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Businessmodelsonthe web (c) M.Civilka, 2002 (c) M.Civilka Preface Business models – the most discussed and the least understood feature of the web. The only agreed fact – the web changes traditional business models. (c) M.Civilka Preface Bussines model – the method of doing business (by which a company can sustain itself - that is, generate revenue). Bussines model spells-out how a company makes money. (c) M.Civilka Preface Some models are quite simple. Other models can be more intricately woven and require deep technical knowledge (radio and television broadcasting). (c) M.Civilka Preface With all the talk about "free" businessmodels it is easy to forget that radio, and later television, programming has been broadcast over the airwaves just a short time ago. The broadcaster is part of a complex network of distributors at this time. Who makes money and how much is not always clear at the outset. (c) M.Civilka Preface E-commerce necessarily will give rise to new kinds of business models. But all the novelties - well forgotten past. eBay online implement old auction model. There is no single, comprehensive and cogent taxonomy of web businessmodels one can point to. (c) M.Civilka Preface Models are implemented in a variety of ways. Businessmodelsonthe web evolve rapidly. (c) M.Civilka Preface The term "business model" has taken on new meaning and greater importance in the realm of intellectual property protection. Within the legal community, businessmodels are defined within the context of patent law. Recently a number of patents have been granted for businessmodels in USA. In many cases, patented web businessmodels will need to withstand court challenges before we can say for certain. (c) M.Civilka E-commerce Bussines Models Pyramid (c) M.Civilka Bussines models Brokerage Advertising Infomediary Merchant Manufacturer Affiliate Community Subscription Utility [...]... System A site that allows users to exchange information with each other or the sellers [ePinions] ClickTheButton takes the concept a step further by integrating the recommender system into the web browser Recommender systems can take advantage of the affiliate model offered by merchants to augment revenue from the sale of consumer information (c) M.Civilka ... Infomediary Model Valuable information about consumers Analysis of information and it’s usage An infomediary offers [NetZero] (c) M.Civilka Other forms The infomediary model can also work in the other direction: providing consumers with useful information about the web sites in a market segment that compete for their dollar Recommender System Registration Model (c) M.Civilka Recommender System ... Auction Broker Reverse Auction Classifieds Search Agent Bounty Broker (c) M.Civilka Buy/Sell Fulfillment Online financial brokerage (eTrade) Travel agents Volume and low overhead to deliver the best negotiated prices (CarsDirect) (c) M.Civilka Market Exchange Model in B2B markets (ChemConnect's) The broker typically charges the seller a transaction fee based onthe value of the sale The. .. VerticalNet's B2B exchanges (c) M.Civilka Buyer Aggregator The process of bringing together individual purchasers from across the Internet Sellers pay a small percentage of each sale on a pertransaction basis (c) M.Civilka Distributor A catalog-type operation B2B models are increasingly common Broker facilitates business transactions between franchised distributors and their trading partners Faster... transaction [ex: HotDispatch, Amazon 's zShops] (c) M.Civilka Auction Broker A site that conducts auctions for sellers (individuals or merchants) Broker charges the seller a fee Seller takes highest bid(s) from buyers above a minimum Auctions can vary in terms of the offering and bidding rules [ex: eBay, AuctionNet] (c) M.Civilka Reverse Auction The "name-your-price" business model Prospective... web site, provides content and services in the form of banner ads (c) M.Civilka Advertising The banner ads major or sole source of revenue for the broadcaster The broadcaster may be a content creator or a distributor of content created elsewhere This model only works when the volume of viewer traffic is large or highly specialized (c) M.Civilka Forms Generalized Portal Personalized Portal ... (c) M.Civilka Attention / Incentive Marketing The "pay for attention" model pays visitors for: sweepstakes viewing content completing forms flyer-type point schemes The concept was pioneered by CyberGold, with its "earn and spend community" that brings together advertisers interested in incentivesbased marketing with consumers looking to save Micropayment system Another loyalty-based relationship... transaction services and relationship marketing opportunities [ex: Yahoo! Stores, Stuff.com, ChoiceMall, ExciteStores] (c) M.Civilka Metamediary A business that brings buyers and online merchants together and provides transaction services It is a virtual mall The metamediary protects consumers by assuring satisfaction with merchants The metamediary charges a setup fee and a fee per transaction [ex:... employer (c) M.Civilka Bounty Broker The offer of a reward for finding a person items The broker may list items for a flat fee and a percent of the reward, if the item is successfully found [Ex: BountyQuest which lists reward offers for uncovering prior art related to patents.] (c) M.Civilka Advertising The web advertising model is an extension of the traditional media broadcasting model The broadcaster... services Free content and services (c) M.Civilka Personalized Portal The generic nature of a generalized portal undermines user loyalty portals creation (ex: My.Yahoo!, My.Netscape) The profitability of this portal in based on volume and possibly the value of information derived from user choices Personalization can support a "specialized portal" model (c) M.Civilka Specialized Portal "vortal" . Business models on the web (c) M. Civilka, 2002 (c) M. Civilka Preface Business models – the most discussed and the least understood feature of the web. The only agreed fact – the web. M. Civilka Preface Models are implemented in a variety of ways. Business models on the web evolve rapidly. (c) M. Civilka Preface The term " ;business model" has taken on new meaning. of business models. But all the novelties - well forgotten past. eBay online implement old auction model. There is no single, comprehensive and cogent taxonomy of web business models one