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Is there business on the net? Silvia Reyes’s response

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Is there business on the net? Silvia Reyes’s response

Three big questions related to online business models.
After having had classes related to e-commerce, Silvia Reyes , a student of the eighth version of the Master in Direct and Digital Marketing , affirms on her blog that there is business on the web . There, he tells of the commotion that was mounted in the networks with the announcement of WhatsApp about the change in the policy of conditions of use (the instant messaging service would go from being free to being paid) and speaks of the growth in business volume digital depending on what you bring to the GDP (23,400 million euros to 63,000 million in 2015). Two stories that cover a single argument: the dilemma posed by the Internet business model based on “ everything for free ”. The real value of Silvia’s post does not come based on the style of her post. Not even of the importance of giving us an mobile no database free to the question of “to pay or not to pay” on the Internet. What is interesting is their act of courage and generosity in responding to the challenge that I gave to the MMDD 8 students at the end of the e-commerce classes : share their knowledge and concerns. Silvia has accepted the challenge and has given us a post that reflects on three major issues related to the subject.

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It occurs to me that what I can contribute to you in exchange for the post you have given us is the same thing that I tried to share with the students during the classes: the use of the question as a resource of business value. For this reason, I will answer the questions that Silvia asks us “a la gallego”. I will answer you with questions. For this, with Silvia’s Betting Email List , I will convert the title of her post “there is business on the net” into a “is there business on the net?”. The relevant questions in this exercise related to the world of e-commerce would be: WhatsApp changes the terms of use . Actually, what happened is that WhatsApp made a communication management error. Line, its direct competitor, took advantage of this mistake to increase market share. From this it follows that the relevant issue is not the issue of payment for the service but rather the relationship with customers and their strategy vis-à-vis competitors. The question in this case would be how many customers has WhatsApp lost and how many has Line gained? What kind of clients have they lost / gained? The business value in this case is not that of the reaction of the customers but that of the market objectives. Faced with the dilemma of “to pay or not to pay” on the Internet , what we really have to consider is the net value of the “total free”. In abusiness modelwhere the greatest value to monetize a platform is to have information about consumers, what happens is that the product is not the platform itself or the use of it. The product is the consumers themselves. When we do a search on Google, what is relevant is not that the use we make of this platform is “free”. The important thing is that we are providing Google with valuable information that they are responsible for monetizing through Google Ads. It’s not that we don’t pay Google, it’s that we are the product. Hence, the question in this case would not be if Internet users are good or bad payers, but with what “bargaining chip” and how are we paying what we consider to be free?
Regarding the opportunities represented by developing a presence in the online world as a new line of business that works in a different way, what we would have to question is the role that digital business is going to play in the income statement. Where will we reflect our digital development? What will we measure? What will we value and where will we reflect losses? C omo Silvia points out in his post, this is what we know as e-commerce .
Questions and answers aside, having students like Silvia is what makes the Master in Direct and Digital Marketing have a unique value. Exercises like the one Silvia has done are the ones that make the teacher’s learning journey as or more enriching than that of the student. Thank you Silvia for giving us your knowledge.

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