The revenue model
Saturday, June 14, 2008
Hi… today I would to share the various revenue models and compare the revenue model for Google, Amazon.com and eBay. Revenue models define as the techniques for generate of income from business activity. There is five type of revenue models available, 1) subscription revenue, 2) transaction revenue, 3) access revenue, 4) advertising revenue, 5) sale revenue.
First, I would like to discuss the revenue modal of Google. Search services and advertising are major way for Google to generate revenue. More than 90% of Google revenue is generated by advertising services. The principal services provide by Google include Google AdWords, Google AdSense, Google Answers, and Froogle.
Google AdWords provide advertising services. Advertisers select their own target keywords and only pay when customers click on their ads. Google AdSense is an ad serving program run by google. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.
Google Answers provide internet user to ask questions, and offer a price for an answer, and researchers answer them. Google will keep 25% of the payment for each a question is answered. Froogle makes it easy for internet user to find information about products for sale online. It makes no commission on sales. Advertising space is available for purchase to be displayed in Froogle in the form of Google AdWords ad.
Amazon.com was one of the first major companies to sell goods by internet. Amazon started business as online bookstore but nowadays they become multi sellers. The product sell by Amazon include toys, computer software, electronics, DVD, MP3 format many more. Besides selling product, they also provide web services such as Amazon Simple Storage Services, Amazon Elastic Compute Cloud, and WebSstore. All this these activity are generate major revenue of Amazon
eBay is an auctioning collectibles and online shopping website. ebay allow buyer to browsing and bidding on item free for charge , but seller are charged. The charges are base on insertion fees, promotional fees and final value fees which are the main revenue of eBay. Insertion fees are charged when an item is listed on eBay, the fees is nonrefundable. Promotional fees are charged for additional listed options that attract attention for an item. Final value fees are a commission that is charged to seller at the end of the auction.
These three companies have showed a success in e-commerce by adopting different type of revenue model. Google are adopting advertising revenue model and access revenue model which can be show the major revenue of Google are contribute by advertising services. While Amazon.com are adopting sale revenue model by their selling activity throughout their website. On the other hand, eBay are adopting subscription revenue and transaction revenue by charging the seller on the item listed on their website and the commission charged on each completed sale transaction.
First, I would like to discuss the revenue modal of Google. Search services and advertising are major way for Google to generate revenue. More than 90% of Google revenue is generated by advertising services. The principal services provide by Google include Google AdWords, Google AdSense, Google Answers, and Froogle.
Google AdWords provide advertising services. Advertisers select their own target keywords and only pay when customers click on their ads. Google AdSense is an ad serving program run by google. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google.
Google Answers provide internet user to ask questions, and offer a price for an answer, and researchers answer them. Google will keep 25% of the payment for each a question is answered. Froogle makes it easy for internet user to find information about products for sale online. It makes no commission on sales. Advertising space is available for purchase to be displayed in Froogle in the form of Google AdWords ad.
Amazon.com was one of the first major companies to sell goods by internet. Amazon started business as online bookstore but nowadays they become multi sellers. The product sell by Amazon include toys, computer software, electronics, DVD, MP3 format many more. Besides selling product, they also provide web services such as Amazon Simple Storage Services, Amazon Elastic Compute Cloud, and WebSstore. All this these activity are generate major revenue of Amazon
eBay is an auctioning collectibles and online shopping website. ebay allow buyer to browsing and bidding on item free for charge , but seller are charged. The charges are base on insertion fees, promotional fees and final value fees which are the main revenue of eBay. Insertion fees are charged when an item is listed on eBay, the fees is nonrefundable. Promotional fees are charged for additional listed options that attract attention for an item. Final value fees are a commission that is charged to seller at the end of the auction.
These three companies have showed a success in e-commerce by adopting different type of revenue model. Google are adopting advertising revenue model and access revenue model which can be show the major revenue of Google are contribute by advertising services. While Amazon.com are adopting sale revenue model by their selling activity throughout their website. On the other hand, eBay are adopting subscription revenue and transaction revenue by charging the seller on the item listed on their website and the commission charged on each completed sale transaction.
