8 Online revenue model options for Internet businesses. Selecting the best revenue options for Internet startups I’m often contacted by site owners with an idea for a new site who are trying to work out how much revenue they’ll be able to raise depending on the number of visitors to their site.
There’s no simple answer to this, but to help, several years ago I created this spreadsheet model which also features in my books as an activity to help students working on this topic. It shows the main parameters you need to set – blue fields and it works how the revenue earning – orange fields. The Site Ad revenue model If you plug in some average figures for pay-for-performance-based advertising options like cost per click or cost per action approaches li as shown below it shows why fixed fee and CPM models tend to be preferred by publishers. It also shows that you need substantial traffic to to make much money through advertising. How to use the revenue model calculator It allows these parameters to be set: The 8 Internet revenue model options 1. 2. 3. Online Contextual Advertising and Behavioral Marketing Company.
Startups: How To Build A Barrier To Entry With Inbound Marketing. I’ve been doing a fair amount of speaking lately. It’s partly driven by my recently released book, Inbound Marketing: Get Found Using Google, Social Media and Blogs (which is doing exceptionally well -- more below on this). The topics I usually speak on are startups (surprise) and marketing (surprise, surprise). And, when I’m really on a roll and feeling adventurous, I talk about startup marketing.
First off, a quick confession. I’m not really a marketer, and I don’t play one on TV. Now, I want to lead with the fundamental premise of this article: Exceptional marketing can be a formidable barrier to entry. For those of you that are new to the investor game (which is usually where the phrase turns up), “barrier to entry” is loosely defined as that thing which makes it hard for competitors to enter your market and reduce your profits. Type 1: We’re doing something that is so hard to do that few others can do it. How To Build A Barrier To Entry With Inbound Marketing 1. 2. 3. 4. How JBoss Did It. JBoss was an Open Source company providing free middleware software to it’s customers.
By the end of 2003, JBoss had been downloaded 5 million times, and the company was doing about $1m a year in revenues, selling training, documentation and consulting. Around that time, Bob Bickel joined the company, and initiated a process to raise venture capital. The raising of VC funds was a trigger that was needed to hire a professional management team, and to enter a new growth phase.
Together with Bob, the company had figured out that once an application migrated from development to production, they could charge their customers for a subscription based initially around support, that should result in a better monetization than the other revenue streams. I joined the board, and we immediately started working together as a team to build their sales and marketing machine.
Starting the lead flow Dealing with an overflow of leads: Lead Scoring Most companies suffer from not having enough leads. Sales and Marketing Machine. Introduction to “Building a Sales and Marketing Machine” Building a Sales and Marketing Machine is a structured methodology for designing and reviewing your customer acquisition process. It stresses the idea that the only right way to build a sales and marketing process is to design it around your customers (customer-centric).
Although this is obvious, it turns out to be radically different to the way most companies have designed their processes, which is based on what they want to happen (i.e.company-centric). Most of the time company-centric processes will not work as well as hoped, it will be because they failed to take into consideration the customer’s concerns and motivations. This methodology will help you grow sales by addressing the following specific issues: The complete article on this process is fairly long. An overview of the process The following illustration shows the steps involved in the process: Table of Contents Introduction. Building the Marketing Plan: A Blueprint for Start-ups.