Topic 5 – Business models

Business models are an extremely important within e-business. Typically, business models can be categorised into two broad areas, with many smaller subgroups falling under each category, those being “business models” and “revenue models.” There is often overlap between these categories. Simply, revenue models are how you plan to make money and business models is how you plan to continue to make money. Having a strong business and revenue model can make it extremely hard for competitors to compete with your business.

It is believed that there is four basic online business models. These being:

– E-commerce sites selling goods or services at a profit.

– Content sites sell advertising.

– Customer support sites save money for the business.

– Lead generation sites providing information for the company, or to generate money from future sales.

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