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The 4 Most Profitable Online Revenue Models
Fortunately, there’s no shortage of ideas out there. That’s one of the Internet’s biggest strong suits — it’s so versatile, you can make money almost any way you want.
But there are so many revenue models that it’s hard to narrow down which one is best for your business.
The right revenue model for your business is one that’ll help you reach your goals and sustain long-term growth. We’ll talk about some of the most popular on this page, so keep reading to learn more. And give us a call at 888-601-5359 to speak with a strategist.
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1. Product sales / ecommerce
Everyone is familiar with this revenue model since it’s the most direct.
Sales revenue is the easiest premise in the world — you sell a product and people pay for it. The value of a physical product is immediately apparent, whether people are buying it for practical use or just for fun. Some products may have a niche market, but you can always find success in ecommerce.
Learn about the 4 Ps of marketing
Pros
Product sales are easy, and there are tons of products out there that people want to buy.
Because there’s so much variety, you have a huge opportunity for profit.
Cons
The issue with product sales is that they can include a lot of additional costs on a large enough scale. Unless you drop-ship only, you need to have a storage facility for your stock.
You also need to replace any items that are broken, and you’ll have to issue refunds for items that aren’t delivered properly.
Last, there’s a lot of competition in the ecommerce world.
2. B2B lead conversions
In the B2B world, you rely on lead generation to get new customers. Leads are people who go to your website and either contact you or tell you to contact them somehow.
You turn these leads into customers by nurturing them, which includes sending them emails, offering them free information, and encouraging them to finally convert into paying customers.
Pros
Lead conversions are great for any product or service that requires a contract, face-to-face meeting, or signatures to finalize.
They generally create more revenue over long periods of time, as opposed to small, lump-sum product sales, as well.
Finally, their long-term payoff ensures stability for your company.
Cons
Lead generation takes a long time, and it’s possible that you can spend a lot of time on one lead just to have them turn you down.
B2B companies have a lot of competition online, just like ecommerce.
3. Subscriptions
Media outlets commonly use this model, even if they’re delivered electronically these days instead of through the mail. But subscription payments are also popular for software services, premium television, and online streaming companies.
Pros
One of the biggest advantages of this revenue model is the recurring revenue stream that ensures a consistent income each month.
Subscriptions also give you the chance to upsell your customers to bigger and pricier packages, getting more money for your company.
Cons
On the other hand, it’s hard to upsell from a cancellation, and once subscribers cancel it can be difficult to bring them back.
4. Ads
If you have a website, there’s some space on your page that another business would love to use to advertise. That’s the theory behind the ad sales revenue model.
One site opens up space for banner and display ads on its site, and an advertiser buys space on that site. Both parties get together through an ad display network that helps match ad source with advertiser.
Pros
The model works because it brings in additional revenue with very little investment of your money or time.
It’s also one of the easiest ways to generate a passive income. You basically rent out real estate on your website.
Cons
Ads are everywhere these days, and too many of them can hurt your search engine optimization (SEO) rankings or annoy your visitors. The last thing you want to do is turn away potential customers.
Choosing a revenue model for your business
In an increasingly complex digital world, you can build profitable business models and generate more revenue than you ever could with brick-and-mortar stores.
Though making money online can be challenging, the secret is to find the model that serves both your goals and your customers’ needs. Some of the best in the world are listed above, and the right one will take your business to a whole new level.
WebFX specializes in online revenue
At WebFX, we specialize in earning more money for businesses that want to grow. Our team of Internet marketers exclusively uses online resources to implement revenue marketing strategies that reach your goals, while considering your digital marketing costs, including PPC and SEO costs, to maximize your ROI. We’ll do everything we can to exceed your expectations. We’ve helped some of our clients reach record-high annual revenue — we want to do the same for you!
Contact us today to create a revenue generation strategy for your site!
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