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Web
Business Models Of the entury
Wendell Godinho
Brokerage Model
Advertising Model
Infomediary Model
Merchant Model
Manufacturer Model
Affiliate Model
Community Model
Subscription Model
Utility Model
Freemium 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 Model
The 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 Model
The 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 Model
The 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 $3.4 billion
A program that allows
publishers in the Google Network
of content sites to serve automatic
text, image, video.
Google AdSense
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7. Community Model
The viability of the community model is based on user loyalty. Users have a high
investment in both time and emotion. Revenue can be based on the sale of
ancillary products and services or voluntary contributions; or revenue may be
tied to contextual advertising and subscriptions for premium services. The
Internet is inherently suited to community business models and today this is one of the more fertile areas of development, as
seen in rise of social networking.
Founder: Reid Hoffman, Allen
Blue, Konstantin Guericke
Eric Ly, Jean-Luc Vaillant
Launched: December, 2002
Generates: 400 million (2015)
Selling Data - Companies and
recruiters are able to pay and gain
access to LinkedIn databases
advertisements
Founder: Jack Dorsey, Noah
Glass, Biz Stone, Evan
Williams
Launched: March 21, 2006
Generates: 302 million
Added paying for "promoted" tweets
Advertising
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8. Subscription Model
Users are charged a periodic --daily, monthly or annual -- fee to subscribe to a service. It is not
uncommon for sites to combine free content with "premium" (i.e., subscriber- or member-only)
content. Subscription fees are incurred irrespective of actual usage rates. Subscription and
advertising models are frequently combined.
Founder: Marc Randolp and
Reed Hastings
Launched: August, 1997
Generates: US$ 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 in
dominate
its niche.
Mequoda
Founder: Rob Cmdr Taco Jeff
Bates
Launched: 1997
Generates: 5.5 million
Revenue 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 base
This 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(
Freemuim
Advertisements
WordPress
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The End