The basic profit structure of Internet business is to earn money by operating advertising business. It’s an advertising business where you stick ads (Products sold by other third parties) onto your Web media and advertise them on behalf of advertisers.
Advertising is one of the top industries for all new graduates seeking employment. It is a company that does business mainly with information.
But there are some kinds of advertisements. “Among such advertising businesses, the Internet business is regarded as an extremely excellent advertising business.”. Therefore, you can earn more than 1 million yen a month even if it is an individual operation.
- 1 There are three types of advertising
- 2 Real Media Rewards (customer agent)
- 3 compare affiliate prices and conduct a performance-based compensation business
There are three types of advertising
There are three main categories of Web advertising. The types are:.
・Click (Click Compensation)
・performance-based compensation system
The effect of each advertisement is very different. In fact, when you deal with advertising on the Internet business, you have to understand how each of them works.
Pop ads don’t make a lot of money
For example, “place ads on certain parts of their Web pages for a month” is a form of advertisement. This is typical Web advertising out there.
For example, there is an advertisement on the top page of Yahoo. It costs more than 2 million yen to post here.
It’s called “In return for placing an advertisement here, I will receive one million yen.” and it’s a kind of ad.
However, if an individual or small business runs the same business model, it is not recommended at all. It almost certainly fails.
From the customer’s point of view, this type of advertising has the disadvantage of “It’s hard to tell if it really works.”. We have to do this based on the assumption that “It will probably work.”. The most uncertain advertising method is the advertising type.
Unfortunately, because of these characteristics, no one shows up when you try to collect a net advertisement. And every company that succeeds in net advertising is a big company or a company that successfully raises hundreds of millions of yen.
Given these circumstances, I would not recommend that sole proprietorships or small and medium-sized enterprises engaging in secondary businesses or startups work on the business model of net advertising.
Click-Guaranteed (Click Compensation) compensation rates
There is a form of advertising called “click guaranteed”. Click ads are unique to the Internet and are also called PPC ads.
In the advertisement type (net advertising), it is not related to “How many ads were clicked from there?”, “How well the product sold”, etc., because it is just published. To address this problem, we improved the click-guaranteed type of advertising by saying, “We guarantee revenue for the click of ads.”.
The ad uses a cost-per-click “charge for each click on the ad” method. In the past, when advertising existed only in real media, it was basic to advertise in situations where the effectiveness of the advertising was unknown. On the other hand, when you click on an ad, it shows more detailed ads, which are more likely to lead to results, and advertisers are more likely to pay.
If you want to make money by using a pay-per-click system, you can use a system called Google Adsense. You can think of it as “Google AdSense Says Click Pay Ads” in the Internet business.
Affiliates, performance-based advertising on sites and blogs
Affiliates in a broad sense include click-reward types. In general, however, affiliates are defined as earning profits through a full performance-based reward.
No matter how many times the ad is clicked, it doesn’t mean that the product will sell after that. Therefore, performance-based advertising is the method most appreciated by customers. In other words, in return for selling the product on behalf of the customer, the customer receives a certain percentage of the product price as a reward.
As it is an agent to collect customers and you only have to pay for the amount of sales, there is no risk on the seller side.
Real Media Rewards (customer agent)
Because the unit price of performance-based remuneration is extremely high, it is not limited to Internet businesses that can generate large sales by advertising full performance-based remuneration even for individuals and small and medium-sized enterprises. The same is true for real methods.
For example, an insurance agent does not own a product. Instead, it is a client agency business that sells life insurance, cancer insurance and automobile insurance on behalf of insurance companies and obtains profits from performance fees. The amount of the back margin is very large because of the incentive fee, and the insurance agency industry is known to be very profitable.
The same goes for real estate. Apart from the case of “landlord” in which all of the real estate owned by a company is self-managed and self-contained, there are many “real estate brokerage firm” which are performance-based compensation businesses. By selling and brokering real estate on behalf of property owners, these companies earn back margins as incentive fees.
If you think like this, you will notice that the business model is exactly the same as that of affiliates not only in the Internet business but also in many real media. It’s not special because it’s an online business, and pay-per-performance (back-margin on behalf of customers) is used in every industry.
compare affiliate prices and conduct a performance-based compensation business
When you start an Internet business as a side business or as a startup, most people try to monetize it as an advertising business. Some people launch sites or blogs to sell their own products, but most of them handle advertising and sell other people’s products and services.
The main types of Internet business are pay-per-click and pay-per-performance. However, when you compare the rates of the remuneration unit price at the affiliate, the performance-based advertising is far more profitable.
In fact, if you look at the ranking of people who make money in the Internet business, almost all of them deal with ads based on performance fees. Naturally, there is a reason for this.
Of course, if you want to start a business loosely as a side business, you can consider only click-style ads. However, if you really want to earn money as a business, consider using a fully performance-based ad. This is the key to earning money through affiliates.