Can the profit sustain the business and more importantly, giving you, the business owner, the rewards you wanted. In other words, what is the Business Model of your business?
You may say, “Why do I need to know my business model? I would ask you “How do you generate revenues? The next step you need to do is to find a suitable business model to start your business.
Here are some of the successful business models found on
Affiliate Model
When they provide purchase-point click-through to the merchant, this model allows the merchant website to offer financial incentives for affiliated websites.
Example: Amazon.com
Brokerage Model
Brokers bring sellers and buyers together and facilitate transactions in exchange for a fee.
Example: eBay, Amazon.com, ClickBank
Advertising Model
Example: Yahoo!, Google, Overture, Hotmail
Merchant Model
Online wholesalers and retailers of goods and services, just like those in the offline world.
Example: Amazon.com, Victoria’s Secret, Lands’ End
Direct Sales Model
This model lets the product or service creator
Example: Dell Computer
Subscription Model
Users are charged a periodic fee (eg. Daily, annual or monthly) to subscribe to a service or product
Example: America Online
The above models are definitive or not exhaustive. Internet business models continue to evolve. Expect to see interesting and new variations in the future.
Can the profit sustain the business and more importantly, giving you, the business owner, the rewards you wanted. In other words, what is the Business Model of your business? The next step you need to do is to find a suitable business model to start your business.
Basically the business model shows how a business will generate revenue by identifying its product offering, value-added services, revenue sources and target customers. Some business models will fit naturally for a particular type of business.
