Business models are something you learn about in Economic lectures in classrooms. What if you one never went to such B-schools? Does that make them lesser entrepreneurs?

Probably no one really wonders on these points before starting a business. In fact, for a good number of years, the Web experts have remained in a constant state of flux as to what kinds of models exist when it comes to online businesses.

Before we get to that, why is it essential to know and study online business models at all?

For one, to remain informed comes in handy in business operations. It helps one understand the nature of their own business as well as that of their competitors. Likewise, strategies to scale imminent problems can be charted out. On the other hand, by understanding the ecosystem you are a part of, helps one come up with better creative content for the audiences.

With these aspects in mind, there are clearly three identifiable online business models according to Zemanta, a experienced content discovery business :


This type of business is exclusively restricted to to the online ecosystem, be it content production or the monetisation models. In this kind of business model, the initial investment is huge and returns take time to show. The precise reason is the fact that online businesses, for a huge part, are dependent on the consumer response and success. This success is but a conversion of your business service to them.

The interaction process in this kind of business model, precisely being of a virtual nature i.e using computer-aided transactions to pay usage charges, is a highly risk-oriented proposition. However, looking at the flip side, the very conduct of business via online mediums, creates a database at every level of transaction that is happening. Hence the fear of 'missing out' details and information is negligible.

2. Brand Extension Type

This is a model that almost all online businesses employ in one way or other. In fact, the social media web is so strongly embedded into the businesses stream that no online business is untouched by its effects, good and bad both. So what is this model all about?

To put it simply, the model is premised on communicating strongly with the customers in an indirect manner so as to cultivate a environment of exchange rather than make it look like hardcore marketing spree. The latter is rather an irritable phenomena among customers who do not prefer the "hovering salesman" on their toes but rather prefer a choice-based shopping experience. What this means is that the customer is made aware of the product qualities rather than pestered with unwarranted details.

While being as subtle as possible, the brand still remains the core of the whole business model. In order to give the branding campaign the right hues, firms largely fall back on using the social media platforms to network, rather than simply sell and go home with the profits. The key to generating a strong ROI, thus lies in capturing the attention of an audience rapt with various social media platforms at the same time.

3. Trans-media Type

The essence of this business model is to bring together the best elements of both online and offline business - i.e communication and strong product sales. It is essentially premised on captivating the audience attention through a strong design concept. The technique is such that it both platform-specific as well as compatible on multiple mediums at the same time. Success lies in constantly juggling between online to offline methods and vice versa, so as to have multiple points of engagement. Experimenting with various mediums, however, needs to be taken in a calculated manner. This involves making your business story an exclusive one and narrating it to the audience in a powerful manner. That's where good content steps in as your savior.

This is but a broad categorization of the online business models that we talked off. Each business at the end of the day contributes something of its own to the niche, thus raising the competitive bar to a new height. The real challenge is to gather the fruits of labor in a manner that helps individuals and organizations grow so as to make a identifiable BRAND in the market they cater to.

What are your views about the vast ocean of online businesses? Are there any specific "models" that you identify with? What is the best mix for success in the eCommerce niche according to you?

Well we've done the rapid fires, it's upto you to come with conducive answers now. Leave us your thoughts and ideas in the Comments section.

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