How to choose the right online product business model

Business is a simple thing but one really needs to plan up for its success. So given below are ways by which you can choose the right online product business model

The basic business models to consider:

• Product/service – A business can actually make and sell its own products and services. This is the most common way of doing it. Consider software and once it is new to the market it is offered for free to public for a month and later on when the people like it, they make it chargeable.  So this is a simple way by which products and services can be packaged and distributed to the market by varied channels and can be delivered in physical form, digital form and as one time purchases or constant subscriptions.
• Reseller – Resellers don’t essentially make or even warehouse what they sell. They find products or stand for brands and usually make a profit based on the dissimilarity between the price they sell a product for and the price they actually have to pay to get or sell the product. Affiliate marketers fall into this type as do what is normally referred to as value-added resellers (VARs). Microsoft partners, for example, sell and install Microsoft products and add services, such as customization and training, to improve the basic product. Many straight up eCommerce companies, such as JustBats.com, fall into this group as do many eBay and Amazon sellers. Most retail establishments also are a part of this model.
• Broker – The broker basically gets buyer and seller together and takes a transaction fee. They may also offer services that make a transaction occur more smoothly, such as the case of a real estate agent. This category has gone off with the growth of online platforms that make a number of buyers and sellers together from anywhere in the world much easier. In many cases this business model may comprise of the creation of a marketplace, handling transactions and ensuring security. PayPal is one fine example of brokering services between a buyer and a seller. In this case, it’s the actual barter of money.
• Aggregator – An aggregator creates a community and then charges for the entrance to the community. In a number of ways, publications and news sites are well suited to this model as they build a subscriber base and then charge advertisers a fee to get entrée, by way of a located the ad, to their community.