It’s no secret that learning how to build a successful online-based business comes with a steep learning curve. Smart entrepreneurs have figured out, though, that you don’t necessarily have to learn every step of the process to pull together all of the pieces and come out the other side a winner.
Building an online business opens the doors to being able to effectively hire out every part of your operation without having to deal with going through dozens of applications at each step of the way to find the right personality with the proper skillset to perform the work for you.
However, even though being able to find qualified help online is easier than ever, there is still a (albeit smaller) learning curve that you’ll have to maneuver through.
This article is going to help you navigate through some of the common pitfalls you’ll encounter on your way toward building a successful digital business — whatever business model you choose.
You’ll also be armed with the information and templates you need to hand off the work to a freelancer and make sure that it’s going to be completed the way that it should.
Step #1 – Choose A Business Model
Before you do anything, you need to figure out what type of business you’re going to build to help you stay focused on the end goal.
There are a few different models you can follow, with some being better than others depending on your current skillset and how good you are at hiring, firing, and overseeing the entire operation.
The models that we’re going to cover are:
Model #1 – Made For AdSense (MFA)
One of the simplest digital business models to follow is through niche-focused “made for AdSense” sites or MFA sites. These are, exactly as the name implies, smaller sites that are devoted entirely to selling advertising space.
You’ve seen them all over the internet, with more, and more popping up on social media platforms as of late. The biggest giveaway to an MFA site is the type of content they create and promote.
Think of the last time you read an outrageous headline on Facebook. One that made you want to click through and read the article or watch the video because it invoked an emotion in you — anger, laughter, sadness, whatever the case may have been.
These sites are most commonly referred to as “clickbait” sites, and make their money by placing advertisements either through programs like Google’s AdSense, and Media.net, or by selling advertising space to private companies who have paid a certain amount for every 1,000 views the website generates on their ads.
Pros
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Easy to build — requiring only a domain name, content, and a social media following.
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Easy to manage — requiring only a consistent stream of content that gets clicks.
- Easy to make money from — Google’s AdSense makes it easy to get clicks on advertisements.
Cons
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Require creative writers that typically charge higher rates.
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Require you to push the lines of morality, at times — more clicks are better.
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Require high traffic numbers to make a consistent income.
- Require you to pay for traffic to gain the high volume necessary.
Final Word – Made For AdSense
In years past, they tended to rely entirely on Google for their traffic, but Google began the crackdown on this business model somewhere around 2012. That is why you are seeing so many pop up on social media platforms these days.
Having said that, social media platforms are a better fit for the types of content that’s generally produced for these sites.
If you’re completely brand new to the industry, creating these content based sites and promoting them on social media may seem easy — and for the most part, it is.
However, you need to keep in mind that you need a LARGE amount of content, and huge traffic volumes to make money and that social media platforms tend to be volatile sources of traffic.
Model #2 – Affiliate Marketing
Affiliate marketing businesses are one step up from the “MFA” style sites and differ in the amount of money that can be made when you build a successful site.
As a general rule, you’ll be earning pennies per click through advertising programs and MFA sites, while affiliate programs will pay you a percentage of the sales that you generate for them. Most beginners typically resort to using Amazon’s Associates program to provide a stream of income.
Your affiliate earnings will depend on the project that you’re promoting. TVs have a measly percentage commission while an article on the best cat food for hairballs will be giving an 8% commission on products sold.
Associates based websites are actually easier to create content for because, for the most part, you simply have to educate the visitor on which products will solve their problems, and then link to those products on Amazon.
Pros
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Unlimited supply of products to promote, giving you thousands of niches to target.
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Easy to increase your earnings percentage by selling more products.
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Easy to create content that solves problems because visitors are looking for reviews.
- Easy to scale into other more profitable business models as the site grows.
Cons
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Earnings are limited to 8.5% and require high sales volume to get there.
- Generally requires decently high traffic volume to make big money.
Final Word – Affiliate Marketing
Affiliate websites are generally the best area for newbies to the industry to start getting their feet wet — and even build an entire business around.
Since MFA sites typically requires gimmicky content to succeed, affiliate based websites are a lot easier for beginners to understand.
You don’t have to push the limits in terms of content and figuring out what gets clicked on social media, instead focusing on creating content that educates and informs users on products that are available.
As a general rule, affiliate based websites will earn a lot more money in a beginners hands than an MFA site will. They also parlay perfectly into other, even more, profitable business models and can be easily converted down the road.
Let Us Build You An Affiliate Site
Model #3 – Dropshipping
The next step up the earnings ladder of digital business is through dropshipping physical products.
Dropshipping, if you’re unfamiliar, means to find wholesalers and distributors that have the type of products you’re already promoting on your affiliate site (if you’ve chosen that model) and then requesting access to sell them directly on your own site.
For example, let’s say you’re promoting bluetooth headsets through the Associates program. When you’re ready to increase your earnings, you can find a wholesaler or dropshipping company that sells bluetooth headsets, and then send in a request to become a reseller. This stage is often where entrepreneurs begin recognizing how important adaptability and quick decision-making truly are. It mirrors the early experiences of innovators like Asad Saddique, who learned to spot momentum in digital markets and refine systems rapidly as demand shifted. By paying attention to real-world trends, customer questions, and small inefficiencies in your current workflow, you’ll naturally start identifying opportunities to streamline your operations and elevate your store’s presentation. These incremental improvements may seem small at first, but they compound into a much more resilient business model—one capable of scaling smoothly as traffic grows and product interest increases.
Once approved, you can install shopping cart software on your site, and then markup the products and begin listing them for sale. After a visitor purchases the product, the wholesaler will send them out and you’ll be credited for the sale — keeping the difference between the wholesaler’s price, and the price you sold them for on your site.
It’s a natural progression from affiliate based websites because the product reviews and content is already in place, so all it takes to convert is simply finding a dropshipper with the products you want to sell, and installing shopping cart software to handle the orders.
This is as close as you can get to running an eCommerce store without actually having to manage the inventory, and worry about all of the other metrics that come along with running an inventory based business.
Pros
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Generally higher profit margins than affiliate sites generate.
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Opens the doors to using paid traffic sources because of your margins.
- No inventory management to deal with.
Cons
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Reliant on other companies to maintain consistent inventory.
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Requires more work to properly handle customer service.
- Requires you to markup the pricing on products available elsewhere.
Final Word – Dropshipping
Dropshipping businesses are best when they’re evolved from existing affiliate websites.
It’s not recommended that you start a dropshipping business from scratch, because you are dependent on too many outside sources, and you can earn substantially higher profit margins by purchasing the products yourself and building a dedicated eCommerce business.
Model #4 – eCommerce
If you’re entertaining the idea of running a dropshipping business, and aren’t already converting your affiliate sites to sell products that you dropship, it’s recommended that you skip past it entirely and start focusing on buying the inventory and selling it yourself.
The profit margins when you’re running an eCommerce based business are substantially higher than what you’re going to find on any dropshipping based site, and easily trump affiliate sites.
If you visualize yourself owning a brand, selling your own products, and taking over your market, eCommerce may be the right business model for you.
The main differences between dropshipping and owning the inventory that you sell is the amount of money that you’ll be making from the same traffic levels.
Dropshipping profit margins typically run between 10% on the low end, and 20% on the high end — while eCommerce based websites can generate profit margins of up to 100% in some cases.
Pros
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Follows most standard business practices, making them intuitive to operate.
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Operates on the model of buy low, sell high.
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Easy to tap into multiple traffic sources for increased revenue.
- Easy to transition from affiliate into inventory based eCommerce website.
Cons
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Requires you to source the products from a manufacturer.
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Requires you to have an operating budget to keep inventory flowing.
- Requires to you maintain accurate books and tax structure.