Did you know that 95% of the people starting out in their internet businesses fail?

With all the noise and hype on the internet today, not many people realize that all the ideas and techniques you can find are useless if you don’t first understand what your business model is or how you are going to make money on the internet.

Even the best internet marketing technique will not work for you if you don’t first understand how to apply it to your business.

The 3 most popular business models are:

1) Affiliate Marketing

Perhaps the most popular one for the new marketer, affiliate marketing provides a good start for newbies. Almost anyone can sign-up for an affiliate program for free and start promoting the chosen product or service.

Commissions start coming in if someone buys or participates in the programs being promoted. Affiliate marketers don’t carry any risk, since they don’t pay for the creation of the product, they don’t handle customer service, they don’t even need not know the innards of internet transactions, like merchant accounts, autoresponder (what is that?), reciprocal linking, etc.

It’s also possible to be an affiliate even without a website.

Some affiliate marketing programs you may participate in require little up-front investment. Some are free.

It’s no surprise therefore that almost everyone and their neighbor promotes an affiliate program at one time or another. In fact, if there is a single reason why the Internet today is so proliferated with ads and banners, it’s because of affiliate programs.

With the millions out there involved in affiliate marketing, only 5% ever make any money and only 1% makes really big money.

The “Super Affiliates,” so they are called, do it very differently from the rest, therefore they earn the big checks.

2) Creating an eBook or other type of information product, recording an information CD.

This is a great strategy because there are thousands of possibilities for the type of product that you can create. There are so many niche markets that you can write about.

It could be a course on Japanese gardens, how to start your own babysitting business, how to sell your artwork, taking care of your dog’s ears … there are endless topics and still many that have not yet been explored by online marketers.

You don’t even need to write the information yourself, you can get a ghost writer or hire someone to produce a CD.

EBook authors need to invest more than affiliates do. While affiliates can get something for nothing, the same is not true for the eBook type of business.

EBook authors need to learn a lot more than affiliates are required to. They need to spend some amount of money getting the business up and running. However, when done right, the payoff in this online business model is much more rewarding.

These marketers make more money because they have very, very low production and maintenance costs. Once the product is produced, it doesn’t cost a cent to reproduce thousands of copies.

Start-up costs can be covered by selling just a few copies of very high-margin eBooks. You can even recruit hordes of affiliates to do the selling for you.

3) Adsense

This has taken the internet by storm. There are tons of testimonials from people making outrageous income from adsense.

Adsense is Google’s advertising program wherein webmasters display ads from Google’s extensive list of advertisers. Unobtrusive text-based ads are served in member sites, who then earn a commission every time someone clicks on the advertisers’ links.

Google Adsense uses a technology to deliver ads that are highly relevant to the content of a page. Google’s engine will scan through the content of the page to determine its topic, and will then serve ads that are relevant to the page’s content.

Running Google Adsense is quite simple.

First build a website full of content of your desired niche or topic, and then register in Google’s adsense program. Once approved, you then paste a code in your page, and the ads start appearing immediately after you upload the changes to your server.

Google is silent on how it shares the revenue per click with their partners, but how much you will earn per click depends on the topic and the product being advertised.

Products with profit margins of $10 for the advertiser will most likely give you a smaller pay per click than a product with a $100 margin.

Similarly, ads with high conversion rates will normally give you higher payouts than less effective ads, since they can afford to pay more dollars per click, with a portion of that money going to you.

These are the top 3 most popular online business models today. No matter which model you choose, make sure you understand the basics.

Stop buying courses or information not applicable to your business. Information overload can stop you before you even get started.

Your Guide To Online Profits

Ed Green

Dear Fellow Internet Marketer,

It is vital to create a product that will allow you to eventually expand into other markets. The goal is for the people who initially buy your product to also  want to buy your next product.

If you have proven that you can be trusted by having delivered a product to your clients they love it will be much easier to obtain their business when your launch your new item to the online marketplace.

We need to understand a seed (your first sale to a customer) is truly important indeed. You need to see your first product as that seed.

You see this is about creating an Internet Marketing Empire, a virtual empire of products that all start with one tiny seed that is planted in the fertile soil of those hearts that are eager for your particular product.

For example, I am in the process of creating a set of online videos where I teach students the various techniques needed to have success marketing online.

My area of expertise lies in the field of Internet Marketing. My target market would be those people just coming into this field. I realize though that if I wish to branch out and sell different yet similar products later I will have to pick a product that these “newbies” will also enjoy.

Now I know that my second product launched will be based on teaching what “tools” will be needed and how to use them. Branching out even further, a forum would be established as a means to promote interaction amoung the students.

It is amazing to see how all this began from the planting of one little seed.

As we all know marketing is a numbers game and the bigger number of people you have on your marketing list the better your chance of survival and dominance.

Think about your online marketing seed before you plant it. You want to plant something that will grow into something huge. When you look into the jungle you see an incredible array of trees. That is what you should want your seed to turn into.

The trees in your Internet jungle will be represented by the vast amount of names on your email list who want your first and all additional products you will create.

The product you create should also appeal to as many people as possible. I know those who may not be interested in the basics of internet marketing may be interested in the tools used and vice versa.

I could use the “how to” bait to reel in the “what to use” fish. When your Internet marketing seed is sown you will reap the harvest of personal freedom.

This translates into having the freedom to spend time doing what is really important. Even though I am blessed to be doing well working from my home right now, my goal is to create an online marketing kingdom. God is of course the king, I am the king, my wife is the queen and my son is the prince.

I plan to give my son the choice to attend college or as the prince of the family become the boss while the queen and I enjoy our travels. It all starts with that tiny Internet marketing seed.

The Bible talks about having the faith of a mustard seed and what can happen if we have just a bit of faith. We have to have dreams, big dreams and seeing those dreams become realities is quite inspirational and shows that this Internet marketing thing is real. No one in your circle of naysayers can argue with your results unless they choose to be up against the truth of your success.

Your Guide To Online Profits,

Ed Green