Our business model as an ISP with self-developed products offers decisive benefits
Broad Product Range, stable Sales and Earnings
United Internet boasts a wide range of innovative internet products. Our customers sign subscription contracts with us based on fixed monthly fees. These contractual commitments secure stable revenues and earnings. Our own in-house product development and marketing help us roll out innovations faster than most competitors.
Our products are marketed via a diverse and strong portfolio of brands, including 1&1, yourfone, smartmobil.de, IONOS, Strato, Arsys, Fasthosts, Sedo, united-domains, GMX, WEB.DE and mail.com. This broad portfolio enables us to reach a wide range of markets and target specific customer groups.
High Degree of vertical Integration
Wherever it makes good business sense, we cover the entire value chain – from the technological base to self-developed software products, effective marketing, powerful sales, and active customer support.
Internet Factory for tailored Solutions
At the heart of our business model is our Internet Factory, where we apply the mechanisms of rationalized production. Our highly efficient development departments “manufacture” products which represent the backbone of our online business. Our Internet Factory enables us to extend our product lines almost at will, as well as to bundle and scale them.
New Customers enhance Profitability
Economies of scale represent a further key concept for us. Every new customer enhances the profitability of our Internet Factory. Investments in our factory have been made and products developed in the form of web-based applications. Now it is a question of utilizing them as fully as possible. The greater the number of customers using products developed at our Internet Factory, the greater our profit will be.
Cross-Selling and Upselling
With our contractual relationships with more than a third of all small companies and freelancers and over 50 percent of all e-mail users in Germany, as well as relationships with over 4.6 million customers abroad, United Internet is ideally positioned to exploit new growth opportunities.
A further advantage is our targeted marketing. Every United Internet customer gets the exact product he or she needs. This is made possible by our established brands and exclusive sales channels.