Traditional Offline Business Models

1331 Words Dec 28th, 2010 6 Pages
Traditional offline business models have been adapted for the internet but remain very similar online as to the offline world. In essence all models provide some form of product or service in exchange for financial reward.
However not all online business models are equal. Selecting the right model for your online business warrants careful consideration because each model requires different skills and time commitments to operate. Not all models will suit you or compliment your business interests. Also, you will discover that different business models will appeal to you at different stages of your career as an online marketer.
Auction Model
Love a good garage sale? Are you an expert or enthusiast in a certain field? Are you a wholesale or
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You get paid a commission on each sale you generate. There is usually a joining fee involved before you can become a representative. This is generally in the vicinity of a few hundred dollars.
The primary difference between affiliate marketing and multi-level marketing is that as an affiliate marketer you get paid only for the sales you personally generate. As a multi-level marketer, again you get paid a commission for sales you personally generate. But furthermore, you can also build a team of marketers who join the company under you and then you get paid a lesser commission for sales your team generates. If your team go on to build a team of their own you get paid again on sales activity generated by their team...and so and so forth.
Commission percentages and compensation plans vary from company to company. Because it is such a highly leveraged business model the percentage commissions are usually much smaller, ranging from 0.25 - 10%. The idea being that small increments amass to a large income by leveraging the combined efforts of many people.
Top Tier Business Model
The top tier business model shares similarities with both the affiliate and the multi-level marketing models, but has some unique differences.
The affiliate model pays for sales generated directly by the affiliate marketer (one level deep). The MLM model pays you for sales generated by you or your team sometimes down to infinite levels, so you can benefit from the

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