Your Questions About Internet Business Models

Jere answers:

The Web offers tremendous opportunities for those who know how to harness it. You hear of stories of people who earn thousands if not millions of dollars from doing business on Web. While there are many scams (same way in the traditional business world), there are various ways you can legitimately make money on the Web.

Here are the main ways you can earn money from the Internet:

1. Sell products on the Web – Big boys like Amazon or Lillian Vernon online catalog or smaller businesses like BigKidsVideo.com or Candle4Less.com all sell products on the Web.

You can either sell: (a) through your own storefront through your own website or applications such as Yahoo Stores; or (b) sell through online auctions like eBay

http://www.ebay.com
http://auctions.yahoo.com/
http://www.overstock.com
http://www.amazon.com
http://www.ubid.com
http://www.liquidation.com

2. Information Delivery. Others such as About.com or EuropeforVisitors.com create content and monetize their content in a number of ways:

a. Advertising – there are several ways you can earn money from advertising:

1. Join an advertising network. Advertising networks are organizations that aggregate Web sites that offer advertising space, and sell banner ads (and other advertising options) across them. Traffic requirement is often a minimum of 5,000 monthly impressions, although many do not accept sites hosted by free page services.

Burst Media http://www.burstmedia.com
Fastclick (ValueClick). Http://www.fastclick.com
Advertising.com. Http://www.advertising.com
Tribal Fusion http://www.tribalfusion.com

2. Participate in contextual advertising networks. Contextual advertising are text ads delivered based on the content of the web page using an automated system.

Google Adsense https://www.google.com/adsense/
Yahoo! Publishing Network (currently in beta and available to US publishers only) http://publisher.yahoo.com/
Intellixt http://vibrantmedia.com/site/web_01a5.htm
Quigo Adsonar http://www.quigo.com/adsonarexchange.htm
IndustryBrains http://www.industrybrains.com
Commission Junction Evolution http://www.cj.com
Kanoodle Brightads http://www.kanoodle.com/about/brightads.html
Clicksor http://www.clicksor.com/affiliate_programs.php
Contextweb http://www.contextweb.com/
Bidclix http://www.bidclix.com/
Bidvertiser http://www.bidvertiser.com/

3. Sell advertising for your site directly. This is admittedly a more difficult route for a small business site wanting to earn advertising revenues. But hey, as they say: “no pain, no gain!”

b. Affiliate Programs – you sell other people’s products that your audience may be interested in; and you get a certain commission after the desired action was done (whether a sale, a lead, subscription to email newsletter, or however this is defined)

c. Paid online content. Hoovers.com or WebmasterWorld.com Supporters forum all require paid subscription before accessing the information

d. Content licensing and syndication. Some publishers such as the Associated Press get paid every time their content is published elsewhere

Jere answers:

You cannot base a realistic business model on JUST advertising revenue. It cannot work.

Think about it, to get advertising revenue you have to get users coming to your site and then clicking on the displayed ads.

To get users coming to your site you need to advertise to attract them (costs money). You can bring users to your site by other means but it will take a minimum of a year to get any real traffic.

The cost of bringing users to your site by advertising will always be more than your receipts from advertising on your site.

Jere answers:

Pretty pls

Jere answers:

An internet business model is one in which all aspects of commerce are conducted online and not in a “brick and mortar” store.

Two popular businesses based on this model are Amazon.com and Ebay because 100% of their transactions are conducted online. These companies also rely on the internet for their customer service and contact.

Walmart is a mixed model because you can shop online or walk into a store to do your shopping.

Jere answers:

Considering the wide spread Internet access available now, businesses are now able to reach untouched potential customers. However, to maximize any business medium, one first needs to understand what the positive potential can be.

Such is the positive potential that can be identified as the many advantages of an online business.

· Employee Options
With an Internet business firms can offer its employees work options that other companies may not be able to offer. They can offer employees the option to work from home, create their own hours and create their own work environment. Firms can also hire employees from anywhere in the world, which means they have access to a large pool of talent. When employees have this kind of flexibility, it can make morale high and creates an atmosphere for higher productivity.

· Business Hours
An Internet business offers flexibility to the customer as well, according to the e-Business Guide. Firms can set their online business to accept orders 24 hours a day, seven days a week and 365 days a year. They can offer a library of information to customers about their business that can be available at all times, and customers can send in emails with questions any time they want. With the automatic order taking capabilities of the Internet, and online real-time inventory tracking abilities, firms can offer customers anywhere in the world speedy order information without the need for constant human interaction.

· Global Presence
The Internet reaches millions of people all over the world at any point of time. An online business can create an international presence at once without the need to pay for costly retail or office space in a foreign country. An online company can also segment the business and create specific websites to appeal to different cultures throughout the world.

· Dynamic Marketplace
The Internet offers businesses the ability to update product information, change product design and specifications, and introduce pricing promotions and specials instantly. Firms can take feedback from customers and quickly make changes to their website user interface to help make the customers’ experience easier. An online business can also offer customization options to customers that can allow someone to make changes to a product and then order the product with those changes. For example, a customer can create and order his own customized T-shirt from an online business quickly and easily.

To read more about internet businesses please visit:
http://www.tutebox.com/business/e-commerce/business-on-the-internet/