What type of Product should my internet business promote?

There is no best model. You will have to find something that suits you. If you are able to create your own products this will be more lucrative in the long run, but it will cost you a lot of time/money to get started with. If you already know how to drive quality traffic, I suggest promoting other people's products first. Of course, you can do both.

Basically if you can drive quality traffic you can make money with affiliate work, your own products or adsense. It doesnt really matter in the end.

The only thing that does matter is that you have to take action, decide on something and work hard on that.

Hope that was helpful.

Hi Warren

Sounds cliched, but try to find something you either feel passionate about or have some knowledge on first, then do the feasibility check second.

Try to establish

1) Do people interested in this niche have money (e.g. no under 16s)
2) Will people spend money on this (no point promoting top 20 CDs to a forum of college students)
3) Can you isolate buying signs (e.g. people searching with an intent to buy rather than looking for DIY solutions / freely available information

It's only a brief outline, but I Hope this helps.

You're getting good advice from the folks above me. I'll add what I can from my own perspective of doing this stuff for the past 11 years...

1. Adsense and affiliate programs put the earning power of your business in the hands of someone besides yourself. While this is okay when you're starting out, I've learned the hard way that this is not the way to build a long term business that will last for years - even decades.

2. When brainstorming products, anything that promises to make people either healthy, wealthy or sexy, will ALWAYS sell. Beyond that, try to find something within those parameters that interests or intrigues you.

A great free workbook for this comes from Michael Campbell - Uncovery.

I personally use and recommend that resource in everything I do.

3. Create your own product. This is scary and it freaks people out, but just like learning anything new - the more you do it, the better you get. I recently wrote a 60 page ebook in the IM niche in 3 days, and yesterday completed a 30 page ebook in another non-IM niche.

With your own products, you alone have 100% control over what you are selling. No one can take it away from you. It cannot be legislated away (see Amazon canceling their affiliate program in states that are approving internet sales tax for proof of this).

Obviously this works best with information products, but don't discount networking to find business partners to help you create software or physical products if you find a market that you want to commit to fully.

Finally, use the knowledge you've gained, find an IM path that "fits" you, and FOCUS on it, to the exclusions of EVERYTHING else. Only by doing this consistently day in and day out, will you find the success you are looking for.

Hope this helps!
~Mike

Thanks Alex, and Mike for your feedback. I'm toying on one hand with building basic sites, creating some traffic (hopefully a few adsense clicks) and then flipping the sites. (That's one business model which has great appeal) and then on the other hand I've herd about a lot of people saying that its worth while promoting amazon products.(Apparently if you choose well the competition isnt that great, but the earnings are less) and then my other consideration id to create my own product or two and build my own product around that. The concern with this last idea is that Marketing on the Internet is an absolute passion for me, but I also realise that it 's one of the most competitive niches in the whole IM industry, so I kind of feel a bit stuck, re following my passion (and making it really super hard for myself) or finding something else that in "bum marketing" sense enables me to create some OK affiliate income.

Maybe you should consider dropshipping? With dropshipping also physical products becomes somehow "digital".