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Index Page
Business Model of the Website
CoolAvenues largest MBA community in India presents a much-focused community for advertisers who wish to reach out to this very high potential group. The normal CoolAvenues surfer is around 27 years of age, has an MBA as a degree, works with either an MNC or some top Indian company and is highly educated. CoolAvenues.com is basically an Advertising Model because it generates its revenue and sustains it business through advertisements. It is also an Infomediary model as it contains first hand information about B-Schools and MBA events.
Let us first study how a web-advertising model works.
Some Important Definitions
Advertiser: One who purchases or barters for advertising space on an email list.
Closed Subscription: The list owner must approve all new subscribers before they are added to the list
Confirmation: A potential subscriber must authenticate their subscription request by replying to an authentication message. Used to prevent others from signing up people maliciously.
CPA: Cost Per Acquisition. An advertising arrangement whereby publishers are paid only when subscribers make an actual purchase or acquisition. It's one step beyond cost per click
CPC: Cost Per Click. An advertising arrangement where advertisers are charged a set amount for each click-through.
CPM: Cost per 1000 impressions
Impression: One view of one page by one user, used in calculating advertising rates
CPA in theory is ideal for advertisers
Have to pay for the ultimate sales success of campaign - zero risk.
Publishers have to take an active interest in the placement and pitch of advertiser's product, because they benefit directly from ad's success. *
Most online businesses today rely heavily on advertising revenue for sales and hopefully profits. New companies are being created everyday at a faster rate than probably anytime in the past. These companies need to become know, so they advertise. **
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* Article: "Advertising Model: Cost Per Acquisition" By Todd Kellner
** http://www.investmentsdirect.com/stories/webadmodel.htm (Article: Web Advertising Model)
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