Internet Marketing–Various Online Business Models

There has been a lot of buzz about how the internet is changing business models and revolutionizing the way people do business. However, most internet business models are based on traditional business models, which incidentally are the same models that have stood the sands of time and still continue to flourish. It is also important to mention that internet access and penetration along with improvements in technology has given rise to a few unique internet based business models too.

Affiliate programs are one such business model that thrives on the internet. Affiliates are other individuals who agree to sell another organization’s product for a predetermined commission percentage or a reduced rate. The sheer volume of affiliates that are available across the internet has allowed organizations to easily and effectively distribute their product at a very low cost. Content based advertising is another huge revenue generating business model. Companies like Google, Yahoo and Facebook have embraced content based advertisements, which would not be possible in the offline world. With the increased popularity of Web 2.0 community based selling and auctions have made companies like Amazon.com and eBay.com worth billions of dollars. One business model that used the internet at its core is that of budget airlines. Without current levels of internet penetration, the airlines would never have been able to sell their tickets at the prices they do and cut costs to such an extent that they can make profits. Hotel reservation sites’ business models, based on commissions or net rates is also another example of using the internet to create a business model that makes vacations affordable to everyone.