July 2018
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The Spark | Ignite/Connect/Achieve<br />
www.thesparkng.com<br />
Online Business 101<br />
The internet has made it easy to do business that can<br />
have global relevance.<br />
- By Stephanie Obi<br />
“<br />
An Online business is not just a<br />
website or a blog, it is a business<br />
“<br />
Online businesses are booming and have created a fantastic<br />
opportunity for young people to start businesses without<br />
necessarily having huge capital. You can even start an online<br />
business from the comfort of your home, and with your smartphone<br />
as long as you have access to the internet. The additional beauty of<br />
online businesses is that you can serve a lot more people regardless<br />
of where they live. Your customers are no longer limited to the city<br />
or country you live in.<br />
Unfortunately, there is a lot of misconception around what an online<br />
business really is, so let’s start with some definitions. An Online<br />
business is first of all a business. It is not a website or a blog, it is a<br />
business. Like every business, it is created to solve a specific problem<br />
for people, and it has to be a solution that people are willing to pay<br />
for. Once you are clear about the problem you solve, you have to<br />
think about what business model to go with. Simply put, a business<br />
model is how you make money.<br />
In this article, I will share eight online business models that have<br />
been tried and tested.<br />
Advertising: In this business model, you make money by charging<br />
people or organizations a fee to advertise on your platform (website,<br />
blog, social media page, email list, etc). To successfully run this<br />
model, you must have built up a platform that has a lot of traffic, as<br />
advertisers will pay you to access the people that visit your platform.<br />
Examples of Nigerian businesses that use this model are Bella Naija<br />
and Linda Ikeji. You can equally attract advertisers if you have a niche<br />
audience who engage on your platform.<br />
Physical Products: In this business model, you make money by<br />
selling a physical product like clothes, shoes, gadgets, books, etc.<br />
You can partner with a logistic company to deliver your orders to<br />
people wherever they live. Examples of Nigerian businesses that use<br />
this model are boutiques that also have e-commerce stores.<br />
Marketplaces: In this business model, you create a platform that<br />
houses different online stores and you make a commission from<br />
every sale that is made on the platform. Examples of Nigerian<br />
businesses that use this model are Konga which houses stores that<br />
sell electronics, clothes, phones, etc and Trayny which houses online<br />
courses from different facilitators. To successfully run this model,<br />
you must be able to market the products that have been housed on<br />
the marketplace.<br />
Apps: In this model, you make money by selling access to an app or<br />
by offering in-app purchases. Many mobile phones now come with<br />
the Android and IOS operating systems which allow developers to<br />
upload their apps and earn an income from it. People who have been<br />
successful with this model often have a free version and give their<br />
users an option to pay for additional features in the app.<br />
Memberships: In this model, you make money by creating a<br />
resource or software or a product that people have to pay a fixed<br />
amount monthly to access. A popular example of this is Netflix, which<br />
has a library of entertaining content that people have access to when<br />
they pay their membership fee. Another example of this is Basecamp,<br />
which is an online productivity software that small business owners<br />
pay monthly to use.<br />
Affiliate Marketing: In this model, you make money by marketing<br />
another person’s product. You get paid a commission each time<br />
someone pays for the product you are marketing. People who have<br />
been successful with this model have built up a community of people<br />
who trust them and who will buy what they recommend for example<br />
bloggers, vloggers and podcasters.<br />
One on One service: In this model, you make money by providing a<br />
service to another individual or organization. It can be business<br />
coaching, website development, brand consultancy, etc. Meetings<br />
can be held over platforms like Skype and Zoom. Contracts can be<br />
signed using platforms like HelloSign. Emails can be used as a means<br />
of communication and these days, people even use WhatsApp.<br />
Online Courses: In this model, you make money by teaching what<br />
you know online as an online course. People who pay for your course<br />
will receive a username and password to access your content. This is<br />
currently an industry that is valued at over $107 billion as individuals<br />
who have a skill, talent or expertise and coming online, building their<br />
brands, growing their online community and creating online courses<br />
to sell to their communities.<br />
With all these options, there has to be an online business you can<br />
start today.<br />
32<br />
@thesparkng
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