Tips of The Day:
Web Business Models: Choices
The first of two Web business models are what we call 'selling sites'; we should be aware that there are basically two types of business sites on the Web; recently, capitalism on the Web is thriving more than normal since the recent recession, it is important to note that due to the near baking system collapse, more people are seeking ways to earn money at home and starting a business online, and this is also where many Web businesses get into trouble. It really will not matter whether our extra income ideas are for earning money at home or simply providing an information site, we can distinguish this first business model because they generally have little or no informational content for their visitors; note that most people on the Web are searching for information, yet this model does not satisfy those people.
These web business models for the most part are simply advertising messages; we have to ask ourselves if we 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 (if they have more than 2 pages) , 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 or solutions. Now this is not to say that people are not making money with this type of business model, but this type of site is set up for making one-time sales; if we are planning to use this Internet business model, our visitors have little opportunity at all to build long-lasting relationships for purchasing from us; by the way, the biggest expense in getting a customer to purchase is getting them to purchase from us the first time. So, if we succeed in getting them to purchase for the first time, what do we think would happen if we make arrangements to build a relationship with that customer, and (over time) influence them to make additional purchases; this way, when they do purchase a second time, it would be like having a secret asset (our database) that we can use at a moments notice for added revenue, and our opportunity cost would be next to zero because we did not have to prospect them all over again. The process described above is called the LTV (life-time value) of a customer; when we are not considering the LTV of your customers like in the web business model above, we have little chance of ever making a second purchase with those customers; it is similar to trying to fill up the ocean with a bucket with no bottom. 
Internet business model two are what we call "content sites." This type of site is created for visitors that are looking for information or solutions, we will not see advertising all over those kinds of sites; true enough, we will see ads, but they will be modest and tend to blend into the content of the site. To increase web site traffic is as simple as adding more sought after content; traffic that comes to this type of site are those looking for a theme (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. Certainly 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, likewise, they 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) Web Business model 2 (content site) example: Home business success is intractably tied to how we take full-control of our business; to us, it is still a toss-up as to which model is actually better; online wisdom and experience tells us that seeking the least business startup costs leans our decision towards the least costly model, ultimately, our home business success and business model choices are all on us as the chief operating officer. We truly hope we have been helpful to you in knowing which web business model is which and how to capitalize on them both, just be certain that targeted web site traffic is the goal for getting cash in hand visitors for your passive income opportunities.
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