This book looks at business models, that have arisen due to the usage of the Internet. We start off with a discussion of models which are either dead, or dying. Examples of this are ISP Dial-Up Services, and portals. Secondly, this book will look at the current business types out there including freemium , ad-based, marketplace/affiliate, virtual goods, and utility models as well as several others. This book seeks to recognize where value propositions lie, and the resulting revenue models that generate profitability.
This book is ideal for MBA students and entrepreneurs.
Every day 500,000 tractors are sold in the United States. One immediately wonders why the U.S. has suddenly reverted to an agrarian economy or where are all these tractors are since they have not appeared to suddenly take over the streets. You may not even have seen a tractor recently. Or have you? According to TechCrunch.com, internet gaming provider Zynga sells that many virtual tractors every day (Schonfeld 2009), as of 2009. Today it s probably even more. Zynga is the creator of the FaceBook game, Farmville which has become quite popular recently. At a couple dollars a tractor, we can suddenly see where this becomes a million dollar a day business.
Now, before we run off and open our virtual tractor dealerships to try and cash in, it s helpful to understand how such a business is even viable. After all, the tractor does not exist in any tangible sense. In fact, many things related to internet businesses are not tangible, yet people pay money and companies are successful.
However, many of these companies as we are about to see, are actually following basic marketing and business principles. The Internet as we know it is simply a tool. In fact, many people feel that material on the Internet should be free, like it always has been. This creates an environment where only the savviest professionals are able to generate sales. The key, of course, is simple: Know what you are selling, what it is worth to your customers, and why that is. As we progress through the examples of business models, you ll note some common themes to success related to this.