Common profit model of Internet products

This article refers to the business model is the profit model, not the broad sense of "business model."

In the last log, when it comes to the business model of Internet products, gem students agree that this is a very important and extremely difficult point. Wu, in the top of the wave, mentions that all WEB 2.0 companies do not find their business model in real sense and will eventually be overtaken by the traditional Internet 1.0 giants that can successfully evolve into Web 2.0. However, the "Web 2.0" here seems to be more narrowly defined than we usually say. It is more focused on providing an open platform and allowing other users to use, interact, and rely solely on UGC to provide only the ecological environment of the company. So companies such as Google, Amazon, and EBay are not included in the column.

Whether this is true or not, it is indisputable that how to find a clear and sustainable business model is a common problem facing all WEB 2.0 companies today. Below the general situation, the Internet products of several business models to do a rough summary. To be sure, this is only a few common ways, not that they will make a profit. After all, the reality is too complicated.

Overall, there are two ways to gain access to Internet products--from upstream businesses and from downstream users. From the upstream business can be divided into two kinds of profit, the first model is to promote the business, there are probably the following two ways.

1. Advertising

This is the most common form of profit for all Internet products. The use of the Internet to browse a large number of characteristics, advertising everywhere, especially in AdWords as the representative of the promotion of the appearance. For restaurants, tourism, automobiles and other vertical communities, advertising in the promotion of businesses, but also can play a personalized recommendation, decorate the role of the site. At this point, from the early resolute not up to now every item, activity page will appear advertising watercress, should be a good example.

Combining literature and art, niche positioning, watercress carefully select the right advertising brand, and with a consistent style of advertising pictures, is perfect integration. At this time, even with Adblock Plus will feel a pity, perhaps this is the highest level of advertising art.

2. Real-time Search

Real-time search is still a recommended category in the profitability of general internet products. Especially in the vertical product, the user's search direct to some of the implementation of paid merchants, the effect will be very obvious. However, and Baidu's competitive ranking there is a significant difference is that Internet products must be directly responsible for the results of the search, that is, must have a set of ranking rules. Otherwise, like viral marketing, rapid growth will inevitably usher in a crisis of confidence.

The second model of profitability from upstream is commission.

3. Online Commission

Online users through the site to complete the purchase and payment, to the offline after the service, the site Charge Commission, or comment on the site, issue membership card, user card came to the store to enjoy the discount, a commission. The same is also the coupon, the L.A. card and so on. Another example is the cattle network, directly acting as the agent of travel agents, rather than the general sense of community-oriented, business models hidden behind the internet companies.

4. Online Commission

such as watercress, users see a book, you can click on the right side of the link, or add them to the purchase book, to the online bookstore to buy, Watercress Charge Commission. And all the other clicks Jump, charge a commission based on the link.

The third model is to charge business-class businesses, such as corporate microblogs, but it still belongs to the advertising category.

The main way to gain profits from downstream users comes mainly from value-added services.

5. Value-added services such as virtual currency or virtual goods

This kind of profitability can be said to be Tencent's contribution to the entire Internet, relying on this way, Tencent has built its own, huge financial system. But the general product wants to do so, at least a few conditions. A large enough number of users, only rely on large enough to use the number, the system can be stable to establish. Items that have lasting value and can be traded. The properties of virtual world goods must be in line with the real world, otherwise it is difficult to buy the attraction. Third, the continuous evolution of a sound financial system. Users have a lot of virtual money and virtual goods, to produce a reasonable number of new items. Because for operators, the production of such items is completely without cost, need to take into account the value of the users who have bought them. In addition, how to produce new goods, to continue to consume the money in the hands of users, so that the entire financial system to continue, but also a learning.

6. Data, information and other marketing services

This type of business model mainly faces downstream merchant users. Without affecting the user's privacy, using the product itself has a large database and user information, downstream of the business or third parties to provide data information, so that its marketing.

7. Open API

By opening up its own APIs, third parties are allowed to provide applications on their own platforms and receive commissions or splits. This approach is similar to Apple's App Store, where 30% of the profits in the App store are owned by Apple, and most open platforms currently use no commissions, just advertising or content sharing.

Finally, I would like to end with a sentence in the top of the wave--good business models are generally very simple, even if the layman can see. A diversified business model is undoubtedly a huge advantage, but it often means not clear enough. As with the core value of the product, how to make the most critical of the biggest is the key to success.