Top 3 Online Business Models


If you have struggled to make money online, it may not be your fault.

There is lot of misinformation out there, and many so-called gurus are not telling you the whole story.

This post is the knowledge from my journey into online opportunity market. I have spent thousands of dollars on training, books and materials to learn the necessary skills to make money in this industry…without HYPE or BS.

I will share my learning here, and hope they will be helpful to you, cause if I knew what I know now, I would had a lot more FUN and a be lot more PROFITABLE building an online business.

If you are struggling to make money online, it’s likely you are not leveraging the best and most profitable online business models out there.

I’m going to share with you the Top 3 Online Business Models available right now.

The Top 3 Online Business Models Are:

  1. Affiliate Marketing
  2. Creating Your Own Products
  3. Licensing Model

I will go through each of these models, and show you the advantages and disadvantages of each, and help you narrow down the best one for you.

1.  Affiliate Marketing


Affiliate marketing is promoting other people’s products. You are given a special tracking link. When someone clicks on that link and buys, then you are credit for that purchase.

Most new people entering the online opportunity market probably have been exposed to affiliate marketing.

Since lot of the work is taken care of for you by the product creator, it is an attractive model.

Affiliate commission usually range from 20-50% (some can pay as much as 80%), in the internet marketing niche.

There is a right way and wrong way to do affiliate marketing….and sadly, most people starting out do it wrong.

This is one of the reasons why most fail and think making money online doesn’t work.

This is what most newbies do –> send traffic directly to the product creator’s lead capture page (LCP) or directly to the offer.

When you do this you are not only losing a lead, you are also losing any chance of back-end sales.

And all the successfully affiliate marketers know that the back-end sales are what makes them the big money.

So, if you want to be successful in affiliate marketing…

Follow these steps:

  1. Create something of value to give away for free (eBook, training video) in exchange for an email.
  2. Create your own LCP to collect visitors’ contact info (building your list).
  3. Send traffic to your LCP (not to the product creator’s, and not directly to the offer).
  4. Create email autoresponder series to give value, build relationship and sell the offer.
  5. Recommend other offers you think will also benefit your subscribers.

When you do these steps, then you able to build relationship and give you the opportunity to market to your subscribers over time.

Creating your own lead capture page, or opt in page, is pretty easy compared to a few years ago.

There are many software and web-based services available that takes care of all the coding and designs for you.

There are 2 lead capture page creators I recommend:

  1. OptimizePress 2.0
  2. LeadPages

Both are great lead capture page (LCP) creators.

LeadPages is probably the easiest service to create LCP.

OptimizePress will give you more functionality and is more advanced…it allows you to also create customized sales pages, membership sites, launch funnels, and includes a free blog theme.

In order to build relationship and market to your leads over time, you will need an email autoresponder.

Email marketing is still the best marketing tool to convert cold leads into customers.

There are people who say email marketing is dead. Don’t believe that nonsense. Studies have shown email marketing is still top in terms of converting prospects into raving customers.

The 2 email autoresponders I use are:

  1. Aweber
  2. GetResponse

I prefer Aweber, but you can do the research and pick the one that’s best for you.

Here are the advantages and disadvantages of affiliate marketing:


  • Don’t need to create your own product.
  • Don’t need to worry about sales pages and web hosting.
  • Don’t need to worry about merchant account, shopping cart & payment processing.
  • Don’t need to handle customer service.
  • Don’t need to handle refunds.
  • If you’re sending traffic directly to the product creator’s squeeze and offer, then it’s pretty hands off. All you need to do is send traffic.


  • You don’t own the product.
  • Smaller commissions.
  • Lose customers.
  • Lose back-end sales.
  • You have no control over the offer:
    • Can be shutdown at any time.
    • No control on how it’s delivered.
    • No control on how customer support is handled.
    • No control on how refunds are handled.
    • If the product creator handled customers in a wrong way, then there is a chance you may also get blamed, since you are the one send them to that offer.
  • Building other people’s business.
  • Building other people’s list.
  • If you are not sending people to your own squeeze page first, you lose a customer and no chance of marketing other offers to them.

2. Creating Your Own Product

Now creating your own product is probably one of the best things you can do as an online entrepreneur.

Having your own product will brand you as an expert and an authority in your niche (of course, your product better be good, otherwise, it’ll have the opposite effect).

The other benefits of creating your own product:

  • You own 100% of it (100% commission if you promote yourself).
  • You have full control of the process.
  • You can get affiliates to promote your products.
  • You can build a massive list fast (buyers and regular opt in’s).

Now, one of the down side is that product creation does take some time to master.

So if you are just getting start, then this may not be the best option for you.

You need to learn the fundamental first.

To be an expert in any niche will take some learning…

Things like…how to structure the product, creating persuasive sales page, creating high converting sales funnel, payment processing, customer support, etc.

With that been said, when you are ready, creating your own product is a goal worth pursuing.

There are many excellent product creation courses online offered by reputable marketers. You can find them by doing a simple Google search.

Those courses will fast track your product creation process.

If you are creating your own product then you will need a website.

You will need a domain and web hosting.

For domain I use Namecheap and Godaddy. Both are excellent and have simple buying process:

For hosting I use Hostgator. You can get unlimited web hosting with unlimited disk space and bandwidth, and 99.9% uptime guarantee. There is also a 45 day money back guarantee and 24/7/365 technical support.

Use this code at checkout to get 25% discount: edhost25off

Here are the advantages and disadvantages of creating your own product:


  • Brands you as an expert, an authority.
  • You own the product.
  • You earn higher commissions.
  • You have full control.
  • Get affiliates to promote and build you list for you.
  • Use product as bonus to promote other products.


  • Need time to master.
  • Need to create a high converting sales funnel.
  • Need to know how to create persuasive sales page (copywriting).
  • Need to get a merchant account.
  • Need shopping cart.
  • Need a way to process payment.
  • Need to handle customer support, refunds, fulfillment, etc.
  • Need web hosting.

The Ultimate Online Success Blueprint

3.  Licensing Model

The licensing model is my favorite.

It gives you all the benefits of an affiliate marketing model, but none of the complexities of creating your own product, and if you are in a top tier program, then you get access to the high-profit back-end sales.

And this is probably the best entry point for a newbie to get a fast start.

The licensing model is similar to the franchising model.

I’m sure you would agree that starting a business from scratch is extremely risky. Studies have shown…less than 20% of new businesses make it…that’s over 80% failure rate!

Studies also show 85% of franchises succeed!

Consider this…

Is it less work to start a burger joint from scratch, or just buy a McDonald’s franchise?

It’s pretty obvious…the franchise is essentially a business-in-a-box. Everything you need to run a successful restaurant is already done.

The main reason people buy a McDonald’s franchise is because of the SYSTEM and it’s a PROVEN business model.

All the owner need to do is plug into that system and it just runs itself (even high school students can do it, lol).

And that system is already proven to be successful.

This is why people pay top dollar for a McDonald’s franchise.

The biggest disadvantage of owning a franchise, like McDonald’s, are the extremely high start up costs.

But unlike the high investment costs of a franchise like McDonald’s, there are online licensing models that allows you to invest little up front, leverage a proven system (someone else’s products, success and marketing materials), leverage a well-known and respected brand, and allows you to make big commissions.

Most people struggle to make money online because there is a lot to learn, and they spend most of their time trying to put it all together.

Most usually quit because it can get overwhelming after a while.

That’s where a good licensing program comes in…all the hard work is already done for you, so you can focus on the money producing activities.

What to look for in a good licensing program:

  • Successful track record where the economics works out.
  • Tiered product mix.
  • A done-for-you system, where you make top tier profits without picking up the phone.
  • Professional sales team calls your leads and sells on your behalf.
  • Personal 1 on 1 coaching with top tier 6 and 7 figure earners.
  • Simple steps-by-step to make your first $1,000 online even if you’re a newbie.
  • Insider access to the highest converting sales funnels and best-selling products in the home business niche.
  • Insider access to all the training you will need to make money online.
  • Daily motivational and educational calls.
  • All the grunt work is handled for you (fulfillment, customer support, payment processing, etc).

A good licensing program also provides all the training you need to make top tier and big commissions. As well as step by step processes and access to like-minded community who are out there to help you along the way.

Now, I’m NOT saying you can just join a program, sit on your butt and money will shoot out of the computer, LOL.

You have to put work into it. But the good thing is there are steps and people in place to guide and help you along.

The other benefit of the licensing model, unlike the affiliate model, is that the leads that you send to the system are yours and all back-end and future sales go to you, as long as you are positioned properly.

Here is something some of the gurus will never tell you…

“If you want to build a profitable online business fast and for the long-term, you need high-priced products.”

Consider this scenario:

Let say you want to make $100,000 per year (six figures), that’s $8,333 per month.

If you are promoting a lower ticket items at $27…like most people are doing.

Then you will need 308 sales a month, every month, to generate $8,333 per month.

Even if you sell a $47 product, you’ll still need to sell 177 each month.

Now, if you’re in a top tier program that gives you $1,000 commission, you will only need to get about 8 customers.

Which option sounds more appealing…getting 8 customers or 308?

I don’t know about you, but I rather do 8 sales a month than 308 sales.

The fact is…it very difficult for someone starting out, or even been in the industry for awhile, to make 308 sales every single month.

It gets even better:

  • At $3,000 commission, you only need to get 3 customers.
  • At $5,000 commission, you only need to get 2 customers.

You get the idea!

That is the power of high-ticket!

But the fact is…a lot of gurus will tell you to promote their low-priced affiliate programs.  This is one of the biggest lies in the industry.

Think about this for a moment…

Why would these gurus gladly give you 50%, and even 80%, commissions for products they created?  Why are they giving you the lion share?

The fact is…these low-cost products were never meant to make a profit.  They were meant to get buyer leads into the product creators’ system.

So, why are these gurus pushing their low-priced affiliate programs…even though, the odds are against you making any real money?

It easy to sell them, because to the affiliate it “looks easy” to promote low-priced products…but most don’t know the real costs to sell these types of products.

The only people who benefits from these types of products are the product creators.  As an affiliate, you send traffic to the low-priced offers, make the sale and usually get 50% commission. The leads (buyers) you send them are then sold high-ticket products on the back-end…which, you as an affiliate will never get commissions for.

The front-ends were never meant to make a profit…they are designed to get qualify leads into their system, so they can sell high-ticket back-end products to the leads.

That, my friend, is where most of the money is made…and most will never tell you this…and why would they. You, as an affiliate, are basically a commissioned-based salesperson for them…you are taking all the risk of acquiring a customer for them.

Are you getting the picture now?

The other reasons why you need high-ticket products are the cost associate with acquiring a customer (economics of the business).

Most new people coming into this industry don’t consider this…

If you are selling a $27 product, then you can only spend up to $27 to acquire a customer.

And with the ever increasing cost of paid media online, selling low ticket items is becoming very difficult to be profitable.

Now, if you’re making $1,000 commission, then you can spend up to $1,000 to acquire a customer.

I hope you just had an “A-HA” moment right now.

Think about this…if I can spend more than you to run my business…guess who will win?

“If you can spend more money to acquire a customer your chance of making money increases exponentially.”

Now, there are many licensing programs out there, but you have to be careful which program you join. There are many out there that don’t have a proven track record and are not “tried and true” business models.

The licensing program I’m recommending gives you all the benefits I mentioned earlier, and has already paid their affiliates $21 million in commissions so far, and they’re just getting started. This is the most popular licensing program online right now.

You’ll get step by step processes, personal coach, professional sales staff that sells high-ticket back-ends on your behalf, and access to like-minded community who are out there to help you along the way.

This program gives you:

  • Successful track record where the economics works out.
  • A done-for-you system, where you make top tier profits without picking up the phone.
  • Professional sales team calls your leads and sells on your behalf.
  • Personal 1 on 1 coaching with top tier 6 and 7 figure earners.
  • Simple steps-by-step to make your first $1,000 online even if you’re a newbie.
  • Insider access to the highest converting sales funnels and best-selling products in the home business niche.
  • Insider access to all the training you will need to make money online.
  • Daily motivational and educational calls.
  • All the grunt work is handled for you (fulfillment, customer support, payment processing, etc).

Watch this special presentation and see how Normal People Are Getting Extraordinary Results with this program…

Normal People Getting Extraordinary Results

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