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Teaching Support Materials For E-business(TAFE) 9744C Evaluate e-business models Peter Wang April. 2007   Contents BUSINESS MODELS ON THE WEB 1 Brokerage Model – P 8 Advertising Model - CRAIGSLIST 11 Infomediary Model - DOUBLECLICK 14 Community Model - Flickr Case Study 16 Key Success Factors 16 Launch Strategy 18 Exit Analysis 18 Subscription Model - C 18 Interview conducted by Nathan C. Kaiser 19 Utility Model- S 23 About This Site 23 Disclaimer 23 About SourceForge, Inc. 24 Final Assessment Events 24 BUSINESS MODELS ON THE WEB author: Michael Rappa Business models are perhaps the most discussed and least understood aspect of the web. There is so much talk about how the web changes traditional business models. But there is little clear-cut evidence of exactly what this means. In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain. Some models are quite simple. A company produces a good or service and sells it to customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. Other models can be more intricately woven. Broadcasting is a good example. Radio and later television programming has been broadcasted over the airwaves free to anyone with a receiver for much of the past century. The broadcaster is part of a complex network of distributors, content creators, advertisers (and their agencies), and listeners or viewers. Who makes money and how much is not always clear at the outset. The bottom line depends on many competing factors. Internet commerce will give rise to new kinds of business models. That much is certain. But the web is also likely to reinvent tried-and-true models. Auctions are a perfect example. One of the oldest forms of brokering, auctions have been wide