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Web Business Model: Which Is Better?

 

web business model pageWeb business model one are what I call 'selling sites'. Are you aware that there are basically two types of business sites on the Web? It is important to note that this business education  I am sharing is not easily found. Yet it hides in plain sight.

It really does not matter not whether you are looking for a simple cashflow  system 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.

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 and near the end of their introduction page, their visitors are urged to purchase a product or service right away.

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.

web business model page

(LTV of a customer is the ultimate business leverage for cashflow)

Internet business model two is what I call "content sites." This type of site is geared for visitors that are looking for information or solutions. You will not see transparent advertising on those kinds of sites. True enough, you will see ads, but they are subtle and tend to blend into the content of the site.

The web site traffic that go to this type of site are looking for a theme based site, so the content of this web business model will always stick to the topic that the visitor was 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, more frequently 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.

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

Balanced Web Site Content
Basic Business Knowledge
Business Coach
Business Failure
Business Pathways Success
Business Startup Basics
Business Startup Costs
Computer Basics
Dynamic Online Traffic Targeting
Entrepreneurial Teen Issues
Law of Attraction
Local Search Approach
Miscommunication For Business Failure
Niche Article Directories Online Marketing Tip
Online Sales Letter 
Sample Mission Statement and Vision
Targeted Impassioned Market 
Understanding Human Behavior
Web Revenue Generation
Writing Articles

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