Top 5 digital business models for you to invest – WAU
The digital business models bring together enterprises such as e-commerces, SaaS companies, communication companies and several professional modalities related to Content Marketing. Its solutions are directly related to technological demands and play a fundamental role in the digital transformation of the market. Understand more about it!
The internet is a very receptive and stimulating environment for entrepreneurship. When we are faced with the success stories of companies with such different digital business models, the feeling is that the possibilities of this market are endless.
The growth of e-commerce and the popularization of Content Marketing strategies are some of the factors responsible for the increasing demand for technology-related services. It also helps to explain the phenomenon of the growing use of user data in Digital Marketing campaigns and in product development.
In this article, we talk about the expectations of this market, its myths, the advantages and the types of business that are most successful on the internet! Read on!
The digital transformation and the growth of the online market
Among the pillars of digital transformation, which reaches more and more companies in all corners of the planet, the internet is the main protagonist of the innovations that are changing the way we think about industry and marketing.
According to a report by the ITU, the UN agency for information and communication, more than half of the world’s population (3.9 billion people) already use the internet. Another fact that fills the eyes is that only the e-commerce sector in London recorded sales of R $ 53.2 billion in 2018, according to Ebit / Nielsen.
These numbers show not only that the internet is a giant that still has a lot to grow, but also that online businesses are delivering surprising results, even in periods of political and economic uncertainty.
The fallacies of digital entrepreneurship
Opportunities exist, but we cannot fall into the trap of believing that selling products or providing services online are formulas for “making easy money”.
Remember that, most of the time, the internet is just a commercial platform or marketing channel for a physical structure that will require the same responsibilities as a traditional business.
Furthermore, the time when websites and blogs enjoyed almost complete freedom in terms of content production, advertising and profitable activity is long gone. Today, if you want to build a prominent online company, you will need to follow a series of rules and legal obligations to be able to operate in this category of service.
The advantages of working on the internet
The widespread promises of very high profits with minimal effort may be far from describing the reality. However, we cannot deny that there are many advantages to working on the internet and building a business in this modality. Among them, we can highlight some.
In principle, the range of the internet is unlimited. If a physical retail store is able to serve consumers in a city or region, an e-commerce can reach people from all over the world.
It is clear that, although they can be accessed by any user, virtual stores will always be limited to their logistical coverage. Anyway, it is certain that online platforms are a much more scalable access channel than any in-person medium.
Generally, the cost bases of companies and professionals who provide services over the internet are lower and more flexible.
The investments required to maintain the operation of offices and physical stores can be very high, as they usually require grandiose facilities, a larger number of employees and even legal requirements in accordance with city regulations.
Without a doubt, the biggest advantage of digital business models is optimization. Computerized solutions and Digital Marketing tools allow several processes to be automated and accelerated, increasing the productivity of the company as a whole.
More agile evolution
The internet is also highly sought after for providing a relatively more agile evolution of business. The costs necessary to start operating in the market are lower, as are the losses involved in unsuccessful campaigns and products.
Thus, the entrepreneur has the opportunity to do many experiments and has the “license” to make more mistakes, because he can get up faster. In addition, there are several testing and monitoring tools for companies to easily and accurately identify opportunities and problems.
The main digital business models
Finally, let’s talk about the most popular digital business models on the market today, from those aimed at selling products to solutions for providing online services.
Virtual stores are a symbol of digital entrepreneurship, as they allow for a accurate comparison between trade models.
The entrepreneur who wants to advertise and sell his products in an e-commerce does not get rid of negotiations with suppliers, inventory management and distribution of goods, but manages to concentrate his entire showcase and his communication in an easily manageable channel.
It is important, however, to keep an eye out for industry innovations in terms of technology and legal resolutions.
Although costs are generally more affordable compared to physical commerce, other investments will be needed such as platform development and Outbound and Inbound Marketing, for example.
For those who want to sell their products over the internet, but do not have many resources for creating and promoting a brand, marketplaces are an excellent solution.
These platforms concentrate several different stores within the same space, which is generally consolidated and widely accessed. The advantage is that, in addition to providing traffic and qualified audiences, marketplaces also offer several promotion and dissemination tools for their partners.
In London, the most famous platforms are Mercado Livre and OLX, but many brands from major retailers are already opening space for small business owners, such as Lojas Americanas. Be aware, however, of the requirements and restrictions of each of these companies.
3. Provision of online services
The internet also gives space for professionals to offer their services, or part of them, online. Lawyers, accountants and marketing consultants, for example, have already begun to explore the benefits of serving their clients by email, chats and videoconferences.
Note that the benefits are not only for the service provider, but also for the consumer, who can be served more quickly and conveniently, without the need to go to an agency or office.
4. Content Marketing
Content Marketing is an old strategy that gained a new guise after the rise of corporate blogs and social networks. It is a very broad market that includes infoproducers, affiliates, influencers, content producers and many others.
No matter the category or niche of your business, the only way to gain notoriety on the internet is to produce and disseminate information that meets the interests of your audience.
The greatest examples are the digital influencers – who produce articles or videos for a solid audience and earn through the monetization of their distribution channels -, the professionals who sell their knowledge in the format of ebooks or online courses and, also, the producers of content – such as designers, developers and copywriters, who serve companies of various types.
5. SaaS solutions
Going a step further, we have SaaS companies, which stands for Software as a Service, or “software as a service”. These organizations are the corporate body behind applications, service platforms and even social networks.
It is a complex business model, which requires significant investments in development and management, but it is an area of enormous success in the market that still has a lot to grow. After all, it is these ventures that guarantee the evolution and the full functioning of most of the online applications on our desktops and smartphones.
These were just a few examples of digital business models, but rest assured that the possibilities for this market are much greater.
Marriage between companies and technology is increasingly common, and its fruits are changing the lives of thousands of professionals and entrepreneurs around the world.
Is that you? Have you thought about creating an online business? So stay with us and learn how to create yours in our article on digital entrepreneurship!