10 web business models of the 21 century
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Web Business Models Of
the enturyWendell Godinho
Brokerage ModelAdvertising ModelInfomediary ModelMerchant ModelManufacturer ModelAffiliate ModelCommunity ModelSubscription ModelUtility ModelFreemium Model
They bring buyers and sellers together
and facilitate transactions.
Brokers play a frequent role in
business-to-business (B2B),
business-to-consumer (B2C), or
consumer-to-consumer (C2C)
markets. Usually a broker charges a
fee or commission for each transaction
it enables.
1. Brokerage Model
Founder: Pierre Omidyar
Launched: September 3, 1995
Generates: US$17.90 billion (2014)
Subscribers: 159 million active users
Number of varieties, Deals, secure, convenience, and safe
Ebay Founder: Elon Musk,
Luke Nosek,Ken Howery, Max Levchin,Peter Thiel
Launched: December 1998
Revenue: $8.03 billion (2014)
Subscribers: 173 million accounts were active
PayPal is the cost-effective way for eBay sellers to accept credit card, debit card, and bank account payments. Sellers only pay low transaction fees when they receive payments for eBay items.
Paypal
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2. Advertising ModelThe web advertising
model is an extension of the traditional media broadcast
model. The broadcaster, in this
case, a web site, provides content and services mixed with
advertising messages in the form of banner ads. The banner ads may be the major or
sole source of revenue for the broadcaster. 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.
Founder: Jerry Yang
Launched: 1995 Generates:$4.6
billion last year Subscribers:
Revenue generated from advertising is evenly split display (banner) ads and search result ads. This ad revenue is mostly made on their website as opposed to affiliates
Yahoo Founder: larry
page , sergey brin
Launched: 1998 Generates:
US$66.001 billion Subscribers:
Revenue from Google Fiber, Google Cloud Platform, Google Apps, Google Play store.
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3. Infomediary Model
Data about consumers and their consumption habits
are valuable, especially when that
information is carefully analyzed and
used to target marketing campaigns.
Independently collected data about producers and their
products are useful to consumers when
considering a purchase.
Some firms function as infomediaries
(information intermediaries) assisting buyers
and/or sellers understand a given
market.
Founder: Arthur Nielsen
Launched: 2007 Generates: US$
1633 million
A service of the Nielsen Company,
provides measurement and analysis of online
audi-ences, Nielsen gets data from retailers and
then sells aggregated data.
Nielsen
Entrepreneur Founder: Amy C. Cosper
Launched: 1977 Generates: $ 55
million
More than 200 categories for small
business & upcoming
entrepreneur.
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4. Merchant Model
Wholesalers and retailers of goods and
services. Sales may be made based on list
prices or through auction.
Founder: Jeff Bezos
Launched: July 4, 1994
Generates: 244 million (2015)
Prime monthly subscription
E-books and content Commission on reseller sales
Founder: Gary Comer
Launched: 1963 Generates: Over
2 million (2014)
Sales & advertisements
Amazon
Lands' End
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5. Manufacturer ModelThe manufacturer or "direct model", it
is predicated on the power of the web to allow a
manufacturer (i.e., a company that
creates a product or service) to reach buyers directly and thereby compress
the distribution channel. The manufacturer model can be
based on efficiency,
improved customer service, and a
better understanding of
customer preferences.
Founder: Michael S. Dell
Launched: February 1, 1984
Generates: US$19.4 billion
Prime monthly subscription
E-books and content Commission on reseller sales
Dell Founder: Mark
Hayes Launched: April
10th, 2007 Generates: $1
million
Send fresh flowers direct from the farm
Fresh Flower Delivery
Flowerbud.com
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6. Affiliate ModelThe affiliate model, provides purchase
opportunities wherever people may be surfing. It does this by offering financial incentives (in
the form of a percentage of revenue)
to affiliated partner sites. The affiliates
provide purchase-point click-through to the
merchant. It is a pay-for-performance model
-- if an affiliate does not generate sales, it represents no cost to
the merchant. The affiliate model is
inherently well-suited to the web, which
explains its popularity. Variations include,
banner exchange, pay-per-click, and revenue
sharing programs.
Founder: Michael S. Dell
Launched: February 1, 1984
Generates: US$19.4 billion
Prime monthly subscription
E-books and content Commission on reseller sales
Amazon Associates Founder: Gilad
Elbaz and Adam Weissman
Launched: June 18, 2003
Generates: US $3.4 billion A program that
allowspublishers in the Google Network
of content sites to serve automatic
text, image, video.
Google AdSense
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7. Community Model
The viability of the community model is
based on user loyalty. Users have a high investment in both time and emotion.
Revenue can be based on the sale of ancillary products and services
or voluntary contributions; or
revenue may be tied to contextual advertising and subscriptions for
premium services. The Internet is inherently suited to community business models and
today this is one of the more fertile areas of
development, as seen in rise of social networking.
Founder: Reid Hoffman, Allen Blue, Konstantin Guericke Eric Ly, Jean-Luc Vaillant
Launched: December, 2002
Generates: 400 million (2015)
Selling Data - Companies and
recruiters are able to pay and gain access
to LinkedIn databases
advertisements
LinkedIn Founder: Jack
Dorsey, Noah Glass, Biz Stone, Evan Williams
Launched: March 21, 2006
Generates: 302 million
Added paying for "promoted" tweets
Advertising
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8. Subscription Model
Users are charged a periodic -- daily, monthly or annual -- fee to subscribe to a service. It is
not uncommon for sites to combine free content with "premium" (i.e., subscriber- or member-only)
content. Subscription fees
are incurred irrespective of
actual usage rates. Subscription and
advertising models are frequently
combined.
Founder: Marc Randolp and Reed Hastings
Launched: August, 1997
Generates: US$ 5.50 billion (2014)An interna-tional provider of on de-
mand Internet streaming media available to view-
ers.Subscription by the
users
Netflix Inc. Founder: Will
Glaser Jon Kraft Tim Westergren
Launched: January, 2000
Generates: US$17.60 billion (2014 )
A music streaming and auto-mated
music recommendation
service powered by the Music Genome
Project.Subscription by
users Advertising
Pandora Internet Radio
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9. Utility Model
The utility or "on-demand" model is based on metering usage, or a "pay as you go" approach. Unlike subscriber services, metered
services are based on actual usage rates.
Traditionally, metering has been used for essential services (e.g., electricity
water, long-distance telephone services).
Internet service providers (ISPs) in some parts of the world operate as utilities, charging
customers for connection minutes, as opposed to the subscriber model
common in the U.S.
Founder: Don Nicholas
Launched: 1980 Generates: US$
5 billion Focus on content
marketing,multiplatform
product development,
strategic revenue optimization
consulting teams can help indominateits niche.
Mequoda Founder: Rob
Cmdr Taco Jeff Bates
Launched: 1997 Generates: 5.5
millionRevenue from
advertisement and optional
subscription
Mequoda
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10. Freemium Model
It describes a business model in
which you give a core product away for free
to a large group of users and sell
premium products to a smaller fraction of
this user baseThis is where the
business gives away something for free in
return for your personal details so
they can then market to you and hope to
build up a relationship so that you buy from them in the future.
Founder: Priit Kasesalu and Jaan Tallinn
Launched: August, 2003
Generates: US$ 860 million
Software is free but subscribers can then purchase additional
features that are unavailable for the
free software. Advertisement
Skype Founder: Matt
Mullenweg and Mike Little
Launched: May 23, 2007
Generates: US$ 40 million(
FreemuimAdvertisements
WordPress
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The End