Tutorials: About e-Revenue Systems
When your client's company puts products, services or both on the web, the move must add value for the end consumer or some other stakeholder. Typically this value falls under one or more of these categories.
- Supply chain management can be streamlined by internet technology.
- The move will eliminate some inefficiency in the existing business process.
- New leads will crop up thanks to online advertising and marketing.
- New sales channels will be created on-line.
- Communication with stakeholders will improve.
Many websites successfully add value by generating public interest and improving communication and awareness. Such websites tend to follow one or more of these models.
- Infomediary: a website dedicated to providing an online audience with information about the company, products and services.
- Community: a website dedicated to a particular topic which will increase business activity in an economic sector or geographical region.
- Portal: a single website providing ready access to a multitude of other online resources. Some portals are dedicated to a single topic. Others are an assembly of topics intended to appeal to a particular demographic.
A website can successfully produce revenue for a company by engaging in one or many of these activities.
- Selling advertising space.
- Selling your products.
- Selling the products of other companies for a commission.
- Selling subscriptions to access an e-service or password protected content.
- Offering a pay-per-use service or online utility.
- Conducting auctions, brokering sales or otherwise facilitating transactions.
Obviously you are viewing these pages because your client's business is online or is planning to go online. In either case, you need to consider which value model to follow — and how you are going to capture revenue from that model. In any case, you must think of this as an extension to the business plan and not a replacement even if it is purely an online venture.
The number one pit-fall
Your client is going to be looking to you for advice about online venturing, and your client will not t be satisfied with a visually stunning website that does not make any money. To that end, their business plan is the key.
- How does this company make money?
- How will the website make money?
It's true that these are not web development issues, but think of how many referrals you will get if you can be of assist to your client rather than simply serving them. Do not be a dot bomb builder!
The Language of Business
At the end of the day there is only one thing you need to show your client. A return on their investment (ROI). You will win virtually every pitch that you make if you can show the buyer that this is an investment that will yield a return. Read more about ROI...