Web Business Model: Which Is Better?
Web business model one
are what I call
'selling sites'. Are
you aware that there are basically two types of business sites on the
Web? Recently capitalism on the Web is thriving more than normal. It is important to note that
due to the baking system collapse, more people are seeking ways to make money at home and starting a business
online. This is where Web business trouble begins.
It really does not matter not whether you are looking for a simple
cash flow
system for your household or an elaborate working from home Internet business, you can distinguish this
first model because they generally have little or
no informational content for their visitors. If you notice, people on the Web
are searching for information. Yet this model does not satisfy those people.
Furthermore, this web business model for the most part are
simply advertising messages. Do you really want a serious web business?
This type of website has the flavor of a desperate salesman/woman and near the end of
their introduction page, their visitors are urged to purchase a product or
service right away. This type of website makes people want to click the red 'x'
as soon as possible because they are not searching for advertisements, they are
looking for information.
This is not to say that people are not making money with this type of
business model, but this type of site is geared for making one-time
sales.
If you are using this Internet business model, your visitors have little
chance at all to build a long-lasting relationship to purchase from you.
Look at
it this way, the biggest expense in getting a customer to purchase is getting
them to purchase from you the first time.
But, if you get them to purchase the first time, what do you think would happen
if you make arrangements to build a relationship with that customer, and over
time influence them to make additional purchases? When they do purchase, it would be like having a secret asset (your database)
that you can use at a moments notice for added revenue, and your opportunity
cost would be next to zero because you did not have to prospect them all over
again.
That is called the LTV (life-time value) of a customer. If you are not
considering the LTV of your
customers like in the web business model above, you would be better off trying to
fill up the ocean with a bucket with no bottom.

(LTV of a customer is the ultimate business leverage for
cashflow)
Internet business model two are what I call "content sites."
The owners of this type of site are called an
Infopreneur. This type of site is geared
for visitors that are looking for information or solutions. You will not see
advertising all over those kinds of sites. True enough, you will see ads, but
they will be subtle and tend to blend into the content of the site.
The web site traffic that
come to this type of site are looking for a themes (not ads), so the
content of this web business model
will always stick to the topic that
the visitor is looking for. Otherwise, they will continue surfing the Net until
they find what they are looking for.
One thing is certain, this type of site is geared for building long-lasting
business relationships. The owners of these kinds of sites love providing
quality content for their visitors.
Visitors to this type of site tend to visit longer, also
tend to refer people to the site. It is a win-win for the owner when they
promote a business mission statement that considers the LTV of their customers
as part of their
business research.(Ref.
article)
Business model 2 (content site) example:
Web Business Model: Which Is Better?
I have been working from home for many years and to me is is still a toss-up
as to which is actually better. Online wisdom
and experience always says depending on the
business startup costs, I am lead by my heart and finances when faced
with this decision. Ultimately it will be your choice.
I truly hope I have been helpful to you in knowing which
web business model is which and how you can capitalize on them both.
Just be certain that targeted web site traffic is the goal for getting
cash in hand visitors.
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Page References
Sample Mission Statement and Vision
Business
Action Guide
Budget Optimization
Small Business Ideas
Online perspective
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