Did You Know There Are Only 4 Types of Business Models on the Web?

Posted on Categories Business, Startup

Just four. When I first hear that, I thought whoa, that seems like a very small amount. Here they are:

1. Monetized through advertising (I.e. get paid from advertisers when people click on the ads on your page, or when you show ads on your page)
2. Transaction Models (charging a fee for a transaction i.e. API Calls or credit card processing fees)
3. Premium, User-Paid services (i.e. monthly fees for a product or service)
4. E-commerce (selling tangible merchandise online)

When we first started viafoura (known then as WhoTheMan) we tried the first business model (advertising). To be a great advertising business, you need great content and lots of traffic. But we were not good at creating content, nor good at driving traffic. We could have learned this, but the founders (Jesse and I) were naturally very good at building great products and selling it, which is why we pivoted to creating viafoura and thus fell into the the third business model: user paid services.

What do you think, are there other core business models online? Comment below: