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Internet Business Models


What are business models for profiting on the net?

Perhaps the best metaphor to describe Internet business is that it is like the California gold rush of 1849. A wave of entrepreneurial start-ups have entered the field, but all are struggling to find the gold. The miners are going broke while the saloon and general store owners, and the brothels, are prospering. Anyone who wants to make real money in mass markets is going to have to break the mold of "business as usual" and offer real value which is not available offline. Meanwhile, business-to-business commerce is growing using the time-based value of data exchange as a pricing mechanism.

This brief paper considers the business models and related success factors which favor profitability for doing business on the Internet. It addresses four areas:

  • Mass Markets
  • Business-to-Business Markets
  • Online Banking
  • Advertising

This paper consists of an abstract, executive summary, a main paper, and footnotes. A plain text file of the entire document may be downloaded. Comments are requested and should be sent to the author at

  • Next Section: Executive Summary


    This paper may be copied for non-commercial purposes, classroom use, or reproduced on WEB sites so long as it is 100% intact with author credit, citations, and text. The preferred citation for this paper is;

    "Internet Commerce; Emerging Business Models," Dan Yurman,, P.O. Box 1569, Idaho Falls, ID 83403, December 11, 1996. Electronically published on the Internet.

  • This paper is part of the Tips & Tools portion of the dotParagon web site.
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