Virtual Landlord

© Andrew Park/Shutterstock

You can move merchandise online without paying rent on a warehouse. Just play virtual landlord and charge other retailers monthly fees (or per-transaction fees) for the opportunity to market their products on your site. Amazon.com nabbed 28% of its revenues this way in 2006. Craigslist is another take on this model: The 25-person company charges businesses to post help wanted ads in San Francisco, New York and L.A., and also collects fees for apartment listings in New York City. (Total page views per month: about 5 billion.)

Virtual store

This is one of the oldest online business models, and one that left many dot-coms in ruins when the Internet bubble burst in 2000. High-end goods (custom suits, fancy cars) are tough to peddle online, but some commodity items, from books and T-shirts to hotel rooms and mortgages, work nicely--if you execute well. Beyond an easy-to-navigate Web site, you'll need a warehouse to store the inventory, as well as "fulfillment" software so customers can complete the transactions. If you don't want to deal with the IT side, set up shop on eBay and let them handle the technical issues. Some of the best eBay retailers (affectionately called "Power Sellers") pull in more than $100,000 a year.

Tip/Warning: Retail is a cut-throat business, online and off. Target a niche and offer over-the-top customer service.

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