Internet Business Models and Setting Up a Website

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Internet Business Models and Setting Up a Website
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Internet Business Models

• Ad supported NY Times, Google, Yahoo, Gawker
• Subscription Wall Street Journal
• Commerce eBay, Dell, Merrill

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Types of Business Models

• B2B Business to business GE, Cisco
• B2C Business to consumers Apple
• C2C Consumer to consumer Craigs List

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Types of Websites

• Content publishers NY Times, ESPN
• Content aggregators Google News, AOL News
• Social networks (communities) MySpace, Facebook
• Facilitators Craigs List
• Peer-to-Peer Wikipedia
• Gaming Second Life
• Financial Services E-Trade
• Travel - Expedia

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Online Advertising Models

• CPM Cost per thousand impressions
• Unlike TV, no start or end date
• CPC Cost per click
• Click fraud
• Auction AdWords
• CPA Cost per acquisition or CPC Cost per
  conversion
• CPR Cost per registration or CPT Cost per
  trial
• Rev Share (usually a hybrid model with another
  model)
• Sponsorship

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Online Pricing Model

• Go to http//charleswarner.us/cseindex.html and
  open Daily Comedy Sponsorship Costs spreadsheet
  for an example of a pricing model

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Online Advertising Advantages

• Ability to brand, inform,, and sell within the
  same environment
• Advertisers sure of consumer presence, not merely
  an opportunity for exposure
• Consumer actions are measurable and trackable
• Behavioral targeting
• Available to large and small advertisers
• Targeted out in the long tail
• See http//www.charleswarner.us/indexpresentations
  .html -- AOL General Presentation (GP) 2000.

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Standard Ad Units

• 728 x 90 Leaderboard
• 300 x 250 Medium Rectangle (best for video)
• 180 x 150 Rectangle
• 160 x 600 Wide Skyscraper
• 120 x 600 Skyscraper
• 468 x 60 Full banner
• 120 x 90 Button 1
• In approximate order of popularity with
  advertisers measurement in pixels

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Setting Up a Website

• Get a domain name
• Buy it (register it) and close mutations (.net,
  .tv, etc.) on godaddy.com or namesecure.com or
  negotiate with squatter (afternic.com)
• Serving it
• Web hosting company where you registered it or
  third party such as hostway.com.
• Microsoft or Linux
• MySql and Front Page or other extensions as
  needed (need some way to ftp files to and edit
  site
• Email addresses
• Transfer domain name to server

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Setting Up a Website

• Design
• Dont Make Me Think by Steve Krug
• Banner sizes (see standards at http//www.iab.net)
  
• Navigation
• Contact Us
• Terms of Service
• Privacy Policy
• Registration
• Subscribe (RSS)
• Video (expensive to serve)
• Community (social networking)

• HTML
• Java
• Adobe Acrobat
• Flash video player
• Browser
• Connection type
• ISP

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Setting Up a Website

• Platform/Architecture
• Proprietary vs. open source (Drupal 6.0)
• Get an expert webmaster
• Ad serving
• Video serving (Brightcove, e.g.)
• Commerce secure payment, Verisign, PayPal, or
  outsource it.

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Setting Up a Website

• Marketing
• Publicity (PR firm)
• Promotion
• Advertising (reciprocal deals)
• Viral marketing (not as effective as advertising)
• Create buzz

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Planning Rules

• It takes twice as long to build a website than
  you planned
• It takes twice as much money to build a website
  than you planned
• It takes twice as long to be profitable than you
  planned
• You will work twice as hard as you had planned