Wednesday 3 February 2010

4 business models for online business

The development of science, technology and digital created the Internet and the Internet economy. As a kind of journalism products, the Internet's economic model has a certain difference with other journalism products. Internet economy is more interactive, personalized, virtual sex and globalization. Internet economy is not only confined to the audience and advertising, and there are other ways to obtain profits.

There are four business models for online business :

Profitable way 1: C2C (consumer to consumer) model
C2C stands for consumer to consumer. This model is mainly in the form of personal auction. The world famous C2C sites are eBay, Google and yahoo. The operation of such sites is hard. It is hard to establish credibility and the cost of operation and promotion is very high.

Profitable way 2: online ads
It is the common way to make profits from online ads. It has diversified forms, for example banner, logo, flash multimedia animation, online video and so on. From the view of charging, now charging based on click rate is very popular. Search engine like Google and BaiDu mainly take advantage of such ads. In 2005 the revenue of Google is 3.1 billion dollars, most of they originate from this kind of ads.

Profitable way 3: online retailing (B2C)
When talk about the online retailing, the initial response is Amazon. Amazon is the biggest online retail store in the world. Last year the revenue of Amazon was more than 6.9 billion dollars. Usually the online retailing has two ways to operation: one is to distribute your own products through the internet, another way is to build retail platform and help other people to sell their products through your site.

Profitable way 4: B2B
B2B stands for business to business. That’s to say the business between manufactory. Common parlance, the buyers and sellers ate both businesses. They make use of internet and different business net platform to complete the process of deal. This can help enterprises to reduce costs.

No comments:

Post a Comment