Who is making money on the internet?Written by David Bell
We are going to discuss some of different types of businesses on net and how they make their money. We will then discuss some basic "internet business models" you can use to make money online as many people still don't understand concept of these business models. There are only four basic types of companies doing business with any impact in cyberspace today: 1.Large Corporations (A.K.A. "Fat Cats") Many of these companies don't do anything to promote online, perhaps thinking their URL and external promotions are sufficient. And they are probably often correct in approaching net this way. The ones that do promote online prefer to purchase banner advertising on high traffic sites; a tactic that apparently pays off (We are talking here about huge companies like Pennzoil, Nike, CNN, etc.). 2.Medium Sized, Savvy Businesses (A.K.A."Risk Takers") The companies referred to here are electronic cowboys like Yahoo (the search engine), Netscape (the browser) and Netcom (the ISP). These companies took a very different approach to business on net hoping it would pay big dividends in end. Many failed, but a few succeeded and grew to enormous size, such as ones listed above. Yahoo for example, gave away free listings anticipating people would come and net would "catch on" with general public. They lost a lot of money with no revenue stream in beginning, but once internet grew, they could charge big dollars for advertising on sites with as many as 15 million hits every day. They got so big they were able to go public and make millions with their stock offering. Yahoo took a big risk and a loss in beginning only to reap huge rewards in end, and same thing happened with Netscape. They gave their software away to become a dominant force and create a monopoly on web browsers and then made their money by selling advertising packages, and co-partnering with other products later. A risky strategy that has paid in billions. 3.Small Inexperienced Companies (A.K.A. "Gold Rush Co.") These are small companies run by individuals who are inexperienced in traditional business or ways of internet. They are of "gold rush" mentality and make same miscalculations made by inexperienced people in any business venture. These business owners often think there is one secret to success. They think if only they could just find that one trick, their work would be done and they could then lie on beach with an ever-growing bank account. But as we will see, there isn't any one big secret, just a whole bunch of little ones! These business owners often think there is one secret to success. They think if only they could just find that one trick, their work would be done and they could then lie on beach with an ever-growing bank account. But as we will see, there isn't any one big secret, just a whole bunch of little ones! 4.Small Savvy Companies (A.K.A "Winners") The "winners" are smaller companies run by experienced business people who exhibit a high level of awareness and hard work promoting their website. These companies are currently having best success on Web, just as this type of business owner is having most success in your local neighborhood. They usually start as one-man operations and can grow enormously into outfits with many employees.
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