Making Online Shopping a Profitable Business
by: Chris Robertson
Despite the increase in individual personal debt, Americans continue to spend record amounts for consumer goods. As Internet retailers continue to thrive, enterprising entrepreneurs are finding new ways to cash in on the online shopping phenomenon.
Over the past several years, there has been a sea change in the way that website owners generate revenue from online retail shopping. These entrepreneurs have never carried inventory; in fact, they don't sell products at all. Instead, they have found ways to capitalize on the online shopping habits of those who visit their websites.
In the dot-com boom years of the 1990s, websites could generate enormous revenue from banner advertising. Companies were willing to pay top dollar to get potential customers to click on banner advertisements and bring eyeballs to their websites. When the dot-com boom went bust, the bottom fell out of the banner ad business. Instead, website owners moved toward affiliate programs, where they partnered with online shopping outlets. In exchange for putting online retail shopping links on the owners' websites, online retailers would pay owners a percentage of each sale. Although that strategy worked for a while, it soon became apparent that affiliate links took up a large amount of virtual real estate with relatively little return.
Today, entrepreneurs look to two business models in order to make money from online shopping. The first business opportunity is incorporating pay-per-click ads into content pages on a website. The website owner includes code in each web page from a third party - usually a major search engine - and doesn't actually sell or develop ads. Each time a website visitor clicks on an ad, the website owner makes money. The amount of money generated by this business opportunity depends in large part on the number of visitors a website attracts and by the amount the advertisers pay to the third party provider. The more the advertisers pay, the greater the amount paid to the website owner. (continued...)
Making Online Shopping a Profitable Business
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About The Author
Chris Robertson is a published author of Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource web site at: http://www.majon.com.
To learn more about subjects like Online Shopping please visit the web site at: http://www.greatdealsonline.ws.
For more information and informative related articles and links about this subject matter and content, please visit Majon's Business and Entrepreneurs directory: http://www.majon.com/directory/Business_and_Entrepreneurs.
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