What is your business model? This question is everywhere in the life of any startup. The thing is that there are not many models for online business but the problem is to choose the right one. There is a good article of Michael Rappa, the director of the Institute for Advanced Analytics at North Carolina State University. He describes 9 business models. The models are implemented in a variety of ways. Let's have a look at some of them.1. Brokerage model. Brokers play a frequent role in business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) markets. The premise of the model is simple: unite buyers and sellers in an online marketplace. To operate a successful brokerage, you need to be adept at uniting consumers to a product of services that they would not otherwise be able to easily find. In exchange for this ease of access, the brokerage model business will generally charge a small commission fee on each sale to either the seller, buyer, or both. 2. Advertising model. The web advertising model is an extension of the traditional media broadcast model.Online advertising uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. 3. Affiliate model. The affiliate model of business, in which a business pays commissions to sellers for performing an action, is one seen largely online. That action is usually securing a sale, but there are other payment methods, such as getting a customer to fill out a form, click an ad, or just visit the company's website. The affiliate model requires an advertiser - the business with the product - and a publisher, the person bringing in sales. In this business model, both partners are making money, but in different ways.4. Subscription model. Users are charged a periodic - daily, monthly or annual - fee to subscribe to a service. It is not uncommon for sites to combine free content with "premium" (i.e., subscriber- or member-only) content. Subscription fees are incurred irrespective of actual usage rates. Subscription and advertising models are frequently combined. 5. Infomediary Model. Data about consumers and their consumption habits are valuable, especially when that information is carefully analyzed and used to target marketing campaigns. Independently collected data about producers and their products are useful to consumers when considering a purchase. Some firms function as infomediaries (information intermediaries) assisting buyers and/or sellers understand a given market. Natural language processing is largely used in the Infomediary Model in the form of sentiment analysis (SA). SA provides the information about the people's feelings about this or that product. This information can be used by sellers. Do you know some cases when people use NLProc in their online business? Sources: Online_advertisinginternetbusinessmodelseatsleeppublishcadillacpostcards
