9/01/2005

Taxonomy of Web-Based Business Models

From an interesting article by Professor Michael Rappa, the Alan T. Dickson Distinguished University Professor of Technology Management at North Carolina State University in Raleigh, North Carolina, referring to a table in the article that is worthwhile reviewing:

"Business models have been defined and categorized in many different ways. This is one attempt to present a comprehensive and cogent taxonomy of business models observable on the web. The proposed taxonomy is not meant to be exhaustive or definitive. Internet business models continue to evolve. New and interesting variations can be expected in the future.

The basic categories of business models discussed in the table below include:

Brokerage
Advertising
Infomediary
Merchant
Manufacturer (Direct)
Affiliate
Community
Subscription
Utility

The models are implemented in a variety of ways, as described below with examples. Moreover, a firm may combine several different models as part of its overall Internet business strategy. For example, it is not uncommon for content driven businesses to blend advertising with a subscription model..."