Revenue model describes as using different kinds of technique in generating from the publisher’s websites. Revenue model can be divides into 5 different kinds of techniques, there are:
Sales: Its include sales of goods, services and also merchandise information that provide in the publisher’s website.
Transaction fees: Company will earn commission from every transaction that have been made or based on the volume of transactions that conduct in the website.
Advertising fees: Publishers would allocate advertisements spaces in their website to let other company to place their advertisement and receive the fees from that company.
Subscription fees: This would charge to the customers who would like to subscribe to contents or services that provided by the website on a monthly or yearly basis.
Affiliate fees: Commissions will be received by company for referring customers to others web sites. It includes CPM (cost per thousand impressions), CPC (cost per click) or CPA (cost per acquisition/action).
Next, we would like to introduce the revenue model of the 3 popular websites which provide e-commerce services. There are Google.Com, Amazon.Com, and eBay.com.
Google’s Revenue Model
The main income of Google.com is generated by the advertising revenue model. Google advertising revenue model includes Google AdWords, Google AdSense and Froogle.Google AdWords is a pay per click advertising program of Google designed to allow the advertisers to present advertisement to people are looking for information related to what the advertiser has to offer. When a user searches Google search engine, ads for relevant words would shown on the screen. Google generate most of the revenue from Google AdWords.
Google AdSense is an ad serving program. Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Mostly the revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads administered by Google.
Froogle is a price engine website launched by Google Inc. It is a service from Google that makes it easy to find information about products for sale online. Advertising space is available for purchases to be displayed in Froogle in the form of an AdWords ad.Currently, Google is testing a new advertising program that pays site owners based on a Cost-Per-Click model, called Cost-Per-Action. It was revealed via an invitation e-mail from Google AdSense team to Web site owners.
Amazon.com Revenue Model
Another e-market web site is Amazon.com which was one of the first major companies to sell goods through the Internet. Amazon generates revenue primarily on selling books, videos, electronics, and kitchen equipment on domestic and international Web sites.
Product Ads is an advertising program that puts products in front of millions of Amazon.com customers. Seller can simply upload their product catalog and set the cost-per-click bids and daily budget. Amazon will then display the ads in highly targeted placements throughout the Amazon.com site. When customers are interested in buying such product, they click through to the website and purchase the product directly from the company.Amazon Marketplace is Amazon.com’s fixed price online marketplace that allows sellers to offer their goods alongside Amazon’s offerings. Buyers can buy items which sold directly by third party through Amazon.com Marketplace. Amazon.com would charges on a commission rate based on the selling price of products or services, transaction fees, and also variable closing fees which this sales strategy and program has give profitable income for Amazon.com.
Besides, Amazon.com also generates their revenue by using Affiliate revenue model. AStore is Amazon.com affiliated product which website owners can use to create an online store on their site. The store does not allow website owners to sell their own products directly to customers. Website owners pick products from Amazon’s store and earn referral fees on the products purchased by their readers. The fee structure is currently the same as for the other affiliate links.
Ebay Revenue Model
Ebay is an online auction and shopping website in which people buy and sell goods and services worldwide. Millions of items bought and sold daily through this website and EBay normally generates revenue from a number of fees which are insertion fees, promotional fees, and final value fees.Insertion fees will be charged when an item listed on Ebay.com and this fee is nonrefundable. However promotional fees is the fees that charged for additional listing options that help to attract attention for the item. While final value fees is the commission that charged to the seller at the end of the auction.
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