1. MedNet.com MBAA 609 R. Nakatsu

2. What is MedNet’s business model? Internet business models “are at heart, stories—stories that explain how enterprises work.” Who is the customer? What does the customer value? What is the product/service it offers? How does MedNet generate revenue? What differentiates MedNet from its competitors (see next slide)?

3. Competitive Threats Marvel Niche web sites (Nonprofit and governmental web sites) How do these web sites threaten MedNet’s business model?

4. Web Analytics is technology that tracks the behavior of each site visitor—pages viewed, links clicked on, and so on. What can you track? Page views Links clicked on Conversion?

5. Calculating ROI Sales profit per advertising campaign = [ (# of impressions) * (click through rate) * (percent who buy) * average sale’s profit margin ] - advertising cost ROI (return on investment) = Sales profit per advertising campaign Cost of the Advertising Campaign Web Metrics Tool

6. Assumptions: MedNet vs. Marvel Conversion Rate Contribution per Sale MedNet6%$150 Marvel2%$45 See Exhibit 3See Exhibit 4

7. Main Takeaways Understand variations on the advertising revenue business model. Understand the difficult tradeoffs that must be made in deciding on your business model. Engage in quantitative analysis using web analytics. In particular, you can calculate the ROI for advertising campaigns. Analyze the competitive threats faced by web companies.