MKT 595 Week 6

Internet Business Models, Retail, Channels, CRM and Advertising

Advertising Alone is Not Enough
The one concept that I will remember from class this week is: advertising alone is not enough revenue to run an Internet business.

Advertising as the Sole Source of Revenue is Risky
A heat map shows that Internet users avoid areas of a website where there is advertising.

The image on the left shows the triangle hot spot where readers look. Actually there is a very small zone on the top right where some readers look as well in this example.

Adblock Used to Erase Advertising
Companies should be careful on how to retaliate, as they may alienate or loose customers by trying to fight Adblock

Fremium is Not the Only Model
Until this week I thought that fremium was the only model. There are lots to choose from.

How Much is Aggregate Data Worth? Where Do You Sell it?
I wanted to learn more about selling aggregate data. The latest controversy seems to be the fact that Mint (infomediary model) wants to sell user data. I think they need to make money somehow. I did a search on the topic of selling aggregate data and did not find much information.

How Do You Know Which Model is Right for Your Business? When to Change the Model?
This is really the golden question. Up to this point in my education at DePaul none of my professors have spoken about business models. How a company makes money and continues to do so is pretty important.

Home Grown Chitown Internet Biz
I follow what SitterCity and Groupon, two local companies are doing. SitterCity is based on a subscription model. SitterCity screens nannies and has also expanded out in to other related areas like elder care. Because they have a smaller market their recent strategy has been to go after a government contract and to consider international markets.

Groupon is an idea that appeals to a wider audience, "group coupons" and has been copied like crazy. Based on a novel idea of building collective action, users will receive a coupon if they get friends to sign up for the daily deal. The CEO of Groupon spoke for MGT570, and I must say that I found it very inspiring to listen to someone who grew a company out of thin air to 200 employees in only three years and receive venture capital worth 26M.

Groupon works on a brokerage model, bringing together companies who want to advertise a promotion and customers who want a deal.

As you can see neither Sitter City nor Groupon use advertising as a revenue stream.

CRM is More Than Software
CRM has three levels that span from the back to the front of the office: operational, collaborative and analytical CRM

Last but not least, the most important topic this week by far:

- plain text
- faces
- cleavage

are three ways to attract desire!