Business Models Jessica Brooks August 25, 2006 Business models are the most discussed and least understood aspect of the web. There is so much talk about how the web changes traditional business models. But there is little clear cut evidence of exactly what this means. A business model is the method of doing business by which a company can sustain itself. The business model spells-out how a company makes money by specifying where it is positioned in the value chain. Some models are quite simple. A company produces a good or service and sells it to customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. Other models can be more intricately woven. Broadcasting is a good example. Radio and later television programming has been broadcasted over the airwaves free to anyone with a receiver for much of the past century. The broadcaster is part of a complex network of distributors, content creators, advertisers, and listeners or viewers. Who makes money and how much is not always clear at the outset. The bottom line dep......

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