New Skills- Business Models Online
When you search online do you ever notice the different types of websites you encounter? If you are thinking about starting an online business using a website or blog, do you know what type of business model you want? Do you know the differences between the different types of business models online and why they exist? It’s time to learn more about doing business online and embrace this resource and the opportunities it presents to you.
So you search and search and you find things you like and you find things you don’t. Depending on the type of website the search engines return when you enter a phrase that interests you, those keywords bring up the most popular sites that have that keyword in their headings, contents or URL name, etc.
Searching online is not an exact science. I will do an article on searching in a later post, but for now you need to understand what the results that search engines return when you do conduct a search, as far as the different websites that exist out there in the World Wide Web.
New Skills- Business Models Online and why this is relevant to you?
Let’s look at the six different business models online so you know what they are and how best to use them to your liking. No matter what your search is about, you will discover they all fit neatly into these six business models online in order of their dominance.
You may be asking right about now, why do I care and does this relate to me? If you are just searching to learn something a specific subject of interest, chances are you won’t find it on an ecommerce site. You may get small bits information but typically they are about selling the information. Also, statistics show there is a wide market for people interested in developing their own website and marketing online. For those of you interested in building an online business, this is the place to start. And, here’s why…
…when you decide to build a website or blog and market online you need to start with the end objective in mind. In this case, it is deciding on which one of these six business models your new online business will fall under:
New Skills- Business Models Online– the 5 types of business models online:
- Online Commerce
- Lead Generation
- Customer Support
The e-commerce business model is probably the most well understood of the five general types of business models, simply because this is where the majority of the money is spent and made. Any website that sells products, services or information fits into this model and each of these sites have similar challenges. While the specifics of how online commerce works differs slightly between sites selling products (such as consumer products like vitamins versus books), those selling services (such as internet marketing or hotel rooms) and those selling information (such as news or financial reports), fundamentally the challenges are the same – attract visitors to the website, show them the value proposition and get them to convert.
New Skills- Business Models Online –Advertising
The advertising business model is one typified by attracting visitors to a website who will read content and at the same time, theoretically, view and respond to advertising. News and sports websites, such as CBSNews.com, The Weather Channel, CNN.com and ESPN.com all have this business model. The basis for making money on advertising sites is the ability to sell electronic advertising in this model.
New Skills- Business Models Online –Lead Generation
The lead generation business model is typified by the presentation of information about a product or a service in the attempt to gather contact information for the visitor. The general idea is that, if the visitor is interested enough in the VALUE of the content the website provides, and if the value proposition is clearly presented, the visitor is more likely to provide personal information such as name, email address, and so on. Important performance indicators for the lead generation model mostly focus on the reach, acquisition and conversion end of the customer life cycle as retention is usually driven via external (email, phone) contact after the lead is generated.
New Skills- Business Models Online –Customer Service
The customer support business model is typified by a website designed to help visitors answer questions about a product or service without having to pick up the telephone and generate a costly phone call to a support department. For the most part, customer support is integrated into one of the other models already discussed – rare is a website that focuses solely on customer support after a product has been purchased without also trying to get the visitor to purchase additional products (online commerce model) or to generate some kind of lead (lead generation).
New Skills- Business Models Online –Hobby-no commercial intent
Some people have a passion for a subject or craft. In these cases, the content this business model provides is free for all to share. They have no interest in selling or commercial intent, but are providing information for like minded people sharing the same things. Therefore, they have no action required like buying anything or providing personal information so they can later market to you.
New Skills- Business Models Online – Conclusion
Understanding what type of business model you want to launch is the first key to building an online business. Understanding the key objectives of each business model online is the second key component. Knowing the types of business models online also helps you be more productive when you search for things you are interested in as well.
Before we continue on the path to market your online business, in the next post, we will address the criteria to determine if your business idea and concept has the power to generate great wealth for you. There are only 7 key components to a business that can generate great wealth. Answer the question does my business idea and concept address at least 6 of these 7 points, to determine if your business has the power to generate great wealth for you. If it does, buckle up, your journey online will produce great wealth, great rewards and independence for you. If you are interested in starting a business or have an existing one, this is a must read article.
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George Napoli is both an author: Be Thinkful©, as well as an entrepreneur having coached and trained thousands of employees and entrepreneurs in high level skill sets in Leadership, Six Sigma, Management Training and a wide range of high level- life changing skill sets like thinking, creativity and innovation and change. I am a Professional Blogger and Professional Internet Marketer. I am fortunate to hold Masters Certificates in Human Resource Development, Strategic Organizational Leadership and a Master Black Belt in Six Sigma, all from Villanova University.
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