Everywhere you go business line great deal are asking the same questions close to earnings commerce. wherefore are profits scarce or nonexistent? why is at that place so much uncertainty about Internet business stylusls? When will some modicum of order emerge from the topsy-turvydom of doing business on the Web?
You can hardly fault thoughtful students of business for reaching a state of resentment when trying to understand why these questions go begging for answers. In equitable three or four short years, e-commerce has evolved at lightning speed through a succession of persuasive business models and approaches. The only problem: Each business model seemed viable only for a few minutes or hours, non weeks or months or years. Moreover, each successive iteration seemed to forfend much of what had come before.
Consider that in the beginning there was a marvelous model for making money in the online environment. It was called the cloy business. The economic basis for it: connect-time revenue splits. It is the time-honored mode that made often small or unknown content providers on America Online (AOL) rich and famous. Its rules were simple.
People who supplied content to online go (AOL was but one of many such services just a few years ago) got credit for helping cargo hold users online.
Since users paid by the minute or hour, this generated connect-time
revenues that were allocated according to a negotiated split between content providers and online services. When the numbers of users became large, these deals could generate unanticipated riches รข€" whether for psychiatrists offering online counseling or financial advisors proffering online advice about pension plans and mutual fund investing. The scheme also worked beautifully for media companies supplying information that captivated users, be it
Viacoms MTV with information on rock videos and pop music or Gannetts USA like a shot with category killer areas for sports statistics and game scores.
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