The continued evolution of the internet has brought with it constantly evolving business models, and businesses native to the online world are always looking for an innovative way to generate revenue.

1. ONLINE BUSINESS MODELS
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SEVEN EXAMPLES

2. Online Business Models ¬ Seven Examples
The continued evolution of the internet has brought
with it constantly evolving business models.
Businesses native to the online world are always
looking for an innovative way to generate revenue.

3. Online Business Models ¬ Seven Examples
With the new online models available,
businesses may combine two or more different models
as part of their unified internet strategy.
Here is a shortlist of the most popular online business
models of 2015...

4. Online Business Models ¬ Seven Examples
THE ADVERTISING MODEL
A simple re-invention of newspaper,
magazine and broadcast media advertising.
The online advertising business model succeeds when an online publisher,
places advertising banners and contextual advertising within its website’s pages
so that a certain percentage of their visitors will click on these advertisements.
The online publication will either be paid on a per-click basis,
with their advertisers paying them every time a visitor clicks on one of their links,
or on a weekly/monthly basis, whereby they’re paid a set fee.

5. Online Business Models ¬ Seven Examples
THE SUBSCRIPTION MODEL
Frequently combined with the advertising model, the online subscription model
has gained in popularity in recent years, with companies like Netflix and Ancestry charging
their users a periodic (usually monthly) fee to subscribe to their service.
Many subscription-based businesses like to combine the premium content with a free service,
allowing unsubscribed users to access a certain amount of free content per month,
as a means to convert a certain percentage of them into paid subscriptions.

6. Online Business Models ¬ Seven Examples
THE MERCHANT MODEL
Functioning as wholesalers or retailers, an online merchant model could be either
the website of a brick-and-mortar company, such as the Waterstones e-commerce site,
or a wholly internet-based company such as Amazon which,
until this week, had no staffed centres anywhere.
This model also applies to online merchants who only sell digital products
or services such as Apple’s iTunes music store.

7. Online Business Models ¬ Seven Examples
THE MANUFACTURER MODEL
The success of this model is based on online technology allowing the producer (manufacturer)
of the products or services to identify, better understand and sell directly to their customers online.
This significantly reduces the distribution channel, and thereby enables the manufacturer
to offer their products or services to the customer at a lower price and more efficiently.

8. Online Business Models ¬ Seven Examples
THE AFFILIATE MODEL
The online affiliate model allows companies to advertise their products or services
wherever their customers may be using the internet,
via purchase-point click-through ads placed on an affiliate’s site.
The affiliate partners receive a percentage of all revenue directly generated by the click-throughs.
If a particular affiliate doesn’t produce any sales, they’ll be owed nothing in advertising costs.

9. Online Business Models ¬ Seven Examples
THE BROKERAGE MODEL
The brokerage company produces a platform in which monetary transactions can take place,
such as PayPal and Square, with the online broker taking a small fee from each transaction.
There are also popular auction brokers such as Ebay.

10. Online Business Models ¬ Seven Examples
THE INFORMATION INTERMEDIARY MODEL
Also known as the data collection model,
infomediaries have the ability to collect large quantities of data,
and relay these where there is demand.
Consumers want independently-collected, comprehensive information about producers
and their products before making a purchase decision,
and an infomediary can provide this – for example, MoneySavingExpert or GoCompare.

11. Online Business Models ¬ Seven Examples
CONCLUSION
Whatever business model(s) you decide to apply to your online business,
it is important to remember to continually update your market research,
especially with regards to what other similar businesses are doing.
The internet will continue to evolve and new variations on the models above
will definitely emerge in the future, bringing new possibilities.

12. Online Business Models ¬ Seven Examples
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