Internet Business Model Analysis (Part One)


Editor's note: This compilation (the text contains a lot of translators point of view) from TechCrunch Teardown part, I hope this can help to domestic entrepreneurs. If you want to see all the articles in this series, please click here.

Mode 1: Search
The amount of data for Shanghai Internet search service opportunities. Whether you provide users with what type of search, you should let your users as much as possible to use your search service, so that you may go to more money (such as through paid links, etc.). Measure of such companies, mainly to see the data on the following aspects:

Number of unique visitors per month (Monthly Uniques)
The number of search requests per month (Queries Per Month)
The proportion of users click on paid links (Percentage of users that click a paid link)
Revenue per Click (Revenue Per Click)


This is one of the interrelated nature of many of the data is large, for example, the number of search requests, and often is directly proportional to the number of unique visitors, while the revenue per click is also associated with these data, they can export each other. For example, if a company has 5% of the search request will click on paid links, revenue per click is $ 0.35, then if the company wants to achieve a monthly income of $ 10,000,000, to ensure that they have 25 million searches per month request.

Hunch is a very good traditional search, and new services will be combined with search engine - personalized search engine. They will be based on your personal preferences for you to provide more precise product search results, the purpose is clear: improve the click-through rates paid links.

Mode 2: Games
People who engage in social games are already very familiar with some of the Zynga. Their idea is simple, by providing a free simple and interesting variety of small game (role playing, virtual worlds etc. Web games, mobile games) to attract players, and then sell virtual items in the game profitable. For these companies, mainly to see the data:

Monthly / daily average players (Monthly / Daily Average Users)
Subscribers conversion rates, typically 1% to 2% (Conversion Rate to paying user (typically 1% - 2%))
The average monthly cost of the user (Average Monthly Spend)
This is a necessary cause of patient management. In general, game companies in order to reach 1,000 million in revenue, at least to ensure that the average monthly number of players in the 500 million scale. This is also good at using social media to promote the Zynga and the reasons for the success of Nexon.

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