This is not new news: digital business has transformed the world. We hear more and more about digital ventures and we see how technology has changed the way society interacts with these brands, making them not only valuable, but also prestigious and coveted.
If you want to know more about digital businesses and how to turn your idea into a successful digital venture, you came to the right place.
In this guide we are going to show you the elements to take into account and how you can shorten the path to achieve it. Let’s get started!
What is a digital business?
A digital business is a form of business that uses technology to improve its services and relies on a digital platform to carry out its commercial activities.
They are not tied to offering only digital products or services, but can also offer physical or tangible products.
We can call platforms such as Uber, Airbnb, Shutterstock and , but also Amazon, Mercado Libre and even a business that sells food online can be a digital business. ๐ป
There is no precise rule or definition of what is and is not considered a digital business. As long as they use a digital platform and this is the basis for the growth of the company and its generation of income, they can be considered digital businesses.
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What types of digital businesses exist?
There are many types of digital businesses on the internet. Some experts point out that it is impossible to segment them, since we are still at an early stage of digital entrepreneurship; however, we can talk about the most common, which are:
- Digital products ๐
- Affiliate Marketing ๐
- Freelance professional services ๐ผ
- Ecommerce ๐
- Dropshipping ๐
- Discount coupon websites ๐ธ
- Online advertising ๐ฒ
- SaaS (Software as a service) ๐ป
- Influencers ๐ฃ
- Content Monetization ๐
Next, we briefly explain each of them.
1. Digital products ๐
Digital products are understood as those services that are offered and distributed through the internet. They can be e-books, online courses, events, webinars, certifications, music, video games, software, applications and much more.
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2. Affiliate marketing ๐
Affiliate marketing consists of advertising or recommending a product, receiving a commission in exchange for each sale generated.
You can find this type of digital business on web pages or blogs that recommend the use of a tool and attribute the purchase to a certain channel through a tracking cookie.
I found out what affiliate marketing is and how it works with .
This section includes all those services of consulting, coaching, web design, development and more, which revolve around a professional and are based on the construction of your personal brand to generate income.
4. Ecommerce ๐
One of the most popular and most common on the internet. In its simplest definition, it is electronic business and it is the universe of online stores where goods and services are sold.
5. Dropshipping ๐
This type of digital business is called where the seller does not have its own stock, but the supplier sends the product directly to the buyer, breaking with the traditional supply chain.
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6. Discount coupon websites ๐ธ
The web pages of are those sites where you can find offers from various companies at different prices. Users have the option to purchase these coupons to make them valid at the businesses of their choice.
Pages usually approach companies to offer them this type of service and receive payment for advertising the company, as well as a commission for the number of coupons sold.
7. Online advertising ๐ฒ
This type of digital business is built on news websites or blogs where advertising blocks are inserted and paid according to impressions or clicks on the ad, depending on how the campaigns are configured.
8. Saas (Software as a service) ๐ป
Also called โsoftware as a service,โ this digital venture allows users to connect to a completely cloud-based application or service over the Internet. Spotify, Uber, Canva are some examples.
9. Influencers ๐ฃ
Being an influencer is a type of digital business where several business models converge.
From the recommendation of products and services, in videos or web pages, or affiliate marketing, recommending the use of certain platforms through a code with which the return on investment is measured and, thus, the influencer can take a commission. monthly or per sale.
๐ก Access more information about .
10. Content monetization ๐
Similar to the previous digital venture, content monetization can be done through videos or web pages with a high volume of traffic and views, receiving payment for online advertising or affiliate marketing.
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Digital business models
Below you will find the most common digital business models today; however, this list is likely to get longer as time goes on and the digital ecosystem matures.
- Free model (with advertising)
- freemium model
- On-demand model
- peer-to-peer model
- subscription model
- open source model
- e-learning model
- crowdfunding model
Let’s see what each of them consists of.
1. Free model (with advertising)
This digital business model offers a service โfor freeโ; however, it is through advertising (and sometimes the personal data of its users) that the user “pays” for the use of the service.
Facebook, YouTube, Gmail, among many others are known for this model.
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2. Freemium model
Within the digital business models, this is one of the noblest, since it allows the user to use the service for free; however, if he wants to use more features or resources for a longer time, he has to upgrade to the paid or โpremiumโ version.
3. On-demand model
The on demand model is one where the user only pays for what they want to consume and the time they want to consume it.
We can often see it on platforms like Google Play, where the user decides what they want to pay and when.
4. P2P model (peer to peer)
In this digital business model, the platform puts the two participants in the transaction in contact (the one who provides the service with the one who wants to use it). Uber, Airbnb and LinkedIn are good examples of this model.
5. Subscription model
Similar to the on demand model, the subscription model allows the user to use the platform as long as they pay a certain amount for the subscription.
It can be monthly, bi-monthly, semi-annually or yearly like Netflix, HBO Max, Disney + and Adobe CC.
6. Open source model
The open source model allows for free downloading as well as free use of the services, opening it up to community contribution globally.
The bet lies in the rapid dissemination and acquisition of users, then offering a return on investment through additional services, training or software hosting.
7. E-learning model
Similar to the subscription or on demand model, this digital business model is based on mini-courses or short training workshops to which users sign up and pay in order to have a closer interaction with teachers and students.
Crehana and Domรฉstika are two very popular platforms for this model.
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8. Crowdfunding model
Crowdfunding is a collective financing model that is normally carried out through an online platform, which allows users to support a project or initiative to make it a reality through a donation.
Usually those who participate with a cooperation in this early stage of the venture obtain โrewardsโ or an additional element to what they are financing.
How to start your own digital business?
Now that you know the different types and models of digital businesses, it’s time to put it into practice and start creating your own digital business.
For this reason, we created this practical guide to help you plan the best strategy to materialize your idea. Let’s get started!
1. Decide which products to sell
Deciding what you want to sell and what the added value of your products is going to be is the first step. You can get that differentiator through your own , the quality of the items, personalization, delivery time or security when buying.
What is the most sold in Argentina?
According to the Argentine Chamber of Electronic Commerce (CACE) the best-selling categories during 2021 in e-commerce were:
- Sports apparel and sporting goods
- non-sports clothing
- Food and drinks
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2. Do a market analysis
Once you have decided what you want to sell, the next step is to do a market analysis, so that you know who you are selling to, what their interests and needs are.
What is a market analysis?
We can define market analysis as an evaluation of the quantitative and qualitative aspects of a specific user segment, in order to know their purchasing habits, their value, the competition, among many other factors.
How to do a market analysis?
- Determine the purpose of the analysis
- Research the current state of the market
- Know your ideal client
- Analyze the competition
- Evaluate the results
- Take advantage of the data collected to think advertising, content and sales strategies
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3. Define a pricing strategy
After establishing what you want to sell and to whom, the next step is to decide how much you want to sell it for. For this it is necessary to put together a pricing strategy.
What is pricing?
Pricing is the process of defining the sale price of the items to be marketed.
In you can know in detail all the factors to take into account when calculating the sale price of the products of your online store. ๐ฐ
How to set the prices of your products?
To do it you have…
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