Download Internet Business Models and Setting Up a Web Site

Internet Business Models and
Setting Up a Website
Business Models
Advertising
Only
(Single Rev.
Stream)
TV
Radio
Google
Outdoor
Content
access
is free
Content creation, distribution,
and advertising-delivery
business
Advertising/
Subscription
Hybrid
(Dual Rev.
Stream)
Cable
Newspapers
Magazines
Content
access
cost is low
Content creation,
distribution, access, and
advertising-delivery
business
Subscription
Only
(Single Rev.
Stream)
Transaction
(Single Rev.
Stream)
HBO
DVDs
Newsletters
Music
Movies
Content
access
cost is
higher
Content creation,
distribution, and
access business
Content
ownership
cost is
highest
Content creation,
distribution, and retail
business
Internet Business Models
•
•
•
•
Ad supported – Google, Yahoo, Gawker
Hybrid – Cable TV, NY Times, Pandora
Subscription – HBO, Economist
Commerce – eBay, Amazon
Types of Business Models
• B2B – Business to business: GE, Cisco
• B2C – Business to consumers: Apple
• C2C – Consumer to consumer: Craig’s List
Types of Websites/Apps
•
•
•
•
•
•
•
•
•
•
Content publishers – NY Times, ESPN
Content aggregators – Google News
Social networks (communities) – Facebook
Facilitators – Craig’s List
Peer-to-Peer – Wikipedia
Gaming – Candy Crunch
Financial Services – E-Trade
Travel – Expedia
Health – WebMD
Education – Coursera, Code Academy
Online Advertising Models
• CPM – Cost-per-thousand (M) impressions
– Unlike TV, no start or end date
– CPM model used primarily for branding
• Sold guaranteed and programmatically
• CPC – Cost-per-click
– Auction – AdWords
• Modified Dutch auction
– Sold programmatically also
• CPA – Cost-per-acquisition or per-action
• Rev Share (typically a hybrid model)
• Sponsorship
Online Pricing Model
• Go to
http://charleswarner.us/cseindex.html
and open “Daily Comedy Sponsorship
Costs” spreadsheet for an example of an
ad pricing (sponsorship) model.
IAB Standard Ad Units
*
*
http://www.iab.net/adunitportfolio
Check out the latest, because changes occur from
time to time.
A Business Model Must Scale
• In order to get financing from anyone other
than friends and family, your startup must be
able to scale.
– Scale means a company must add revenue faster
than it adds costs.
• Writing a novel scales– you don’t have to write a new
copy for everyone who buys the book.
• Software scales – write it once and sell it to lots of
people.
No Scale
• Services don’t scale.
– Services that charge by the hour, such as
production companies, advertising agencies,
consulting, law firms, gardeners, etc. don’t scale.
• No scale, no $ from investors.
Setting Up a Website
• Get a domain name
– Buy it (register it) and close mutations (.net,
.tv, .us, etc.) on GoDaddy.com or
namesecure.com or negotiate with squatter
(afternic.com)
• Serving the domain name and site
– Web hosting company – where you registered
it or third party such as GoDaddy.com or
HostGator.com.
• Microsoft or Linux server software (some hosting
services give you a choice – Linux is less expensive.
• MySql and Fetch or other interfaces as needed (need
some way to FTP files to and edit site)
• E-mail addresses
• Transfer domain name to server
Design a Site
• Online platform
– Proprietary platform
– Server company design software, i.e.
SquareSpace
• Original design
1.
2.
3.
Do it yourself - HTML, CSS
Word Press, e.g.
Drupal (PHP, open source)
Setting Up a Website
• Design
– Read Don’t Make Me
Think by Steve Krug
– Banner sizes
– Navigation
– Contact Us
– Terms of Service
– Privacy Policy
– Registration, if needed
– Subscribe (RSS), if needed
– Video (expensive to serve)
– Community (social
networking)
– Facebook, Google+ Sign
In
– FB, Twitter, Reddit, etc.
links
– HTML
– CSS
– Java
– Adobe Acrobat
– Video player
– Browser compatibility
Setting Up a Website
• Platform/Architecture
– Proprietary (Movable Type, InGage e.g.) vs.
open source (Drupal, e.g.)
– Get an expert webmaster
– Get ad serving if ad supported
– Get video serving (Brightcove, e.g.)
– Commerce – secure payment, Verisign, PayPal,
or outsource it.
Setting Up a Website
• Marketing (the key to success)
– Social Media -- Create buzz (Twitter, Facebook,
Instagram, Pinterest, SnapChat, LinkedIn)
– Publicity (PR firm)
– Advertising (reciprocal deals, Google Search,
programmatic)
– Viral marketing (not as effective as
advertising)