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CHAPTER3
SELLING ON THE WEB
LE AR N I NG OB JE CT IV ES
In this chapter, you will learn:
• What a revenue model is and how companies use various revenue
models
• How some companies change their revenue models to achieve success
• Revenue strategy issues that companies face when selling online
• How to create an effective business presence on the Web
• What factors enhance Web site usability
• How companies use the Web to connect with customers
INTRODUCTION
In the 1980s, Progressive was a relatively small auto insurance company that specialized in writing
policies for people who had poor driving records and could not qualify for regular policies sold by
other insurers. Progressive charged higher premiums for these policies, which the insurance industry
calls substandard policies. Often, other insurers who could not write standard polices for customers
would refer those customers to Progressive. The combination of high premiums and the lower cost
of its smaller sales force enabled Progressive to earn good profits on the substandard business.
Eventually, other insurers noticed Progressive’s success and began to offer their own substandard
policies.
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