The successful way of Internet entrepreneurship (i): The profit model of Internet entrepreneurship

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The internet is called the entrepreneur's paradise, through the establishment website to start a business, the suitable crowd is very widespread. Because the current production of a Web site needs to have the technical requirements are not high, through the existing build station tools can easily build a website, and can also be built in the process of promotion, learned a lot of useful knowledge. Many friends hope to build a website of their own, but suffer from not finding a good entry point, so has been stuck in the "utopian" stage.

So let us first understand the site's profit model. The profit model of the website has the advertisement, the value-added service, the SP service and so on various forms, the key is to find the most suitable profit direction for own website.

I. Internet advertising

Many commercial websites need to be promoted, including some traditional industry enterprises, also began to expand the spread of the Internet. The website has the traffic and the user, also has the media attribute, through the advertisement profit has many kinds of ways, from the direct contact Advertiser to through the Advertisement Alliance carries on the advertisement, most websites including everybody well-known Sina and so on the portal site, the advertisement income is a big source.

Usually in the network, there are several forms of advertising.

1. Picture Text advertisement

The most common should be the text type of advertising, this kind of advertising is the initial appearance of the type of advertising, text ads form the interference of the viewer is very small, but the effect is good. The most common also has the picture advertisement, it also is called the banner advertisement, the advertisement is in GIF, JPG and so on format image file to present, and may set the dynamic effect, at present the most common is the 468x60 size picture banner advertisement.

In addition to the general static picture ads, the current popular is the use of animated GIF image ads, there will be flashing or mobile, such as dynamic effects, the principle is to connect a series of images to form animation. Most dynamic Web ads from 2 to 20 frames of the screen, through different images, can be passed to the viewer more information, but also through the use of animation to deepen the impression of viewers, their click rate is generally higher than static. Moreover, this kind of advertisement is relatively not complex in the manufacture, the size is also relatively small, usually below 15k. Pictures and text ads are the most important forms of online advertising.

Fig. 1 All kinds of advertisement of Tencent Net homepage

2.Flash Video Ads

Flash (animated) Form of advertising to attract viewers, it can not only as a general display of advertising content, but also can be made into interactive forms, such as interaction with visitors. The form of advertising is more diverse, than the simple picture text effect better, so the click rate is also higher. The file size of the animated advertisement in SWF format is moderate and has good compatibility.

There are also various types of video advertising, the advantage is more intuitive, and there are sound factors, can bring better results for advertising. However, the disadvantage is that the impact of the browser experience, and video ads are also relatively slow loading speed, the slow speed of the visitors have a great impact.

3. Sponsorship of the title advertisement

Sponsorship ads in the form of a variety of traditional online advertising, but also the site's name ads, but generally used for large web sites. For example, Sohu Sports channel is dubbed "Adidas Sohu Sports" name. Other websites, such as Sina and Tencent, have similar name ads.

This way the title of the advantage is that the advertiser and the site together, in each content page will appear the name of the manufacturer, the promotion of the effect is obvious. For small and medium sized personal sites, as long as the site is well-known in one area, you can also look for similar sponsors to launch the title ads.

Fig. 2 The title advertisement of Sohu Sports channel

There are many types of ads on the Web site, such as the content of the ads, advertising content, etc., but this kind of advertising although the effect is very good, but usually let the browser misunderstood, think is the content of the site, so in the placement of such ads to be cautious.

Ii. Mobile SP Service

Small knowledge:

SP is (service Provider) abbreviation, refers to the mobile Internet Service Content Application Service direct provider, is responsible for according to the user's request development and provides the service which suits the handset user to use. Including content services, entertainment, games, SMS, MMS, WAP, ringtones download, a large user base.

Can be summed up to two major categories, such as the direct provision of entertainment services, such as friends, MMS, ringtones, games, phone calls, voice interaction, and so on, the other is to provide information services, such as advertising, weather forecasts and so on.

And many internet portals, such as Sohu, Sina and so on, are through the promotion of mobile SP service started. Initially they provided downloads of ringtones, pictures, games, and so on, and users were charged for downloading such services.

Tencent's main source of revenue is SP services, Tencent and other SP service providers, in addition to the usual photo ringtones download and other SP services, as well as their own characteristics QQ value-added services. There has been a long time to apply for Tencent QQ number must be in accordance with a standard 1 yuan fee, and other such as QQ line number, members, such as the QQ gas station, such as SP services, are also Tencent value-added services.

Personal site to the SP advertising site, the flow of income is generally: users through the introduction of the website to download a ringtone, SP service providers through the mobile phone charges to the user charged 1 yuan. 15% of which is the SP Ad League Commission, and 50% will be made by webmaster, the rest of the SP service providers themselves.

SP Service for the site is once a lucrative industry, because the relevant regulation is not perfect, so in a few years of the rise of personal web sites can see similar services, in addition to a lot of illegal SP service providers, such as false SP ads, from the user's mobile phone charges, But not the corresponding service.

But the state of the SP Chaos ended in July 2006, China Mobile communications at this time has promulgated a series of "two confirmed" and other policies, the SP's various businesses have a comprehensive supervision and restrictions, and then the Ministry of Information Industry (now merged into the Ministry of Industry and Information Technology) a number of crackdown on the introduction of documents, To the domestic SP industry to bring devastating blow. Overnight, many overseas-listed domestic SP companies have evaporated by billions of yuan in market value.

With the country's strict monitoring of SP servers, SP services are becoming more formal. For small and medium-sized personal sites, now through all kinds of SP business of the Web site Alliance to put ads is also a good choice, such as mobile "flying" client promotion, as long as the user through the site of the ads registered flying users, you can get advertising fees Commission.

Tips:

At present, SP service providers are still mixed, or there are some service providers to provide false services. such as not to provide services after the charges, or the high cost of services. If the user through the site's ads are deducted from the high mobile phone charges, it is easy to let users of the site's trust to reduce.

Third, the network value-added service charges

Through all kinds of charge service, to the website's unique content or service profit, is the site's value-added services charges. Tencent Web portal, is a value-added service to rely on the example of profit, it's QQ show and all kinds of QQ charges, are value-added services type.

Personal sites can benefit from such things as paid information, paid articles, and so on. As long as the content is unique and valuable, users will buy it. For example, many Web sites that offer graphic materials for design, as well as DJ Music online, are profitable by selling burned discs.

On this basis, we can develop a variety of specific charging methods, such as the membership annual fee of Alibaba website, provide differentiated service with free members, website transaction intermediary fee of webmaster NET, earn transaction intermediary commission, and the successful handling fee of the website of Granville Guest. And now the popular web game operation, which the virtual equipment and sale of props, the network value-added services in the category of charges.

Iv. Electronic Commerce

At present, E-commerce is a more mature business model in the Internet. For individuals who have their own goods, through the site to sell goods, than their own shop better, because do not need special publicity, such as a professional website for women, often through the sale of various cosmetics profit. Usually, in addition to their own products, the site can also be sold to other people's goods to make money.

For small and medium-sized companies, through E-commerce is easier to expand product sales. At the same time, there are special e-commerce sites, such as the domestic Jingdong mall, excellent Amazon, Dangdang, is a form of E-commerce Web site.

Figure 3 E-commerce website Jingdong Mall

There is no fixed profit model on the network, only the difference between success and unsuccessful. Most websites use a variety of profitable ways to operate, to ensure the diversification of revenue channels.

Please pay attention to the next chapter: Site Content planning and user positioning.

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Author: Tao Qiufung (endto) publishing house: Computer newspaper Electronic audio-visual publishing house.