The ultimate goal of any business venture with an Internet presence is to make money. If you are like many people who have created an Internet business or who have established an Internet presence for a business that otherwise exists in the brick and mortar world, you want to take all of the steps that are necessary to ensure that you make money. With this in mind, Net based business models are crucial templates when it comes to developing a profitable business enterprise on the Net
The foundation upon which any Net-based business enterprise is built, when it comes to profits and making money, are the Internet business models that are developed and put in place for that important business enterprise. The type of business models you put in place in the first instance will dictate how much money you end up making with your Internet business efforts.
Business owners today necessarily appreciate the importance of the Internet and World Wide Web in marketing and promoting your particular business venture. Experts predict that the majority of all commercial activity will take place online as opposed to in the in person shopping world in the very near future. If you want your business to survive -- let alone to thrive -- you will want to develop comprehensive Internet marketing and web marketing strategies for your particular venture. The business models you follow will dictate how successful you are in these areas.
Your first step in developing comprehensive Internet marketing and web marketing strategies needs to examining the ultimate objectives of your particular business enterprise. Comprehensive Internet marketing and web marketing strategies must be connected directly with the goals of the business -- not just the immediate goals, rather the long term goals as well. By undergoing this process you will be able to identify the business models that will make the most sense for your business enterprise in cyberspace.
The next step that you will need to undertake in the development of comprehensive Internet marketing and web marketing strategies is budgeting. You need to make certain that you develop a comprehensive, accurate and meaningful budget associated with your business venture. Once again, business models designed for the Net can guide you through these processes.
As you do about developing a budget, you will want to make certain that you consider what you have available today to spend in the way of comprehensive Internet marketing and web marketing strategies and plans. You will want to create a meaningful and responsible as well as realistic budget into the future that takes into account your Internet marketing and web marketing plans and activities. In the end, comprehensive Internet marketing and web marketing strategies require time for full implementation and your developed budgets for the coming years need to take that fact into close consideration.
Collective business model involves participation of large number of likeminded professionals, traders related to each other by means or some other business interest. These like-minded people pool resources, share information and work cohesively to achieve a common set of goals. To achieve the goal they may form a trade union, a cooperative or a franchisee.
The establishment of such a business model is done so that common interests of the people involved can be withheld through collective endeavor and cohesive representation.
The historic roots of this business model ranges back to twentieth century when the businesses were consolidating and only a few local enterprise were able to compete nationally or internationally owing to limited means of factors of production.
A brief description of the three traditional collective business systems is as follows:
Trade association: trade associations is a non –profit organization in which the competitors engaged in a common business pursuit, join together to create a platform in which they deal with common problems of their industry. Anybody can join the trade association and the anti-trust law prohibits a member trade association from denying any applicant from entering an association.
To enter such an association each member has to pay a nominal fee called “due” which is used to sustain its operations like organize meetings to discuss common problems, and distributing pamphlets to popularize common cause. Trade associations often provide members with elective group purchasing plans. Owing to their nonprofit nature, they do not pledge any credit and offer the chosen vendor with access to large body of member customers.
Trade associations lack the capacity to initiate and sustain big projects owing to limited credit.
Cooperative: A cooperative is similar to the trade association but only differs in the fact that each member of a cooperative owns a portion of the cooperative in contrast to the trade association in which the members have a non-equity position in the association. A cooperative however addresses only one facet of a business operation for example purchasing goods and services at better price. A cooperative utilizes leverage of volume of customers to obtain better bargain for its members. Cooperative also engages itself into economic activities and any gains thus accrued are proportionately distributed to all its members in the form of dividend.
Franchise: Franchisees generally pay a substantial amount for becoming a franchisee and after becoming so they are required to wear uniform as specified by the franchisor. All franchisees then work together to achieve a common goal as set out in the preamble of the franchise.
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