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List of Web Business Models

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Re: List of Web Business Models

#41

Post by ssharp »

jabelk wrote: post #27

I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…

Are you purporting that Miley is currently popular because she's doing over the top things, despite her music not being good?

If so, I don't think it's a correct assessment. Her music is ultimately popular because people like it. I don't think people think Wrecking Ball is a better song because the video was over-the-top, nor would a wild video make me like a song I would otherwise hate. Miley was also popular before she got more extreme. On the flip-side, Britney Spears was far more popular before she got extreme. I'm sure there are other cases where an artist receives more press attention that does not correlate to increased music sales.

Chris Brown has had nothing but bad press since he hit Rhianna a few years ago and he's still placing songs on the charts and radio. People seem to mostly dislike him, but will still listen to his music. I don't think they're listening to him because he hit a woman and is in and out of jail. I think they just like the songs he makes.

In the end, people still need to have some connection to the music. In pop music, that connection may not be entirely rational, and it certainly isn't lasting, but it's still there for some period of time.

Re: List of Web Business Models

#42

Post by eli »

Goladus wrote: post #37

How is "site take-over" a business model? (Pandora)

In this context "site take-over" is a type of web advertising where the customer essentially gets to reskin the entire site. Usually means buying all the ads on the site, plus a background image and sometimes also a matching popup or expanding banner or some other in-your-face ad unit.

So it's just an advertising model, but one that focuses on high-dollar (probably direct) ad sales. If you find the right client, you can charge a lot more for a site takeover than for a couple of regular banners.

Re: List of Web Business Models

#44

Post by Smudge »

GBond wrote: post #40

Maybe too unique to include but one of my favorites is FreeConferenceCall.com's "provide a free service and get paid by exploiting a loophole" model: Through this service, we generate long distance fees for interexchange carriers who pay a portion of their fees to local networks to compensate for use of their networks. We receive a relatively modest fee from local networks for generating traffic. http://www.freeconfe…

No this is not unique. Tons of services exploit this loophole (free conference calls, adult chat lines, phone-to-ip services, to name a few).

It is enabled by "common carrier" laws, meaning a phone carrier is legally obligated to connect these calls (to typically rural locations) even if it is at a loss. The connecting local service can charge absurd rates at a high profit margin. To further increase profits, the local services typically offer kickbacks as incentive for internet/VOIP services to connect through their phone numbers. So a rural county with only a small population can have an absurdly high volume of expensive calls flowing through them, all on the carrier's dime.

This is why Google Voice refuses to connect calls through to certain rural areas, something that US carriers complain about, since they feel Google should be subject to these same laws. (Google disagrees, claiming they act as a web service instead of as a traditional phone carrier).

Edit: As to the question of whether the "exploit a loophole and profit" business model itself is too narrow, I'd argue that, no, it isn't. I can't think of any other concrete loopholes off the top of my head, but I'm sure this can't be the only loophole (legally-enforced or otherwise) that businesses profit from, and looking at the sheer number of businesses doing so it seems like it would deserve a place in the list.

Re: List of Web Business Models

#45

Post by eli »

Smudge wrote: post #44
GBond wrote: post #40

Maybe too unique to include but one of my favorites is FreeConferenceCall.com's "provide a free service and get paid by exploiting a loophole" model: Through this service, we generate long distance fees for interexchange carriers who pay a portion of their fees to local networks to compensate for use of their networks. We receive a relatively modest fee from local networks for generating traffic. http://www.freeconfe…

No this is not unique. Tons of services exploit this loophole (free conference calls, adult chat lines, phone-to-ip services, to name a few). It is enabled by "common carrier" laws, meaning a phone carrier is legally obligated to connect these calls (to typically rural locations) even if it is at a loss. The connecting local service can charge absurd rates at a high profit margin. To further increase profits, the loc…

I think the parent comment's question was whether the idea of "exploting a loophole" is too narrow to be considered a business model, not whether others exploited this particular flaw.

Re: List of Web Business Models

#46

Post by syntern »

ssharp wrote: post #41
jabelk wrote: post #27

I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…

Are you purporting that Miley is currently popular because she's doing over the top things, despite her music not being good? If so, I don't think it's a correct assessment. Her music is ultimately popular because people like it. I don't think people think Wrecking Ball is a better song because the video was over-the-top, nor would a wild video make me like a song I would otherwise hate. Miley was also popular before…

I think that an over-the-top video helps to get more reach, helps to introduce more people to a song. There are many songs with similar qualities, but if yours reach a wider audience, you will dominate the sales (and award) charts.

Put it another way: it doesn't matter if your song is good for many people, if you can't reach them, nobody will know about you.

Re: List of Web Business Models

#50

Post by sosborn »

ssharp wrote: post #41
jabelk wrote: post #27

I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…

Are you purporting that Miley is currently popular because she's doing over the top things, despite her music not being good? If so, I don't think it's a correct assessment. Her music is ultimately popular because people like it. I don't think people think Wrecking Ball is a better song because the video was over-the-top, nor would a wild video make me like a song I would otherwise hate. Miley was also popular before…

>Her music is ultimately popular because people like it.

It is so simple, yet I'm always amazed about how uncomfortable this can be for some people.

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