One of the biggest challenges many people have when getting started with an online business is not knowing what business model works best. 

The thing is… there are many business models that have the potential for great profits. But you’re not likely to experience that success if you keep changing from one idea to the next. 

In this short video and the text below, Alicia Lyttle explains the pros and cons of 3 business models she has been teaching students all over the world – and that can all be highly profitable. Best of all, Alicia will tell you which of these 3 she prefers… and why. 

I’m going to teach you about the three models that I have seen have great success and that I want you to pick one of these models – the model that suits you. And that is, you’re working online and you’re going to provide digital services to clients globally. 

So there’s a model where you say “I’m going to do all the services myself. I’m going to have my own business, do the services myself”.

Then there’s the agency model, which says, “When an order comes in from a client, I’m going to outsource it to other people to do it for me. And I’m going to pocket the profits”. That’s the agency model. 

And then there’s the model in between – the combination. You know, “I might do some work myself. And when I get too busy, I might outsource some of the work”.

So give me a D if you think you’re the “do it yourself, this is my business. I’m going to do all the work. Now, most people start off all the ways in that D that “do it yourself”. They’re going to do it themselves to start off with, to learn their business. 

And then they end up at a combination. and I’m going to give you some examples of people and what they’ve chosen. David said he’s going to do it all himself. But we all have different views of what we’re going to do. Like William said, A and C – so I’m guessing William’s, going to do an agency and the combination, right? 

So Janine says D – I’m going to do it myself. And then a combination and Janine you have what is the most common model that you start off doing it yourself and learning the business and then do a combination, learn it and outsource it.

That is the most common model. And here is that agency model where when an order comes in, you outsource the work and you deliver it and get paid and pocket the profit. 

So I’m just explaining it a little bit. Now, the do it yourself model you keep more money in your pocket because you’re outsourcing less.

But the agency model actually allows you to have a bigger pie because you can have more work coming in. 

As you’re thinking about this, I just want you to think a little bit deeper. So the do it yourself model, which is here on the left, you spend more of your time working and your free time is that little green plot pie, right? But you keep more of your income.

But in the agency model, you have a bigger pie. You make more income because you can get more orders in because you have other people doing the work, and now you have more free time and you work less.

Hopefully now you’re starting to see just how easy it is to create your own highly profitable digital services business. Which model are you going to choose?

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