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Once you have decided that you are ready to start a home based business on the internet, the next decision is what type of business you will have. There is a multitude of profitable business models to choose from.

1. One of the hottest trends in internet home businesses is niche marketing. This involves finding a small, specialized market, where there is large demand for a product that you can supply. The more specialized you become, the less competition you will have. It takes time to research potential niches to discover markets that are both hungry and profitable. Remember that it is important that interested consumers must be willing to pay for information or products in that niche for your home business to be profitable.

Once your research has indicated a potential hot marketplace, then it is time to find, or develop a product to offer. By matching a hungry market with a product they desperately want, you are on your way to starting a profitable home based business.

2. Affiliate marketing is another great way to start a home based internet business. Affiliate marketing is simply marketing someone else's product and getting a commission for each sale that you make. You will need to identify who you want to market to, and then find appropriate products to sell. You will also need to learn how to drive traffic to your website, so that your customers can find you and your products. Several programs are available that offer affiliate products that you can sell, with commission rates anywhere from 5% to 75%. You will also find many vendors who have affiliate programs will supply you with ads, articles and other promotional items that you can use to start getting customers.

3. Creating your own product to sell over the internet remains one of the most profitable ways to start a home based business. Once you have discovered a specialized niche with a strong interest in a specific product, then you can create products that they want. These can be information products, such as eBooks, and special reports, or software and technology products that they can use to pursue their passions. If you have the talent, you can create physical products as well. You might find that one of your affiliate products leads you to discovering a need for something that you can supply. Don't worry if you don't have all the expertise at first to create a line of products. You can start small, and build from there. You can also outsource the work you need done, which will free up your time to develop your home business.

4. Another way of profiting from your website is to sell advertising space on them. Your websites will contain lots of valuable information that people are looking for. When they come to your site, they can click on the advertising link to find out more, and the advertiser pays you a set amount for each click. There is a wide variety of advertising mediums, some pay you for each click, others pay you for each action the customer takes, for example if they fill out a form for more information, you would receive money, and others will pay you if the customer makes a purchase from your link.

These four ways to start your home business on the internet should get you thinking. Take the time to research the ones that appeal to you, and then get started. Before you know it, you'll be running a profitable home business, and enjoying the extra money a home business brings in.