How to create revenues with an internet based casting service

Jan-Martin Lurse

2009年5月 · GRIN Verlag

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Essay aus dem Jahr 2003 im Fachbereich BWL - Unternehmensführung, Management, Organisation, Solvay Brussels School of Economics and Management, Veranstaltung: Entrepreneurship in the digital economy, Sprache: Deutsch, Abstract: Internet represents at the same time a very easy and a very difficult marketplace. At first, internet seems to be a very attractive market for retailers: Very low fixed costs, big clientele, high economies of scale and cheap marketing. That, perhaps, is the reason why too many enterprises tried to use internet for new and similar services and why they faced themselves in a highly competitive environment. Pricing competition has flushed internet with offers for free, right now: Free software tools, free email- and SMS-services, free Information platforms and some illegal systems which everybody allows sharing also copyrighted files and programs, like: Movies, music, programs for free. Also, there is a real culture to offer services for free: I.e. the operating system “Linux” is programmed by worldwide individuals offering their programming skills for free! Because of this cultural dilemma, the average internet client got used to pay for nothing, even though he already had a low price elasticity. In the end, the only successful charged internet service seem to be services with those the client can really earn money (e-bay, Internship switching, Diploma trading, Reports offered by i.e. Forrester Research) and also sex-pages should be mentioned. It seems to be plausible, that, if you want to earn money with a service offered via internet you have to attract professional clients, who can use your service to earn money with. These are those who already use similar, classic and higher paid services or who did (what you want to offer online) by themselves. A bad economic environment (like it is right now) will help you attract these clients, because in these times, the clients more likely switch to lower priced offers (price elasticity of the demand is getting higher). Therefore, you will be able to attract also clients which originally had high willingness to pay for services, as long as you offer the same service. What I want to use in my business Idea is also the hope of the client to be able to earn money with my services, or, to just make the dream of getting model easier to achieve and affordable.