Where’s the Money: Business and Revenue ModelOnce you have defined a mission statement, a vision, you need to start thinking about where the money will be coming from. You will need to develop a preliminary idea of your business and revenue models. You don’t need detailed revenue and cost projections at this point. Instead, you need a general idea of how your business will generate revenues. The basic choices have been described in Chapter 2. Basic business models are portal, e-tailer, content provider, transaction broker, market creator, service provider, and community provider (social network).The basic revenue model alternatives are advertising, subscriptions, transaction fees, sales, and affiliate revenue. There’s no reason to adopt a single business or revenuemodel, and in fact, many firms have multiple models. For instance, the New York Times digital business model is to both sell subscriptions and sell ad space. In addition, they sell unique photographs and gifts. At Theknot.com, a vertical portal for the wedding industry, you will find ads, affiliate relationships, and sponsorships from major creators of wedding products and services, including a directory to local wedding planners, all of which produce revenue for Theknot.com. Petsupplies.com and Petsmart.com, the most popular pet Web sites in the United States, have more focused sales revenue models, and present themselves almost entirely as e-tailers of pet supplies.
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