June 12th, 2010 
Steven Tremko Bellante 
1. Service Model
Overview: A service based business model revolves around the concept of offering the user a basic service for free while offering a premium version of that same service (more features, etc…) for a certain cost. For example, everyone can sign up for Flickr and share photos for free, but you are limited to things like the amount of space you have to upload photos. Flickr offers a premium service, which provides the users with unlimited storage, HD video playback, and no ads when viewing the site.
Examples: Flickr & LinkedIn
2. Affiliate Model
Overview: A affiliate business model is when you drive traffic to a company’s website offering a particular product or service, and you then get paid based on how many people sign-up or buy the product/service you are advertising on behalf of the company. Most companies have their own affiliate networks or outsource the network to third-party affiliate network such as Neverblue Ads for example. One example using the affiliate model would be Amazon.com where you can refer people through affiliate links from Amazon by doing product reviews where you then get paid a percentage of the sale for each person who buys the product you are advertising by clicking your link.
Examples: Amazon & eBay
3. Subscription Model
Overview: A subscription business model is when you offer a service for a reoccurring fee whether it be monthly or yearly. A perfect example of this is Netflix who offers a subscription service where based on the rental plan you select, it determines how much you pay each month and how many movies you can have out at once. This model is very popular typically with online music services.
Examples: Netflix & Rhapsody
4. Advertising Model
Overview: What could should be considered probably the most popular (and easiest to setup) business model online is the advertising model. This model revolves around the concept of selling space on your website to advertisers who in turn pay you for views and clicks on their ads from your site. Facebook is a perfect example where anyone can buy ad space on the popular social media website and advertise almost anything. Facebook has done very well with the advertising model as the key to this model often times is traffic! It’s a great model for anyone who wants to setup a blog and generate a little extra cash on the side.
Examples: Facebook & Digg
5. Product Model
Overview: A product based business model is when you physically sell a product to the user whether it be a physical book for example or an ebook. This model is used when you have developed your own unique product for market or have a particular item you want to sell. A perfect example would be iTunes, which offers music, applications, audio cds, ebooks, and more in a e-commerce style website. The internet has made is extremely simple for anyone to put up a website and start selling with very little risks involved.
Examples: iTunes & ThinkGeek
The business model is what will allow you to make money online. If you can’t fit your idea into some sort of business model like the ones above, you should really stop and ask yourself if this is worth your time and efforts. I cant say enough how important it is to take the time to develop a business model for a new idea before jumping into it. Create the model and use it as a guide going forward. I was shocked the first time I realized just how much of an impact it had on my work going forward. Please take a moment to leave a comment. What are you thinking? I want to know.
Author: Steven Tremko Bellante
Posted in 
Those are great tips, and I think I’m going to
mix some of them. I love diversity
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harvestwages Reply:
March 17th, 2010 at 9:46 pm
@Mars Dorian,
Hey Dorian,
It’s great seeing your comment on my site. Diversity is my thing too.
harvestwages´s last blog ..Top 5 Social Media Business Models For Entrepreneurs
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Very informative, it reminded me of income models I’ve all but forgotten about – which isn’t good for me, so thanks for the post!
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innocriss Reply:
March 19th, 2010 at 9:38 am
@Maren Kate, Welcome Maren,
you’ve always been an inspiration to me.
Of the many different models that exist, this 5 are my best. Do you have any you could recommend?
innocriss´s last blog ..How to Sensibly Succeed As an Entrepreneur Without Changing Who You Are
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Nice list here.
I learned that in school about preparing a business model. Of course its such a big help because it has planned your process and helped you really understand what is going on.
Alex´s last blog ..The Virtue of Obsession
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innocriss Reply:
March 19th, 2010 at 9:45 am
@Alex, Hey Alex,
Welcome on board
It’s not long i started using these business models. When i discovered it, i just decided sharing it for all.
innocriss´s last blog ..How to Sensibly Succeed As an Entrepreneur Without Changing Who You Are
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Thanks of sharing these models. I was loosely aware of them rather than following. I need to change that.
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innocriss Reply:
March 22nd, 2010 at 5:40 am
@Matthew Needham, I shared this models because i realized how important they were. They are simple to implement and can work for all.
innocriss´s last blog ..Success patterns that emerge – Guest post
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harvestwages Reply:
March 30th, 2010 at 5:33 pm
@laurance, Thanks for the complement.
Welcome on board. you are often see great contents on this site just bookmark it.
harvestwages´s last blog ..Alexa Yakezie Challenge – Here comes a new challenger
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innocriss Reply:
May 21st, 2010 at 9:37 pm
@Legalsounds, You thought wisely. Glad to meet you next time
innocriss´s last blog ..Learn To Be Wisely Frugal But Selectively Extravagant!
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To market in terms of quality rather than price, and in order to differentiate accordingly, you need to follow the standard format of the 4 P’s marketing plan. That is, Price, Product, Place and Promotion – obviously you know the main attributes of the product, and the price, but for ‘place’ you should think about the type of people who are willing to pay over 4x price of competing product – whereas the cheap option may be sold where emphasis is on cost, your product will be suited to places/distributors where the customers will be willing to pay for quality. Thank you for this article!
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innocriss Reply:
May 21st, 2010 at 9:47 pm
@Charmain Ducceschi, Cost is not value or quality. In order to succeed, we need not always equate cost to value. In business what matters most is the business strategy. That’s why you would see some one with the best products that don’t sell.
innocriss´s last blog ..Diet and exercise For Self Empowerment
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cool, Really good sharing this.
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innocriss Reply:
June 17th, 2010 at 8:06 pm
The social media is ever expanding and i think major cities of india have gotten active experts in the field
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innocriss Reply:
June 17th, 2010 at 8:00 pm
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