Friday, August 17, 2012

How to earn money with a company


I already talked about in my blog as different types of companies are working. Let's take a closer look at the different business models, a company can use to earn money.

Since I have been involved in the internet for years, there are some models that are quite specific sector. However, I have tried several ways to include "traditional" companies can earn money as well. Here is a brief summary:

Mass Customization
This means that producing a standard item, but give the customer the opportunity to make this article more individual mass market. Good examples include Spreadshirt (t-shirt), redbubble (art) and mygall (German redbubble).

Built to Order
This is easy. Enough to produce an item if someone orders it. Just do not store the finished products. It helps you to cut your fixcosts, allows you to customize mass.

Traditional e-commerce
We probably all know shopping online. This is a great opportunity to cut costs than a traditional High Street shop.

Premium content
A lot of newspapers are struggling to make money these days, because a growing percentage of readers use the Internet instead of buying the paper based on paper. Some of the worlds largest newspapers, as well as a lot of niche blogs using a strategy of premium content. This means that the parts of a web site are available only for customers who pay a monthly premium. Obviously, one could also introduce a daily fee, annual expenses, pay-per-click fees, etc.

Auctions
Take eBay. In the past, there were a lot of auctions. eBay always had a fee for each completed auction. In addition, eBay has introduced a lot of additional fees, a bit 'to make your title in bold, auction, etc. Today, there are few platforms more or less innovative auction. However, it is sometimes difficult to distinguish whether its fair or auction gambling ..

Advertising
In one class. A lot of companies use online marketing / advertising to monetize your website. Take for example Google AdSense: every time someone clicks on an AdSense ad, the site owner receives a certain fee (0.01 € cents to 5 ....). It 'a big field, you could also sell banners to earn some money with your site. Everything depends on the traffic the page does not.

RealWorld Stores
The opposite of an online store. You rent a store, you must install some of the furniture and start selling the goods. Probably the oldest way to make money, but obviously it still works.

Game
Companies like partypoker.com earn tons of money. In some countries there are special laws in force that restrict gambling. Its obviously a good deal, because usually the game provider earns points every time someone a bet / loses money.

Systems Affiliate
For systems of online affiliate, Zanox is probably one of the biggest. Amazon Associate program is also very popular. The way you earn your money as an affiliate is very simple: If you put a amazon link for a book on your site, you get a share of the price if someone buys really (this is what is called a sales lead). Franchise systems, such as McDonalds, where you pay a fixed fee to use the name and equipment, are quite similar.

Crowdsourcing
The key is in the name: you take the money from the "crowd" to finance their business. Recently, myfootballclub.co.uk had a lot of media coverage. These guys have bought a football team with the money of 50,000 users. I think every single user pay sth. about 10 pounds ... It 'a beautiful concept that can be used in a lot of changes.

Cash flow models based business
Some activities are only possible because they transfer a lot of money. Every time, when a huge amount of money is involved, the rates of major interest to get ... You know what I mean?

Rental / leasing
Again, a very old model: If you own a car, you can rent and make money with it. It works with almost everything from cars to houses to boats to computers ....... :-)

Models prepaid
Some years ago it was quite normal in Germany to buy a prepaid card for mobile phones. It basically means you pay in advance. I saw some prepaid credit cards a few days ago. This concept works with a wide range of products and services (iTunes gift cards ....)

However, here's a tip: never rely on a stream only! Always try to use different revenue streams. Trust me, I know why I say this ;-) As always, feel free to contact me at jonas believeinvisions dot com! ......

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