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:  

	Wait until The 3 Minute Shortcut has finished, or pause it, before touring these visual links... Tube It! Tour It! Join It! Tortoise It! Doubt It? Try It! Videos From The Heart How SBI! Makes You Succeed SBI! Family Bulletin Board SBI! Business Philosophy Ask Anything To An SBI! Owner Risk-Free Test Drive (The middle four links above open a new browser window.)

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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