10 web based business models-Atul

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ent Web-Based Business Models

Brokerage Model

Their job is to bring sellers and buyers together by providing a service that

will make their life easier. In exchange for the service, companies using the

brokerage model usually earn by charging a fee or commission for each

transaction processed. Again, this is a very powerful model because you are

simply in charge of the technology, not the items which the sellers are

selling. They charges a fee or commission for each transaction it enables.

The formula for fees can vary.

Founders: Elon Musk

Luke Nosek

Ken Howery

Founded: 1998

Users: 173 million

HQ: San Joes, California

Revenue: $ 8.03 billion

It is an American company operating

a worldwide online payments

system. It serve as electronic

alternatives to traditional paper

methods.

PayPal, users can send or receive

payments for online auctions on

websites like eBay, purchase or sell

goods and services, or donate

money or receive donations.

Founders: Ben Milne

Shane Neuerburg

Founded: 2010

Users: 500000

HQ: Des Moines Lowa


Dwolla had charged flat fees of

$0.25 per transaction over $10,

later on Dwolla has switched to

a Freemium model, with free basic

sending/receiving of money (up to

a $5,000 limit for personal

accounts, or a $10,000 limit for

business, government or non-profit

accounts)

Merchant Models

The merchant model is used by all the online wholesalers and retailers of

good and services. This models, such as Amazon, operate storefronts on the

Internet that provide a shopping experience similar to catalogue shopping.

The advantages of a merchant model is that you get to keep the biggest

portion of profits. Since you own the products, you get to decide what to do

with the money you earn. Overall, this model can yield the highest revenue

since you also have control over the prices

Founders: Jeff Bezos

Founded: 1994

HQ: Seattle, Washington


The company was founded in 1994.

Amazon.com lets almost anyone sell

almost anything using its platform.

Amazon is selling non-exclusive

items, the only way to differentiate

from competitors was to slash prices.

Amazon encourages customers to

check out products in brick-and-

mortar stores (like Target and

Walmart) and then hunt them out on

Amazon for a price comparison.

Amazon doesn’t reveal how many

third party sellers it has in its

marketplace, but some 40% of all

goods sold on the site are via third

party sellers, accounting for roughly

12% of Amazon’s total revenue.

Amazon’s relationship with third

party sellers has been a rocky one

Founders: Kunal Bahl

Rohit Bansal

Founded: 2010

HQ: New Delhi

Revenue: $90 million

Snapdeal was started on 4

February 2010 as a daily deals

platform but expanded in

September 2011 to become an

online marketplace. They have tie-

ups with several retailers who can

sell their products through their

website. So, Snapdeal is earning a

commission for each sale, and some

of sellers even charge for posting

products on website. Snapdeal has

grown to become one of the

largest online marketplace in

India offering an assortment of

10 million products across diverse

categories from over 100,000

sellers.

Advertising Models

The web advertising model is an extension of the traditional media

broadcast model. The broadcaster, in this case, a web site, provides

content (usually, but not necessarily, for free) and services (like email, IM,

blogs) mixed with advertising messages in the form of banner ads. The

broadcaster may be a content creator or a distributor of content created

elsewhere. The advertising model works best when the volume of viewer

traffic is large or highly specialized. Services like Google

AdSense and have made it super simple for all sites to easily add

advertising to their site. While this model is one of the easiest to

integrate, it is only truly effective with high traffic websites.

The payment can be delivered in three ways: Cost per impression, cost

per click and a fixed cost. The latter is when an advertiser pays a fixed

amount regardless of how many times their ad is clicked or viewed.

Founders: Jerry Yang

David Filo

Founded: 1994

Users – 173 million

HQ – Sunnyvale, California

Revenue – $ 4.61 billion

It is globally known for its Web

portal, search engine, Yahoo!

Search, and related services.

According to news sources,

roughly 700 million people visit

Yahoo websites every month.

Yahoo announced APT from

Yahoo, which was originally called

AMP from Yahoo, an online

advertising management

platform. The platform simplifies

advertising sales by unifying

buyer and seller markets.

Founders: Scott Kunit

Founded: 1997

HQ – New York

Revenue – $ 270 Million

Users/Visitors - 61428000

It is an Internet-based network of

content that publishes articles and

videos about various subjects on its

"topic sites," of which there are

nearly 1,000. The website

competes with other online resource

sites and encyclopaedia. The

original business plan offered

writers a minimum monthly rate

of US$250, or one-third of

the advertising revenue generated

within their topic area.

Informediary Model

Infomediaries are similar to infomercials because they give information

designed to subtly sell a product or service. Independently collected data

about producers and their products are useful to consumers when

considering a purchase. Some firms function as infomediaries (information

intermediaries) assisting buyers and/or sellers understand a given market.

Some websites earn money by charging for information. Nowadays, this

model is also being used in another way: premium blog posts. By adding

private blog posts, readers can pay a small fee to view the private

information.

Parent Company: TOI Group

ZigWheels.com is an automotive

website based in India. Part of Times

Internet. ZigWheels provides

automotive industry news, reviews

and advice to consumers. Earn

through advertisements & TV show.

Founders: Stephanie Abramson

Founded: 1996

HQ – New-York


DoubleClick was founded as one of

the earliest known Application

Service Provider.

DoubleClick offers technology

products and services that are sold

primarily to advertising

agencies and media companies to

allow clients to traffic, target,

deliver, and report on

their interactive advertising

campaigns. The company's main

product line is formally known as

DART, which is designed for

advertisers and publishers.

Affiliates Model

Affiliate marketing is one of the best ways to earn money simply

because you own no part of the service or product. The company that

you’re affiliated with will take care of all sales and support queries.

Your job is simply to promote any item of your choice and wait for the

sales to come in. Of course, it is not that simple but can be truly

rewarding with some hard work, especially since you can create a very

successful business with just one person (yourself) working on it. In

contrast to the generalized portal, which seeks to drive a high volume of

traffic to one site, the affiliate model, provides purchase opportunities

wherever people may be surfing.

This model can be a huge revenue earner if your site has a healthy

amount of traffic. While the advertising model rewards the website

owner for simply advertising, this model rewards the owner each time a

user clicks on the promotion and ends up buying the product or service

or filling in a form. As an example, say a company sells a product for

$100 and they set an affiliate rate at 50%. This means that if you were

to promote this product on your own website, each time a user clicks

through your promotion and ends up buying the product, you would

earn $50.

Chris Guthrie – the guy making a

million dollars of Amazon affiliate

sales a year, of which he keeps

about 10%.

So believe it or not, but

Photography Tips is just one of

Chris’s dozens of niche sites.

Google AdSense is a program

run by Google that allows

publishers in the Google Network

of content sites to serve automatic

text, image, video, or interactive

media advertisements, that are

targeted to site content and

audience..

Community Models

The major players in Internet communities include the social networking giants, Facebook, Twitter and Myspace. Other social and professional

networking communities found online are smaller, specifically working with one demographic, such as divorce communities, cancer

communities and dating communities. Each community has a different set of needs, and an Internet community business model focuses

products and services directly at the target community. A business can accomplish this via blogs, web banners and becoming active forum

participants in the designated community.Open source communities also earn money by providing their software

for free but then charging for support, tutorials, user documentation and more.

Founders: Jimmy WalesLarry Sanger

Founded: 2001

Users: 125367 users/editors

It is a free-access, free-content Internet encyclopaedia, supported and hosted by the non-profit Wikimedia Foundation. Those who can access the site can edit most of its articles. Wikipedia is ranked among the ten most popular websites and constitutes the Internet’s largest and most popular general reference

Founders: Mark Zuckerberg

Eduardo Saverin

Andrew McCollum

Dustin Moskovitz

Chris Hughes

Founded: 2004

Users: 1.44 billion monthly

HQ : California

Revenue: $12.66 billion

Facebook's revenue comes from advertising. Facebook generally has a lower click through rate (CTR) for advertisements than most major Web sites. According to BusinessWeek.com, banner advertisements on Facebook have generally received one-fifth the number of clicks compared to those on the Web as a whole,although specific comparisons can reveal a much larger disparity.

Subscription Model

Users are charged a periodic -- daily, monthly or annual -- fee to subscribe

to a service. This type of model (which has been used extensively in the

offline world through magazines and newspapers), online companies

charge a daily, weekly or monthly rate for being able to log into site and

using private applications or viewing private information. This model is

quickly gaining popularity as companies use it to deliver web content and

applications with a subscription format rather than charging a one-time fee.

MD: Mr. Vikram Mehra

Founded: 1946

HQ: Mumbai, India

Saregama is known for its music

catalogue which consists of more

than 117,000 songs in 14

languages built over a period of

more than 100 years.

Key People: Tim Armstrong

Founded: 1983

HQ: New York City


It develops, grows, and invests in

brands and web sites. The

company's business spans digital

distribution of content, products,

and services, which it offers to

consumers, publishers, and

advertisers.

Freemium Model

A combination of the words "free" and "premium" used to describe

a business model that offers both free and premium services. The freemium

business model works by offering simple and basic services for free for the

user to try and more advanced or additional features at a premium.

Founders: Priti Kasesalu

Jaan Talinn

Founded: 2003


It is an application that specializes

in providing video chat and voice

calls. Users can also

exchange text and video

messages, files and images, as

well as create conference calls.

is an application that specializes

in providing video chat and voice

calls. Users can also

exchange text and video

messages, files and images, as

well as create conference calls.

Founded: 2007


HQ: San Francisco


It offers cloud storage, file

synchronization, personal cloud,

and client software.

Dropbox uses a freemium

business model, where users are

offered a free account with a set

storage size and paid

subscriptions for accounts with

more capacity

Utility Model

It is somewhat like subscription model but the difference is the

customers have to pay only on the basis of their

time of usage of site . There is no

fixed subscription fees

Founder: Nicholas

Founded: 1980

Formed by: don Nicholas

Formed in the year:2004

Focus on content marketing,

multiplatform product development

and

strategic revenue optimization, our

re-search, development and

consulting teams can help business to

dominate

its niche.

Earns its revenue from the people

sub-

scribing to this site

Created by: DHI Group Inc.

Founder: Rob Cmdr Taco

Jeff Bates

Founded in the year 1997

Earns its revenue from

advertisement and optional

subscription

It features news stories on science

and technology that are submitted

and evaluated by its users

It has approximately 5.5 million

users per month

Second hand Market

Founders: Pranay Chulet

Founded: 2008

HQ: Bangalore

Users: 125367 users/editors

Quikr is an Indian classified

advertising platform.

Quikr has a listings in

over 1,000 cities in India in

categories such as mobile phones,

household

goods, cars, Real estate,

jobs, services

And education

Founders: Fabrice Grinda

A.C.F. Oxenford

Founded: 2006

HQ : California

OLX (OnLine - Marketing) operates

as a national

online classified marketplace for

used goods including

furniture, musical

instruments, Sporting goods,

cars, youngster and baby

items, motorcycles,

cameras, mobile

Phones and property.

Makes Money Through: Google

AdSense banner

ads,

Sponsored links,

and Featured List-ing.

10 web based business models-Atul

Marketing

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