Business Model Analysis

Posted on 2005-04-06
Last Modified: 2010-08-05

whats the business model for www.performics(.)com as you analyze it?

Does http://www.impaqt(.)com have the same model

focus only on the traffic generation from link brokers esp.I need to know whats the underlying Business Model For Both These Sites with focus on do they have some thing like this that they have invented some thing between link brokers and PPC Engies like instead of generating traffic for PPC form engine as google adwords does they do it via link brokers. Just help me i am very confused.
Question by:mcse20002000
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    mcse20002000 -

    >help me i am very confused.

    OK no problem, let's see if we can sort it out...

    First 'link brokers'. The dictionary definition of 'broker' is  "One that acts as an agent for others, as in negotiating contracts, purchases, or sales in return for a fee or commission".  There are stock brokers, ship brokers, mortgage brokers and hundreds of other kinds of brokers. In essence what they do is match buyer and seller and take a commission.  

    Bob owns a website with lots of traffic called "Things to do in New York". He thinks he might get some money by selling text links.  The problem is Bob doesn't know anyone who wants to buy text links or what they would be worth.  So Bob gets in touch with "Smooth Text Link Brokers Incorporated" (STLBI).  They look at Bob's site and tell him that there are 10 pages on the whole of his site that would be excellent for 5 different text links and that each text link could be rented out for $100 per month. STLBI also tell Bob that their commission is 20%.  Bob does the maths, 10 pages x 5 links/page x $100 = $5,000 per month. Less 20% commission is $4,000/month so Bob decides to proceed.  Of course STLBI have hundreds of clients already and Bob is added to the list.  Jim owns a discount camera shop in New York and has a website that needs more targeted visitors so he gets in touch with STLBI.  They tell him they have just the place for a text link to his site and it will cost him $120 per month. Jim decides to give it a try and signs up. He pays the money and gets a link on Bob's site. John is a dentist in New York with a website and he is looking to spend some money on advertising so he gets in touch with STLBI. They tell him they have just the place for a text link to his site and it will cost him $120 per month. John decides to give it a try and signs up. He pays the money and gets a link on Bob's site. Now you understand I think, STLBI are the brokers and are matching buyers and sellers and taking a commission for doing so.  In practice real text link brokers have different commission rates than the ones I have suggested and may operate in a slightly different way but you get the general idea....

    What is the business model for Performics and Impaqt?

    Basically they provide emarketing services to medium/large size companies.  Typically they might devise an emarketing strategy for you, execute it and monitor the results. The mix of services they offer may differ slightly but that is how they make money.

    - duz

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