Revenue Modelsand the BusinessPlan in E-CommerceBack to Table of Contents
Chapter 8Revenue Models and theBusiness Plan in E-Commerce Section     8-1    E-Commerce Revenue Models                   ...
Revenue Models and the Business Plan                    in E-Commerce                    Section 8-1                    Wh...
Revenue Models and the Business Plan                         in E-Commerce                         Section 8-1            ...
Revenue Models and the Business Plan                    in E-Commerce                    What Is a Revenue Model?    The t...
Types of Revenue Models                    E-Commerce Revenue Models       E-Commerce Models                  Online Appli...
Revenue Models and the Business Plan                     in E-Commerce                     Types of Revenue Models    The ...
Revenue Models and the Business Plan                        in E-Commerce                        Types of Revenue Models  ...
Revenue Models and the Business Plan                     in E-Commerce                     Types of Revenue Models    A wh...
Revenue Models and the Business Plan                     in E-Commerce                     Types of Revenue Models    Like...
Revenue Models and the Business Plan                      in E-Commerce                      Types of Revenue Models    Mo...
Revenue Models and the Business Plan                     in E-Commerce                     Types of Revenue Models    A sp...
Revenue Models and the Business Plan                     in E-Commerce                      Types of Revenue Models    Ano...
Revenue Models and the Business Plan                      in E-Commerce                      Types of Revenue Models    Th...
Revenue Models and the Business Plan                     in E-Commerce                     Types of Revenue Models    In t...
Revenue Models and the Business Plan                             in E-Commerce                             Section 8-1    ...
Revenue Models and the Business Plan                    in E-Commerce                    Section 8-2                    Wh...
Revenue Models and the Business Plan                        in E-Commerce                        Section 8-2              ...
Revenue Models and the Business Plan                     in E-Commerce                     What Is a Business Plan?    You...
Revenue Models and the Business Plan                    in E-Commerce                    What Is a Business Plan?    Your ...
Elements of a Business Plan        Cover Page                      Market Analysis        Title Page                      ...
Revenue Models and the Business Plan                     in E-Commerce                     Elements of a                  ...
Revenue Models and the Business Plan                    in E-Commerce                    Elements of a                    ...
Revenue Models and the Business Plan                      in E-Commerce                      Elements of a                ...
Revenue Models and the Business Plan                     in E-Commerce                     Elements of a                  ...
Revenue Models and the Business Plan                      in E-Commerce                      Elements of a                ...
Revenue Models and the Business Plan                     in E-Commerce                     Elements of a                  ...
Revenue Models and the Business Plan                            in E-Commerce                            Section 8-2      ...
Revenue Models and the Business Planin E-Commerce                                       29
End ofRevenue Modelsand the BusinessPlan in E-CommerceBack to Table of Contents
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MELJUN CORTES E Commerce 2

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  • MELJUN CORTES E Commerce 2

    1. 1. Revenue Modelsand the BusinessPlan in E-CommerceBack to Table of Contents
    2. 2. Chapter 8Revenue Models and theBusiness Plan in E-Commerce Section 8-1 E-Commerce Revenue Models Revenue Models Section 8-2 E-Commerce Business Plan and the Business Plan in E-Commerce 2
    3. 3. Revenue Models and the Business Plan in E-Commerce Section 8-1 Why It’s Important A revenue model determines how a company makes money and how the company functions. A well thought out model can mean the difference between success and failure. Understanding what revenue models entail can help you understand more about how companies operate.Section 8-1 3
    4. 4. Revenue Models and the Business Plan in E-Commerce Section 8-1 Key Terms revenue model affiliate program e-zine licensing blogSection 8-1 4
    5. 5. Revenue Models and the Business Plan in E-Commerce What Is a Revenue Model? The type of revenue model revenue model how a you choose will depend on company generates income the type of product or service you intend to sell.Section 8-1 5
    6. 6. Types of Revenue Models E-Commerce Revenue Models E-Commerce Models Online Applications Product Sales consumer goods, retail, wholesale search engines, Web portals, directory pages, Advertising commercial Web sites online fee-for-service, fee-for-transaction, Service subscriptions Inter-Organizational procurement, supply chain, distribution Third-Party e-malls, online auctions, online exchanges Licensing intellectual rights, patents, copyrighted materialSection 8-1 6
    7. 7. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models The most basic revenue model involves selling one product or related product line to customers who use your Web site as they would a print catalog.Section 8-1 7
    8. 8. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models There are two types of products you can sell: products you make, which you should sell at a higher price than they cost to make products you buy, which you should sell at a higher price than you paid for themSection 8-1 8
    9. 9. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models A wholesale price is the price a supplier charges a business for a product. A retail price is the price a business charges customers.Section 8-1 9
    10. 10. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models Like magazines, TV stations, and other media outlets, Web sites can sell advertising space as a source of revenue. An online business must ensure that its ads will reach its target audience.Section 8-1 10
    11. 11. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models Most magazines, e-zine newspapers, and electronic magazine information services earn income by selling advertising and subscriptions. An e-zine can also generate revenue by selling subscriptions.Section 8-1 11
    12. 12. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models A specialized type of blog a public online e-zine is the weblog, or journal kept by a writer, or blogger; short for blog. WeblogSection 8-1 12
    13. 13. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models Another way to generate affiliate program a revenue is through an partnership through which an online affiliate program. business delivers customers to other In exchange for bringing online businesses business to your affiliates, you receive a commission, or a percentage of the sales they make on that business.Section 8-1 13
    14. 14. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models The idea behind licensing licensing the granting is simple. of permission to use intellectual property, such as music, photos, software programs, and Assume you have created inventions a product. Companies would pay you a licensing fee for the right to market, copy, or use the product.Section 8-1 14
    15. 15. Revenue Models and the Business Plan in E-Commerce Types of Revenue Models In the case of musical compositions, licensing is a critical form of protection. Whenever a musical work is performed for the public—beyond family and friends—the performers must obtain a license.Section 8-1 15
    16. 16. Revenue Models and the Business Plan in E-Commerce Section 8-1 Review 1. What is a revenue model? What is a major factor in determining the type of revenue model to use? 2. Why is it important for advertisers to know about a company’s customers before advertising on a particular site? 3. What is the difference between wholesale and retail prices? 4. What is a blog? How can it generate income?Section 8-1 16
    17. 17. Revenue Models and the Business Plan in E-Commerce Section 8-2 Why It’s Important Creating a company is hard work, and entrepreneurs must have a clear path, or business plan, laid out when they begin and as they continue to operate their businesses. Knowing what a business plan contains will help you to understand more about what creating and running a business entails.Section 8-2 17
    18. 18. Revenue Models and the Business Plan in E-Commerce Section 8-2 Key Terms business plan balance sheet forward-looking assets statements liabilities income statementSection 8-2 18
    19. 19. Revenue Models and the Business Plan in E-Commerce What Is a Business Plan? Your business will be defined by your choices. When you have to make tough decisions, such as whether to offer a new product, you’ll be able to refer to your business plan for guidance.Section 8-2 19
    20. 20. Revenue Models and the Business Plan in E-Commerce What Is a Business Plan? Your business plan will be business plan a detailed description of a business’s used to show potential objectives, products and investors what you hope to services, operations, potential customers, and accomplish and how you financial resources plan to get there. MELJUN CORTESSection 8-2 20
    21. 21. Elements of a Business Plan Cover Page Market Analysis Title Page Competitive Analysis Table of Contents Marketing Plan Executive Summary Operations Plan Management Plan Organizational Plan Company Description Financial Plan Product and Service Plan Growth Plan Mission and Vision Statements Contingency Plan Industry Overview Supporting DocumentsSection 8-2 21
    22. 22. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan The executive summary of your business plan is a brief but detailed description of the company’s mission, objectives, products, and competition. It is used to convince the reader that an operation is well-planned and has a good chance of success.Section 8-2 22
    23. 23. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan Your business plan should forward-looking statements the parts of a include forward-looking business plan that describe statements. the future of a company in both the short and the long termSection 8-2 23
    24. 24. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan Investors will want to know about the demographics of your Web site. Demographics include information about a customer’s age, income level, and location. This information is used to identify a target market for a business.Section 8-2 24
    25. 25. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan An income statement is income statement summarizes a company’s an important financial revenue and expenses for a statement. period of time and shows profits or losses A balance sheet is balance sheet shows how much a business is worth at another important financial a specific time statement.Section 8-2 25
    26. 26. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan A balance sheet lists all of assets all of the things owned by a business a business’s assets and liabilities and shows the liabilities debts or net worth, or actual value lawsuits of the business.Section 8-2 26
    27. 27. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan No matter how you choose to raise money, your business plan will serve as your primary set of credentials. If you don’t need to raise money, your plan will serve as a road map for success.Section 8-2 27
    28. 28. Revenue Models and the Business Plan in E-Commerce Section 8-2 Review 1. What is a business plan? Why is it important? 2. What is an executive summary? Why is it an important component of a business plan? 3. What does an income statement reveal about a business? Why is it important? 4. What are customer demographics? Why is this information important?Section 8-2 28
    29. 29. Revenue Models and the Business Planin E-Commerce 29
    30. 30. End ofRevenue Modelsand the BusinessPlan in E-CommerceBack to Table of Contents

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