Online Businesses That Make Geeks Money
How can a geek make a profitable online business?
As a geek, youâve seen many different online business models. But do you know which ones make money? People say that the potential to make money online is virtually unlimited - how do you get your piece of the online business pie?
The most effective strategy is to determine which (or what combination of) online business model best suits you as a geek - it should fit your company, your brand, your audience and your expertise.
In this article, I outline several business models that have been proven to be effective in making money online. All of them require you to actually build the business (they are not automatic systems), but many people have made substantial income using each of these methods.
âThis video brought to you by, ABC Company...â
Many businesses are looking to create specific, targeted marketing online. Since there is a demand for this, why not supply it? As a business to business (B2B) model, this system requires less direct interaction with the final client. You simply create the content that you would normally create (whether article, newsletter, video or something else entirely) and interject the sponsorship.
To make money with this online model, you must have a sufficiently large targeted user base to draw the interest of sponsors. Once you have the users, you can approach potential sponsors and they pay you directly.
âClick here to sell your product...â
From job listings and houses for sale to, quite literally, the kitchen sink, a site that focusses on online listings can be extremely lucrative. Some sites (like kijiji.com) allow users to post listings for free, then upsell to create revenue (featured listings, additional listing details). Other sites (like monster.com) charge a substantial fee just to post the listing. As with selling sponsorships, what you can charge and who you charge it to is directly based on the type of web traffic that you are generating.
A major draw of this online business model is that there is very little interaction with the individual clients. Generally, online directory listing sites are self-service. The individual (or company) posting the listing inputs the content and pays for their advertisement by charging a credit card or other payment method.
If you have great content, why not sell ads right next to it?
Generally, when people think of making money online, this is one of the first things that they think of. A major advantage of this method is that itâs very easy to get started - all you need is Google AdWords. You simply create an account (or use the one you already have), place their code on your site and within minutes you have the vehicle to make money online with.
As your business grows you may find that itâs more profitable to sell advertisement space directly to your clients. Rather than selling impressions for 15 to 30 cents per thousand (CPM) impressions, you could sell a specific ad space for several hundred dollars per month and have more control over the look and feel of the advertisement itself.
One caveat of this business model is that it requires vast amounts of traffic to generate revenue. While sites like forbes.com generate hundreds of millions of dollars annually online, they also have tens of millions of unique visitors monthly in a very high paying demographic. If you do use this online business model, be prepared to generate huge traffic for modest returns at first.
With a lead-generation business model, everyone gets what they are looking for.
An advertiser pays you, the publisher, to receive usersâ contact information. As a publisher, you create content that is relevant to the advertiserâs product and place a form alongside that content where a user can express interest in the product. The advertiser pays you for each interested user (called a warm lead or simply a lead), and your users get directly contacted by the advertiser regarding only the products that they are interested in.
With this business model, you must be comfortable creating sales copy for another company because, no matter how unbiased an article is, you are still making the initial sales pitch for your advertisers. If you are comfortable with this, then this model can be extremely lucrative.
With the advent of ebook readers like the Kindle and the iPad, selling ebooks has become much simpler and very much more profitable.
There are people who have built up communities and sell ebooks specific to their niche and make 5 and 6 figures whenever they release a new ebook. There are other people who make a modest 4 figure monthly income that concern themselves less with building a community to sell to. There are also people who make next to nothing selling ebooks.
What differentiates these results? Several things.
First and foremost, the most successful ebooks are written in subject areas where people have a high motivation to purchase (areas such as weight loss, educational products and âget rich quickâ schemes). To be truly successful, take your time choosing your subject matter.
The second differentiating factor is the size of the community being sold to. There are many more people who want to lose weight than there are who want to learn to play the banjo. As a result, a weight loss book will do better than a âBanjo Playing 101â ebook. We call selling to a large, preexisting community âstanding in front of a paradeâ.
The final major item to consider with ebooks is the quality of the product that you produce. It is significantly easier to generate interest (and therefore sales) with a well written, informative ebook than it is with something second rate. Make a real point of creating material that you can be proud of. By doing this, you will make your life much easier and will create a âbuzzâ around your ebook.
Selling software products
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What used to be called shareware has now become the de-facto method of software distribution. Nowadays, people wonât purchase an application unless they are able to âkick the tiresâ a bit. Everyone from the kid next door to Microsoft is offering trial or limited versions of their software to encourage purchases.
If you can create a piece of software, then this may be the most effective way for you to make money online. I personally have made thousands of dollars selling applications that took me less than 1 week to create.
As with ebooks, you want to consider who has motivation to purchase, how many potential clients there are and be very careful of the quality of the product that you create. In addition, software products are particularly prone to software piracy - recognize that you will have your software stolen by some (perhaps many) people. As a consolation for this, remember that all publicity is good publicity and even though a percentage of your users did not pay for the software, they are still using it and this will create additional âbuzzâ around your product.
Many, many millionaires have been created using this online business model. It is a straightforward and clean method of making money online. You create a product people want, they pay you for it. Since itâs electronic, you donât even need to worry about shipping, they can download it immediately.
If you have a large base of expertise and are able to produce a significant amount of content around it, you may want to create a membership site to distribute it.
As people have become more and more comfortable making purchases online, the concept of paying an expert to teach you something from the web has gained in popularity. In addition, it allows a user to feel a sense of solidarity with an established community (âI am a card-holding memberâ).
Often a membership site will distribute a portion of itâs content for free as the âhookâ to entice prospective clients to become members. For example, if you had a site that created editorial articles, you could release 1 out of 10 as a free article with an offer to join in the conclusion of the article.
Membership sites tend to work really well in conjunction with other methods. A membership site about digital photography would have no problem selling an ebook written by the experts that run the site or even selling a product that integrates with Adobe Photoshop for image post processing. In fact, once you have a site with an established membership base, you can ask the members what they would like to purchase from the site. You will have an entire community of pre-qualified leads.
Membership sites are an excellent online business platform because, by their very nature, they provide ongoing, recurring income.
There are so many ways to make a profitable online business, this article has only scratched the surface of whatâs possible. Remember to think about scalability in any online venture. If you create something that generates income, but it requires an enormous, continual investment of time, then you may be better served to look at another business model.
Do you have creative ideas for online businesses? I would love to hear about them. How about success stories? Get the accolades you deserve; post your stories and ideas in the comments below.