BUSINESS MODELS BASED ON TRANSACTION TYPES

By- Faiz Hasan(IB-27)Md. Amaan ullah(IB-28)

Brokerage Model Community Model Subscription Model Aggregator Model Infomediary Model Advertising Model

Brokerage Model

Brokers – market makers

Brokers play a frequent role in B2B, B2C, or C2C markets

Virtual marketplaces -global network of buyers & sellers

Brokerage in (B2B), (B2C),or (C2C).

A broker makes its money by charging a fee for each transaction it enables.

Community Model

based on user loyalty

Unified body of individuals with common interests

Users have high investment in both time & emotion

may also run on a subscription fee for premium services

Tools: Newsletters, Discussion list, Bulletin Boards, Chat rooms….

Subscription Model

Users pay for access to the site [ex: Wall St. Journal, Consumer Reports].

But 1/2 of Internet users would not pay to view content on the web.

Some businesses have combined free content (to drive volume and ad revenue) with premium content or services for subscribers only.

Users are charged a periodic daily, monthly, or annual fee to subscribe to a service.

Subscription fees are incurred regardless of actual usage rates.

Time Warner's PathFinder: http:://pathfinder.com

Online Magazines

Utility Model

metered usage

metered services are based on actual usage rates

pay as you go approach

success may depend on the ability to charge by the byte, including micropayments (that is, those too small to pay by credit card due to processing fees).

[ex: FatBrain]

Aggregator Model

A business model where a firm (that does not produce or warehouses any item) collects (aggregates) information on goods and/or services from several competing sources at its website

The firm's strength lies in its ability to create an 'environment' which draws visitors to its website, and in designing a system which allows easy matching of prices and specifications

[ex: flipkart.com]

Infomediary Model Valuable information about consumers

Analysis of information and it’s usage.

Used by companies that specialize in data collection

Characterized by the capture and/or sharing of information

They act as information intermediaries, assisting buyers and sellers in a given market

[ex:policybazar.com]

Advertising Model

The broadcaster -- a web site, provides content and services - in the form of banner ads.

The banner ads major or sole source of revenue for the broadcaster.

The broadcaster may be a content creator or a distributor of

content created elsewhere.

This model only works when the volume of viewer traffic is large or highly specialized.