Before we start talking about business models, it is important to know what a business model is. According to our text book, “a business model is how a company makes money or a non-profit organization achieves its revenue objectives, how an entity sustains itself”. The most common way for a website to generate revenue is to sell goods or services. Non-profit organizations can raise revenue through donations.
Making money on the internet seems easy, but it is not. Even successful companies have a hard time expanding to the internet, especially when trying to engage with social media. As a business owner who operates solely on the internet, I can assure that it is a competitive, aggressive and hard-to-understand market. But, once tamed, it can also be very profitable and fun – especially when you, just like me, play videogames for a living.
The basic web business models described on our text book have both B2C and B2B applications, a few have non-profit applications, and are the following:
1)Brokerage Model: brings buyers and sellers together.
2)Advertising Model: displays advertisements during navigation.
3)Infomediary Model: resells useful information.
4)Merchant Model: provides good and services.
5)Manufacturer Model: takes place when a manufacturer reaches buyers directly
6)Affiliate Model: offers incentives to partner sites.
7)Community Model: connects individuals and groups.
8)Subscription Model: delivers services and content for a fee.
9)Utility Model: delivers services and content on a paid base.
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| Machinima Logo |
I can also, on my own, sell ad placements on my Youtube channel (on my channel’s background or on videos), which is shown below, and promote products, brands and services on Twitter and Facebook, which I use to better engage with my audience but which also work as a form of promotion for me and / or for other companies businesswise.
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| BRKsEDU Youtube Channel - 288,240 subscribers - 32,338,072 total views |
Looks good Eduardo....by the way when did you start to get into this the brokerade model compan and how are they to deal with business wise?
ReplyDeleteA technical question. What ways are you using to hold your loyal consumers ( if any ) for your own company and why do you think it works for your business model?
ReplyDeleteThe best way to keep my customers loyal is to produce high-quality content. Besides that, I also frequently engage with them on Twitter and Facebook. It matches the wants of my target market!
DeleteThe key word is the above response is "engage" The web market is the best way to connect to your consumers instantly. Modeling your success, any future entrepreneur would be foolish not to develop an online presence. As you explained, there are many models to choose from. Finding out that suits your business is a must for any chance of longevity and success.
DeleteExcellent Post
It is so interesting to know that you have so many subscribers to your Youtube account and have businesses that pay you to advertise on your account. How long have you been doing this with these partners?
ReplyDeleteI started my Youtube channel 1 year and 11 months ago, but I started making money through only after 8 months.
DeleteFirst of all BRASIL! Eduardo you are doing great things through the use of TWITTER and You Tube. I would love to see some of you English videos, as they look very interesting. BTW nice game room. Brasil
ReplyDeleteI agree with you Eduardo when you said making money on the internet is very difficult and many large companies have difficulty expanding on the internet through social media. It can sometimes be difficult to evaluate marketing data collected through the use of social media. Expanding to the internet requires extensive testing. In our text we learn about the testing process which is developing reasons for conducting a test, designing of tests, establishing test metrics, executing and monitoring tests, analyzing and reporting test results, and making marketing decisions based on results. For a company to successfully expand their horizons on the internet I believe it is vital to do thorough testing and research especially when dealing with social media. You make a lot of good quality points and you obviously know first-hand exactly how difficult it is to establish yourself in a position to turn a good profit.
ReplyDeleteGreat post Eduardo, cheers bud.
Eduardo, congratulations on the success you found so early on in your career. It is really impressive how much attention you have generated for yourself. I'm just interested in the process you had in partnering up your with companies who are advertising on your show.
ReplyDeleteThanks a lot! In order to be able to featured ads I had to get partnered with Machinima. In order to get partnered with them, I got in touch with them by e-mail and I explained them why it would be a smart move for the company to invest outside of the USA (back then I was living in Brazil) - I explained them why I was the right person to be chosen based on my Youtube channel, knowledege and skills and what they would get as return.
DeleteHow long did it take for Machinima to respond to your request to expand, and when they did respond were they unsure about going into another country. Or where they excited about the ability to work with someone such as yourself.
ReplyDeleteExciting to see how well you have done for yourself Eduardo. I also admire your pursuit to continue to grow as well. You have really caught the eyes of the market you are aiming at. It seems all the information above(types, definition, and mainly the hard work that comes with online and social media marketing)has been put into your plan of success.
ReplyDeleteEduardo, You are hard working and I can see it from the insight you give on business models. I'm not a fan of social media, but this information has activited my interest. In this new technology era, social media play a major in the success of any business; hence, it is important that to use social media in any form of business model. good job.
ReplyDeleteGreat Post!
ReplyDeleteI had wondered how the dynamics worked for making money off of a youtube channel. I have heard stories usually with no grey area. It was either that they had made an insane amount of money or that it was incredibly hard and doesn't generally result in a substantial payout. Thanks for making it clearer and good luck with your youtube channel!!!
Interesting article, I know from my friends who also run Youtube channels that it isn't easy to make money from, the fact that you have been able to gather so many subscribers on your Youtube channel obviously speaks to the quality content that has been uploaded, How have you found working with Machinima to be overall? I have some friends who have sponsored channels and the experience for them has been rough at times.
ReplyDeleteCongratulations on your success Eduardo! It gives people like us inspiration to be able to go out and do what we love and find a career that we will be interested in. Great post, I learned things I did not know about business models.
ReplyDeleteInteresting post Eduardo, and congrats for your successful channel on Youtube. Your post cleared out my doubts regarding different models business and i agree to your point in the post that earning money over the internet is not easy a website needs to have a business model in order to earn, if a business does not plan it while designing the website it can cause a problem for the designer in the future.
ReplyDeleteIn hindsight I really wish I read these posts before the midterm, some great information especially this one Eduardo. The lay out of the different models the way you put it made it it nice and easy to follow. I didn't realize the simplicity to which you could sell and promote the way you did with your youtube channel, its actually really interesting. nice to see you are successful with it.
ReplyDeleteI just thought it may be an idea to post incase anyone else was having problems researching but I am a little unsure if I am allowed to put names and addresses on here.
ReplyDeleteyoutube marketing packages