What are online business models?
Internet business models are categorized as business-to-consumer, business-to-business, and more recently, consumer-to-consumer. Business-to-consumer and business-to-business models typically sell goods and services or provide information designed to help visitors make purchase decisions. Consumer-to-consumer models involve consumer-to-consumer information or product exchange.
An online internet business model of a company in which an organization can do all business activities online. The five different internet business models are:
1. Online retail model: One of the main types of online business is the online shop. You can sell your products and brands on different online websites like Amazon, eBay, Jabong etc. Online sell is the first step for a person on online business. In traditional shop, you need to buy stock and limited to a particular market but in online shop you do not need to maintain high inventories and you can sell products across globe.
2. Online service model: In this services are sell online, a person can do work from home, provide flexible hours of work and get extra income from their regular job. These include website designing, computer programming, video editing, print design etc.
3. Affiliate marketing model: Affiliate marketing is where a website can promote products and services of another company and provide link to access further action through company website. If someone clicks on the ad given on website and purchase some item them website on which ad is placed get a commission.
4. Membership site model: A membership or subscription site is a website where two types of content are present, one is free and other one is premium. Free content are basic content which can attract customer to get basic of some information of a topic but to get full film behind the trailer needs premium membership of that website. To become member of the website, it has options of weekly, monthly or yearly subscription.
5. Online directory model: Traditional business directories are now old. These are based on niche and provide a wide range of services to business. Example of niche directories includes wedding singer, second hand cloth reseller, children castle provider etc.
In my point of view the most risky business as start-up model is membership or subscription model. In this you need to create own website and add content which are specific. The two main things that made it risk are:
-> Create own website
-> Specific content which are not available free on internet
-> Create customer base
-> Investment of money in marketing
Tags:
Marketing