Wednesday, February 8, 2012

Business Models of Internet Marketing

For Internet Marketing experts, there are certain models or paradigms that are being followed. These serve as guidelines for those businessmen that engage in online selling. However, new online entrepreneurs are also encouraged to know these models so that they can perform better at even at par with experience businessmen.

Electronic Commerce

Popularly known as e-commerce, this is the basic foundation for the online market. This process is the selling or purchasing of goods and services through a network such as the Internet. This is considered as the sales aspect of an online business. Electronic businesses like online shopping, online banking, or even instant messaging are some businesses that belong to e-commerce.

Lead-Based Websites

This is a strategy where a company gains money by getting sales leads from websites. Sales leads are people that show interest in a particular product or service but do not necessarily purchase it. By following this model, online businesses are able to increase their chances of getting a customer buy from them because they are already serving or displaying their products to the sales lead without him or her asking for it. This initiative has grown successful especially for products that are classified as necessities such as food, houses, clothes, etc.


Affiliate Marketing

This is a type of internet marketing that allows a company to hire an affiliate who does the advertising for them. If the affiliate was successful in persuading or attracting a potential customer to make purchase the company's products, he or she is rewarded with a commission based on a predetermined rate. This convenient model of marketing allows the online business to divert his attention to other important things while the affiliate is doing all the advertising for him.

Local Internet Marketing

This is more of negotiation based strategy where a beginning company uses the Internet to be able to connect with other online users that are potential buyers or affiliates in the future. This type of strategy usually happens on social media networks that allow companies to build business relationships with other users by adding them as friends or by messaging them.

Geo-targeting

This strategy enables the company to determine the physical location of a specific website visitor. This is vital information for businesses because aggregate data about this could generate predictions or probabilities concerning sales and profits, as well as expenses for advertising in that particular area. Also, this helps the company to determine how far their business has reached in terms of geographic location. This could help them assess their future decisions regarding their target audience. It can also help in individualizing the website content according to the location of the visitor; languages and images can be altered if a user from a different country logs in to the website. This improves the overall accessibility of their website and increases their visibility.

Article Source: http://EzineArticles.com/?expert=Atiqul_Haque

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