Key concepts
Features and benefits of collaborative networks and virtual financial markets
Online network business model (generic)
A quick overview of some key types and attributes of online networks is provided below:
- An Online social network provides internet applications to facilitate social interaction between people. The Average Revenue Per User (ARPU) per annum of $0-25.
- An Online industry network provides internet applications to facilitate collaboration, information distribution and markets between participants within an industry. A focus on industry increases ARPU to more than USD1,000+ per annum.
- A virtual financial market provides internet applications to facilitate collaboration, information distribution, order execution, product distribution and markets between participants in multiple asset classes within the financial market. (ARPU > $1,000 per annum). Financial markets become transparent and pricing moves from premium pricing based on opaque channels toward the cost of “freelancer” information manufacture and internet distribution.
- A gross profit margin of 90+% is achievable on the ARPU above by using Amazon web services. This service reduces the cost of transferring/storing data to less than USD0.020 per gigabyte.
- domain name owners could move beyond PPC revenue and apply an online network to increase ARPU. The time and cost to deploy could be significantly reduced by participating in an open source software “solution” project.
- Online political networks provide internet applications to facilitate the exchange of information, collaboration and the political process between citizens, government executives, politicians and companies.
- Online social, industry and political networks will drive the next stage of economic development. An open source software “solution” could empower a generation of social and commercial entrepreneurs. Online networks provide transparency, market access and the potential for immediate liquidity in services, capital and information.
