Seven Types of Web Design Business Models ? Guru Article Directory

Are you interested in starting an online business using a web design? Maybe you?d like to make some money online? There are the many different ways of earning money online, below are seven of the most widely used web design business models.

Creation, maintenance and management of each web design varies and ultimately so do the amounts of profit. Which website business model you choose will depend on how much time, money and effort you want to put in up-front.

1. High Traffic Advertising Website

One of the most widely used online business models it is the sole source of profit for many companies.
Websites that use this business model aim for lots of traffic and then display some form of advertising on their site in exchange for money.

Revenue is generated in three ways:

• Cost per impression
• Cost per click
• Fixed rate space

Advertising services like Google Adsense make it very easy to add all forms of advertising to almost any website. Many websites based on this model use targeted content and targeted advertising that is subject or demographically specific.

Positives: Easy to kick start.
Negatives: Need lots of traffic of lots of targeted traffic.

2. Commission or Fee Based Brokerage Website

The best example of this kind of website is eBay. The brokerage model brings sellers and buyers together by providing a service that will make their transactions easier. While the simple affiliate website model just brings buyers & sellers together, the brokerage website model adds a layer between the two. This is usually a transaction broker or a market place where potential buyers can find what they?re looking for.

Brokerage websites charge a fee or commission for each individual transaction processed. This is a very powerful model because you are simply delivering technology and don?t have to deal with actual products.
Positives: Massive potential.
Negatives: Expensive & challenging to set up.

3. Product Sales or Merchant Website

Pretty sure everyone is familiar with this website model. One of the most successful examples is Amazon.com. Merchant model websites are used by all the major online good & services retailers. In some cases the website is simply a web storefront for a traditional high street retail establishment but increasingly companies exist solely online or operate directly from a warehouse.

Overall, this web design business model can yield the highest revenue. You can control the prices and also get to keep a large portion of profits as you own the products sold. The disadvantages are quite clear: Since you own the products, there is a lot more work involved. You need to provide support and worry about delivering the products in a timely manner. It also has a high level of risk because of the high investment needed to run the online store.

Positives: High revenue streams
Negatives: High investment input

4. Subscription Service Website

With this type of web design business business model companies charge a daily, weekly or monthly rate. This type of business model is extensively used by magazines and newspapers and is gaining huge popularity with companies using a subscription format rather than a one-time fee.

Pay as you go subscriptions, where users sign up & pay for as long as they keep their subscription are proving to be an effective website business model. It provides company?s with an on-going income which they can then use to improve their service and attract more customers.

Positives: Continual income streams
Negatives: Needs to be updated & improved daily

5. Affiliate Marketing Website

This website model needs huge volumes of targeted traffic to be a huge revenue earner. While the general web design advertising model rewards the website owner for simply advertising, this website model is based on user clicks and sales on other people?s sites that result from them. For example, if a company sells a product for ?100 with an affiliate rate at 50%, buying it through the promotion on your website would earn you ?50.

Owning an affiliate marketing website is a great way to earn money simply because there are no messy services or products to manage. All you need to do is simply to promote the chosen products or services and wait for the sales to come in. Many people use this website business model to earn money in their spare time.

Positives: No products or services to manage
Negatives: Can take a long time to build traffic

6. Information Resource Website

This kind of website earns money by charging people for information. A lot of eMarketers have made plenty of money using this simple information model. The overheads involved for individuals using this website model are virtually non-existent.

Recently this website model has been used for premium blog posts where readers are encouraged to pay a small fee to gain access to private information. To make this to work you need to be well established and have a trusted reader base. This model also makes use of the subscription website model highlighted in paragraph 4.

Positives: Continual income streams
Negatives: Needs to be updated & improved daily

7. Community Based Website

The Community based website model is of course as the name suggests, used to build communities of users who interact with each other.
Most of the time basic features are free with premium features coming at a cost. This website business model can be similar to the subscription business model but usually varies slightly in its functional outcomes.

For example, open source communities might provide their software for free but then charge for support.

Positives: Can take off exponentially?
Negatives: Takes a while to build a community

Source: http://guru3x.com/seven-types-of-web-design-business-models/

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