What online business models are working in 2011?

Question by socalguyonline: What online business models are working in 2011?
Are there any that are good to start in 2011? Here’s what I see:

1. Saas Businesses (online services) – there are sooo many young entrepreneurs and engineers and so much angel money in silicon valley .. but too few ideas. Consequently, I’m seeing a ton of competition for every single idea I can come up with. Is there still room for a new entrant in 2011?

2. Web Agencies – Another possibility would be to start a web production company that builds online websites and software for clients. Problem is twofold – (a) when I type in key phrases in Google that I might try to market with, I get pages of results from Google for engineers and marketing services “from $ 18 per hour”, from India and elsewhere. Also (b) I’m not seeing many thriving agencies around me. In fact, the one down the street from me and another prominent one a few miles away, recently closed down. Has this work effectively been outsourced and margins squeezed to oblivion?

3. Web Marketing (SEO, PPC, Social, Analytics) – This area seems to be doing better than production agencies and I see more examples of success around me. But aren’t most of these skills also technical in nature? Aren’t the should-be channel partners (google, bing, etc) also competing directly against these agencies? I fear these companies face the same fate as web production agencies, 5 years from now.

These are the only models I seem to be able to come up with, for someone with years of experience in Internet development and marketing. Unfortunately, I have serious doubts about all of them. Is there another model I am missing? Am I wrong about these?

Best answer:

Answer by Stone Martin
Hi,
Web Marketing (SEO, PPC, Social, Analytics) – This area seems to be doing better than production agencies and I see more examples of success around me.

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