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Money: Profiles of Top Internet Business Concepts

Profiles of Top Internet Business Concepts

1. Ad Network
OVERVIEW OF BUSINESS MODEL
Ad networks are among the top methods of online advertising. The ?network?
component is organizing the sale of ads and finding high-traffic sites on which
to place the banner ads or hyperlinks for your clients. Ad networks are just like
other ad agencies. They research Web sites that attract the target demographic
of their clients. The revenue comes from the percentage of advertising dollars
that you retain during each campaign.
SKILLS NEEDED
Knowledge of online advertising techniques is an asset to run this type of business.
If you decide to offer banner ad design services, knowledge of graphic
design would benefit your business by eliminating the costs associated with
outsourcing to a graphic designer.

COST TO START THIS BUSINESS
You will have to pay for the development, design, and hosting of your Web
site. Computer hardware and software will be the main start-up expense.
You will need a software program that delivers the appropriate ads to the
sites in your network every time it has a visitor. The software should also be
able to provide reports of results for your clients. Estimated cost is a minimum
of $3,000 to $10,000 to start. Some of the sophisticated software, if
your clients want extremely targeted banner ad placement, could run you
over $100,000.
NUMBER OF EMPLOYEES NEEDED TO START
The minimum number of employees needed to start and run this type of business
is one dedicated individual.
INTERNATIONAL POTENTIAL
This business has strong international potential. Online advertising is an important
part of the marketing strategy for many businesses, in all countries.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
As the advertising campaign needs to be developed with the client and decisions
must be made about where and when the ads will be appropriately placed,
e-business level 1 or 2 would be appropriate for this type of business.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
The software you develop or purchase to administer the ad network should
be researched and be suitable to your level of operation. You should be
available by phone for prospective and current clients to contact you. You
should plan what you are going to do with the excess capacity ad space?for
example, you may want to offer last-minute volume discounts. Concentrate
on associating yourself and including in your network those Web sites that
have sustained high traffic levels. Always get paid up front for an advertising
campaign.
You will need to address the sophistication levels you want to get into with
the site advertising. Are you offering static ads, or are you going to provide
keyword advertising, geo-targeted advertising, behavioral advertising, and the
like? The level of sophistication will impact the software and the cost of that
software.

ONLINE MARKETING TECHNIQUES
? Developing a comprehensive affiliate/associate program would not only
increase the awareness of your ad network, it would also send referral
business to your site.
? Get linked from online advertising directories.
? Develop a sponsored listings campaign to bid on appropriate keyword
phrases with the popular search engines.
? Participate in newsgroups and discussion forums related to online advertising
or the industries that your ad network targets.
? Launch your own strategic banner advertising campaign on Web sites
frequented by your target market.

ADDITIONAL INCOME
You could generate additional income for your ad network by providing graphic
design services to businesses. You could design banner advertisements for businesses
that are not capable of handling this task in-house. This additional service
would add value to your online business.
ONLINE EXAMPLES
AdForce
http://www.adforce.com
AdForce is an independent centralized ad servicing and management solution
on the Web. Focusing on pay-per-click marketing, they offer expertise in the
management of online advertising.
.Com Marketing
http://www.commarketing.com
Having managed thousands of online operations, .Com Marketing?s strength
has focused on maximizing online media placements. .Com Marketing assesses

each component of our clients? campaigns prior to, during, and post-launch.
Consideration to detail is what sets .Com Marketing ahead of the rest.

2. Apartment Locator
OVERVIEW OF BUSINESS MODEL
Moving to a new city is never easy. Everyone needs a place to live, but not
everybody has the time to look. This is a problem that is being solved by many
businesses in major cities across the world. Many savvy individuals are launching
their own apartment locator Web sites and are turning quite a profit from
doing so.
Your main source of income will be referral fees from rental offices of apartments,
condominiums, and other real estate structures. You could also charge a
fee for sublets, apartment sharing, and private rental listings. Requests are sent
via e-mail from those seeking an apartment to you, the site administrator, with
a description of the desired apartment location, size, necessities, and so on, that
the individual is looking for. You then take the request and find the best possible
location to suit the person?s needs. Once you have found a match, you set
up a time for your client to view the apartment. You collect a referral fee if the
client signs a lease.
Another way to run this type of business would be to set up a searchable
database. Those with apartments to rent or sublet would pay a fee to add their
listing. People looking for an apartment would search based on specific criteria
such as location, maximum rent, number of bedrooms, etc.
SKILLS NEEDED
This business is great for someone with a thorough grasp of the available living
space in the local area and basic Web publishing skills. You should be a clear
communicator via e-mail and phone with your clients and the owners of rental
buildings so they take you seriously.
COST TO START THIS BUSINESS
Costs associated with starting this business range from $1,000 to $5,000. Initially
you will have to pay to design and develop your Web site along with all
costs associated with this (e.g., hosting service). If you want to develop the database,
there will be additional costs involved?the amount will be determined by
the level of sophistication, the number of fields, and the number of searchable

fields. Additional costs associated with opening this business include online advertising
costs and any offline promotion that you may implement.
NUMBER OF EMPLOYEES NEEDED TO START
Typically this business can be run by one individual to start and will increase
depending on the volume of referrals.
INTERNATIONAL POTENTIAL
Although people from other countries may use this service if they are moving to
the country, city, or state that you represent, this business generally has national
and regional potential.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 1 or 2 would be most appropriate for this type of business?level
1 if you are providing hands-on services and level 2 if you want to go the database
route and have the site run itself. For more information, see Part 1.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
Although you want to receive as many referrals as possible, it is important not
to let the apartments that you represent take advantage of your site as a free
advertising opportunity. To avoid this problem, don?t list the specific names or
addresses of the apartment complexes that you represent. You can provide pictures,
and general location information. If you give the specific address of the
suggested match, your client may go directly to the apartment without even
using your service. Of course, if you run this Web site as a database, this will
not be an issue as you will be paid up front for all listings.
Collection of referral fees is an important issue. Ensure that you have contracts
in place with the apartment owners and safeguard procedures that help
you to keep your incoming fees organized.
Your Web site has to be constantly updated and maintained. When an apartment
is rented through you, make sure to show this on your site. When an
apartment is no longer available, remove it immediately from your site.
ONLINE MARKETING TECHNIQUES
? Develop links from as many Web sites and meta-indexes as possible
that target your geographic audiences.
? Purchase banner ads on geographically targeted Web sites (e.g., if you
represent apartments in New York, purchase a banner ad on a Web site
about living in New York).

? Participate in sponsored listings with the search engines by bidding on
appropriate keyword phrases.
? List your site in the classified ad section of nearby online newspapers.
? Participate in real estate or geographically specific mailing lists with a
cleverly designed signature file.

ADDITIONAL INCOME
You should consider partnering with businesses that could benefit from your
referrals. For example, local moving companies or furniture rental businesses
could benefit from your referrals, since you target the same market. This could
prove to be quite profitable for your business. An alternative to this would be
selling advertising to these businesses on your site.
ONLINE EXAMPLES
Sami-Apts.com
http://www.sami-apts.com
This is a great student apartment locator service.
AOK Apartment Locators
http://www.aokapartmentlocators.com
A dynamite apartment location service in the Dallas-Fort Worth, Texas, area.

3. Art Supply Store
OVERVIEW OF BUSINESS MODEL
Today everyone is buying products and services online, even artists. The number
of potential customers for an art supply store is tremendous. Many artists
frequent the Internet to buy supplies such as paint, canvas, brushes, carving
tools, and more. The Internet makes it easy for artists to buy products, especially
uncommon supplies that are not carried by your local art supply store.

Offering uncommon supplies also enables you to practice niche marketing and
can produce high returns for your business.
Here?s how it works. With the click of a button artists can easily browse
through your selection of art products, adding what they like to their shopping
cart. When they are finished they can simply check out, pay for the products
online with a credit card, and wait to receive the products in the mail. It?s as
easy as that.
SKILLS NEEDED
Knowledge of different art supplies and techniques is an asset, as you want to
provide the best customer service to your clients. You can?t do that without
understanding their needs.
COST TO START THIS BUSINESS
The cost to set up and run this type of business ranges from $2,500 to $5,000.
Initially you will have to pay for the design, development, and hosting of your
Web site along with your storefront solution and merchant account setup. All
additional costs are associated with promoting your business online and offline,
and purchasing and holding inventory.
NUMBER OF EMPLOYEES NEEDED TO START
To start this operation all you will need is one person. This operation is ideal if
you are looking to start a business part-time.
INTERNATIONAL POTENTIAL
This online business has strong international potential, as its products are of
interest to artists around the globe.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 3 is most appropriate for this type of business.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
The site must be kept current. When items are discontinued or out of stock, the
Web site and storefront should be updated. The shipping operation of your
business should be timely. The prices have to be competitive with the same
products available off the Web. Keep in mind that shipping and handling charges
have to be added for products bought in your online store.

ONLINE MARKETING TECHNIQUES
? Develop as many links as possible from art-related Web sites and directories.
? Participate in newsgroups and discussion forums related to art with a
cleverly designed signature file.
? Host your own art advice column or daily art tips that will feature your
products and current promotions. You could leverage your exposure
through an RSS feed.
? Participate in sponsored listings by bidding on appropriate keywords
with the popular search engines.
? Develop a permission-based mailing list of potential customers and send
weekly e-specials or a newsletter with Art Tips and Resources.

ADDITIONAL INCOME
In addition to selling art supplies on your site, you could also help artists sell their
artwork. You could auction other artists? work from your site and then take a
percentage of the sale for your services. This would be a great way to earn additional
income and would also help to generate repeat traffic to your Web site.
ONLINE EXAMPLES
MisterArt.com
http://www.misterart.com
MisterArt.com is a large discount art supply store that uses a fully integrated
e-business strategy to provide art supplies to consumers.
Island Blue Art Supplies Catalogue
http://shopping.islandblue.com

This is a great site with a huge catalogue of art supplies that can
easily be purchased directly from their site.
4. Association Management
OVERVIEW OF BUSINESS MODEL
The number of associations related to different industries and interests is phenomenal.
Many of these associations cannot afford to hire (or do not have the
volume to warrant hiring) one or more full-time employees to handle the dayto-
day administrative duties involved with running the association. Associations
are now outsourcing all of these administrative duties to an association
management firm.
Here?s how it works. The duties that associations want taken care of are
administrative. Common tasks include billing, bookkeeping, and accounting,
taking minutes at meetings, collection of annual dues, association event promotion,
Web site maintenance, and distribution of weekly or monthly newsletters.
Since these tasks will be repetitive and not very time-consuming, you are able to
handle the association management for multiple associations, and because the
tasks will remain similar between associations, you will be able to work much
more efficiently.
IslandBlue.com offers a wide range of art supplies from its site.

The key to success in this business is organization. Make sure that you are
always on time with your work. If you don?t keep yourself organized or you
take on too much work, you increase the chance that you might not perform up
to the associations? expectations of your firm. This could result in the termination
of a management contract and ultimately will affect the professionalism
and overall appeal of your organization?s services.
SKILLS NEEDED
Excellent organization and communication skills are necessary for starting this
type of business. Other skills that would be an asset include knowledge of accounting,
creative writing capabilities, and other basic administrative skills.
COST TO START THIS BUSINESS
Since you are providing a service that has no inventory, your initial costs will be
minimal. The cost to start this type of business ranges from $1,000 to $10,000.
This type of business typically can be run out of your home, which eliminates
overhead costs of setting up an office for your management firm.
NUMBER OF EMPLOYEES NEEDED TO START
One person can run this business part-time to begin. This is a perfect idea for
someone working from home.
INTERNATIONAL POTENTIAL
This business does not have strong international potential due to the nature of
the service provided. Common tasks include taking minutes at weekly or monthly
meetings or attending other functions held by the association. This will require
your business to be located in the surrounding area of the association, so this
business has a more regional appeal. Of course, if this is a national association,
most meetings may be online, with one or two a year being face-to-face with
everyone flying to a common location. If this is the case, the business could
have national or international appeal.
E-BUSINESS MODEL/PAYMENT PROCESSING METHOD
E-business level 1 is most appropriate for this type of business.
IMPORTANT BUSINESS ISSUES TO BE ADDRESSED
With all your clients, make sure to have a detailed contract that clearly outlines
all the services and duties you will be providing. The contract should indicate
important dates and contact lists, and someone within the association should

be appointed to provide you with all the necessary information and approvals
to run the association efficiently.
ONLINE MARKETING TECHNIQUES
? Participating in newsgroups and discussion forums related to your target
audience would be a great way to increase the traffic to your Web site.
? Launch a strategic banner advertising campaign on Web sites frequented
by your target market.
? Develop links from as many Web sites, directories, and meta-indexes
related to your target audience as possible.
? Participating in mail lists and discussion groups related to different industries
and associations with a cleverly designed signature file would
be a great way to generate awareness for your services.

ADDITIONAL INCOME
In addition to handling the daily administrative tasks for associations, you could
also provide your clients with promotional services. This would help to promote
the association?s membership benefits to prospective members and would
also increase the awareness of the association. Providing a newsletter circulated
to association members where you may feature paying advertisers is a chance
for additional income.
ONLINE EXAMPLES
Maguire/Maguire, Inc.
http://www.maguireinc.com
Maguire/Maguire, Inc. is a dynamite business that provides not-for-profit association
management and marketing services.
Smith, Bucklin & Associates, Inc.
http://www.smithbucklin.com

Source: http://magicmoney-suresh.blogspot.com/2013/02/profiles-of-top-internet-business.html

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