In Google, the revenue model used is focused on advertising and search solutions. The types of revenue models used are Google Adwords, Google Adsense, Google Answers, Froogle and the latest revenue model, Google-as-per-email.
Now, let me share with you what are all these revenue models are about. When advertisers want to advertise on the Google website, Google allows them to do so by using the Google Adwords revenue model. It is a pay-per-click advertising program that enables users to view the advertisements on the Google web page when they search through the Google search engine.
The relevant advertisements will be shown on the ‘sponsored links’ column located at the right side of the search results and some of the other advertisements can be found on top of the search results. The advertisers will have to pay every time their advertisements receive a click from the users. When they advertise, they have to decide on the keywords used or the advertisement and the rate of payment they are willing to pay for a click on their advertisement.
Google Adsense, on the other hand is a more advanced advertisement tool offered by Google. It is a web serving program whereby the advertisers can use the program to edit text, graphics or videos for their advertisements rather than just a keyword in Google Adwords. The rates charged are on a per-click or per-thousand-ads-displayed basis.
Besides advertising, Google also offers Google Answers, an Internet search and research based service offered with a fee charged. The customers will ask the questions they want and offer a price for the answers. Then, Google, as an intermediary will help to look for researchers to answer those questions posted, and earn some money partially from the customers.
If customers want to buy or survey about goods or services offered online, Google launches the ‘Froogle’ service, which is a price engine website that makes it easy for the users to look for products and services for sale online. It does not charge sales commissions but will earn on the advertisements of the products.
Lastly, the latest revenue model of Google is the Cost-per-Action basis revenue model. It is different from the Google Adsense model because this model is more flexible in promoting. The advertiser will only need to pay if the users click on the advertisement and take some actions on the products offered like purchasing the product.
Founded since 1994 and launched online in 1995, Amazon.com started by selling books online. It caters to a revenue model of direct selling or e-tailing by selling specific products to customers like retailers online. From books, it now ranges from selling all types of products, including music, videos, electronic and household products. It has the largest supplies of products online. Not just selling products online, Amazon.com also offers excellent services on delivery, with combinations of lower price products and shipping promotions. It is certainly focused on retailing business by having good supplier and customer relationships.
Later on, Amazon.com shifted from direct retailing to the affiliate revenue model when it discovered that many small e-businesses would like to be an affiliate of Amazon.com. This model is also known as the ‘Click-through’ model whereby small online merchants will be an affiliate partner with Amazon.com and they will contribute a commission to Amazon.com when the customers clicked through the affiliate to the merchant and generated sales. By having affiliates like content-based websites, web Portals and small e-businesses will help to generate new traffic on the website in order to increase revenues. Today, Amazon.com is still using this method because it is effective in generating revenues for them.
If you like something new rather than fixed price goods, eBay will be a good choice for you because it is a popular online auction site which provides buyers and sellers worldwide to trade on goods and services. The auction is done ‘silently’ whereby the buyers will bid for the price in order to purchase the product from the seller. The highest bidder will be able to obtain the desired goods. eBay charges its sellers a small amount of listing fees in order to let the sellers to list the products to be sold online. From there, the sellers can start to bid their prices with the buyers. This is also known as the ‘Fees-per-transaction’ revenue model. Sellers who have good selling in their products can enjoy extra benefits from eBay by having its PowerSeller program, which will cost them lower fees for listing. Buyers too are guaranteed on their service by having goods delivered on time.
The types of selling fees that eBay will charge on its sellers are Insertion Fees and Final Value Fee. Insertion fees are charged if the sellers want to list an item for sale on eBay. The final value fee will take place if a transaction is being made, which includes Auction Listing Fees, Fixed Price Listing Fees and other optional feature fees in order for a sale to take place.
For buyers, they can pay for their goods using the credit card or bank transfer through the eBay Pay-pal system. This system will help the customers to track their payments made to eBay.
For more information, feel free to explore:
www.google.com
www.amazon.com
www.ebay.com
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