Emerging Web Business Models

by Eric Goldman, Esq.

Cooley Godward LLP


1.                  Introduction.

·         Overview


2.                  Overview.

·         Welcome to the Attention Economy—expect to pay for attention


3.                  Internet Access.

·         Internet access is a commodity

-         one benefit of being an Internet Access Provider—guaranteed attention

-         Examples of diagonal competitors: Juno and AT&T


4.                  Web Design and Hosting.

·         Services business; little leverage opportunity


5.                  Advertising and Sponsorships.

·         Pricing options: per impression, per click through, per "result"

-         By cookie

-         By referring URL

-         By establishing a dedicated page

·         When sharing revenues, consider the definition of Net Revenues and banner/house ads


6.                  Content Metering.

·         Different ways to meter content

-         Subscriptions

-         One Time Fees

-         Per Use Fee

·         Technological controls—pre- and post-infringement devices

-         Software functionality can become integrated

-         Content may be a commodity: the classic come-on for attention


7.                  Service Outsourcing.

·         The web particularly lends itself to outsourcing


8.                  Merchandising/Internet order.

·         The danger of channel conflict


9.                  Auctions.

·         Can create more efficient markets


10.              Sale of Personal Data.

·         Personal Data can support multiple models:

-         Targeted email

-         Targeted advertising

-         More sophisticated understanding of customers

·         Must control the data (valuable trade secret)


11.              Branding/Decision Reinforcement.

·         Brochureware and advertorial content


12.              Things You Can Do Tomorrow.

·         Build a community

-         Offer user-to-user communication

-         Allow virtual governance

·         Turn your customers/suppliers into salespeople

-         Induce users to disclose personally identifiable information

-         Offer loyalty programs


About the speaker: Eric Goldman (formerly Eric Schlachter) is an attorney practicing cyberspace law with the Silicon Valley firm of Cooley Godward LLP. He is an adjunct professor of Cyberspace Law at the Santa Clara Univ. School of Law. His web page is located at http://eric_goldman.tripod.com/.