How can we make money on the Internet?

This week we move to the history of the Internet. The history of the Internet is very short, even in relation to a human lifetime. And more and more traditional industries are being hit by the Internet, many companies are facing the challenges of the Internet. They want a better understanding of the Internet, and they think that the Internet is a kind of medicine which can cure every disease.


(Google Image)

To be frankly, I am more interested in one thing which is how can we make money on the Internet. I think that traditional enterprises must understand the characteristics of the Internet economy and the differences compared with the traditional economy, so as to better meet the challenges brought by the Internet. If we use the traditional economic thinking to compete in the Internet era, it will look like a shark climb to the land to fight with a leopard. The result must be a kind of lose.

Young man pointing at Make Money Online concept

(Google Image)

There is no user before the Internet concept, customers are the priority. Who is the customer? Who gave companies money who are the customers. The customer plays a parents role in feeding companies. This traditional business model is more binary, a company provides a service to sell a product to a person, then this person is the company’s client. This is a binary relationship.

Magnet and happy customers

(Google Image)

The Internet brings another relationship which is the concept of users. A user may use a company’s products or services, but this company may not earn money from the user. In this way, why is the user regarded as the first in the Internet era? Under the umbrella of the Internet, the priority is not how to make the user be the object of making money, but to consider how to provide some values to these users who do not pay. So that there will be more users who can recognize the company and become users.



(Google Image)

There are only three ways to make money when it comes to the business model of the Internet. Number one is selling things on the Internet; the second is to accumulate users like search, portal as advertising; the third is offering value-added services


(Google Image)

Well, in my opinion, these three models could cover all business models of the Internet. However, all of the three models have a premise which is a mass user database. Therefore, if there is no mass user database, these three models will not build up.


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