Urban Turban Guy's blog » Uncategorized http://urbanturbanguy.com marketing, technology & design Thu, 20 Jan 2011 05:34:54 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 Web Business Models http://urbanturbanguy.com/web-business-models/ http://urbanturbanguy.com/web-business-models/#comments Thu, 25 Jun 2009 07:28:58 +0000 urbanturbanguy http://urbanturbanguy.com/blog/?p=6 While brainstorming about monetizing models in social media for a prospective client, we wavered to a discussion on business models that exist in the web2.0 world. I wanted to jot them down for comment and critique:
1. Freemium: Give away a Basic version of the software/service to users/”prospects” for free. Those prospects become customers, buy purchasing more space, superior service and/or enhanced features. There are three kind of upgrade transactions out there:

  • Time based subscription, with recurring payments at monthly, quarterly or yearly periods
  • Utility based billing, with payments related to bandwidth usage or number of transactions
  • lifetime subscription, with a one time payment for a license
  • limited trial, with the complete product or service available only for some limited time and continued usage is contingent to payment  ( no “free basic version” , makes is slightly different from the other freemium models)

2. Free

  • Advertisement supported: Applications with a targeted user demographic or a large user base
  • Branded promotional web-applications
  • Donor supported

3. Broker: Charging a percentage fee on the transaction from a third party, for a service .

4. Merchant: Selling data/products that were sold offline. This can further be divided into click and mortar, virtual & catalog merchants.

5. Affiliate: leveraging the existing customer base of an affiliated partner to sell ones product or service.

did I miss something ? do they overlap ?

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