Internet Entrepreneurs How To Open Up New Ways Of Online Revenue

In 2007, Americans bought $about 127000000000 of goods and services from online retail giants such as Amazon, Staples (Staples) and DELL computer Corp., and purchased goods ranging from dating services (eHarmony) to virtual pets (Marapets).

In fact, data from the US Department of Commerce show that consumers have packed so much stuff into online shopping carts that their spending has increased by more than 25% over 2006.

However, this figure is still less than 4% of the total retail sales in the United States.

In fact, this figure does not count the income of those so-called "Intermediaries". Those companies do not sell goods and services directly, but are linked to customers through content, products and services through the Internet, and advertising fees and other fees are charged for this purpose.

Think about the situation of Google. Last year, the company received $16 billion 500 million in revenue, almost all of which came from advertising.

But Eric Clemons, a professor of operations and information management at Walton business school, points out that despite the huge potential of the Internet market, there are few companies that have successfully developed effective new models of online revenue.

Instead, they only regard the Internet as another carrier of traditional advertising, Clemons said, this way is forced to "plug new things into the old mode."

At the most, it is just a combination of the two.

Clemons made a speech at the supernova conference. The supernova conference was organized by Kevin Walton, Professor of law and business ethics at Walton business school, and held a technical conference in San Francisco every year.

Clemons believes that the Internet has huge resources that can be pformed into value, but they have not been converted into income, especially in the field of online services.

The new source of value is the head of business like Craig Sherman (Craig Sherman) and Doug Mark (Doug Mack), Sherman, the CEO of Gaia Online, in San Jose, California, and Mark, the vice president of the Adobe company's creative services solution, which is also located in San Jose.

They took part in the supernova Symposium and elaborated on their development of the new business model of the Internet.

The "Massively Multiplayer Role-Playing Games" has about 300000 users participating in the daily multiplayer online role playing game. They create their own virtual roles (Avatar) and interact in the virtual world of Gaia.

They don't have to pay for games, but they buy nearly $1 million virtual products every month.

Abode has long been leading users to display their content in the software and technology of various digital devices. The company has just launched Photoshop Express, which is an online tool for uploading and editing digital photos and classifying photos. In addition, it allows users to send photos to friends or embed them into blogs.

Price?

Fatal Frame!

Potential gains?

Among the large number of users who first used Adobe software, some of them will buy other software and services from Adobe, which is potential revenue.

From these examples, we can see that the most effective online business model is "to establish a more long-term relationship with customers, and to focus on building two-way relationships with customers instead of one-way communication."

Clemons said.

"They provide a lot of information and seek ways to change the way users feel."

Sherman expressed his approval for this.

Gaia's online virtual world attracts as many as 5 million users per month, making it one of the largest websites in the real world.

Most of the users are teenagers and young people. They will discuss topics in lively forum and participate in massively multiplayer online role-playing games with their fictitious characters.

The website was launched by a group of comic artists in 2003, and they are all lovers of Japanese animation.

In order to ensure the normal operation of the website, at first, they asked the users to donate, "the donation is more than three times the amount they requested," Sherman said.

The user's strong sense of overjoyed brings the company to the idea that a loyal fan of Gaia online may also buy virtual goods.

"We did catch lovers, and then we got the idea of business mode."

Today, most of Gaia's online revenue comes from the sale of two or three limited edition virtual products. Each product sells for $2.5 a month, such as Black Ops, which helps virtual characters to act at night without being detected.

The older the collection, the more rare and valuable it is. Later, the owner can sell them in the Gaia online market in exchange for the website's virtual currency, "gaia gold coin".

Another far smaller source of income for Gaia online is the sale of physical goods, such as baseball caps and T-shirts, which are designed according to some of the most popular virtual programs.

In the past 12 months to 18 months, Gaia online has just begun to try advertising experiments on his website, mainly the website's own advertising, its purpose is to "create a happy and meaningful experience for Gaia's online community, and at the same time, let the founder of the website benefit from it."

Sherman said.

The latest attempt is that Gaia online and New Line Cinema (new line film company) were established in 1967 as an independent production company to face the issue of European and local low cost horror films in American universities, and entered the producer industry in 1979 to invest in low cost horror films.

To promote the 2007 science fiction movie The Last Mimzy.

The Gaia people can preview the promotional video of the film by completing a brief expedition, and then acquire a fashionable Mimzy toy to match their virtual characters.

Abode brings different experiences to users.

Photoshop Express is a succinct and easy to use version for amateur photographers. It starts with graphic processing software that is the leading position in the industry for professionals.

Digital camera users can upload, edit, store and share photos with Photoshop Express. In addition, the software can integrate with online tools such as Facebook, Photobucket and Picasa.

At the beginning of the launch of the product, Adobe regards Photoshop Express as a non-traditional product.

The company has held a virtual press conference announcing that it will launch a beta version of the software in May, which will be more focused on bloggers rather than traditional analysts.

Since then, the company has been collecting data from users. Mark of Adobe called the software a live beta, and the company asked the testers to help themselves improve their products.

Mark said that the purpose of Adobe Photoshop Express is to give users a better experience and make it look excellent, so that some users will want to have it.

If you can do that, then you will catch the customers; if you can attract a large number of customers, you can start all the business models.

The value created by Photoshop Express will come from selling value-added services, selling other products and advertising opportunities. In addition, the authorization of computer manufacturers to purchase pre installed Photoshop Express software can also bring benefits to the company.

Needless to say, all these need to invest a lot of construction costs and infrastructure costs to support these new service projects and other upcoming service projects.

However, Mark said, "you can't expect all apps to make money.

You need to ask yourself this question: "if only a small number of large customers decide to buy more expensive software, what other value will this business have?"

Another way to pform the Internet into money is to use the Internet as an advertising medium to provide services to many companies.

This area is the niche market chosen by Clickable. David Kidder (David Kidder) is the co founder and chief executive of New York's start-up company. Clickable launched its first product to the market in February.

The Software-as-a-Service (SaaS) product of the company (software as a service) is a mode of providing software through the Internet. Users do not need to purchase software, but they manage business activities by leasing network based software to providers, and do not need to maintain software. The service providers fully manage and maintain software. For many small businesses, "software as a service" is the best way to adopt advanced technology. It eliminates the need for enterprises to purchase, build and maintain infrastructure and application programs. In recent years, the rise of "software as a service" has brought real pressure to traditional software vendors.

(plator), enabling small and medium-sized companies to create and manage Internet advertisements easily.

Kidder also delivered a speech at the conference.

He said that any company wishing to succeed in the era of e-commerce needs to have a very sophisticated search engine marketing process: to understand the working principle of search engines, to understand how much to pay for keywords, to know how to place advertisements on search pages, and to know how to analyze the data of advertising effectiveness.

Clickable provides users with an interface that allows users to manage their ads on multiple search engines.

This tool can also automatically obtain relevant data of advertisements, automatically analyze data, and make suggestions for improving advertising effectiveness.

This tool runs on the server of Clickable company and can be displayed in the browser.

Kidder said that in September 2007, when the company recruited test personnel for the beta version, 3000 applicants signed 500 advertising bits, so the company obtained clear information about the market demand of the service.

Kidder pointed out that Clickable company decided to "launch this product as soon as possible, so that we can detect the real needs of customers and have an accurate understanding of their needs."

In the process of developing and building this product, "usually there is such a stage, in front of the question of whether the product is really good enough for people to pay for it, so that you can face the choice of courage and self-esteem.

However, because it involves changing money into money, I suggest that it be launched as early as possible. "

The opportunity to change products to money earlier or later is going to continue. All kinds of interesting online new business models will continue. Clemons of Walton business school adds.

It should be noted that experience, community content, social search, and Augmented Reality (augmented reality) are technologies that add virtual information to the user's sensory perception. This technology enables users to perceive the world as a combination of real world objects and virtual objects.

In general, an augmented reality device is required on the user's head. The device can add images and words to the picture that the user can observe, and the virtual information can also appear in hearing, touch or other forms.

The trend of companies turning mobile advertising into money.

However, we should also pay close attention to those investment behaviors aimed at changing Spam, infringing privacy and spying on other people's information for money.

Clemons also said that the challenge we face is not only to think creatively about the new business models, but also to face the comprehensive challenge of these new models to the formation of strategy, management and system.