The Three online Business Models – part one

When you read John Chow’s book thoroughly, it is as clear as day! There are 3 online business models and you discover the one he chose to get the real money and have the free time to enjoy it!
Here they are:
• The affiliate marketing Model
• Creating your own Information Product
• The Licensing Model

Finding out what income model is the best!
Finding out what income model is the best!

John shows the advantages and disadvantages of each model and help you choose the one that is best for you.

I won’t go into detail to explain why you should listen to John Chow. Go and download his book to discover his credentials and track record.
But he is living what he calls the Dot Com Lifestyle. Like he says, it is not just a matter of financial freedom but also time freedom and location freedom. There are many people who make a lot of money but have no time to spend it because they are working so hard. And often they are tied to a geographical location where their work tool is and can’t escape.
Getting access to the Dot Com Lifestyle needs for us to think differently, ‘a paradigm shift’ to another way of thinking and doing. But if you want it, you can do it! It is probably much easier than what you are doing now…
Ok let’s go –
1) The Affiliate Marketing Model – You (the affiliate) refers a client to a vendor (like Amazon) and the vendor give the affiliate a commission if a sale is made. Consider yourself as an independent contractor.

There are many advantages to affiliate marketing:

• You don’t have to create your own product
• The vendor handles all the hard work like delivery, invoicing, customer support
• You can do this from anywhere in the world
• Easy setup,
• low startup cost

People make money with this but there are some major flaws in the system:

 The client doesn’t belong to you so you can’t continue to sell to him.
 You only get paid once on the ‘front end’ product.
 You have to keep spending money on traffic or your money stops.
 The advertiser may decide to pull the offer and then what do you do?

So your business is not on a stable footing. Real businesses are built on repeat clients and with internet marketing; it is what you sell after the first introductory offer where you make 75% of your revenues.
It is much easier to market to an existing client than to go and find a new one. It actually cost 7 times more money to acquire a new client and if on top of that you do it for someone else, the time comes when you lose money!

The Affiliate Model that works, and that John uses, demands a bit more effort but you will make much more money. Here are the action steps:

 Choose a series of affiliate offers to promote in the same niche (www.clickbank.com ; www.offervault.com, www.cj.com)
 Create a free e book about the niche to give away.
 Create a landing page to which you send the traffic. I do mine with ‘Lead Pages’.
 The visitor gives their email (opt-in form) and Lead Pages will also deliver your ‘lead magnet’ (e book or video).
 Using an auto responder like A Weber you can send daily follow up emails to build a relationship with your visitor. See the article on my blog.
 Then recommend affiliate products and services to solve the problems of your subscriber.

To conclude this first strategy, you absolutely need to build your own customer base with an email list.

2) Creating your own Information Product
This is by far the most lucrative online business model. People want to know what you know and if you have been studying online marketing for any time at all, you know more than 95% of your readers.
But like we have already said, it is not what you know but what you DO about it that brings you into profit.
Information products are “virtual” products like e books, downloadable software, videos etc.
Because once the product has been created, they offer a very high profit margin. It is the know-how you are getting that is so valuable. You can also buy the rights to someone else’s product and sell that. (Private or Master label rights).
The advantages are:
– Can grow your business fast
– Easy to automate
– The pricing is based on the perceived value
– Easy to create
Most bloggers have many posts that can be transformed into an e book as well as videos.
However, you need a brand to sell it. If you are not known, it is hard to find affiliates who will sell it for you. The best way to get around this is to partner with a well-known marketer and get him to put his name on it.
The startup costs are high. Between the sales page, copy writing and the fact that you don’t just want one product but also upsells and a continuity program to get all the sales possible, means there is a fairly high time and money investment. With the course ‘Blogging with John Chow’ there is the main course for 37$. Then there is an upsell to a 97$ automation course and a 47$ per month continuity program.

Tip: Publishing your own eBook on Amazon will automatically build your authority and make others want to work with you. Find out how in this 3 part article, ‘How to Write Your E book This Week End’.

3) The Licensing model
John has done well with the licensing model because it combines the advantages of the affiliate model and your own product model while getting rid of most of the disadvantages.
You can license information products from an established source that have already proven to sell. Like the franchise business model, you also get marketing coaching and training in getting traffic as well. You get to follow a proven system. See my video on this subject.
The main advantage is that your clients belong to you. If the company should sell something else to your client at a later date, you get the commissions unlike the affiliate model where you only get the commissions off the first sale.
The best example of a licensing business model is My Online Business Empire, or MOBE.
The company was launched by Matt Lloyd from Perth, Australia only 4 years ago and is targeting 50 million dollars in 2014.
The company offers 90% commissions on their ‘front end’ products like the 21 step MTTB course to learn how to make money online at 49$ or the Traffic Master Academy at 297$, where you get to study the best traffic methods taught by to MOBE marketers who are doing it. There is also an Inner Circle continuity program where the best marketers share their tips and insights (99$ monthly).

They also have something rarely found; high ticket items costing from 2000-15000$ (including a personal coaching program and access to a Mastermind held in dream locations). On these products, as an affiliate, you get up to 50% commissions.

High Ticket items = Big Profits

That is the way to make the most online. You don’t necessarily need to keep on getting traffic. What you discover is that a small number of your clients will buy everything you have and have the means to pay even high priced top tier products. More on the MOBE opportunity in part 2.
Get your Ultimate Online Profit model ebook here

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