Businessmodel of Web.com

Customer Segments

Web.com has a niche market business model, with a specialized customer segment. The company targets its offerings at small and medium-sized businesses.

Value Proposition

Web.com offers three primary value propositions: accessibility, customization, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired several firms since its founding, including Donweb.com, Yodle, Scoot Business Directory, Network Solutions, Star Group Bangalore, and Solid Cactus. This strategy has enabled it to greatly expand its capabilities and diversify its portfolio.

It now offers a broad range of services, including domain name registration, website design and management, hosting, online marketing, and search engine optimization. In the area of website design, it provides three different options:

• Do-It-Yourself (DIY) – Customers are in control of website building from start to finish
• Do-It-With-Me (DIWM) – Customers obtain support from company staff while building their websites
• Do-It-For-Me (DIFM) – Customers give complete control of website building to company staff The company has established a strong brand due to its success. It has one of the largest domain name registrars in the world. It serves more than 3.4 million customers and has over 3,500 employees across North America, the United Kingdom, and Latin America. Lastly, it has been ranked the fourth largest search marketing firm in the U.S. by Advertising Age.

Channels

Web.com’s main channel is its set of websites. It also sells its offerings through a direct sales team and a network of resellers and affiliate partners. The company promotes its offerings through its social media pages, online/TV/radio advertising, e-mail marketing, direct marketing, sponsorships, and participation in seminars and conferences.

Finally, it hosts free “Webwise Workshops” on online marketing across the country for small business owners.

Customer Relationships

Web.com’s customer relationship is primarily of a self-service, automated nature. Customers utilize its platform while having limited interaction with employees. The company’s website provides articles, tips, and tools on website design, and answers to frequently asked questions. It also features a “Document Library” with useful tools such as white papers, surveys, data, and infographics.

Despite this orientation, there is a personal assistance component. Customers have the option of delegating all website design processes to company staff. Also, Web.com provides sales and technical support through phone service.

Key Activities

Web.com’s business model entails maintaining and updating its platform for its customers.

Key Partners

Web.com maintains the following types of partnerships:

• Resellers - The company works with third parties that sell Web.com web hosting plans in order to extend its reach; partners include web designers, developers, and IT professionals
• Licensing Partners – The company offers firms licensing opportunities in various aspects of web service delivery, including web hosting, website design, graphic user interface, web server management, and data center management
• Affiliate Partners – The company works with third parties that promote its offerings on their platforms (websites, mobile apps, etc.) in exchange for a commission of up to $200 ### Key Resources

Web.com’s main resource is its proprietary software platform.  It depends on human resources in the form of engineers that maintain and update its platform, web design professionals that build customer websites, and customer service personnel that provide support.

It maintains important physical resources in the form of data security facilities in Florida, Georgia, Texas, Virginia, New York, Washington, Pennsylvania, Ontario, and Nova Scotia. It places a high priority on its intellectual property, with 49 issued U.S. patents and several patent applications pending. Lastly, it has relied heavily on outside parties, raising millions of dollars from investors.

Cost Structure

Web.com has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is cost of revenues, a variable expense. Other major drivers are in the areas of sales/marketing, administration, and technology/development, all fixed costs.

Revenue Streams

Web.com has two revenue streams:

• Subscription Revenues – Revenues it generates from subscription fees charged to customers for its web, eCommerce, online marketing, and domain registration services
• Professional Services and Other Revenues – Revenues it generates from fees charged to customers for its custom website design, eCommerce store design, and support services