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Micro-commerce involves buying and selling soft content at low prices, often using micropayments. Pay-per-click advertising is a popular example. Micro-commerce is evolving as more businesses use it to reach new customers and share revenue with website owners.
Micro-commerce has involved the buying and selling of goods and services that are believed to be soft content. In general, the cost of buying and selling software content is relatively low. The micro-commerce concept allows you to engage in businesses that are usually considered too small for a regular credit card.
In understanding micro-commerce, it is important to understand the concept of soft content. In essence, software content is any kind of access to information, software or general services at very low prices. The price range for software content can be as low as a few dollars per unit, or even be priced at a fraction of a cent per unit. The ability to use the micro-commerce model allows businesses to create and sell soft content in order to earn what is sometimes a substantial profit based on the sheer volume of purchase transactions that take place. When a person chooses to purchase one of the products or services in a micro-commerce environment, he or she is effectively offering what is known as a micropayment.
One of the best examples of micro-commerce environments that thrive on collecting micropayments is pay-per-click advertising. Pay-per-click is widely used on the internet as a means of generating income in small increments. Generally, a pay-per-click strategy will generate anywhere from a fraction of a cent of the revenue up to several cents for a single click. If the ads or icons are clicked frequently, this can lead to a steady stream of revenue for the owner of the website where the ads reside.
Micro-commerce continues to evolve as the internet becomes more popular as a means of conducting all types of business transactions online. Businesses may choose to use micro-commerce as a means of gaining permission to place advertisements on various private and corporate websites, effectively creating yet another sales tool that can be used to reach new customers. In exchange for this privilege, the owner of the ads will share the revenue with the website owner via pay-per-click or similar methods.
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