day 10 what the three main ways to make money online really are, you need to look at how to setup your business model in a way that works for you and offers you more freedom – which is the goal, right?
If you haven’t yet go and check out that post above and watch my video as I delve into what we go into today.
What a business model is
Simply put, a business model is how you setup your business to make money in a way that suits your personality and serves what you value most in life.
It includes revenue streams i.e what you sell and how, and further down the road, what systems you set in place to make the entire sales funnel streamlined.
The two most viable business models
#1. Selling yourself
Using this method, you’re selling access to the knowledge and skills you’ve acquired in your lifetime (even if you think you have none), which is is one of the most exciting and natural ways to build a business you love.
Thanks to the Internet, the ways in which you can sell yourself have diversified to provide you with endless opportunities, which include marketing and selling yourself from your social media platforms, blogging, vlogging and podcasting.
#2. Selling other people’s stuff
While it’s easier to get excited about selling your own products, you can be highly profitable selling other people’s stuff as a distributor or an affiliate – if you do it well.
Since you don’t have to create or build anything, this method might sound more appealing as you just market and promote the product.
One individual who does affiliate sales incredibly well is Pat Flynn. Check out this podcast episode where we jam about how he makes 50K a month from blogging, niche sites, affiliates, and being nice.
Active vs Residual Revenue Streams
With these in mind, you need to evaluate your personality and determine which type of revenue streams will work best for you.
If you’re more of a people person who loves to work hands on, then go with an active revenue stream resulting from a service-based approach, like coaching, consulting, copywriting, teaching, workshops, etc.
When I first started, I began with workshops and eventually moved more into 1-on-1 coaching. Now I incorporate group coaching programs, exclusive one-on-one coaching limited to a small number of monthly clients and live online trainings.
The rest of my revenue comes from residual income including digital products and affiliate commissions.
If you truly want to build a business that works without having to trade time for money so you can scale faster and larger, residual income will work best for you.
Note I’ve not called it passive income for a reason – nothing is truly `sit back and do nothing’ passive income. If you think there is, you’re fooling yourself.
This revenue stream comes from sponsorships, digital products, advertising, and affiliate sales.
If you’re a natural relationship builder, the sponsorship route will work incredibly well for you since it’s all about relationship building with key advertisers you want to work with or sponsors you attract through your own personal or business brand.
If you’re prepared to hustle and learn quickly, you can build your own digital products and launch those to either run residually, so selling from your site and available at all times, or actively, where you launch a 6-week program and are available during that entire time.
The best way to sell advertising is through niche sites, which Pat Flynn is particularly talented at.
Since they’re search optimized for a specific niche, they attract a high volume of visitors looking for something very specific. These kinds of sites often take a lot of effort to build on the back end because they need to be supercharged optimized to rank high on Google.
Even before that you need a well-researched niche, an understanding of e-Commerce and online marketing, and a strong handle on Adwords and keywords.
Getting clarity and putting it on paper
What’s super important is that after having consumed this information and having thought about what your ideal business model should look like, you need to get it all down on paper.
Because in the same way you wouldn’t jump into the car to go to a new restaurant without getting directions first, you shouldn’t try to run your business without directions in place, or a defined road map.
And luckily, it doesn’t need to be one of those complicated 40-page business plans.
It’s as simple as writing up a 1-pager that get straight to the point and lists your goals plus the strategies for those goals.
Use my super special and newly update One Page Business Plan template (I offer this in my book which means it’s also in the resources section of my book website) and take an hour max to fill yours out.
Day 11’s Blog Challenge to accept in 3 easy steps
1. Write a response blog post to this question:
Which business model is best for you and what one revenue stream is most feasible?
Top Tip: Feel free to break this into two parts. If you already have a business then work on fleshing out the most profitable revenue stream for you to reach your desired lifestyle (and more of those perfect days).
2. Let us know you’ve written a blog post:
Don’t forget to copy and paste the URL of this blog post into your `trackbacks’ section under your blog post so we know you’ve written a response.
3. Embed the 30 Day Blog Challenge badge in your post:
Choose the badge you most like from right here. Then just COPY the HTML code already pre done for you, and PASTE it into the HTML tab of your post.
Read these resource posts to help you:
- Check out this article on crafting your one-page business plan
What’s next in the 30 Day Blog Challenge?
If you want to go above and beyond you can:
Click to tweet this: Which online business model is the best fit for you? #TSE30DC #onlinebiz #entrepreneur
Follow the 30 Day Blog Challenge Pinterest board (and see if you can spot your own post there)
Stay tuned for tomorrow’s blog post for Day 12 How to use your personality to stand out online.
You’ll be asked to respond with your USP your unique special proposition.
Summary round up of your posts
- Curt feels that the big challenge is on the active versus residual. It is tempting to go after the active items but for long term solution residual streams would work
- Elizabeth’s business model would be one where she can divide her time between blogging and taking pictures. Her main business plan would involve, “Selling other people’s stuff”
- Mich would like to offer her own products and services, with both active and residual streams, as she has gone through so many experiences and learned so many lessons that she believes can help women a lot