Month: January 2023

Making Money Without Robbing a Bank

You read that right, you don’t have to rob a bank or climb the ruthless corporate ladder to get rich. These ideas will get you started from wherever you’re reading this.

Make Tutorial Videos

YouTube has become the go-to place for instructional videos of all kinds in recent years. Teachers can earn money from their videos by either charging a monthly subscription fee or restricting access to the material behind a paywall. A second piece of guidance is to learn the most common search terms. Start typing “how to” followed by your topic into YouTube’s search field and observe the auto-fill dropdown for suggested search keywords. Your video’s title, description, and tags should all make use of the same set of keywords.

Have you checked out the dad who creates videos for kids who need to learn something basic? If not, you should! Get inspiration from the man who has adopted the entire world and decided to teach us through the internet.

Transform Your Passions Into a Profitable Podcast

Creating a podcast doesn’t have to be difficult. It’s easy to get started with just a microphone, a laptop, and some free recording software. Additionally, weekly releases are optimal for podcasts, and their brevity is another plus. A podcast can be monetized in a variety of ways. Commercial sponsorship is the most obvious, but you can also use it to promote your own goods and services. NPR’s podcast launch guide is excellent.

Create a YouTube Channel

A YouTube channel can be used in numerous ways to generate income online. Including AdSense advertisements in your videos is the most common strategy. You’ll accrue costs for every impression, but each click on your ad will generate revenue.

As a marketer, you can use the things you wear or use in your YouTube videos as a promotional tool. You can either promote your own products or work with other businesses by including a link to your online store. Be careful to present your audience with a convincing offer, though.

Make use of YouTube’s advertising platform to monetize your channel. Earn money by promoting branded goods or making videos for content marketing.

Copywriting

Copywriting is a multibillion-dollar market full of prospects. And hungry for people who can feed it new marketing messages, with one of the best perks of being a freelance copywriter being that you can get paid in U.S. dollars while being able to live wherever you choose.

Launch a Web Design and Content Creation Company

Can you create websites and write engaging content? You may provide these services to anyone with the help of online resources that make it easy to create stunning websites.

Creating an app for a business increases the likelihood that people will see that business every time they use their mobile devices. A popular approach to supplement your income is to become an app developer, whether by creating your own app or by finding work for a firm that needs your skills.

Every company in the modern day needs an online presence. These days, you don’t even have to know how to code in order to develop a website, and there is a big demand for web designers. It’s simple to create a polished, expert-looking website with the help of available online tools.

Identifying a target audience is essential before you begin developing websites. Create a portfolio that showcases your work, including the website you’ve built.

Get in on the E-Book Market

Making money through the sale of electronic books is promising. It’s possible to make your own (Kindle has a guide for how to do it). You may even license an existing print publication and put it up on your website. Either a flat fee or a percentage of net sales might be used to compensate the author for the use of their work in an online publication.

Teach the English Language

Whether or not you are aware of it, being a native English speaker is the single most important characteristic you need to start earning a fun, portable income from anywhere in the globe.

Help With Schoolwork via the Internet

Those who can provide instruction are always in demand. Help students raise their grades and get ready for tests, whether you’re a teacher or an expert in the field. Remember that you need classroom experience and accreditation in your academic area. Parents and children will have more faith in the school as a result of this.

You need to find out more about your target demographic. Think about what you’re good at and comfortable talking about in class. Extra credit if you have a certification or degree in a certain field of study.

As a virtual tutor, you have access to a wide variety of instructional strategies. You may gamify your course courses by using elements like interactive activities, presentations, stories, and more. Being a tutor over the internet is a viable option for making money from home.

Using the Web for Surveys and Research

Making money online through activities such as surfing the web or completing online surveys is another viable option. Part-time Internet research can bring in an extra $1,000 to $2,000 per month, so it’s a great option for anyone trying to supplement their income. Install Qmee and get paid every time a search result is clicked on. Qmee surveys are another way to get paid for giving your opinion on various products.

SurveyBods, Survey Junkie, and Valued Opinions are a few alternatives to these survey sites. Is there a different way to earn a string of modest monetary bonuses even when on the move? New users of the app Current can earn an additional $600 per year while listening to music and doing simple tasks.

Give Drop-Shipping a Shot.

Are you familiar with the concept of “dropshipping”? It is a form of retailing in which the retailer does not have any stock on hand. Instead, you buy the product from a third party and have them ship it directly to the consumer when they place an order. Worried about inventory? Not with dropshipping! This means you’ll never have to fork over any cash to keep your products or maintain your inventory.  You won’t ever have to spend money on things in the hopes of making it back through sales. eBay and Amazon are two examples of internet marketplaces that can be used for this purpose.

Make a Profitable Blog

Do you specialize in anything? Create a blog where you may give forth your tips. If you’re an expert in the field of travel, consider the services you may provide: When it comes to vacations, do you consider yourself a luxury travel expert or a budget travel expert? Perhaps you have some suggestions for things to do, like hiking and shopping. In order to increase traffic and monetization, International Living suggests narrowing your focus. Squarespace and Wix both offer hosting for blogs and tutorials on how to create them.

Create a Virtual Course

Instead of just producing an ebook, you could make a comprehensive online course with lectures, downloadable handouts, and video demonstrations. People will pay for the information so they may learn at their own pace or ask questions in a closed Facebook group, and this can be a terrific source of passive income. LearnWorlds is a platform that enables anyone to monetize their expertise by developing an online course.

Sell Your Creative Works and Photographs

You might also try making a living off of your photography and art. If you’re artistically inclined and looking for a way to make some extra cash online, you could try selling your creations.

If you enjoy capturing images of animals, for instance, you may try selling them on the internet. You could also become a photographer if you have a natural talent for capturing people’s personalities on film.

Social media marketing tactics can help you get your name out there, therefore you should try as many as possible. This will help spread the word about your photography and art to a wider audience, who may then be interested in your services.

Art is subjective, bear in mind. A person can be talented with either a paintbrush or a computer. You may put your computer abilities to use by creating digital artwork for others, which has been increasingly popular in recent years. It’s possible that you may create artwork and photos that can serve as the logo for a new firm, especially given the number of people who are interested in opening their own internet business or online store. Don’t forget to politely request that satisfied consumers share their experiences in the form of reviews that can be used to boost your brand’s visibility online. With this approach, you can attract a larger clientele to your company.

Translate Languages Online

Online translation work is another viable revenue stream. Can you communicate in a foreign tongue? If that’s the case, you could be paid more than you expect for your efforts.

Globalization has accelerated in recent decades, making today’s world more interconnected than ever. To put it simply, being able to speak a second language will increase your marketability in almost any field. You can choose from a wide variety of translation tasks.

You might, for instance, wish to act as a remote translator in a particular discussion. A translator may be hired if a doctor is having trouble conveying information to a patient.

One of your duties will be to act as a translator, listening carefully to what is being said and then speaking to the other person in a way that ensures they fully get what you have said. Once you’ve gathered all of the information, you can translate it for the doctor. The flexibility to set your own schedule is an advantage of this method.

Alternatively, you might try looking for a job translating documents in order to gain money online. To submit a document to the court in a language other than English, for instance, a person may retain the services of a translator. It’s possible that you’ll need to pass a different set of tests or get a new set of credentials if you wish to specialize in a certain field of translation. Your income potential as a translator is entirely up to you.

Start Your Business From Home

Developing a profitable business concept is the first stage in launching a startup and eventually making money online legit fast. An ideal company idea combines personal passion with the satisfaction of a market need.

Identifying a source of personal frustration is a fantastic place to start. Is there a problem you have that you hope would be resolved? That idea may inspire your future business endeavors.

You do not, however, have to create anything entirely new. Consider the current companies and think about how you could make their services or products better. Is there room for improvement in the industry that you could contribute to?

Any business that can be started and run from the comfort of one’s own home is considered to be a home-based business, whether it is done so full-time or as a side hustle. You don’t have to be stuck in your house to run a home-based business; in fact, some of them, particularly those that only sell online and don’t require a large stock of merchandise, may be managed while you’re out and about.

If you’re trying to decide whether or not a home company is the right choice for you, you should weigh the benefits and drawbacks.

Pros

• The advantages of a low-investment company idea include lower operating expenses (such as storage fees) and the possibility of larger tax write-offs.
• It is possible to sell goods and services on a global scale, as well as domestically.
• The balance between job and personal life can be flexible, which is great if you’re a parent staying at home or a retiree.
• You can establish a family firm in which each member of the family, including the spouse, can contribute what they can.

Cons

• It’s possible that you’ll have to rearrange your house to accommodate your home-based company (e.g. holding inventory, creating a home office, or storing equipment). One difficulty may be avoiding interference with day-to-day living at home.
• It is still your responsibility to adhere to all laws and rules that apply to the type of business you intend to launch (for example, you may need to lease a commercial kitchen if you intend to sell food goods or obtain a license or permit to store inventory).
• One day, you may find that you need to move your company out of your house and into a commercial setting, complete with office space and staff.
• Although working remotely grants you a great deal of independence, it also presents its share of challenges, such as isolation. If you thrive in social situations, this may be challenging.

Get on These Platforms to Make Money

So where should you go to start making money online legit?

Fiverr

Freelancers can benefit from using what is considered the best platform to make money. Do you have experience in computer animation? You can get some extra money by doing contract work for a company or individual that needs your expertise but cannot afford to hire you. Offering to assemble internet research for someone is much better.

Neighbor

Does your home have adequate storage space? What about a vacant backyard shed or garage? Neighbor.com is like Airbnb except for the self-storage market, and it allows users to rent out such units. Your renter will pay you directly, with Neighbor.com receiving a service fee.

Your monthly salary is deposited into your bank account or loaded onto a debit card. Processing costs of 4.9% of the total reservation plus 30 cents per monthly payout are deducted from all payments made through Neighbor.com.

Upwork

Upwork is a global online community where corporations and independent professionals can come together to work on projects. Freelancers are frequently employed by businesses to complete a wide range of tasks that require access to a computer, including but not limited to writing, web design, and data entry.

While Upwork does take a cut of your earnings, the percentage drops from 5% to 20% the more money you bring in.

OfferUp

OfferUp could be the next best thing if you don’t have the stamina for a yard sale and yet find yourself asking how to make money online legit. After posting a picture of your item online and setting a price for it, you can wait for someone in your area to view it, fall in love with it, message you, and eventually meet you somewhere public to exchange money for your item. You may ship your things to your customers using OfferUp.

Although OfferUp is often compared to Craigslist, some users have said that it is simpler to post on. This is likely due to the fact that members have profiles, making it easier to learn about potential buyers, and the fact that instant messaging may be used to connect buyers and sellers. The more badges a seller has on OfferUp, the more credible they are seen as a buyer.

Etsy

Etsy is one of the sites to make money online by selling your handmade goods if you’re creative and can manufacture things like unique jewelry or magnets. Both setting your shop and navigating the site are simple.

However, Etsy is filled with rival shops. To begin with, widespread familiarity with Etsy is a plus. Unlike with Upwork and Fiverr, though, you won’t be the only one selling your items on Etsy once you’ve posted them. It’s possible that you’ll feel a bit overwhelmed.

Fat Llama

Can you think of a number of nice things that your neighbors could be interested in renting from you? Have you, for instance, got a fancy telescope or camera that you rarely use because it’s too pricey to use it? It would be possible to list it for rent on Fat Llama’s website. It is one of the legit ways to make money online and your belongings are covered by insurance, up to a maximum of $30,000.

It’s a win-win situation: the landlord can recoup some of the cost of an asset they don’t use much, and the tenant can save money by not having to acquire an expensive item they won’t need very often.

TaskRabbit

Is getting your hands dirty something you’re willing to do? Members of the public can post requests for help with a wide range of activities, from assembling a bookcase to cleaning out a garage to running an errand. Depending on how much work you put in, this might quickly become a full- or part-time way to make legit money online. You can either actively seek work by applying to specific jobs, or you can construct a profile detailing the kinds of work for which you are a good fit.

Apps That Pay

Websites aren’t the only platforms that allow you to start your own business, take a look at these applications that go over and beyond to pay. The apps are categorized to show the many demographics they cover.

Try Out the Gig and Sharing Economies

Earn up to $20 per hour working whenever you like. The services offered range from grocery shopping and delivery to pet sitting and more.

• Neighbor
• Doordash
• Rover

Steady Passive Revenue Apps

Software designed to provide a steady stream of passive revenue. These data collection apps are designed to collect information in the background of your mobile device for the purposes of market research.

• Nielsen Computer And Mobile Panel
• Capital One Shopping

Fintech Apps

Our compiled list centers on programs that facilitate the automatic investment of modest sums of money, such as loose change or a few dollars at a time.

• Public
• Acorns
• Fundrise

Cashback Apps

You can save three percent on nearly all of your purchases, both online and in stores.

• Rakuten
• Ibotta
• Upside

Survey Apps

Answering questions about your likes, dislikes, and purchasing patterns can net you $7 per hour, on average.

• Swagbucks
• Survey Junkie
• InboxDollars

Miscellaneous

Make money with your phone by doing things like playing games, taking pictures, and completing health and fitness challenges.

• Foap
• Bookscouter
• Field Agent

Earn-at-Home Opportunities for Women

Women tend to get the shorter end of the stick when it comes to staying home and taking care of the house. But that shouldn’t stop you from making a little extra cash! After all, Valentino isn’t exactly economical, is it? So start your online money-making business today!

Invest in Stocks

Many people worry they don’t have enough money to make a worthwhile investment in the stock market.  The good news is there is usually no minimum balance required to begin trading stocks. There is no shortage of options when it comes to brokerage platforms, so it’s a good idea to check out a popular YouTube channel that breaks down the various options. In this approach, you’ll be able to pick the solution that best fits your requirements.

Bear in mind that caution is warranted when making stock market investments. The direction of the market is notoriously difficult to anticipate, and anyone who claims to have insider knowledge likely has their own financial interests in mind rather than yours.

That’s why it’s a good idea to learn as much as you can about the stock market by studying it in person, online, or in print. You should constantly look for methods to diversify your holdings, and investing in a field you’re already familiar with can be an excellent place to start.

Start a Freelancing Career

Working independently on a contract basis is known as “freelancing.” As a freelancer, even if you sign a contract to work for an organization, you are still technically your own boss. Freelancing opportunities, meanwhile, abound on the Internet. In reality, there is no shortage of freelance-oriented job boards online.

Try out Upwork if you haven’t already. As far as I can tell, they are the biggest freelancing platform in the world. Freelance work can be found in plenty on Upwork. Freelance positions in web design, project management, writing, and graphic design are just a few of the fields represented.

Freelancers looking for work can also find great opportunities on FlexJobs and SolidGigs. In most cases, FlexJobs is a safe place to find work without worrying about being scammed. They do extensive preparation work and constant monitoring. FlexibleJobs is a great place to look for specialized employment opportunities.

For the self-employed individual, time is money. Check out SolidGigs if you’re in a hurry to find a job. You may trust that they will only provide you with the most promising job offers after quickly eliminating the others. You can stop wasting time looking through employment boards because SolidGigs has them all in one place.

Become a Social Media Manager

If you have specialized knowledge in a social media platform, such as LinkedIn, or an understanding of the Instagram grid’s aesthetics, you may be able to manage another person’s account. You can locate contract work in social media marketing on traditional job sites, or you can promote your skills on a freelance platform.

If you can demonstrate that you can increase a client’s social media following by a certain percentage, you may be able to land additional work. As for the answer, who can say? One of the next big Instagram stars could be born through your efforts. Building up a fan base on a social media account that you already control is often the best place to begin.

Work From Home as a Virtual Assistant

Put your insane woman organizing skills to use and help someone stay on track with their demanding lives. You can earn money as a virtual assistant by handling administrative activities like email, scheduling, and travel arrangements online. Although it’s recommended to provide a variety of services, you may find it fruitful to specialize in working with a certain industry or clientele. It’s possible that this will set you apart.

PeoplePerHour, Fiverr, Upwork, and TaskRabbit are just a few of the places where you can look for work as a virtual assistant online. Zirtual is another option; they match their virtual assistants with various clientele.

With any kind of side business, the best way to bring in new customers is to have existing ones gush about the work you’ve done for them.

Every buyer wants to feel understood by whatever brand they purchase from. And for a brand to understand its customers, it must first know its own characteristics. When you know what your brand stands for, you can then study your audience and identify similar characteristics. Emphasizing these commonalities will draw them to you!

But a brand isn’t a person. So how can it have characteristics or, in better words, a persona that will attract like-customers to itself and, at the end of the day, lead to them making the ultimate decision – a purchase?

In this case, you don’t just want a one-time customer. You want your brand to gain new customers and also for your old ones to keep coming back to you. And with the thousands of different brands out there, you need to stand out to achieve this. And no, your product is not all you need.

This is where your brand’s personality comes into the picture. Think of your brand as a person and give this person characteristics and attributes that match your target audience.

Your brand’s personality is just as important as the brand itself. And it might sound like quite a task, but rest assured that it is doable. This article has all the simple steps you need to create your brand’s personality.

Let’s get into it!

How a Brand Personality Works

Now that you know that your branding personality is a human attribute that makes your brand more approachable, it’s time to change your marketing game from start to finish.

In other words, your brand’s personality is the bridge to your customers’ emotional side. Many people will buy based on how they feel about the product. If they can picture themselves with the product your brand offers and it feels right for them, they are more likely to buy.

This is where your brand’s personality comes in. When your audience sees your brand, the first thing they see is the personality it gives off, and if that personality matches theirs, there will be an instant connection.

In your audience’s mind, they think, “this brand knows what I like, and they are giving me just that,” or “they know my lifestyle, and they are offering services to match.” Either way, you can be sure it is love at first sight when such a connection is made.

In summary, branding personality makes a brand easily recognized and attractive enough to purchase.

How to Define Your Brand Personality and Traits

Building your brand’s personality has everything to do with your audience and how important you want to be to them. And defining your brand’s personality takes you one step closer to achieving this.

To this effect, there are five types of brand personalities, each with its typical traits.

1. Sincerity: cheerful, happy, honest, wholesome
2. Competence: trustworthy, successful, brilliant, reliable, accountable
3. Excitement: Daring, imaginative, high-spirited
4. Sophistication: Bougee, upper class, charming, classy
5. Ruggedness: adventurous, bold, tough, outdoorsy

These personalities also have sub-traits that make it easier to shape your brand’s identity

• Cheerful: friendly, relatable
• Honest: sincere, genuine, true
• Reliable: hardworking, secure, safe
• Daring: exciting, trendy
• Spirited: young, free, cool
• Charming: smooth, graceful
• Outdoorsy: adventurous
• Wholesome: acceptance, openness, transparency

How to Create a Branding Personality

So far, we have established how important it is for a brand to have a personality. And the process is straightforward. Using the following steps, you will create a personality for your brand with little stress.

Know Your Target Audience

The target audience is the key to any business, as customers come from that category. And researching your target audience gives you an idea of what they will most likely connect with.

You have to know who your ideal customers are, their age, what they like, their gender, what they do for a living, and what problem they have that your product will serve as a solution to.

Define Your Brand Personality Dimensions

Your brand personality dimension is your brand personality trait, and they can only fall among the following five, according to social psychologist Jennifer Aaker.

1. Ruggedness: Think REI and Jeep. They both have an outdoorsy and tough persona.
2. Sincerity: Disney is a brand that has this personality dimension.
3. Sophistication: Chanel and Gucci have sophistication as their primary traits.
4. Excitement: Brands like Tesla and Red Bull have this trait accounting for their spirited and creative persona.
5. Competence: Brands like Volvo come to mind in this dimension.

The best thing about the personality dimension is that you are not restricted to one. You can choose two or three dimensions, as long as they appeal to your target audience.

Choose the Best Adjectives That Describe Your Brand

Once your brand’s dimension is defined, identify the specific brand personality traits you want to express within them and work with that.

Using 3-5 of these specific brand personalities, your brand will stand apart from competitors and thus giving you an identity of your own.

Build Your Brand Strategy With Your Brand’s Personality

Your brand’s strategy is incomplete without your brand’s personality, as you need them to align to give your brand the structure it needs. From the colors to font to the topography of your brand’s identity, its personality has a say on how it should turn out.

Types of Brand Personalities

To create your brand personality, you need to understand the types available and how they are related to your target audience.

Looking at a few brand personality examples, we will establish the types of brand identities and how various brands manifest them

As Rugged as Jeep

Jeep’s brand’s identity is outdoorsy and rugged. Looking through the brand’s social media, their emphasis is firmly placed on the brand’s confidence, adventurous spirit, and durability as its personality trait.

As Excited as Nike

Nike is another excellent example of a brand personality. Nike is all about excitement for every sport. The brand is depicted as athletic and fierce but, at the same time, calm and collected.

From this, you can tell that Nike seeks to attract people with the same characteristics. They have been successfully doing that, seeing that they are the leading brand in athletic shoes all over the globe.

As Sincere as Coca-Cola

As seen from their packaging, promotions, flavors, and various campaigns, the most successful being the “Share a Coke,” it is evident that Coca-Cola is all about its audience’s feelings when they consume their product. They focus on their audience’s happiness, optimism, and innocence.

As Competent as Apple

Apple has gotten so many things right with its brand, and one major win is the brand’s personality.

Being the highest-valued brand for its technological innovations, Apple has sold itself to its audience as the go-to brand when searching for superior products.

This is because, over the years, they have shown themselves as a competent brand ready to change the world one product at a time.

As Sophisticated as Tiffany and Co

In the world of jewelry, Tiffany and Co rules. This brand is all for the classy and sophisticated lifestyle, which they show in all their pieces.

With clever strategy and positioning, Tiffany and Co have become one of the most successful jewelry brands manifesting upper class and elegance.

Brand Personality vs. Imagery

While we have established personality branding to be its human characteristic, the imagery, on the other hand, is quite different. A brand’s imagery is its visual representation. Everything from videos, pictures, logos, iconography, and even colors that allows you to communicate your brand‘s story most simply is its imagery.

Although personality branding and imagery are often mixed up, judging from their definitions, they could not be any more different. But for clarity, here are a few differences between brand personality and imagery.

Personality branding targets the emotional side of the audience and prompts them to decide to buy based on how they feel about the product.

But imagery focuses on perception and recognition. The concept behind this is quite simple; the imagery is made to be simplistic and, as such, will enhance recognition.

When a potential customer recognizes a brand’s logo, the chance that they’ll buy the brand’s product increases.

Serving the same purpose to communicate with the brand’s audience, brand personality, and brand imagery take different approaches to this task.

Personality branding by appealing to emotions and imagery by appealing to the eyes. Both work together, however, separately to influence how the brand is perceived.

Simplified, brand personality consists of tone, archetype, and essence, while brand imagery consists of the brand persona, business goals, and key messaging.

The relationship between a brand’s personality and its imagery is not a competitive one. Instead, they complement each other if they are done well and work to give the brand a lasting impression in the mind of your target audience.

What Are the Different Types of Brand Personalities?

There are five different kinds of brand personalities/dimensions developed by the expert Jennifer L. Aaker in 1997.

Sincerity

Such brands show a personality of openness, down-to-earth, and honesty. An example is Coca-Cola and Patagonia

Excitement

High-spirited, cheerful, creative, and optimistic about the future. Brands like Tesla and Disney use this personality dimension

Competence

For brands that portray their trustworthiness, intelligence, and skill. The brands Volvo and Microsoft make the list.

Ruggedness

Rugged comes with the outdoors. Take a Jeep, Land Rover or Harley-Davidson, for example. These brands are the image of an outdoorsy lifestyle.

Sophistication

Here we are talking of high class, charming and fancy. It doesn’t just include fashion but technology innovations as well. A few brand examples are Tiffany and Co, Chanel, and Apple.

With the advent of technology, businesses of all sizes have realized the immense potential of e-commerce for selling their products and services online. From small operations run by a single individual to massive corporations, a diversity of models of e-commerce have become the go-to option for businesses operating in nearly every industry you can imagine.

Growth in online sales is only expected to escalate in the coming years. In fact, it’s projected to experience a considerable increase in this decade. Unsurprisingly, in their efforts to get their slice of the pie, many businesses are rushing to incorporate emerging e-commerce models into their portfolios.

The future looks bright for e-commerce. But, I hear you ask, what type of e-commerce business model works best? In this article, we’ll be covering the different types of e-commerce businesses, and discussing the exciting potential advancements that may lie ahead for each.

What Are B2B, B2C, or C2C Business Models? What Are Some Examples?

B2B, or business-to-business: these e-commerce businesses sell products or services to other businesses. Think wholesalers and manufacturers selling to retailers.

• Pros: higher profit margins
• Cons: typically involves larger and more complex transactions and longer sales cycles

B2C, or business-to-consumer: these businesses sell directly to end consumers. Think Amazon, Target, or your favorite online clothing store.

• Pros: smaller, more manageable transactions and quicker sales cycles
• Cons: more competition

C2C, or consumer-to-consumer: when consumers directly sell products or services to other consumers, like in a real-life garage sale —think eBay or Facebook Marketplace.

• Pros: low barriers to entry
• Cons: requires robustly designed payment and shipping logistics; comes with a higher risk of fraud.

What Are the Different Types of E-commerce Business Models?

Different e-commerce business models vary in terms of relative investments necessary for inventory management, product development, and product sourcing/manufacturing. We’ll be going over the three most popular business models.

While this list is presented hierarchically in terms of potential profit, that’s not to say that the latter, more profitable e-commerce models are the best option under all circumstances. You might, for example, want to avoid having to create your own products, or you may not want to deal with storage, shipping, and customer service.

So, to explain the various models of e-commerce, let’s start with the simplest of the many e-commerce business models:

Dropshipping

This e-commerce model allows you to sell products without actually having to hold any inventory, manufacture any goods, or worry about shipping any products yourself.

How dropshipping works is quite simple: you partner with a supplier who holds the inventory and takes care of shipping the products directly to your customers. All you have to do is list the products on your online store, and when a customer places an order, you forward the details to the supplier. The supplier then ships the product directly to the customer, and you pocket the difference between the wholesale price and the retail price.

Dropshipping eliminates the need for a physical store, storage space, and a large capital investment in inventory. All you need is a website and some marketing skills to get started. The supplier takes care of the rest, including product sourcing, manufacturing, and shipping.

A word of warning, however: with dropshipping, you sacrifice control over product quality, shipping times, and customer service, and if your supplier messes up, it will reflect badly on your business. That’s why it’s important to choose your supplier wisely. Make sure to do your due diligence and choose a reputable supplier who can provide high-quality products, fast shipping, and excellent customer service.

With all of that said, at the end of the day, dropshipping is —essentially— a relatively low-risk and affordable way to start an e-commerce business. Overall, so long as you exercise sufficient discernment in the selection of your supplier-partners, dropshipping can be a profitable and nearly effortless e-commerce model.

Wholesaling and Warehousing

If you’re looking for a more hands-on approach, this might be the e-commerce business model for you. It involves purchasing products in bulk from manufacturers or distributors, storing them in a warehouse, and then selling them to retailers or directly to customers.

The biggest advantage of this model is that you have complete control over the products you’re selling. You can choose the brands, the products, and the quantities you want to carry. And, since you’re storing the products in your own warehouse, you can precisely control the shipping times and customer service.

Obviously, however, this model also requires a significant investment in inventory and storage space —you’ll need to have enough capital to purchase products upfront and enough space to store them. But, with careful planning and efficient inventory management, this can be a lucrative venture.

As far as developing business strategies goes, this type of e-commerce business takes a bit more effort than a dropshipping business. You’ll need to find a target market and figure out what products they’re interested in buying, in addition to building an online storefront, creating a brand, and getting the word out about your products. If you’re up for the challenge, wholesaling, and warehousing can be immensely profitable, rewarding, and fulfilling.

Private Labeling and Manufacturing

Private labeling and manufacturing are veritable holy grails among the business models of e-commerce. If you’re looking to create your own unique products and build a brand, this is the path for you. You will need to produce and brand your own products —either by yourself or by working with a manufacturer.

The biggest advantage of this e-commerce model is the high degree of control over product quality, design, and branding that it affords. You can create products that are unique to your brand and that you know your customers will love.

Note, however, that this model requires a significant investment of time and funding; product development, manufacturing, and branding will all need to be addressed. You’ll need to have enough capital to create prototypes, conduct market research, and get your product manufactured. On top of all that, you’ll need to focus on building a loyal customer base, creating a website and social media presence, and investing in paid advertising.

Mercifully, private labeling and manufacturing do afford a wide marketing advantage since you have complete control over your brand and can create a strong, consistent brand image across all your products and marketing materials.

If you’re ready to put in the work, private labeling and manufacturing can be a phenomenally rewarding e-commerce business. Of all the models of e-commerce, private labeling and manufacturing provide the highest potential for profitability and brand building but require lots of hard work and investment. Although, the best part? You get to call yourself a “manufacturer”! (Just don’t forget to make your products actually, you know, good).

What are the 6 types of e-commerce business revenue models?

The six types are transaction-, subscription-, advertising-, product-, and service-based, along with marketplace setups. Each with its own pros and cons.

1. Transaction-based: These businesses earn by charging a commission or fee for facilitating transactions between buyers and sellers. Think Etsy or eBay.
2. Subscription-based: Here customers pay a recurring fee, usually monthly or annually, for access to a product or service. This can include physical products like monthly boxes of beauty products or monthly deliveries of groceries, or digital products like access to online content or software. Think Netflix, Spotify, Canva, and Medium.
3. Advertising-based: Revenue is generated by displaying ads. These ads can come in many forms, including display ads, sponsored content, or sponsored products. Think Google or Facebook. The success of this revenue model relies on having a large, engaged audience. Without enough traffic, it can be tough to make advertising-based revenue models work
4. Product-based: This model involves selling physical or digital products directly to customers. Think Amazon or Apple. This revenue model can also include additional elements such as upselling, cross-selling, and post-sale services, which can increase the overall revenue earned from each customer.
5. Service-based: This model involves selling services directly to customers. Examples of this type of e-commerce business include online consulting, online tutoring, and online design services. Think Upwork or TaskRabbit.
6. Marketplace: This model, much like the transaction-based model, involves facilitating transactions between buyers and sellers but also handles additional services like payment processing and shipping. Think Amazon Marketplace.

E-commerce Business Models and Business Revenue Models Distinguished

It’s important to differentiate between e-commerce business models and revenue models.

E-commerce business models refer to the way a business sells its products or services online. E-commerce revenue models, on the other hand, refer to how businesses earn money from e-commerce activities. In other words, the e-commerce business model is about how you sell your products or services, while the e-commerce business revenue model is about how you make money from those sales.

The digital age has changed the way we do things. Shopping, food delivery, and even merchants have upped their ante to become successful online. However, this is one side of the coin. On the flip side, we find that businesses struggle to begin and maintain themselves much like offline businesses do.

The primary reason behind this is usually the lack of capital funding. Most banks refuse to risk investing in small businesses for fear that they might fail. It may also happen that merchants might not want to pay the high interest rates and follow the rules of the bank. So how do we bridge this capital gap for small businesses? In come the options for alternative lending for small businesses. Find out why your firm should seriously consider exploring these options in this article.

What Are the Non-Traditional Choices of Alternative Lending?

There is a wide range of alternative finance solutions available for small and medium-sized businesses. The most frequent forms of non-bank financing are outlined here.

Lending Method 1: Direct Lending

Direct lending, in its most basic form, is the provision of bank-like loans outside of the traditional banking system. Leveraged loans are funded by direct lenders such as business development organizations who source their funds from investors. Strong yields and steady returns for investors in direct lending funds fuel the market’s expansion and provide access to capital for enterprises that were previously shut out.

Lending Method 2: Venture Debt

If a company doesn’t want to give up shares to investors, venture debt is another alternative to venture capital. Business development organizations, private equity firms, hedge funds, and some banks offer venture capital. This alternate funding option is often used to fund a project or opportunity, like a venture capital investment.

Lending Method 3: Structured Equity Products

There is a wide variety of structured equity options available. Alternative finance providers, such as business development organizations or individual investors, provide these possibilities for small and medium-sized businesses in need of new growth capital. These forms of financing may be more adaptable than traditional bank loans and may not dilute the ownership interest of business owners.

Lending Method 4: Borrowing to Finance Expenses

Alternative lending companies provide a wide variety of debt financing options. For financial support, small and medium-sized enterprises often look to the following sources.

• Cash flow lending by non-banks
• Funding based on Recurring Revenue
• Credit Lines and Home Equity Loans
• Debenture

Lending Method 5: Mezzanine Financing

There is a limit to how much of the company an entrepreneur can give up to investors in exchange for money. Simultaneously, lenders may have limits on the amount of money they are willing to commit, leaving the gap for the business owner to fill. Mezzanine financing provides an attractive means of filling this gap and finalizing the deal.

Lending Method 6: Non-Dilutive Capital

Non-dilutive money, often termed non-intrusive capital, does not require the owner to sell any of the company. Most non-intrusive money sources need payback, and grants may have restrictions that lessen their value.

For younger, smaller R&D-focused companies, the government may fund non-dilutive investment to promote corporate growth.

Pros and Cons of Alternative Lending

Direct internet lenders provide small business owners with simplified applications, faster turnaround, more loan options, and fewer restrictions on funding use.

Simpler Implementation

An online application with an alternative lender takes minutes, compared to 30 hours for an SBA loan application. Alternative lenders don’t require years of your company’s financial history like the SBA and conventional banks. These lenders may handle your application with only electronic access to your company’s bank statements.

Faster response

Traditional lender applications and funding might take weeks or months. Due to their streamlined underwriting, alternative lenders can approve and deposit funds in one working day.

Credit Expansion

Alternative lenders offer asset-backed financing and future receivable purchases in addition to lines of credit and collateral loans. Due to their many lending programmes, these institutions may lend as little as $3,000.

Flexibility in Spending

Some lending institutions have strict spending rules. You can put the money where you think it will benefit your business with most alternative lenders. Merchant cash advances and online invoice factoring do not restrict how the money can be utilized, unlike equipment or inventory finance.

The consequences of borrowing money via direct online lenders are also worth noting. Alternative loans for business are easier to get, but the lender takes on more risk. They have higher interest rates, shorter repayment periods, and more frequent payments.

Price Hikes

Due to their lower risk assessment and approval standards, alternative business loans including merchant cash advances, invoice factoring, and other small company funding may have higher rates and fees than traditional lenders.

Less Office Time

Even if the amounts are the same or similar, alternative lending for small business may be available for a shorter duration. Paying off a loan faster will boost your monthly payments, but not your borrowing charges.

Frequent Payments

Your financing may need daily or weekly payments. Merchant cash advances often need a percentage of your company’s daily or weekly credit card sales. To avoid forgetting, payments are often collected automatically. Monthly line of credit or other company capital payments are possible.

Types of alternative lending for small businesses

Alternative lending for small businesses refers to financing options that are outside of traditional banking systems, such as loans from banks. Here are some of the most common types of alternative lending for small businesses:

1. Merchant cash advances: This type of financing provides a lump sum of cash in exchange for a portion of future credit card sales.
2. Invoice financing: This type of financing allows businesses to receive funding based on outstanding invoices. The lender pays the business a portion of the invoice value upfront, and the remaining balance is paid once the invoice is collected.
3. Peer-to-peer lending: This type of lending connects small business borrowers directly with individual lenders through an online platform.
4. Online business loans: This type of financing provides businesses with loans from alternative lending companies, often through an online application process.
5. Equipment financing: This type of financing provides funds for the purchase of equipment, with the equipment serving as collateral for the loan.
6. Crowdfunding: This type of financing involves raising funds from a large number of people, typically through an online platform.

Each type of alternative lending has its own advantages and disadvantages, and it is important for small business owners to carefully consider their options and choose the one that is best suited for their specific needs and financial situation.

Best Alternate Lending Options

Check out the following options and decide what fits your needs. But remember, they’re no EBoostPartners!

• Fora Financial: Their working capital loan lets firms borrow up to $1,400,000 for any legal purpose. Its minimum FICO Score of 500 makes it a top choice for bad credit business financing. However, $12,000 in monthly income is required.
• OnDeck: Offers loans up to $250,000, same-day funding, and early loan repayment incentives. OnDeck customers gain more benefits though it supports just a few sectors.
• Taycor Financial: You can get a loan from Taycor Financial to pay for anything from computers and printers to vehicles and restaurant appliances. You may take your company to new heights with up to $2,000,000 in funding. You have several alternatives for making payments, including deferring them or making them every other year.
• BlueVine: A business line of credit is a revolving line of credit that can be used for working capital or other general business purposes. Bluevine doesn’t charge you anything when you open, manage, or close your credit line. Also, interest is only charged on the amount of money that is actually withdrawn.