Web based business models means internet based business models, these types of business are categorized in B2B(Business to Business) B2C(Business to Consumer) and C2C(Consumer to Consumer). You will get 100+ articles for online based business ideas where we discuss all the points in detail.
B2B and B2C models generally sell products and services and provide important information to visitors and make buying decisions. C2C models involve the exchange of products or information. If you want to study different web based based business models and ideas then connect with us by subscribing to the newsletter.
Table of Contents
Here are the 7 types of web based business models
All the types of web based businesses follow these 7 types to build their niche. Followings are the types that are given below to understand basic things about models. If you understand these basics then all the types of businesses will help you in future to better understand web based business models.
- Brokerage and merchant models
- Community models
- Affiliate models
- Advertising model
- Manufacturer’s direct model
- Subscription Model
1. Brokerage and merchant models
B2C and B2B models generally sell products and services with the help of websites. Brokerage model and merchant model are the two types of models that sell the products and services. In brokerage models we can see the best examples of ebay, they will bring buyers and sellers in the marketplace.
But in merchant models we can see the best example of Amazon, they provide storefronts on the internet and build a better shopping experience. Merchants models can be classified into two categories: wholesaler merchant and retail merchant.
2. Community model
The community model is the B2B and B2C, but there is an important role in the C2C business model. For example, consumer reviews of products on website gadget 360, Best social networking website is Facebook, Insta and Twitter where users create content such as informative.
Other community models are very simple and intuitive, that is blogs where reader participants. These things are based on sharing information and experience. Followings are the benefits of community models ;
- Forever social connection and engagement
- They easily understand about your products
- This is the symbols of togetherness
- This will be connected with emotions
- Making good relationship
3. Affiliate models
In affiliate model companies give access to third parties to generate traffic or sell the products. Some of the information based affiliates and others are product selling affiliates and their revenue model is based on commissions. You have to resell the products on your site or give the full information of the services on your website. Affiliate models work on percentage of sales, pay per email, pay per lead, cost per click and cost per view.
For example, Amazon has developed an affiliate program for the individual to link the product on their site. Usually, an affiliate recommends reviews of the products and posts information of the amazon products. Affiliate marketing allows the companies to to sell the products in low budget, and less time. CPA is the most profitable payment model for any affiliates. The highest paying niches in 2023 for affiliate that name is given below ;
- Technology – This is the top niche for affiliate marketing, people love using the latest gadgets and apps also they want to learn.
- Wealth building – Everybody wants to become rich, so people love to know about where to get money for better living.
- Fashion lifestyle – All the people want to look attractive, so fashion is never ending.
- Health and fitness – Many people want to better health and they love to learn about fitness tips and tricks.
- Hobby – If you have a good hobby like sketching, singing, and dancing you go for this niche.
- Pet care – Many people love to keep pet animals, so there is a big opportunity for affiliates to give information about pet care.
- Travel – Travel is the best option for affiliates, if you love to travel then recommend people about travel bags, and anything that is essential for travel.
4. Advertising model
Google ads is the best example of the advertising model. The use of advertising in strategic ways is known as the advertising model. The aim of this model is to reach a targeted audience and help to make purchase decisions. There are four models in any advertising that is known as AIDA. The AIDA stands for Attention, Interest, Desire and actions, it is the process of buying decisions for any products. Followings are the different types of advertising that is used in advertising models. You can read all the types of advertising and their use in business that are discussed in below ;
- Persuasive Advertising – This is a marketing strategy where you have to target consumer behavior by their emotions, desire and needs. You have to convince your customer to choose your product or services rather than your competitor.
- Product Advertising – This is a marketing approach where you have to focus on product or services features, benefits, highlights and value to gain customer attention to convert them into a purchase.
- Institutional Advertising – This type of advertising will help you to build image, value, or reputation rather than product or services. Where you focus on brand identity that helps people to understand your organization.
- National and Local Advertising – In the national advertising, you have to target broad audience demographics where you target almost the entire country. But in local advertising you have to focus on specific geographic areas of local consumers.
- Consumer and industrial Advertising – In consumer advertising you have to target individuals for promoting products or services. In Industrial advertising you have to focus on businesses, marketing products that are used in productions, and operations to enhance business processes.
- Commercial Advertising – In this type of advertising you have to promote products or services to drive sales and generate revenue. Where you have to target consumers or businesses to create brand awareness and build brand loyalty.
- Media Advertising – Media advertising involves promoting products, services, or brand through different channels Like – TV, Radio, Television, Newspapers, Social Media and many more. Where aims to reach a broad type of audience and drive engagement.
5. Manufacturer’s direct model
Any products come from the manufacturer to the users without the involvement of any person. For example, A bakery business may sell their products to direct customers. CST tires is the best example of a manufacturer direct model website, where customers directly purchase the tires for their requirements without involvement of any persons. In the electrical system, Lear corporation is the best manufacturer website where you can buy according to your needs.
To sell products or services directly to customers is known as the heart of the manufacturer business model. There are three types of manufacturing that you have to know ;
- MTS ( Make to Stock Manufacturing )
- MTO ( Make to Order Manufacturing )
- MTA ( Make to Assemble Manufacturing )
6. Subscription Model
This model is based on the selling of products or services to receive money or charges on a monthly or yearly basis. For example, you have subscribed to highly researched papers, music apps for better quality and many more. Where you have to pay a fee monthly or yearly. There are six types of subscription model that you have to know each model;
- Netflix model – This model makes money by offering three types of plans that are basic, standard and premium.
- Box model – Where you have created three types of boxes of your subscription with different prices and features.
- Mastermind model – In these models, you will help your members by a great idea and tips. This concept was proposed in 1952 by Napoleon Hills.
- Engaged model – Engaged model is used in between client and development team, where you have to engage your clients by offering services.
- Only subscriber model – Here your customers will subscribe to your services or newsletter to understand your business.
- Membership model – This is a type of business model where users pay to access the organization values. This model price is according to features that are provided by the company to users.
Conclusions
Web based business models are six types that we discussed in detail to understand. This is the category of our website, where we will post many articles to better understand all e-commerce based businesses. We also see revenue models of each business. If you want to join our journey then sure subscribe to our newsletter for new updates.
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