| Basically
the business model shows how a business
will generate revenue by identifying its
product offering, value-added services,
revenue sources and target customers.
Some business models will fit naturally
for a particular type of business. But
with creativity and planning, you can add
multiple new streams of revenue by
combining several different models as
part of your overall Internet business
strategy. For example, a commonly seen
strategy is for a content driven
businesses to blend advertising with a
subscription model. Here are some of
the successful business models found on
Internet.
Affiliate
Model
This
model allow the merchant website to offer
financial incentives for affiliated
websites when they provide purchase-point
click-through to the merchant.
Example:
Amazon.com
Brokerage
Model
Brokers
bring buyers and sellers together and
facilitate transactions in exchange for a
fee.
Example:
eBay, Amazon.com, ClickBank
Advertising
Model
Web
advertising model is an extension of the
traditional media broadcast model. The
website provide content or service (like
e-mail, chat, forums, newsletters, search
results) mixed with advertising messages.
Example:
Yahoo!, Google, Overture, Hotmail
Merchant
Model
Online
wholesalers and retailers of goods and
services, just like those in the offline
world.
Example:
Amazon.com, Victoria's
Secret, Lands' End
Direct
Sales Model
This
model let the product or service creator
to reach buyers directly and thereby
compress the distribution channel.
Example:
Dell Computer
Subscription
Model
Users
are charged a periodic fee (eg. daily,
monthly or annual) to subscribe to a
service or product
Example:
America Online
The
above models are not exhaustive or
definitive. Internet business models
continue to evolve. Expect to see new and
interesting variations in the future.
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