It is already been two weeks since my last post. I was and still currently being occupied by a large chunk of to do list. My internet project is entering early implementation phases and frankly, I am overwhelmed by all the angles needing my immediate attention.

My personal blog is slowly generating positive responses. I got many queries in my mailbox on how to make money online.

Well, firstly, I wish I could tell you a simple answer. Secondly, I could be writing a book about ‘How to Make Money Online’ but still it will not cover everything there are in the internet. Thirdly, I, with my 3 months of experiences in internet entrepreneurship, am not the authority to elaborate about this matter and I for the record, have never made any claim even about making my first dollar or so, to qualify as one.

So how can I help you? If you are still interested to hear me out, then read on.

From my recent readings about online business, from many books authored by the internet marketing gurus and from the resources in the internet itself, I have compiled a list of business models that are widely used for making money online. But since the list is long and for presentation reasons, they are purposely being over simplified in their description.

The few first entries are of selected business models that are the easiest and most convenient for one dedicated individual to execute from home. All you need are a PC or laptop (or a Mac), a good internet connection, a telephone, some means to make online payment and a printer to print any ebooks or instructions so you do not strain your eyes staring at the monitor screen too long. Respective to Malaysians, a streamyx 512 kb/s connection, a Maybank2u account and a Public Bank debit card are a minimum recommendation.

This list is not in chronological order nor according to any specific ranking.

1. Selling physical products or services the old way but marketing on the internet

This would be the simplest way to utilized the internet. This business model is very basic and as conventional as it get. You would still need to manage your stocks and storage, but are taking a big leap by advertising to a large masses.

Suggested tools; Facebook, MySpace, Friendster, emails, and free blogging platforms such as Blogspot, Wordpress and etc. Business transaction can be done through online money transfer and mailing the product to the prospective customer.

Pros : Easy management, comfortable to do as it’s usually culturally related, no rental for shoplot or other physical advertisement, suitable for part time basis, small capital.

Cons: Small enterprise scale, require frontal investment, limited by production capacity or stocks at hand, stocks are subject to damage, sales sometimes is seasonal, usually limited to local area, require constant management and not in anyway automated.

Business example; selling variety of Tudungs or other women’s apparels, selling bake per order Hari Raya cookies and freelancing for 3D perspective drawings works. See here.

2. Selling physical products or services by others and marketing on the internet.

A person doing this kind of online business is called a dropshipper. What you do is register with a dropshipping company, sometimes for free and sometimes for a small earnest fee which is refundable after making a set amount of sales. You make money by marking up your selling price base on dropshipping company price. Type of products for sale depend on the dropshipping company you choose and usually from a varieties of household goods, electronics, machineries and equipments. See dropshipping company here.

You’ll need to browse through their inventory and select what kind of goods you want to sell. Marketing is usually done through storefront interface type of websites, that require shopping cart system to receive online payment from buyer’s credit cards. A dropshipper accept payments directly to his/her account and then after deducting his/her profits, transfers the remaining balance to the dropshipping company. The dropshipping company then mails or couriers the goods to the buyer throughout the world in an unmarked package. A dropshipper always keep his dropshipping company a secret to his/her buyer and other dropshipper in the market.

Pros : Business is carried out online, no need to hold stocks, stocks is limited to dropshipping company’s huge inventory, damage and warranty borne by dropshipping company, profits (price mark-up) is decided by you, a huge selection of goods to sell, product and delivery is outsourced, market limit is the world itself.

Cons : Constant attention is required to check for incoming orders, requires a level of trust from buyers to make a purchase, heavy competition by other dropshippers, sales is derived from strong branding that requires in depth market knowledge,  sales sometimes is seasonal, sometimes a company is unaware it has become a dropsshipping tools for a certain dropshipper (really!).

… to be continued.

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