Today, we discussed The Business Model and The Revenue Model in more detail. Amazon’s business model is “aggregator” and its revenue models are e-commerce, ads, and affiliation. The revenue models are the ways that an online business can collect revenue. Revenue models include: access to the internet, advertising, sponsorships, donations, memberships/subscriptions, transactions, e-commerce, and etc… The business models are: aggregator, ASPs, Content Provider, Fund raiser, infomediary, marketplace, M2M, Multichannel, open source such as linux, peer to peer such as kazaa, and portal such as yahoo.
Direct Response Medium(ch.4), it’s interactive, information-driven, immediate, and involving. Direct-response strategies are acquisition, conversion, and retention. It’s easier to keep current customer than acquiring new ones. Contracts are one way businesses keep customers, it has switching costs.
Critical Strategy Elements of direct response are the offer, the list, the media, the creative execution, and the service and support. We compared Aston Martin to Camry, to obtain a list of people who are attracted to Aston Martin, a list of people that like James Bond.
Customer Lifetime Value (CLV) is the net present value of the future stream of net revenue from an identified customer. This can be attained with retention by offering superior customer services or adding value to customer purchases.
The front end is the everything that takes place before a purchase is made, all the marketing and promotions. The back end is everything that takes place after a purchase such as fulfillment of the purchase and customer service.
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