Knowing the Common Business Models Associated with Internet marketing
In internet marketing it is important to have a business model. Business model is the structure, action and processes that represents the activities happening in the business. It is a factor in increasing profits and income in online marketing by helping online marketers attract a large of number of customers at a very minimal cost. In online marketing, choosing the right business model depends on the kind of products and services. There are several business models that can be used in Internet Marketing. The most common models used in internet marketing are advertising, e-commerce, affiliate marketing, network marketing and freelancing.Advertising Advertising is publishing creatively the essential information about products and services available. Through advertising, web marketing is further enhanced and promoted through its capacity to persuade potential customers to choose a particular brand of product or services. E-CommerceElectronic commerce is the buying and selling of products and services thru the use of the internet and other computer networks. It is the sales aspect of internet marketing. It allows easy exchange of data to facilitate the financing aspects of the business transactions online. Electronic commerce can be business to business (B2B) which can be opened to all parties or to a specific participant. E-commerce can also be business to consumers (B2C) and that is direct to consumers (like in Amazon). The advantage of e-commerce is the convenience of fast and easy distribution and communication between buyers and sellers. It also allows one to gather market intelligence by monitoring consumer preferences thru feedbacks.Affiliate MarketingIs a marketing practice in the web wherein a business rewards one or more affiliates for their efforts in bringing customer to a business. There are four players in this model- The Publisher, the Merchant, the Network, and the Consumer. This model often overlaps with other marketing models because it uses advertising method. This advertising methods are e-mail marketing, search engine optimization (SEO), paid search engine marketing, and in some sense display advertising. Network Marketing Performed by an individual businessman by using interpersonal networking thru social networking sites (myspace, twitter, facebook, etc). It does not necessarily need a company to market products and services but rather to market goods to individual people. Freelance Marketing Self-employing practice in marketing products and services online. It is a type of marketing that is common in offering services like copywriting, computer programming, graphic designing, and proofreading. This type of model allows a free schedule in managing business online. It may require a contract or not.