Class 6: September 17, 2008

Different Business Models

  1. Amazon: Traffic Aggregator, They want your eyeballs so
  2. WSJ: Information, Content provider
Business vs. Revenue Model
A business model would be an aggregator or a content provider.  A revenue Model could be eCommerce, subscription, and advertising.
Online Businesses – Always think about how they can capture additional revenue.  I guess that’s true for any type of business.
Television: Not an interactive media
Direct Response Medium: Some sort of a call to action, interactive
Internet: Provides information, some sort of involvement, immediate, information intensive
The Critical strategy elements from a direct-response perspective are:
  • The offer
  • the e-mail list
  • the media
  • service and support
  • creative execution
When people come to your site you them to:
  • be engaged
  • learn
  • be exposed to advertisements
  • be involved
Customer lifetime Value (CLV): The projected lifetime value a customer is to a company
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