• Investment analysts define business model as the difference between revenues and costs. The gross profit margin or gross profit divided by revenues is used as a way to compare business models with one another. When the Internet first started, investment analysts used gross margin instead of net income margin to compare Internet business models as net income margin was usually negative. Within the world of business modeling, there are several different types of business models which are enabled by the Internet.
  
  

Manufacturing Model

• The Manufacturing or Direct Model is a model which allows manufacturers to deal directly with the consumer. In this model, the Internet acts as the middleman for both the consumer and manufacturer which ultimately improves gross profit.
  
  

Advertiser Model

• This is the traditional broadcast model. Common examples are Craigslist and Ask.com or other search engines which require a fee or user registration.
  
  

Data Model

• The data model looks at trends in data (usually consumer data) to help sellers to develop better marketing campaigns. One common Internet example is Alexa.com which ranks websites on the web according to popularity.
  
  

Commission Model

• This is perhaps one of the most prolific Internet enabled business models. Now almost anyone can get a license to sell product over the Internet as an affiliate. All you need is an affiliate number. The Internet reduced the amount of time it takes to track sales which made the entire model more efficient.