Friday, January 23, 2009

Identify and compare the revenue model for Google, Amazon.com and eBay

Revenue models describe the methods or techniques that a organisation can generate revenue or produce profits from its website.Every organisation will make income by different ways, its depends on the nature of the website.There are FIVE major revenue models that organisation that can refer to:

I) Sales Revenue Model-----Income come from sales of goods, services and merchandise information in the websites.

II) Transaction Fees Revenue Model-----An organisation gets revenue by earned commission for executing a transaction.

III) Advertisement Fees Revenue Model-----An organisation provide spaces in their website to allow others organisation to place their advertisement and collect advertisement fees from the them.

IV) Subscription Fees Revenue Model-----When customer subscribing to the content or services offered by the website,the organisation can collect the subscription fees from the users.

V) Affiliate Fees Revenue Model-----An organisation gets commissions for referring customers to others people websites.

GOOGLE
Google earned revenue from multiple revenue models.The major of Google's revenue source is advertising.Google offers targeted advertising solutions and global Internet search solutions.There are Google Adwords,Pay per Click Advertising,Google Adsense,and Froogle.

Google AdWords is a pay per click advertising program of Google designed to allow the advertisers to present advertisements to people at the instant the people are looking for information related to what the advertiser has to offer.


Pay-Per-Click (PPC) is the best way to send immediate, targeted traffic to your website. It is an online advertising payment model in which payment is based onqualifying click-throughs. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword.


AdSense is an ad serving program run by Google Website owners can enroll in this program to enable text, image and, video advertisements on their sites. Revenue is generated on a per-click or per-thousand-ads-displayed basis and the ads are administered by Google. AdSense program includes AdSense for search and AdSense for content.


Froogle is a service from Google that makes it easy to find information about products for sale online. Froogle is a price engine website launched by Google.


AMAZON.com

The Amazon.com is an online selling books company.Amazon.com generates revenue by using sales revenue model, affiliate fees,transaction fees and subscription fees.Amazon.com get commissions from other publishers by referring customer to publisher's' website.

eBAY

eBay is an online auction and shopping website that allow people to buy or sell goods and services around the world.eBay use transaction revenue model to earn money from owning paypal and online paying system.There are three others fees that ebay earned:

Insertion fees: When an item listed on Ebay, this nonrefundable fee is charged.

Promotional fees: Fees that charged for additional listing options that help attract attention for an item, such as highlighted or bold listings.

Final value fees: Commission that charged to the seller at the end of the auction

moreover, eBay also earned money from sales revenue model which brought from its subsidiary company,Half.com which is selling goos website.

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