Sustainable Online Business Models
By minotaur87
@minotaur87 (769)
Singapore
March 1, 2012 3:34am CST
Recently, I realised that quite a number of programs has turned into scam. There are very few programs that continue to thrive after two or three years. It seems that even paying programs can eventually turn into scams if it's built on unsustainable business model. Therefore, it would be critical to analyse how sustainable a business model is before enrolling in the type of online money making programs.
I think possible types of online money making programs that we can involve in this discussion is paid-to-click, paid-to-post, paid-to-sign-up, paid-to-read, paid survey, manual traffic exchange, autosurf, affiliated program, matrix program, HYIP, possibly more others that are coming up.
We can analyse one type of online money making program by one type to see how each of them can be sustained and when they will become sustainable. Sustainability refers to how the owner of these programs can earn enough to pay the members for a long term basis.
Let's start with paid-to-click. Neobux has been the prime example to be included in the discussion of sustainable model. It was the top PTC when it's been paying for the past 3 years with guaranteed 4 ads with $0.01 for free member. However, in the recent year, it seems that Neobux no longer found this to be sustainable when more and more free members joined and there is increased competition for advertisers in PTC sites so they decrease the earning to $0.001 for the 4 fixed ads for free member. But to compensate that, some added bonus like neopoints and unguaranteed $0.01 ads were introduced to keep some of the free members. But upgraded member continues to earn at $0.01 for fixed ads. Therefore, the main income of Neobux will come from upgrade fees and rented referral fees, as well as lower advertisement fee. With the burden of guaranteed rewards lightened, Neobux has been able allocate its profits more easily, hence ensuring smooth cashflow. Other higher earning PTC will also have to rely heavily on advertisers purchases. This can be done through encouraging members to buy ad packs through purchase balance by giving some rewards in the form of purchase balance instead of cash earnings all the time. Rented referrals also proved to be quite a good income since members have to invest money to rent them for extended periods. Unsustainable PTC model usually has extremely high earnings for free members that exceeds advertiser's investment.
You can add to this PTC sustainability discussion or start on other earning program sustainability.
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