It takes more than a killer domain name and a dream to make it in the online world. You still need to determine your business model in order to create the kind of e-commerce site that will survive. Before you hire developers, design the logo, find the office space and buy the new computer equipment, you must decide on a business model -- your plan of action to determine how your site will make money.
Some netrepreneurs are mistakenly under the misconception that the way to an online profit is to merely drive traffic to a specific location. Generating site traffic is only one element to e-success; one must be able to present something substantial to entertain visitors when they arrive. Launching a site without a clear business model but with a great marketing scheme is the equivalent of having thousands of guests arrive at a party only to find that it''s an empty warehouse. You built it, they came, but they didn''t stay long and they will never be back.
Ponder some of these suggestions for viable online business models. Keep in mind that timing can have a lot to do with which model is the most successful. The Internet undergoes phases as to what is the hot, money-making concept of the minute.
- Will the site be geared toward consumers or businesses?
- Will you be using your e-commerce site to sell merchandise or particular products?
- Will you be selling content or information? (see: The High Price of Selling Digital Content)
- Will you be giving something away or selling below cost and expecting to make money from advertisers or some other source? (see: Give it Away )
- Will you be earning commissions by acting as a liaison to facilitate transactions between parties, much like an auction site? (see: Reviews of Auction Builders )
- Will you be incorporating several models or variations of them?
Contemplate your areas of interest and expertise when cultivating a business model; there may be a natural choice based on your background and experience.
The article, E-Commerce Invents New Business Models may influence your decision as to what you hope to accomplish online.
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