Online Business Model Options

great post about Online Business Model Options

Model Variation Notes
Immediate Revenue Models for generating regular income, cash-flow (‘Self-Sufficient’ models)
Subscription Charge the end-user a regular, recurring fee. Consider:

  • Minimum contract lengths
  • Buy X (days/months/weeks) get Y (d/m/w) free
  • First X (d/m/w) free (‘Trial period’)
  • Discount periods
  • Pay to remove adverts
  • Pay for additional (‘premium’) content
  • Pay for API/advanced features
  • Pay for support subscription
Fixed A single, fixed subscription cost (e.g. to access an online magazine or a specific service).
Variable A number of fixed-price subscriptions are available to the end-user; fee dictates feature/usage limitations, etc. This includes the ‘Freemium’ model; a (usually limited) ‘free’ option alongside one or more paid options.
Third-Party Supported The end-user receives the service for free; a third-party pays the fee for a returned service.
Advertising One or more third-parties place clearly defined adverts within the website/application. Variations of adverts include graphical banners, text, inline, pop-over, interstitial, etc. Normally charged by cost per click, cost per action, or cost per thousand impressions.
Sponsorship One or more third parties become the ‘official’ sponsor(s) of the website. This could include fixed (non-rotating, typically prominent) adverts, integration of third-party branding (colours, slogans) and/or licensing agreements.
Paid Content Advertorials: third-parties pay to include marketing-led content on the website.
Paid Placement Third-parties pay to be included in lists or in the application (e.g. comparisons, reviews, entertainment listings).
Referrer End-users are directed to third-party sites, which pay a fee to the website owner for any referred transactions (e.g. comparison sites).
License Content Third-Parties are given access to re-use the content from the web-site for their own purposes.
Payments The end-user makes individual, ad-hoc transactional purchases.
Pay-per-use Micropayments: the end-user is charged a fee to use an online service (one-off, or for a limited time). This includes the ‘brokerage’ model, where user(s) are charged a fixed-price or percentage per transaction (e.g. ebay). This also includes the purchase of ‘credits’ e.g. 10 uses of the service for a fixed cost. Discounts can be offered for bulk purchases.
Physical Products The typical e-commerce model; includes books, CDs, holidays, tickets, etc. Typically each ‘physical product’ has a non-arbitrary cost associated with its production.
Virtual Products The end-user purchases a ‘digital’ product that typically has a negligible cost of replication. This includes virtual gifts (e.g. Facebook), in-game items (e.g. World of Warcraft), and other virtual assets (e.g. land in Second Life).
Related Products The end-user has free access to the main product/service. An additional, optional charge is made for related ‘added value’ products/services, e.g. documentation, support, commercial versions, related iPhone or Android application, etc.
Donations The website relies on voluntary end-user donations (e.g. a ‘Tip Jar’).
Long-Term Revenue Strategic, ‘Invest and Reward’ models where costs are incurred initially for a longer-term ‘pay off’.
Establish and Exploit Attract a substantial audience before monetizing.
Re-use/Re-sell Re-sell/re-use the data/content, usually from User Generated Content websites e.g. create books, posters or other purchasable products from data/content created on site.
Platform Establish a platform, then charge for third parties to participate once an audience has been established e.g. iPhone. See also Facebook.
Branding Build a ‘personal brand’ for yourself/your company. Once awareness is raised, go on Conference/Workshop/‘Expert’ circuit, or release a book, etc.
Sell/Exit Create a popular application/website, then make it someone else’s problem to monetize e.g. YouTube
Revenue Share End-users are offered a cash incentive to make the website/application generate revenue, by sharing a percentage of revenue with them (usually based on their personal referrals or popularity of their content).
Re-Seller The end-user can re-sell the online service.
Affiliate The end-user is paid to direct customers to the website, typically by listing/selling the products/services elsewhere.
White Label The end-user can brand/tailor the online service and re-sell it as their own (typically taking a percentage of the generated revenue, or paying a fixed subscription cost to the original service).

Reddit, Stumbleupon, Del.icio.us Algorithms Exposed!

good post from seomoz

some highlights:

stumble upon

Formula:

(Initial stumbler audience / # domain) + ((% stumbler audience / # domain) + organic bonus – nonfriend) – (% stumbler audience + organic bonus) + N

Description:

The initial stumbler “power” (Audience of the initial stumbler divided by the amount of times that stumbler has stumbled the given domain) is added to the sum of all the subsequent stumbler’s powers.

Subsequent stumbler power is ((Percentage of audience stumbler makes up divided by the number of times given stumbler has stumbled domain) + a predetermined power boost for using the toolbar – a predetermined power drain if stumblers are connected)  + (% of the stumbler audience + a predetermined boost for using the toolbar)

N is a “safety variable” so that the assumed algorithm is flexible. It represents a random number.

Del.icio.us

Formula:

Points = (Amount of times story has been bookmarked in the last 3600 seconds)

Description:

Rank on Del.icio.us Popular is determined by comparing points. Points represent the amount of times a story has been bookmarked in the last hour. The higher the rate, the higher the points. Every bookmark counts as one point.
3600 is the seconds in one hour.

good investigating post :) i am not sure these are the only parameters nor what these sites use against “popularity fraud” but still interesting reading.

Bad reputation? change your service name form industrybrains to marchex

I was ripped off by industrybrains some time ago. My budget was used up with click fraud and industrybrains denied and refused to refund me although it was clear that some Chinese guy got a bot to click on our ads. the experience using industrybrains was so annoying that I use it as an example I give to new internet entrepreneurs:

1. you will get screwed

2. even if the traffic provider has nice ad real estate it doesn’t mean he wont screw you

Today I got 10 emails from marchex.com telling me i have a low ad budget. marchex.com? who the hell are marchex.com and when did i use their service? after some googleing i found out that industrybrains changes their name to marchex. I guess a lot of people think industrybrains suck so they had to change their name to the parent company that bought them in 2005. It looks like they think so as well since nowhere in the email did they mention their old brand.

Stupid search.live.com and form=QBHP

I tried searching to find if msn is referral spamming others too with this new “form=QBHP” log hits. I didn’t find anyone writing about it so I guess I’ll be the first and copy what i wrote about msn/live referral spamming before:

MSN search team are Idiots and Clueless.

Amazing SEO post from seobook

you got to read it all

some highlights:

if ads appear above the organic search results and are exceptionally relevant they can get a 10% to 30% clickthrough rate. Ads that appear on the side of the search results are typically much more likely to be clicked on ~ 1% of the time.

the relative click volume of lower ranked results relative to the top ranked site.

Overall Percent of Clicks

Relative Click Volume

  1. 42.13%, 2,075,765 clicks
  2. 11.90%, 586,100 clicks
  3. 8.50%, 418,643 clicks
  4. 6.06%, 298,532 clicks
  5. 4.92%, 242,169 clicks
  6. 4.05%, 199,541 clicks
  7. 3.41%, 168,080 clicks
  8. 3.01%, 148,489 clicks
  9. 2.85%, 140,356 clicks
  10. 2.99%, 147,551 clicks
  1. 3.5x less
  2. 4.9x less
  3. 6.9x less
  4. 8.5x less
  5. 10.4x less
  6. 12.3x less
  7. 14.0x less
  8. 14.8x less
  9. 14.1x less
1st page totals: 89.82%, 4,425,226 clicks
2nd page totals: 10.18%, 501,397 clicks

User Intent

Most people who search are looking to research information rather than buying an item, and yet most pay per click ads aim to sell items.

Tip: If a person searches for a research oriented keyword and your listing uses words like compare and reviews in it then the searcher will find your listing more relevant to their needs and be more likely to click on your listing.

Paid Search Ads

If paid search ads appear above the organic search results they drive down the organic search results and take away many of the potential clicks. Google is aggressively focused on keeping attention focused on the upper left corner of the search results, and will only display ads on top of the search results if they have high perceived relevancy driven by a high CTR.

Tip: We typically scan search results in groups of 3 or 4. If 3 paid search ads appear above the search results for a keyword you really need to be in the top 3 organic search results to get much traffic.

Network Solutions steals domain ideas

source.

I am confirming that Network Solutions steals domain ideas when people check domain availability on the Network Solutions website. They seem to have started the practice of stealing domain ideas on December 16th 2007 according to our Domain History database but I was just made aware of this practice today. I am appalled at the concept of taking people’s domain ideas and registering it before the consumer has the ability to manually register the domain.

It is a deplorable action that Network Solution would announce potential domain names to the entire world. If a customer chooses not to register the domain name with Network Solution they are forced to wait 4 days for Network Solutions to delete the domain name in the Free Add Grace period. After the four day hostage period the consumer is free from the hostage situation and can register the domain somewhere else. However Network Solutions has now exposed those domains to Domain Tasters that will snipe those domain up milliseconds after Network Solutions deletes them. By registering the domain Network Solutions is exposing the domain in the DNS and every computer in the world now knows about the domain. These domains are now easy fodder for scammers and it is mind blowing that Network Solutions would expose their customers queries to the world in this manner.

AMAZING

How IKEA picks product names

  • Upholstered furniture, coffee tables, rattan furniture, bookshelves, media storage, doorknobs: Swedish placenames
  • Beds, wardrobes, hall furniture: Norwegian place names
  • Dining tables and chairs: Finnish place names
  • Bookcase ranges: Occupations
  • Bathroom articles: Scandinavian lakes, rivers and bays
  • Kitchens: grammatical terms, sometimes also other names
  • Chairs, desks: men’s names
  • Materials, curtains: women’s names
  • Garden furniture: Swedish islands
  • Carpets: Danish place names
  • Lighting: terms from music, chemistry, meteorology, measures, weights, seasons, months, days, boats, nautical terms
  • Bedlinen, bed covers, pillows/cushions: flowers, plants, precious stones; words related to sleep, comfort, and cuddling
  • Children’s items: mammals, birds, adjectives
  • Curtain accessories: mathematical and geometrical terms
  • Kitchen utensils: foreign words, spices, herbs, fish, mushrooms, fruits or berries, functional descriptions
  • Boxes, wall decoration, pictures and frames, clocks: colloquial expressions, also Swedish placenames

from wikipedia

Google gonna find out who’s been naughty or nice

evilgoog.pngEvery geek knows that google search tracks user behavior. When you use google search engine your queries, queries time and clicked results are recorded by google in order to improve their service and if you are into conspiracy theories, to profile people. Since 70% of the people use google it’s not a small matter – google has a lot of data on how/what we search for and what sites answer our query. Usually people who hear this story react in two ways: the easy going say “who cares.. I have nothing to hide” the more privacy cautious start deleting their cookies.

This is an old story, but it has a new twist to it which I have noticed only recently. When I was visiting my favorite torrent site I noticed that they are using Google Analytics as their site analysis service. I found it very strange. Not only does google track my online habits on their search engine, they can now track me on none google sites as well. It all started 2 years ago when google opened up Google Analytics, till then a paid service, for free use by the public. Till then it cost about $5k a year for websites to have similar web analytics and this was a real treat to a lot of websites. Slowly, one after the other, more and more websites started using google analytics, which is a hosted software on Google’s servers, as their web analytics software. In essence, Google got a full knowledge of where we go, what we do there, where we go from there, what we search for and what we do after we find it – no matter where we are on the web.

I knew a lot of sites use google analytics, after all it’s a great service, but I didn’t expect a torrent site to run it due to its “controversial” content. I wondered how many big sites run analytics or are tracked by google. So I ran a little test on the most popular sites according to alexa:

Alexa
Rank
Site Domain Google
has stats?
1 Yahoo! www.yahoo.com  
2 Google www.google.com yes
3 Windows Live www.live.com  
4 YouTube www.youtube.com yes
5 Microsoft Network (MSN) www.msn.com  
6 Myspace www.myspace.com  
7 Facebook www.facebook.com  
8 Wikipedia www.wikipedia.org  
9 Hi5 www.hi5.com  
10 Orkut www.orkut.com yes
11 Rapidshare.com www.rapidshare.com  
12 Blogger.com www.blogger.com yes
13 Megaupload www.megaupload.com  
14 Friendster www.friendster.com yes
15 Yahoo!カテゴリ www.yahoo.co.jp  
16 Baidu.com www.baidu.com  
17 Fotolog www.fotolog.net yes
18 Microsoft Corporation www.microsoft.com  
19 Google.fr www.google.fr yes
20 EBay www.ebay.com  
21 腾讯网(http://www.qq.com) www.qq.com  
22 Skyrock www.skyrock.com  
23 Google www.google.cl yes
24 Почта@Mail.ru www.mail.ru  
25 Google www.google.com.br yes
26 Seznam www.seznam.cz  
27 Google www.google.de yes
28 Google
UK
www.google.co.uk yes
29 Google España www.google.es yes
30 Megarotic.com www.megarotic.com  
31 Amazon.com www.amazon.com  
32 新浪新闻中心 www.sina.com.cn  
33 Flickr www.flickr.com  
34 Google Polska www.google.pl yes
35 The Internet Movie Database www.imdb.com  
36 Photobucket image
hosting and photo sharing
www.photobucket.com yes
37 ImageShack www.imageshack.us  
38 無名小站 www.wretch.cc  
39 Youporn.com www.youporn.com yes
40 Google México www.google.com.mx yes
41 Dailymotion.com www.dailymotion.com  
42 Megavideo.com www.megavideo.com  
43 Яndex www.yandex.ru  
44 Go www.go.com  
45 Onet.pl www.onet.pl  
46 ImageVenue hosting www.imagevenue.com yes
47 Google
India
www.google.co.in yes
48 BBC Newsline Ticker www.bbc.co.uk  
49 Free www.free.fr  
50 Universo Online www.uol.com.br  
51 AOL www.aol.com  
52 Allegro www.allegro.pl  
53 Craigslist.org www.craigslist.org  
54 FC2 www.fc2.com yes
55 LiveJournal www.livejournal.com  
56 Google Perú www.google.com.pe yes
57 Deviantart.com www.deviantart.com yes
58 Wordpress.com www.wordpress.com  
59 Mininova www.mininova.org yes
60 Google.ca   yes
61 Google 日本 www.google.co.jp yes
62 Google.cn www.google.cn yes
63 网易 www.163.com  
64 Google.com.vn www.google.com.vn yes
65 MetroFlog www.metroflog.com yes
66 Google.com.ar www.google.com.ar yes
67 Google.co.ve www.google.co.ve yes
68 Рамблер www.rambler.ru  
69 Adult Friendfinder www.adultfriendfinder.com yes
70 Vkontakte.ru www.vkontakte.ru  
71 Netlog.com www.netlog.com yes
72 淘宝网 www.taobao.com  
73 Ebay www.ebay.de  
74 Google www.google.it yes
75 Sohu.com Inc. www.sohu.com  
76 Veoh.com www.veoh.com  
77 Wirtualna Polska www.wp.pl  
78 Google Türkiye www.google.com.tr yes
79 VnExpress www.vnexpress.net yes
80 Mozilla.com www.mozilla.com  
81 Sendspace.com www.sendspace.com yes
82 กูเกิลประเทศไทย www.google.co.th  
83 Geocities www.geocities.com  
84 Google.com.eg www.google.com.eg yes
85 Googlesyndication.com www.googlesyndication.com yes
86 EBay
UK
www.ebay.co.uk  
87 Google
Colombia
www.google.com.co yes
88 جوجل
السعودية
www.google.com.sa yes
89 Fotka.pl www.fotka.pl yes
90 Google www.google.sk yes
91 Apple Computer, Inc. www.apple.com  
92 Yourfilehost.com www.yourfilehost.com  
93 Xanga www.xanga.com  
94 Terra www.terra.com.br  
95 Badongo www.badongo.com  
96 Badoo.Com www.badoo.com  
97 Mixi www.mixi.jp  
98 雅虎中国 www.yahoo.com.cn  
99 Adobe www.adobe.com  
100 Iwiw.hu www.iwiw.hu  
       

41 of the 100 most popular sites are tracked by Google, and anything you say, post, read or do there is recorded by Google. If you remove google search sites you learn that 14 out of 74 top websites use Google Analytics. These do not include sites that use adwords or google search in their websites which also adds information to google’s tracking and profiling. That is a lot. You would expect site owners to hide their site stats from google. I was especially surprised by friendster, adult friend finder and Fotolog usage of Google Analytics… you would expect them to guard their stats data and host some other web analytics application. People who like to visit mininova or Youporn probably get an un easy feeling as well. As you can see Google knows a lot about your online habits. You can argue that they don’t use the data or that not much can be done with all this data but without a doubt Google holds too much information on all of us. Especially as a corporate that does not like to disclose what they do with all that tracked data.

For the more privacy cautious between us the solution for preventing any site’s Google Analytics to record any information on us is quite simple. Just add to your hosts file the following lines:
127.0.0.1 www.google-analytics.com
127.0.0.1 google-analytics.com
127.0.0.1 ssl.google-analytics.com
127.0.0.1 *.google-analytics.com

Google Analytics javascript won’t be downloaded to your computer nor will it be able to send data home.

You better
Watch out
you better not cry,
you better not pout I’m tellin’ you why,
Google is coming to town,
they are making a list checking it twice,
gonna find out who’s naughty or nice,
Google is coming to town.

I don’t know why but the original song has a less scary feel to it.

Who clicks on internet ads?

An interesting post about ad clicking on the internet

Ninety-nine percent of Web users do not click on ads on a monthly basis. Of the 1% that do, most only click once a month. Less than two tenths of one percent click more often. That tiny percentage makes up the vast majority of banner ad clicks.

Who are these “heavy clickers”? They are predominantly female, indexing at a rate almost double the male population. They are older. They are predominantly Midwesterners, with some concentrations in Mid-Atlantic States and in New England. What kinds of content do they like to view when they are on the Web? Not surprisingly, they look at sweepstakes far more than any other kind of content. Yes, these are the same people that tend to open direct mail and love to talk to telemarketers.

What does all of this mean? It means that while clickers may be valuable audiences, they are by no means representative of the Web at large. Focusing campaigns to optimize on clicks means skewing campaigns to optimize on middle-aged women from the Midwest. If these folks are not your target, then you should be ignoring the click-rate and looking deeper, to what audience your impressions are being delivered, and what audiences are converting (there is a large body of evidence that shows that click-rates and conversion rates rarely correlate with each other).

Label Placement in Forms

A VERY good post about label placement in forms.

Highlights:

Label position—Placing a label above an input field works better in most cases, because users aren’t forced to look separately at the label and the input field. Be careful to visually separate the label for the next input field from the previous input field.

Alignment of labels—In most cases, when placing labels to the left of input fields, using left-aligned labels imposes a heavy cognitive workload on users. Placing labels above input fields is preferable, but if you choose to place them to the left of input fields, at least make them right aligned.

nice.