3 Digital Business Types that Make Most Profit in Modern Era – Digital business is a business model that utilizes the digital technology we can find today. In short, it is a modern or futuristic business. This business model will last and replace the old and traditional business model. It has various benefits, such as being more effective, profitable, and easy to start.
Currently, there are at least three types of business that we can include in the digital business type. This article will explain everything about each of those business types. Our goal is for you to understand and can apply or choose which business type you want to try, if you want to start a digital business.
E-Commerce Business
From its name, we believe you already know what this business is. It is a business that uses a digital platform to promote and sell its product. The easiest example is an online store. You build a website, put your product on that website, then promote and sell it using the online transaction method. The other example is the delivery app. Your customer uses this platform to order the product from you, and then you send it to them after they complete the transaction.
This digital business has a wider reach compared to the old and traditional business platforms. As long as the customer has the device and internet connection to access the platform, the opportunity for the transaction will rise and be higher than the old business platform. Because of that, many business owners use this model for running their businesses today. The COVID-19 pandemic also accelerated the usage of this business model.
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Subscription Business
Interestingly, this digital business uses the same concept as the old business model, which is a subscribed service. In the past, you might have experienced subscribing to a newspaper or magazine. This business model is the same. However, it uses digital technology, which mostly also sells digital products. Once again, it has advantages in its range and portability of the product.
You can find many businesses that use this model. For example, Netflix, Amazon Prime, Disney+, and many more. They charge the user for membership or subscription fees to use their service. As you also can see, the products they sell are digital products, which are like a movie.
Even though most of the subscription business model sells a digital product, it doesn’t mean this digital business only is limited to that product. Nowadays, you also can find many companies trying to use the subscription model to sell their physical product. You can find subscription types that sell snacks, healthy meals for diet, and many others.
Ad-Supported Business
We can say that the ad-supported business was born because of the rapid development of digital business. The demands in this business model allow the ad-supported business to run and make a profit from it. Yes, as you might already guess, this type of business depends heavily on the income from the advertisement.
Therefore, the ad-supported business tries to provide a platform that can reach more people. That will increase the effectiveness of the advertisement that other companies put there. For that reason, most ad-supported businesses provide a service that many people can use, such as social media or communication platforms. The best example of this model is Twitter, Facebook, Instagram, and WhatsApp. They provide their service for free, but they put ads on their platform.
Conclusion
As you can see, you can find this type of business almost everywhere today. You might also use it a lot and feel many benefits from it. The digital business will last much longer, especially when digital technology becomes the foundation of people’s life.
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