Online auctions, the new business model for publishers
What is the first thing that comes to your mind when you think of auctions? Dodgy rooms? Rich clients? Emotions? Did you think of the business opportunities auctions can offer? And especially online auctions. Let me tell you about the business opportunities online auctions can offer.
Demand and supply
Actually, it makes sense when you think about it. A publishing platform works because of demand and supply. You offer information about a subject and reach a big crowd who want to know more about it. You probably even sell ads to companies who offer that specific subject. For example; classic cars, horses or other livestock, even real estate.
You are already focusing on demand and supply. And you offer your advertisers the possibility to get in touch with an audience that is already interested. What if you can go to the next level in this mediation role? Create an interactive platform with a lot of information about a subject, but also the direct possibility to buy something.
Especially if you are publishing information about products that are already sold in an auction. For example; livestock, art or classic cars. The audience is already used to going to an auction if they want to buy something. But a live auction also has a simple reason people sometimes don’t go, they have to go there, whatever place it might be.
Use online auction to create the ultimate publishing platform
Can you see it? A publishing platform with content that drives an audience to your platform and offers them the possibility to bid on their favorite items.
And what of the advertisers. Instead of just buying ads they can really bring their product to life and with a multi-tenant set up, you can offer them to set up an online auction in their own look and feel.
What is the business model
It’s not just about organizing these auctions and creating a more relevant publishing platform. With adding online auctions you can add extra profit to your organization. There are multiple options, but one of the most popular is a commission based fee. For every transaction on an online auction you will receive a commission. That’s a fair business model for your advertisers and it doesn’t affect the people who buy something on an online auction.