eBusiness Models

Writing eBusiness Plans

eBusiness Models

Overview of Basic Internet Revenue Models (B2C and B2B)

  1. etailer: Product Sales (Transactional Commerce) - selling physical goods (order fulfillment + outbound logistics)
  2. etailer: Digital Goods Sales (Transactional Commerce) - "content" - magazines, music, software, etc.
  3. Advertising-supported (banner ads sold to generate revenues) - usually with free content
  4. Subscription Fee - periodic charge for membership or access to content (often tiered)
  5. Commission or Transaction (usage) Fee - agent, broker, or intermediary charge (B2C, B2B, or C2C)
    - there are many models in this category (auctions, infomediaries, content maximization, etc.)
    - brokerage models include market exchanges, buyer aggregator, trading communities, metamediary, vortal, search agent, etc.
  6. logistics / fulfillment value added (integrated supply chain)
  7. data mining analysis sales - free content, but sell data about virtual visitors (privacy implications)
  8. affiliate model - pay to drive traffic to a site
  9. community model / expertise database (subscription or brokerage fee)
  10. utility model - metered usage (pay per byte or minute)

Sources:

Applegate, L.M., J.W. McFarlan, & J.L. McKenney (1999) Corporate Information Systems Management (5e), New York: Irwin-McGraw-Hill.

Business Models on the Web by Michael Rappa

and other sources


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