Answer to Question #30683 in Finance for fsl

Question

Which model of the following major B2C business models requires the most investment? Which model requires the least investment?
• Portal
• E-tailer
• Content Provider
• Transaction Broker
• Market Creator
• Service Provider
• Community Provider

Answer 1

Portal requires the most investments because Portals generate revenue primarily by charging advertisers for ad
placement, collecting referral fees for steering customers to other sites, and
charging for premium services. AOL, MSN (in conjunction with Verizon), and
Yahoo (in conjunction with AT&T)—which in addition to being portals are
also Internet Service Providers (ISPs) that provide access to the Internet and
the Web—add an additional revenue stream: monthly subscription fees for access.
Although there are numerous portal/search engine sites, the top five sites
(Google, Yahoo, MSN/Windows Live, AOL, and Ask.com) gather more than 95% of the
search engine traffic because of their superior brand recognition.
Transaction Broker requires the least investments because the online
transaction broker’s primary value propositions are savings of money and time.
In addition, most transaction brokers provide timely information and opinions.
Sites such as Monster.com offers job searchers a national marketplace for their
talents and employers a national resource for that talent. Online stock brokers
charge commissions that are considerably less than traditional brokers, with
many offering substantial deals, such as cash and a certain number of free
trades, to lure new customers. Transaction brokers make money only each time a
transaction occurs.