Web Entrepreneurship
The Business Models
Adnan Ali
Assistant Professor, UMT
Saturday, July 18th, 2009

Digital Entrepreneurship
is a specific category of
Entrepreneurship that leverages
new technologies in novel ways
Source: wikipedia.org

Digital Entrepreneurs
are individuals who use Internet
technologies as tools to create
commercial opportunities, disseminate
information, and collaborate with
clients and partners.
Source: wikipedia.org

WHY?

THE WORLD
IS CHANGING

But the world has
always changed

TECHNOLOGY
IS CHANGING

But technology has
always changed

BUSINESS IS
CHANGING

But business has
always changed

BECAUSE

those who can’t adapt …
disappear

an idea today has already occurred to
some one yesterday and will occur to
some one tomorrow

develop
implement
build

Same Basics
Business planning
Low overheads
High productivity
Minimal ownership of capital assets
Great people

New Practices
Viral communications
Small business intranets
Collaborative applications
Pay per use online advertisement
Customer relation management software

Business Plan Out
Business Model In

Apple iPod
Business Model
Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Borders Out
Virtual Inc. In

How?
Know what is in demand
Find best resources
Fulfill the demand
Make a profit

Build & Manage
Virtual Companies

Increasing number of
Pakistani web entrepreneurs
are hiring foreign
contractors like copywriters,
interface designers,
animators etc.

Websites Out
Web Apps In

Land Line Out
Voice Over IP In

Around the World

Types of Web
Business Models

Brokerage
Marketplace Exchange (Amazon)
Lead Generation System
Auction Broker (eBay)
Transaction Broker (PayPal, Raseen?)
Virtual Marketplace (Alibaba)

Advertising
Portal (Yahoo)
Classifieds (Craigslist, Monster)
User Registration (NYTimes)
Query Based Paid Placement (Google)
Content Targeted Paid Placement (Google)
Intromercials

Infomarketing
Blogs
Web based tutorials
eBooks
Audio / video courses
Topical Forums / Wikis

Community Model
Open Source (RedHat)
Open Content (Wikipedia)
Public Broadcasting (Youtube)
Social Networking (Facebook)
Professional Networking (LinkedIn)

Other Models
Merchant (eCommerce)
Subscription (Content, Truste)
Utility (SAAS)

The 5 Steps
Acquisition (traffic comes in)
Activation (happy 1st visit)
Retention (multiple revisits)
Referral (users refer to others)
Revenue (some transaction)

The Bottom Line
Develop Value Proposition
Get Users (Acquisition, Referral)
Drive Usage (Activation, Retention)
Make Money (Revenue)
Users / Usage  Money

who are
web entrepreneurs?

educators
bloggers
SME
freelancers
virtual companies
exporters
tech startups
virtual assistants
social entrepreneurs

Adnan Ali
http://www.adnanali.org
http://www.facebook.com/adnan.ali
http://www.twitter.com/adnanbwp
http://www.umt.edu.pk
adnanbwp@gmail.com