How to choose a winning business model

Companies that trade on the web have been able to innovate or reinvent their economic model, in order to innovate, to be more attractive than their competitors. Whether you’re setting up an e-commerce, networking platform, or download app, your challenge is to set up a run cycle that improves your profitability. Here are ideas and examples of proven economic models on the web, from freemium to fund through startup model. Business on the Web: The Business Models That Are Winning Right Now

By the way, what is the economic model?

An economic model or business model is a presentation of products/services coupled with an organization/operating cycle that allows a company to make its business profitable. Simply put, a business model explains how your business attracts customers and makes money.

On the Web, companies are constantly reinventing their model to remain competitive in the face of the influx of competitors, especially since the idea of ​​free is more and more deeply rooted in the collective unconscious of Internet users. The internet has effectively changed our perception of the value of things and companies are forced to lower their prices to attract customers. The media, for example, bears the brunt of this digital tidal wave.
Readers who want free access to the news, newspapers can no longer live off selling their articles and are forced to double their income sources to remain profitable. Thus Rue89 proposes to lead training in journalism. This activity now accounts for 20% of its turnover. Liberation has opened its own coffee shop and store as well as web and print content; The Huffington Post uses files
“Volunteer contributors” in exchange for goodwill in order to be able to reduce fixed costs. These are examples of economic models, some of which or the like are still being researched Huffington BossT, already well established and profitable.
The Reading Related Entrepreneur: The 4 Most Common Mistakes to Avoid

Freemium business model: Pay without looking like it

Among the business models that operate on the web, the freemium model carries the wind in its sails, as it respects the idea of ​​freedom that today’s internet users have long awaited. MailChimp, for example, offers a tool for managing your email, a free interface that reaches a certain volume of correspondence and charges for the most demanding users. Ditto for DropBox (cloud storage space) which asks you to pay a subscription only from a certain amount of data stored in its database.
Briefly, Freemium business model (condensed from “free” and “premium”), consists of offering free access to a basic offer and then additional paid features. The model only attracts customers if the features in question have real added value (think CandyCrush Saga: who hasn’t paid a few euros so they can keep playing their game?).
Xtranormal website created in freemium model. The company specialized in producing Storytelling In the video, he offers a credit for points during registration, used for the first purchases on the site. Once at 0, the customer is forced to renew the points (paid this time).

Sarinza example

In 2005, Yoann le Berrigaud created Sarenza.com, an online shoe company, with a rather silly idea for a product usually bought in stores. Who at that time wanted to buy their shoes online, before they could try them or see them up close? Yoann le Berrigaud circumvents the problem and presents the winning economic model for selling shoes online: a wide selection of items – much larger than in stores – high-quality product photos and, above all, free delivery and return shipping.
It was enough to think about it! Of course, the model can only be profitable on a large scale, thanks to the Internet carrier. Today, Sarenza has generated more than 250 million euros in sales.
Related reading The chief explains the company to politicians

Pay attention to the box model!

Subscription is a web-based service. Offering a recurring monthly product or service to your customers allows you to have stable cash flows, anticipate your cash flow, and buy your stock at the right time. In short, the subscription model optimizes your expenses. Be careful with the concept of the can being used and reused in all sauces by e-commerce merchants.
For a small history, “BirchBox” is a leader in this field. Here, samples of the best beauty products are sent to subscribers each month with the brand focused around a beautiful box, making BirchBox the monthly treat people love to find in their mailbox. Other beauty boxes followed the concept, then gourmet boxes, trendy accessory boxes… There’s also web-merchant BigMoustache that offers monthly deliveries of shavers for less than products in supermarkets.. (Consumer boxes are only relevant if the product in question is already a repeat/monthly consumer purchase and if the price is attractive.)
As a result of this enthusiasm, in the saturated market of cans, cancellation of subscriptions has become widespread. For good reason: products that are not very original, easy to find in stores or even a certain fatigue to receive the same type of product every month … It’s up to you to reinvent the economic model of the box!

Web startup form, how it works

Les entreprises des nouvelles technologies cartonnent sur le Web parce qu’elles disposent d’un formidable support – Internet – pour toucher un maximum de monde, tout en proposant un produit/service qui ne nécessite pas de main d’œuvre supplémentaire avec l’accroissement sales. A web application, for example, requires development, but once it is on the market, it remains only to attract Internet users to download it. The concept works on many tools available on the Internet: software, applications …
Thus, on this basis, a startup is defined, among other things, as an organization that prefers ‘Reproducible and measurable*’ modelAs Steve Blank, a serial entrepreneur from Silicon Valley points out.
It is clear that the winning business model on the Web is one that allows you to double the turnover of employees without hiring, which leads to an exponential and non-linear growth of activity.
Related reading: crowdfunding, group speaking, group testing, or “crowd power” of entrepreneurship

* Expandable means expandable

Questions to ask yourself before choosing a web form

To think about your online business model, ask yourself the following initial questions:
– what do you sell ?
– How do you distinguish yourself?
What are the obstacles to purchasing?
How do you organize yourself to mobilize as few resources as possible and to improve your operating cycle?
Whether you’re building an e-commerce platform, a networking platform, or a download app, the challenge on the web remains the same: getting on the mark with your customers, differentiating you from competitors, and improving your profits. Every web entrepreneur has his own economic model!
Related reading: Your Startup: The Five Keys to Success

Leave a Comment