thank you, you're always so helpful!
so in my case i'd be B2C right?
the idea would be that it would be a yearly paid membership, like wgsn or wwd. would that still be a minor source of income? so i shall put what you said, that ads would be the biggest source of revenue but in order to get it i'd need members and a big number of hits. if the website were to work, i'd prob need a backer to begin with, right? because i wouldn't be able to rely on advertising money on the first few months because there wouldn't be any! right?
Hiya, Katie!
You need a backer only if the business model really NEEDS capital support to achieve its financial and sales goals, not just because you WANT it. Bakers will only support you -above anything else- if they believe in YOU and YOUR ABILITY to deliver your business according to its plan. Only if project financial goals are attractive enough and, of course, market objectives are realistic and achievable in a reasonable time, then backer COULD be interested in having a detailed look at your project. Note that you'll usually have 3 different kinds of backers:
1)
FFF or "Family, Friends and Fools". Money is lent to your lovely folks or come from some rich dude with no business-sense-whatsoever that puts money in because he/she just kind of "facebooked liked" your project (see also crowdfunding projects through Kickstarter). Usually there's no management nor expertise support coming from this type of backer.
2)
A bank, supplier (i.e. business loan, credit term). Not even in your wildest dreams you'll have management or expertise support coming from them.
3)
An investor (i.e. venture capitalist, business angel). This folks will be only interested if your project requires OVER several million dollars and, of course, has a high chance of returning their investment several times before 2 or 3 years. They'll also support you with tons valuable management and expertise.
WGSN is part of a huge B2B publisher named EMAP. WGSN, taking advantage of the loads of information this publisher generates for businesses in different sectors (including that of the fashion industry), provides a specialised information service mainly for small fashion boutiques that includes exclusive news, creative direction, and loads analysis and trends about catwalks, trade shows, colour and materials, visual merchandising, buying and sourcing, business strategy, etc. Their main source of income is subscriptions (which cost several thousand dollars per year even for small businesses) not advertising.
Advertising models work best when site has:
1) loads of traffic (i.e. mainstream social networks, media (news or entertainment) or search portals, etc.). Think of Perez Hilton, Gawker, Vogue, Glamour, etc.
2) few but very specialised and high-quality traffic (B2B, niche media or blogs (news or entertainment), aggregators or price search engines or comparison sites, communities, etc.). Think about famous street style fashion blogs, forums or communities like tFS or Chictopia, fashion aggregators like Polyvore, etc.
CPM (cost per thousand of impressions) is the model commonly seen on high traffic sites. Works best for brand awareness than for direct sale. Newbies advertisers tend to pay for CPM thinking about generating tons of sales without realising more effective models to achieve that like cost-per-click (i.e. Google AdWords) that give them the option to pay for the ad only if user clicks on it (of course, old-fashion and traditional publishers hate this).
Consider also generating income through commissions (affiliate or CPA or cost-per-acquisition). Here you can have a mainstream or a very specialised news site and income will be generated when users click on a link that sends them to
Finally, when formulating the business e-strategy for your project, consider emergent advertising trends like banner blindness, privacy laws against "cookies" used by marketers and advertisers, advertisers paying by results, the lowering conversion rates, etc.