In our previous articles we have covered multiple topics related to online business. This time we want to explain the various business models that are typical on the Internet.
In the first place, when we refer to Business Models we are talking about the methodologies that allow interaction between the users of a web portal in order to carry out a business through the Internet.
This interaction can be between suppliers and customers, suppliers and suppliers, manufacturers and distribution channels, distributors and resellers, customers with customers, etc.
The classification of business models on the Internet depends on the types of those who interact in them, that is, who are the summoners and who are summoned to do business.
When the participants and those summoned are companies, we are facing what is called the Company-Company or B2B Model (for Business to Business in English). When the convener is a company and the convened is a consumer, the Business to Consumer Model or B2C (for Business to Consumer in English) is spoken. When the convenor is a company and the summoned is an investor, it is called the Company-Investor Model or B2I (Business to Investor in English). In turn, there may be Business-Business-Consumer Models or B2B2C (Business to Business to Consumer) in the case in which a Wholesaler sells to a Retailer who in turn sells to an end user. On the other hand, user interactions through social networks on the Internet are normally considered as Client-Client Models.
Otra forma de clasificar los modelos de negocios en Internet es en función de su alcance o proyección, teniendo Negocios con Modelos Locales, Regionales o Globales. Por ejemplo, como un Modelo Local podemos clasificar a los portales tipo revistas de rumbas que se limitan exclusivamente a los eventos en la ciudad. Otro ejemplo Regional o Nacional son los comercios electrónicos que sólo funcionan en un país, que no manejan divisas sino únicamente la moneda local y/o sólo se atienden y despachan pedidos a nivel nacional.
Depending on the degree of specialization, Business Models can be Horizontal or Vertical, that is, horizontal models are those that are very open and are not defined within a strict focus of the business, while vertical models are those that are highly specialized for a particular niche.
When the Internet business works as an extension of an existing physical company, it is called the Brick Business Model (or Brick in English), while if there is no physical company with a previous history and the business only works through the Internet then It is called the Click Business Model (for the mouse click).
Other more specific business models are those related to Intermediation by groups of sellers or buyers. In the Vendor Group Intermediation Model, the product / service of many manufacturers / suppliers reaches the end consumer through an intermediary. An example of this are the portals that function as business directories in which service providers pay a subscription to said directory in order to appear on their lists in such a way that customers can locate and hire them. These portals can be open to the general public or even restricted only to companies that pay a subscription to access said directories and see potential providers.
In the intermediation by Buyer Groups, there is the Buyer Aggregation Model that seeks to unite multiple buyers of a product or a service to place a group order in such a way that the price of the same is cheaper for them (ex. pharmacy chains).
In turn, the intermediation models include Auctions that can be in the traditional way for sale (an offeror exposes a product online and many buyers offer an amount and the one who pays the most for the product wins) or what is known as a reverse auction for the purchase (a buyer requests offers from many bidders through an online bidding and the one that provides the lowest price for the product wins).
Search Engines or Search Engines (eg Google) are also considered as Intermediation Models since they expose sponsored links that pay for each click they receive. This even extends to offices where Search Agents operate, who charge for investigating possible providers of very specific products or services through the Internet and who receive payment from their clients for this search and intermediation service in the hiring or purchase.
The Virtual Shopping Centers that group multiple Online Electronic Commerce Stores are also considered as Intermediation Models since these stores pay to be present on the portal. This payment can be for a recurring subscription price or even a percentage payment according to what is billed (eg Mercado Libre).
There are other business models where revenue is based on advertising. As an example there are all those general or specific portals that provide information of various kinds but that do not sell products or services but rather attract users thanks to their good free content, generating a lot of traffic and with it the printing of many pages on the screen, in order to Charge for the exposure of banner-type advertisements (eg, blogs, specialized sports portals, educational content portals, video portals, etc.).
Networks or Social Media based on what is known as Web 2.0 in which thousands or millions of users are registered to interact according to a certain context, they are also business models whose income comes from advertising (eg Facebook, Twitter, YouTube).
Online classified ad portals are also an advertising or subscription business model.
As you can see, there are many online business models, the important thing is that when you decide to take your business to the Internet, consult the experts to assist you in the design and implementation of the best business model that suits your requirements.
Success for all…
