01 Dec, 2009
Business for Internet: Models and Examples
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To take a business as Internet is not simply to publish a page, to give publicity and to hope to do a fortune. In fact, as well as his name says it, it is a "business". It needs patience, perseverance, discipline and of a good model and strategy. In this post, we will see the examples of the most well-known business models of Internet.
Porqué to speak about business models? Many new webmasters believe that the best way of doing money in Internet is across the publicity with Adsense (that is to say, the publicity of Google). This I can work and certainly it can be a profitable strategy, but there are other business models for Internet that he is worth while considering.
Business for Internet based on Publicity
East there is problablemente the most well-known business of Internet and popular between the new entrepreneurs and the experts. The idea is to construct a place that attracts traffic and then, monetize by means of publicity. East is the model used by most of the blogs.
Examples: Digg.com, SoftSift.com, Technorati.com
Pros: Easy to start, the places need little or no maintenance, the income in general it depends on the traffic.
Contras: the income in general it depends on traffic, which can be difficult to construct at a low price; a percentage of the income there is it loses for the advertizing agencies.
Business for Internet based on Affiliates
The principal target of this business for Internet is to sell products in which you will receive a commission. The commissions can change drastically according to the type of products; some electronics shops to pay only 1 %, while the ebooks can pay more than 50 %. A big quantity of places for that they look affiliates provide finished information and send it as feed, so that it is easier to sell for the affiliate.
Example: Ebates, Jewelry Shop
Pros: In the English language, there are more than thousand programs of affiliates to choose; much of the content it is already ready; good utilities in case of electronic books
Contras: Many competition; the content becomes duplicated, therefore Google stops considering you; he can need a big initial investment in scripts or programming codes; in Latin America practically this business model does not exist.
Business for Internet based on Drop Shipping
The drop shipping refers to intermediaries of products who offer to send straight the product to the client; your work is to promote it, to receive the money and to order the mailing order to the dropsshipper. His gross utility is the difference between two prices. This is applied to any product that you imagine, from televisions up to swords of collection.
Examples: Just Buy Online
Links to begin your business for Internet: WorldWideBrands
Pros: the utilities margins can be excellent; you have no inventory nor invest money in it; 0 investment, more than in the necessary scripts
Contras: Time investment to find a trustworthy distributor (do not entrust themselves to the Chinese distributors); it needs of a serious strategy of commercialization and promotion; complex system of option of payments; just as the affiliates, Latin America does not offer these services
Business for Internet based on Commercial Sales
A place of sale of physical products is the following step after the dropshipping. This is basically, to have an extension of your business in the web. For example, if you already have a business walking, you can create a web site and improve yourself to obtain new clients, major sales and more position of your mark.
Pros: it is possible to maximize the gross utility and that chooses the percentages that are paid to them; now the affiliates are used and dropshippers to sell his products
Contras: It takes a time and big financial investments to start; he needs physically inventories of the products; he needs some type of physical base therefore it cannot offer his services to the whole world (for example, in case of a real estate agency or medicines)
Examples: Your Favourite Shop, Amazon
Links to begin your business for Internet: Blogger.com (to create an easy web site, that is to say, a blog)
Business for Internet based on Subscriptions
A place based on subscription is where it is possible to receive from the visitors a regular quota for his use (or of advanced functions). You have to provide a service or information that has value and the people is ready to pay.
Examples: Friends Reunited, Dan Kennedy
Pros: To generate regular income; high utility margins; predictable and solid traffic.
Contras: It needs to have many resources (information) to start; difficult to find the need or to offer something of value; it needs to incorporate constamente new elements to rel="nofollow""" the subscribers
My recommendation: If he speaks English to more than 90 %, I recommend to him to start there with affiliates and publicity. If he wants to put a business for Internet in Latin America, it is good to start by publicity as Adsense, so that of an idea of the work and activities that the successful business needs. If it has a company and wants to promote it, I warn him: the Internet in Spanish is an excellent tool of communication and promotion, not of sale. Still there has developed neither the confidence in the systems of electronic payments, nor a bank system that allows surer deals for Internet. Anyway, the only system of payment that I recommend to him, if he wants to begin selling for Internet, is Paypal.
P.D. If he wishes consultancy in these aspects, my mail is 100negocios shehab.org With taste we can offer him assistance in his business model for Internet