Women Online Club

Establish a Business using the Infomediary Model

20. 07. 2015Author: Alexandra John

Women these days are more interested in becoming entrepreneurs than ever before. But what if we told you becoming an entrepreneur is possible and that too, without having to invest all your life’s savings? Yes, there are many tried and tested internet business models that you can choose from to turn your dreams of the becoming an entrepreneur into a reality.

Establish a Business using the Infomediary Model

One such model that we will discuss in full detail in this article is the infomediary model; from what it is to how it works and what the advantages and disadvantages of selecting this particular model are.


The Concept behind the Infomediary Model

The infomediary model is one of the major internet business models characterized by the sharing and gathering of information. Even though you may not have heard about the infomediary model before since the concept emerged a couple of years ago, one of the simplest forms of the infomediary model is the registration model.

In the registration model, companies or entrepreneurs require the users to register prior to gaining access to the information present on their websites even though at times, the information provided free of cost.

Another form of the infomediary model is all about gathering information and analyzing the data that other businesses may find useful in the decision making process when launching their marketing campaigns. But it can work the other way round too; you might find websites that collect information related to different products offered by businesses in order and make the information available to the customers when considering a purchase.

The information that is most commonly collected from consumers is related to the products or services they prefer, their buying habits and personal information such as age, income, gender, etc. By reviewing this information, companies can come up with even more sophisticated marketing campaigns to tap into the right target audience.


History of the Infomediary Model in a Nutshell

For the very first time, the infomediary model was implemented by an online advertising company called All Advantage in 1999.  However, the business crashed and burned within a couple of years.  Then in the beginning of 2000, a third party infomediary by the name of NetZero was launched. This company offered consumer free access to the internet of up to 40 hours every month in lieu of their personal information.

The deal was designed by NetZero in such a way that consumers were required to use a special browser called ZeroPort that displayed ads to the consumers based on the marketing information given to them. ZeroPort also doubled as a web navigation tool that provided customized information pertaining to different categories such as news, stock prices, sports, email, etc.

But that’s not all; NetZero also offered small businesses an opportunity to reach out to regional and local consumers using the ZeroPort browser in collaboration with the marketing software manufacturer Amazing Media and measure the performance of their current marketing campaigns.

NetZero also enticed the customers with another great deal. Those who found banner ads irritating could gain access to quality internet services without banner ads at incredibly cheap prices. Soon Compaq showed interest in what the company was doing and collaborated with NetZero to provide its services through affinity programs.

Affinity programs were emerging marketing distribution channels that combine internet services and computing hardware products in a customized package for certain market segments like healthcare providers, financial companies, educational institutions and telephone companies.

These companies in turn participated with their customer base, members of the organization and employees through the internet by providing them with a bundled device for access and integrated ISP for connectivity.


Real Life Examples of the Infomediary Model

One of the best examples to help woman entrepreneurs understand the registration model of the infomediary is companies that offer website visitors white papers or articles including valuable advice or information. Such articles and white papers are usually written by experts hired by the company. Registration is a mandatory condition that must be fulfilled by all visitors in order to gain access into the website or download articles and other data.

Once the visitor’s information is gathered by the company, it is then used to make sales call as a technique to amass new potential customers and turn them into new clients.

Another example of the infomediary model in which companies provide unbiased information to consumers is Gomez, Inc. This company provided customers with three distinct types of services. was a website that provided customers with reviews as well as internet scorecards for online products and services falling under the category of personal finance, travel and shopping.

The company used minimum 120 different criteria to evaluate the quality of the goods and services offered via the internet for various sectors. According to the company, had successfully certified more than 6,000 online agents in more than 75 various countries around the globe. Gomez, Inc. also offered small businesses a subscription based service for market research called GomezPro.


Advantages and Disadvantages of the Infomediary Model

  • Woman entrepreneurs have a real shot at making big bucks using the infomediary model if they can provide useful information to business and clients and gain their trust. This model is ideal for use if you have a competitive advantage in a particular industry just like Neilson has incontestable power over television viewership information and relevant statistical data relevant to the industry.
  • However, there is one major disadvantage of the infomediary model that woman entrepreneurs must pay due attention to. Building a database containing specialized information and relevant data is absolutely necessary and the process is quite time consuming. You may have to spend days working on creating a proper database before you will be able to monetize your website using this model.

Now that you know exactly what the infomediary model is all about, you can jump start your very own online business based on this particular internet business model and fulfill your dreams of becoming an entrepreneur today!


relevant posts

Ten things you should know about starting a business

Women and men are equally dominating today’s business world, with female entrepreneurs rising toward... [more]

24. 09. | Alexandra John


what next?

Find a business partner

Contact us

Business terms and conditions

Copyright © 2017 Women Online Club. All rights reserved.