infomediary Business Model( 7)

A major Internet business model, the infomediary model is characterized by the capture and/or sharing of information. The simplest form of an infomediary model is the registration model. In this scenario, companies require users to register before gaining access to information on their Web sites, even if the information itself is provided at no charge. One possible scenario for this example involves companies that offer white papers, or expert articles containing valuable advice, to Web site visitors. These white papers usually are written by the company's experts, who are available as consultants. Registration is a condition for viewing or downloading the articles so the company can capture contact information and other data from the interested party and use it to make sales calls and potentially acquire new clients for its consultants.

Companies using an infomediary model also may be third parties that provide products like free computers or services like free Internet access to consumers in exchange for information about themselves. This information is then sold to other companies who use it to develop more sophisticated, successful marketing campaigns. The information collected commonly includes things like product and service preferences; buying habits; and demographic details like age, sex, and income level.

In the early 2000s, NetZero was one example of a third-party infomediary. The company offered 40 hours of monthly Internet access to more than 8 million consumers in exchange for their marketing information. As part of the deal, consumers were required to allow a special browser called the ZeroPort to remain on their screen while online. The ZeroPort displayed ads that, based on the marketing information they provided to NetZero, were likely to interest them. It also served as a Web navigation tool and displayed customized information like sports, e-mail, news, and stock prices. Using technology from marketing software manufacturer Amazing Media, NetZero also allowed small businesses to reach local or regional consumers through the ZeroPort and view the daily results of their online ad campaigns.



An example through this video: