1. Selling a product or service:

This is the primary method and most prevalent method to make significant money through an Internet business. Through most of this ebook, there is information and insights on how to build an Internet business; how to create and manage a website; how to effectively market your products and make a success of it. 

When you start looking for a business idea, it does pay to keep in mind the kind of start-up costs that you are likely to incur. What is the initial investment; what are the overheads; what is the type and size of warehouse space that will be required? If the costs are significant, please remember that it will eat into profits. 

For instance, an online store that offers multiple products across several categories may have higher overheads and other associated costs compared to a website that sells a single product that can be easily stored and delivered. 

If you pick up an existing product and buy it wholesale and sell it on your website, your start-up costs will be lower than if you were to get into production of a product and then make it available through your internet business. Most Internet businesses today are based on low cost opportunities involving existing products rather than manufacture of a new product 

The other question you should ask is - what is the extent of website maintenance and day-today work required? Are you prepared for the time and energy that you have to spend on a regular basis?

But, all in all, selling a product or service using the internet is becoming easier and easier by the day because of the mushrooming of internet services providers who are vying with each other to offer the most affordable and feature rich packages to aspiring internet businessmen. 

B2C Vs B2B: Another important consideration is the type of customers that you want to cater to. Broadly, there are two types. There is the general public or households and specific profiles or segments within this broad group. This is known as B2C or business-to-consumers. 

Or you can target other businesses if you have a professional service to offer. This is B2B or business-to-business. According to experts and Internet industry watcher, this type of Internet business is still in its nascent stages and most Internet businesses still operate in the B2C space.

With B2C customers, all your interaction can be completely Internet driven without the necessity to meet the customers. In B2B dealings, client relationships are critical. You cannot hope to be totally faceless. By and large, there has to be some form of person-to-person contact especially if you are offering customized solutions that require discussions on product features and negotiation on prices.   

A typical example of a B2B Internet business is a software provider that sells business software solutions to other companies through a website. 

II. Connecting people

This is also a type of service, but needs to be treated a little differently. You offer a platform for people with common interests to connect or do business with each other. You make money through subscriptions or membership fees.

It is an interesting option to consider if you see yourself more as an organizer and coordinator rather than as someone who would like to run a business selling a product or service. Both types of activity require total commitment, but the second option (connecting people) may or may not require the same level of hard work, since it does not involve directly selling a product or service.

However, it will require a great deal of involvement in maintaining and updating your website regularly, providing knowledge resources for your members, and sending out newsletters with content that is useful and informative.

Once you identify and conceptualize the nature of the service that you would like to offer, you can then create a suitable website and begin operations.

Continue to Part II