Sometimes the value of a website is realized with a simple “brochure” site, which gives basic information about your business and how to find you. For those businesses that intend to enter the Internet marketplace however, more thought and effort is needed to realize the value of the Internet.

If you intend your website to be a primary revenue generator, think about how you will make that happen. There are several basic approaches to producing revenue on the Web:

Direct Sales

Your business makes money selling products or services on your website. Your overall expenses include the cost to design and operate your site.

Indirect Sales

Your business makes money by selling advertising space, because your web site offers content that attracts visitors who are desirable to advertisers. Your advertising rates will depend on the number of visits your site gets and the type of visitor.

You can also make indirect sales when your website provides space for associate buttons, where visitors to your site can click through to another site and make a purchase. With associate or affiliate programs, you earn a referral fee when someone leaves your site, goes directly to the affiliate site, and then makes a purchase.

Licensing and Selling Content

Your business makes money by licensing or selling your content to other sites. "Content" can be feature articles, news and weather reports, opinion polls, and much more. Appealing content causes a site to be "sticky" - meaning that it keeps visitors clicking on links within your site, staying at your site instead of getting bored or dissatisfied, and going to another site.

Example: Travel sites sell airplane tickets, and book hotel accommodations and rental cars. They want visitors to stay connected, increasing the likelihood that they make a purchase. Sites on this model will offer content related to their products. These sites lease weather reports, and they create affiliate relationships with hotels, airlines, and rental car agencies. These added benefits create repeat visitors because they can find everything they need at one site.

Answer these questions to define your Web revenue model:

• What is my eCommerce strategy for making money on the Web? (Direct Sales, Indirect Sales, Licensing Content, Other)
• Who is the customer in my revenue model? Describe the benefit(s) your customer will receive from your eBusiness.