Your Questions About Internet Business Models

Chris asks…

How is it that internet businesses generate funds and who pay them?

Anytime someone go to the internet businesses online how do they get paid and who pay them?

Jere answers:

For internet business, a common income is from advertisement, company will pay web sites for advertisement.

There’s a referral model as well, for example, if u click abc.com from google, then abc.com will google, it’s like commission

for retail store like amazon, they gain income from selling products as well

for search engine, they generate income from selling their web sites info, like yahoo has 1 million web sites registering with them (meaning those web sites can be searched in yahoo), and search engine z has only 0.2million web sites, z company will buy those web sites info form yahoo and paying for this

Jenny asks…

How actually you run internet marketing or internet business ?

There are several knowledge on how to make or create your own internet business via affiliates programs and selling which i did not understand how . I need a direct-to-point answer how to do that or some example from any website , i need an answer from anyone who been in this business .

Jere answers:

Try Senze’s Encyclopedia. It explains in good detail how to set up 19 different kinds of internet businesses. Once you have decided which business model to use – then research more on them.

Http://www.clikks.com/ebooks/senze.html

Mark asks…

You have $100,000, which you use for your own Internet business. What will be your fixed and variable costs?

It also asks, How can your business can take advantage of economies of scale?

Im so confused what are the fixed and varible costs for a internet business?

Jere answers:

Well, regardless of the business model, fixed and variable costs share the same attributes:

Fixed costs are costs that: 1) Are constant or predictable, and 2) You have to pay without regard to your sales/production/etc.

Variable costs are costs that: 1) Are incurred based on your production/sales/etc, such as commissions, raw materials, and the like, and 2) Would not exist unless you produce a product or service, or make a sale which generates these costs.

Your fixed costs would include your Internet connection, website, equipment costs, management salaries (if any), utilities, and fixed advertising (not cost-per-click). Your variable costs would include cost-per-click advertising, commissions, production-based payroll, shipping and postage, etc.

Economies of scale are related to the growth of your business. Basically, the unit cost of something becomes cheaper as you produce more of it. If you are selling a product, you may have a lower cost-per-unit based on greater unit sales (i.e. Price breaks) or you might achieve lower ad rates if your total clicks reach certain breakpoints.

I hope this helps. Good luck!

Ken asks…

What are some ways to build up a forum/blog from scratch, and monetize it with great success?

I am seriously thinking of becoming an Internet entrepreneur by starting my own blog/forum based around what I know and am interested in, all from scratch by my own design specifications. What I’d like to know is of some online business models that can be applied to forums/blogs, and websites in general to make income? Thanks for all help!

Jere answers:

Do u have little idea about how to design a forum or blog website? If u have! Them download a wordpress software or us xampp
But if you don’t have log on to blogger.com

Mandy asks…

how has the business model for professional musicians changed in the last few decades?

How would you answer this question?

Cory Dororow states, “Before the radio and the record came along, the only way that people made money from making music was by standing in a hall and being charismatic.” Do you think the business model for professional musicians has changed in the last few decades?

Jere answers:

Yes it has with the advent of recording equipment not long after the beginning of the twentieth century, it allowed singers to sell their songs to people who had the money, and wanted a copy of their song, for their own personal listening. As time went on and it became cheaper to produce recordings, it became easier for the average person to buy and have music in their homes. Radio allowed singers to reach a larger audience than they had in the past, with both recorded and live performances. Television opened the way for people to watch first recorded performances, then live ones. Then came eventually the usage licensing of songs that went on to become identified with with certain products. Then the internet allowed singers to reach audiences that they had never reached before allowing people to be “discovered that otherwise might have never been noticed by the music industry.

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