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8 Online revenue model options for Internet businesses

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. Related:  Analytics and ROI

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. 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. Type 2: We’ve got exclusive/proprietary access to some important resource that others can’t get to. 1. 2. 3. 4.

Linkedin.com Traffic and Demographic Statistics by Quantcast This compares audience composition of the site or mobile app to each platform population. The higher the index number, the more concentrated the property is in a particular demographic. As an example, if a property indexes 100 for age 18-24, that means a given visitor to it is as likely to be 18-24 as any internet user chosen at random. 1. 2. 3. 4. The expanded view shows the percentage composition, the Internet average and the multiple. 1. 2. Example: 80% female segment on property ÷ 32% female internet average = 2.5x This chart breaks down the property's audience for a demographic. 1. 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.

Google Analytics Set-up Checklist for Ecommerce This article offers a step-by-step approach to setting up Google Analytics tracking for an ecommerce website. Step 1: Creating Google Analytics account This is the most basic of steps: Head over to Google.com/analytics and sign up for Google Analytics account. Google Analytics home page. Step 2: Properties and Views Architecture Start by taking note of all domains and subdomains that you are about to install the Google Analytics tracking code on. As a rule, if the main domain and subdomains are interconnected and related in terms of goals and business objectives, then they should all use the same Property ID. Assign Property IDs to domain and subdomains. However, if the sites have different goals you may consider creating a separate Google Analytics property for each of them (as show below). If your domains and subdomains have different goals, consider separate Property IDs. Step 3: Insert Google Analytics Tracking Code or Google Tag Manager GATC is at the Property level setting.

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 Definition: What is a Sales & Marketing Machine

The Social Media ROI Cookbook: How Brands Measure the Revenue Impact of Social Media Everyone talks about the challenges of measuring the revenue impact of social media, but how are top brands actually doing it? And are they successfully measuring ROI? My colleague Andrew Jones and I spoke with 16 brands, 38 vendors, 3 agencies and 4 ecosystem contributors, and surveyed 71 social media and analytics practitioners to answer this question and provide pragmatic recommendations. The result is our “Social Media ROI Cookbook,” which aims to identify and describe the most effective “recipes” for measuring the revenue impact of social media that we have seen adopted to date. Only 30% of brands we surveyed consider themselves to be “effective” or “extremely effective” at connecting social media to revenue. To be fair, we are in a period of transition: Jeremiah Owyang’s “A Strategy for Social Media Proliferation,” published earlier this year, showed that “companies average 178 corporate-owned social media accounts.” Where’s it all going? Related Posts

Social Media Measurement Hot on the heels of last week’s Altimeter Open Research Report on Converged Media, today, analyst Susan Etlinger, Researcher Andrew Jones, (I served as editor) have published a report answering the absolute top asked question in the social space: “How do companies measure ROI of social?” In this definitive report, Altimeter found that there are half a dozen methods being deployed, each with flaws and strengths. It’s key that the business knows which method to deploy, when, and then line up the right process, teams, software, and partners to help. Despite a thorough look into leading case samples and speaking with dozens of members of the ecosystem, we found there is no single solution that is fool proof. In this Open Research report, you will find: A through set of industry findings with 16 brands, 38 vendors, 3 agencies and 4 ecosystem contributors, and surveyed 71 social media and analytics practitioners. Key Finding: There is no “one-size-fits-all” approach. Take Action Now

Measure ROI with Google Analytics First off, I want to preface this post with the fact that social media shouldn’t be done only with the goal of making direct conversions. Social media is about building new relationships, generating word of mouth marketing, and strengthening brand loyalty with your customers. That said, I know that there are a lot of you who may be curious about the monetary value of your social media campaign, have clients that are asking the value of the social media services you provide for them, or simply want to learn more about how your social media strategy is leading to conversions. You’ll be celebrating your social media goal conversions too! Image Source(editor’s note: sly usage of a Vancouver Canucks photo) The following are the steps you must implement to be able to see the return on investment and goal conversions for your social media campaign. Track goal conversions for your website in Google Analytics, a plus regardless of whether you care about social media conversions or not. 1. 2. 3.

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