Web EntrepreneurshipThe Business Models

Adnan AliAssistant Professor, UMTSaturday, July 18th, 2009

is a specific category of Entrepreneurship that leverages new technologies in novel ways

Source: wikipedia.org

Digital Entrepreneurship

are individuals who use Internet technologies as tools to create

commercial opportunities, disseminate information, and collaborate with

clients and partners.

Source: wikipedia.org

Digital Entrepreneurs

WHY?

THE WORLD IS CHANGING

But the world has always changed

TECHNOLOGY IS CHANGING

But technology has always changed

BUSINESS IS CHANGING

But business has always changed

BECAUSE

those who can’t adapt … disappear

an idea today has already occurred to some one yesterday and will occur to

some one tomorrow

developimplement

build

Same BasicsBusiness planning

Low overheadsHigh productivity

Minimal ownership of capital assetsGreat people

New PracticesViral communications

Small business intranetsCollaborative applications

Pay per use online advertisementCustomer relation management software

Business Plan OutBusiness Model In

Source: Alex Osterwalder

Apple iPodBusiness Model

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Source: Alex Osterwalder

Borders OutVirtual Inc. In

How?Know what is in demand

Find best resourcesFulfill the demand

Make a profit

Build & ManageVirtual Companies

Increasing number of Pakistani web entrepreneurs

are hiring foreign contractors like copywriters,

interface designers, animators etc.

Websites OutWeb Apps In

Land Line OutVoice Over IP In

Around the World

Types of Web Business Models

BrokerageMarketplace Exchange (Amazon)

Lead Generation SystemAuction Broker (eBay)

Transaction Broker (PayPal, Raseen?)Virtual Marketplace (Alibaba)

AdvertisingPortal (Yahoo)

Classifieds (Craigslist, Monster)User Registration (NYTimes)

Query Based Paid Placement (Google)Content Targeted Paid Placement (Google)

Intromercials

InfomarketingBlogs

Web based tutorialseBooks

Audio / video coursesTopical Forums / Wikis

Community ModelOpen Source (RedHat)

Open Content (Wikipedia)Public Broadcasting (Youtube)Social Networking (Facebook)

Professional Networking (LinkedIn)

Other Models

Merchant (eCommerce)Subscription (Content, Truste)

Utility (SAAS)

Acquisition (traffic comes in)Activation (happy 1st visit)Retention (multiple revisits)Referral (users refer to others)Revenue (some transaction)

The 5 Steps

The Bottom Line

Develop Value PropositionGet Users (Acquisition, Referral)

Drive Usage (Activation, Retention)Make Money (Revenue)

Users / Usage Money

who are web entrepreneurs?

freelancers

bloggers

tech startups

virtual companiesexporters

social entrepreneursvirtual assistants

SME

educators

Adnan Alihttp://www.adnanali.orghttp://www.facebook.com/adnan.alihttp://www.twitter.com/adnanbwphttp://www.umt.edu.pk

adnanbwp@gmail.com