Business Model »



[2 Aug 2009 | No Comment | ]

The ultimate goal of any business venture with an Internet presence is to make money. If you are like many people who have created an Internet business or who have established an Internet presence for a business that otherwise exists in the brick and mortar world, you want to take all of the steps that are necessary to ensure that you make money. With this in mind, Net based business models are crucial templates when it comes to developing a profitable business enterprise on the Net

The foundation upon which any Net-based business enterprise is built, when it comes to profits and making money, are the Internet business models that are developed and put in place for that important business enterprise. The type of business models you put in place in the first instance will dictate how much money you end up making with your Internet business efforts.

Business owners today necessarily appreciate the importance of the Internet and World Wide Web in marketing and promoting your particular business venture. Experts predict that the majority of all commercial activity will take place online as opposed to in the in person shopping world in the very near future. If you want your business to survive — let alone to thrive — you will want to develop comprehensive Internet marketing and web marketing strategies for your particular venture. The business models you follow will dictate how successful you are in these areas.

Your first step in developing comprehensive Internet marketing and web marketing strategies needs to examining the ultimate objectives of your particular business enterprise. Comprehensive Internet marketing and web marketing strategies must be connected directly with the goals of the business — not just the immediate goals, rather the long term goals as well. By undergoing this process you will be able to identify the business models that will make the most sense for your business enterprise in cyberspace.

The next step that you will need to undertake in the development of comprehensive Internet marketing and web marketing strategies is budgeting. You need to make certain that you develop a comprehensive, accurate and meaningful budget associated with your business venture. Once again, business models designed for the Net can guide you through these processes.

As you do about developing a budget, you will want to make certain that you consider what you have available today to spend in the way of comprehensive Internet marketing and web marketing strategies and plans. You will want to create a meaningful and responsible as well as realistic budget into the future that takes into account your Internet marketing and web marketing plans and activities. In the end, comprehensive Internet marketing and web marketing strategies require time for full implementation and your developed budgets for the coming years need to take that fact into close consideration.



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Traffic Generation »



[2 Aug 2009 | No Comment | ]

There are two main types of traffic :

Search Engine Traffic - This type of traffic comes from search engines such as Yahoo, MSN and Google. The good thing about it is that it is free, highly targeted and usually helps direct quite a lot of traffic. The not so good thing is that it you can’t control it. You rely on robots to analyze and deliver the traffic to your site, and it is short term.

Referred Traffic - This type of traffic comes from a third party mostly a human source, some examples being forums, banners, article directories and partners. The good thing is that it is can be controlled, it is highly targeted and it is long term. The not so good thing is that it is time consuming, and it is repetitive.

Today it seems that webmasters mostly rely on traffic coming from search engines. However, the correct manner in which to get traffic as the new school of thought recommends is to not use search engines, since search engines give a narrow view in regards to traffic generation, and so one will not be able to see the opportunities that exist outside of search engines in order to generate traffic. You will also not be able to control the traffic if you use search engines and that does not work too well in marketing. The use of search engines to generate traffic should not be your priority. It may be better to focus on referred traffic, as discussed above, in dealing with traffic generation.

If you use referred traffic you will have long term control on your traffic and it can be manually generated rather than by a robot. You can submit content to your feeds, be active in forums and blogs, and even exchange links if you use the referred traffic method. Another way you can use referred traffic is to submit the sitemap of the site to MSN, Google, Yahoo, etc. especially since Google and most search engines make changes to their algorithms on a daily basis in order to produce content that is relevant for the users of their various engines.

When you build referred traffic to your site, you are assisting search engines so as to be able to index your site, rank and understand your site in a better way, and therefore developing search engine traffic as well in a natural manner.



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Business Model »



[1 Aug 2009 | No Comment | ]

We all have at sometime or other visited a famous online auction site called e-bay. The site very successfully uses an Online Auction business model. In an Online Auction business model the respondents bid for the product through on the internet. The entire bidding process is regulated by software that is called the auctioning software. It controls all the business processes involved in the auctioning.

There are two kinds of auctioning models. One is called the Dutch auction model while the other is English Auction model. In English business model, the bidders start bidding for a product or service with the lowest price, later on the bid goes up as more bidders join in. The methodology of a Dutch auction is a bit different, in this edition of the online auction, many identical items are auctioned at the same time, with all the bidders bidding simultaneously, the highest bid is the winning bid and the entire winning bidders end up paying the highest price. The products are sold at the highest price. These days all online auctions utilize English auction methods.

The strengths of this business model are presented as follows:

No problem of time constraints. All bids can be placed 24 hours a day, seven days a week. It gives the purchasers enough time for searching for information, deciding and then bidding. An increase in the number of potential bidders is noticed due to this convenience.

No geographical restriction. Bidders and sellers can auction or bid on items from anywhere across the globe through internet access. This increases the reach of the provider and also reduces the cost of auctions. The management and transportation cost is also reduced as there is no need to ship the items to any central location.

Good response due to extra advantage of social interaction. It increases lot of interest as well as enthusiasm in the bidders while they wait for the results and hope to win the bid.

Large numbers of bidders. A large number of bidders are attracted due to the very low price.

Large numbers of sellers. The clubbed advantage of larger numbers of bidders and low operational cost there are larger numbers of sellers auctioning on the site.

Network economies. Cascading effects of increased buyers due to increased sellers and vice-versa make this model highly economically efficient.

Online auctioning business has attracted a lot of people into this domain ranging from laid off workers to old people and ladies so this model is successful in providing employment to people who cannot find mainstream employment.



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Traffic Generation »



[31 Jul 2009 | No Comment | ]

Algorithms used by the various search engines are pretty clever things and they keep moving the goal posts. The new parameters incorporate Latent Semantic Indexing, commonly referred to as LSI. The percentage of keyword density was the ultimate SEO tool at one time. Not so much now, however. When keyword density was calculated manually, website content was written as a background to support some well-chosen, strategically placed keywords. Single keywords now need to be dense enough to achieve sufficient rankings and, to optimize this concept, employing SEO software makes much more sense.

Latent Semantic Indexing focuses on structure and utilizes thematic structure centered around synonyms which appear in the content of websites. The person at the forefront of the LSI /SEO strategy is Charles Heflin who wrote ‘The Master Plan’, providing a definitive guide to the benefits of LSI marketing. The company, Applied Semantics, is not new, the concept has been around for a long time and Google took over the company, Applied Semantics, in 2003. This whole idea is based around the CIRCA technology which has been attributed with imitating human thought patterns. Adsense incorporates this CIRCA technology resulting in more objective advertising campaigns.

Keyword targeting was based on how often certain words were used in a text. This is no longer relevant and does not achieve the previous ranking it once enjoyed. Search engines now require synonyms to be alluded to, similar to the advertised subject. One of the key factors here is learning how to make full use of the search engines, such as Google. Typing ‘phrase’ into Google after the word you are seeking brings up a number of words in bold, considered by Google to be semantically linked words to the one you are searching for.

A thesaurus, however, would not be appropriate as these are determined by search engines rather than a thesaurus. The key is proficiency in expression, based on the ‘vector space model of document classification’ – or, in simpler terminology, the pattern of the text based on the position of the words. Latent Semantic Indexing relies on using statistics to identify which words are used in similar contexts, revealing their relevancy to the whole text. This important new concept, while important to search engines, takes time to write into articles and websites. This is why it is more and more important to use software for search engine optimization. One particularly useful piece of software is the Dupe-Free Pro which has an integral LSI button and analyses the density percentage of every LSI term.



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Business Model »



[30 Jul 2009 | No Comment | ]

We all have at sometime or other visited a famous online auction site called e-bay. The site very successfully uses an Online Auction business model. In an Online Auction business model the respondents bid for the product through on the internet. The entire bidding process is regulated by software that is called the auctioning software. It controls all the business processes involved in the auctioning.

There are two kinds of auctioning models. One is called the Dutch auction model while the other is English Auction model. In English business model, the bidders start bidding for a product or service with the lowest price, later on the bid goes up as more bidders join in. The methodology of a Dutch auction is a bit different, in this edition of the online auction, many identical items are auctioned at the same time, with all the bidders bidding simultaneously, the highest bid is the winning bid and the entire winning bidders end up paying the highest price. The products are sold at the highest price. These days all online auctions utilize English auction methods.

The strengths of this business model are presented as follows:

No problem of time constraints. All bids can be placed 24 hours a day, seven days a week. It gives the purchasers enough time for searching for information, deciding and then bidding. An increase in the number of potential bidders is noticed due to this convenience.

No geographical restriction. Bidders and sellers can auction or bid on items from anywhere across the globe through internet access. This increases the reach of the provider and also reduces the cost of auctions. The management and transportation cost is also reduced as there is no need to ship the items to any central location.

Good response due to extra advantage of social interaction. It increases lot of interest as well as enthusiasm in the bidders while they wait for the results and hope to win the bid.

Large numbers of bidders. A large number of bidders are attracted due to the very low price.

Large numbers of sellers. The clubbed advantage of larger numbers of bidders and low operational cost there are larger numbers of sellers auctioning on the site.

Network economies. Cascading effects of increased buyers due to increased sellers and vice-versa make this model highly economically efficient.

Online auctioning business has attracted a lot of people into this domain ranging from laid off workers to old people and ladies so this model is successful in providing employment to people who cannot find mainstream employment.



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Internet Marketing Strategy

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