This week we focus in business learning models on the web, how to get new ideas for business and choosing the best model of what we want to sell. We study the case of Joe and his friends, advising them how they should choose their online business. And then learn how keyword planner from AdWords can help us choose what kind of business we want to invest.
Business Learning Models on the web
I learned about 9 different kind of business models on the web this week. I will list all of them bellow, according to my understanding:
1- Brokerage Model – In this type of business the companies are intermediary for buyers and sellers, it takes millions of users for their website and hosting services and products for these people. Some have payment means within their own websites, others offer only as a tool for payments. Examples are: Paypal, Ebay, Amazon and Etsy. Sometimes they charge a fee for using the website or the tool that they develop.
2- Advertising Model – This type of model the websites are news portals, information, provide basic services such as e-mail, photo hosting, among others. With the huge traffic they receive, they offer their space to sell ads, banners and other advertisements. This online advertising is paid by advertisers to these websites, there are several types of charging, each company has developed what it believes is the best.
3- Informediary Model – These are companies that have information of users on the Internet in general, they analyze this information and sell to other businesses. Some make a business network, where other websites register and offer their space for ad. Advertisers select the niches and types of users they want to achieve according to this business network.
4 – Merchant Model – Companies that sell services and/or products through the internet. They have a huge catalog, often with tabulated values. They offer delivery services and today is the vast majority of online businesses.
5 – Manufacturer (Direct) Model – These are companies that typically produce products or develop the service, and that through the internet sell without a distributor in the middle. They offer competitive advantages for many customers to buy directly from their website and not through their distributors.
6 – Affiliate Model – It is a model where companies that sell something over the Internet registering on their network other websites that offer their space to sell the products/ services of these companies. The sites that offer their space can be commissioned per sale, per click, there are several ways, it depends largely on the network that the site is affiliated.
7 – Community Model – Model based on the interaction of people through the internet. Can be social network or forums. Each company chooses the best way to charge, can have a premium access or disclose ads through these networks.
8 – Subscription Model – Users are charged for a period in this type of model can be daily, weekly, monthly, yearly, varies from business to business. Services are usually monthly, as streaming videos and music. Usually companies have a free version and another premium offering more advantages for those with premium access.
9 – Utility Model – Model based on the use of on-demand service, paying only for that period is used. Usually are general services such as cleaning. It depends on your locality as well as the charges are made to your country.
Brainstorming Business Ideas
There are a lot of brainstroming methods, one that I like is “The Problem and Solution Method”. You just need a notebook or a cellphone nowdays for example, look for everything that occurs in your life and around you, pay attetion the problems and difficulty situations that your friends and families say, everything is a opportunity to find solutions and develop a business that would help those people. Right down everything you judge is important and think about some products or services that might help for those problems.
Google AdWords is a powerfull tool for advertise your company. One tool from AdWords is the Keywords Planner, where you can see the volume and the competition of each keyword and choose the best for your business. This tool also helps in other things, like develop a good SEO strategy and think about what kind of business you would like to open, based on the query keywords.