Internet Business Models are truly the heart of any business. Internet Business Models describe what your online business stands for. Not just that, but it repeatedly displays what the business owner is like, as an individual. The online business model is fundamentally the way a business functions and makes profits. They have been around for ages. Internet business models are considered as business-to-consumer, business-to-business, and in this recent times, consumer-to-consumer. Business-to-consumer and business-to-business models naturally sell goods and services or make available useful information that helps visitors in making their purchase decision. Consumer-to-consumer models deals with consumer-to-consumer info or exchange of product.
Merchant and Brokerage Models
A business-to-consumer and business-to-business model sells products by using a website online. There are actually two basic types which are the merchant and brokerage models. Merchant models are companies such as Macys.com, run storefronts on the Internet that give individuals a shopping experience that is similar to catalogue shopping. Brokerage models are companies such as eBay; it is a bid and ask marketplace that brings buyers and sellers together. This model is best for individuals who like the test of detecting needs and bidding to match others with related or opposite needs.
Community model
The community model might be a business-to-consumer or business-to-business, but has been greatly accepted as a consumer-to-consumer business model.
This is for individuals that love bringing people together and assisting others in meeting their needs through community. Because the model does not discreetly create income, except it is created as a subscription base community.
Infomediary and Affiliate Models
Infomediaries are alike the infomercials because they provide information created to slightly sell a product or service. The affiliate model gives you the flexibility of being paid for bringing in customers rather than truly selling them. One of the main key here is volume.
Advertising Model
This might be natural to you if you are already involved in advertising. The perfect example is Google. It hires paid text advertisements, search placement, and user-tracking to encourage advertisement to customers who surfs the internet.
Manufacturer’s Direct Model
Cisco, a manufacturer of digital electronic part is a good example of the Manufacturer’s direct model. A user can simply go directly to their website to purchase a system or part. This lowers the need of field sales representative.
Subscription and Utility Models
These models are process where users pay a fee in order to get access to web-based software programs. Some examples of this are publications (for example; the wall street journal), services (for example; GoToMyPc), content aggregator (for example; High Beam Research) and numerous intranet websites.
Web 3.0
This is also known as the Semantic Web. The Web 3.0 will take a record of all your web activities and use it to offer a modified personal experience; it is more like a web custodian.
A good model can have positive effect that will make your business successful while a bad one will prevent this and also crumble the business. When you decide to invest in online business, it is essential to know the business models that most interest you. Which of these models is suitable? In which of these models are you able to become a professional, or in which are you willing to become an expert?