Revenue model describes how an organization earn revenue and generate profit, the followings are the 5 major revenue models:
Sales revenue model
An organizaiton earns revenue by selling products, or services.
Transaction fee revenue model
An organization generates profits through receiving commission for execution of transactions, and generally the profit earned will based on the volume of transaction executed.
Advertising revenue model
An organization which advertise products or services for its client and earn revenue through receiving advertising fees.
Subscription revenue model
An organization charges subscription fees for the users who access to the content or services offered.
Affiliate revenue model
An organization which earns revenue by receiving commission for refering customers to other websites.
Google's revenue model
Majority of Google's yearly income are generated by advertising revenue model which includes Google AdWords, Google AdSense, and Google Checkout.
Google AdWords is a "pay per click" Google advertising product.
When people search on Google, related advertisements will be shown on the sidebar. Advertisers would have a greater opportunity to promote their product and fulfill the needs and wants of their customers.
Google Adsense
A program that enables website publishers of all sizes to display relevant Google advertisements and earn. These advertisements generate revenue on per-click or per-thousand-impression basis.
Google Checkout
A fast and secure check out process which helps companies to attract new leads, convert more sales, and protect them from frauds. When company uses Google checkout to process their sales, fees are charged per transaction, depending on monthly sales volume.
Amazon.com's Revenue Model
Amazon.com, one of the huge online retailers in America was started its business as online bookstore. Soon, it started to diversify its business into product lines of DVD, music CDs and MP3s, computer software and etc. It provides a fixed-priced online marketplace which enables sellers to offer their products alongside with Amazon.com offerings.
The revenue models of Amazon.com are transaction fee revenue model and affiliate revenue model. Amazon.com will receive commission from each transaction dealed to generate profit. Besides that, Amazon.com also charges affiliate fees from seller for refering Amazon.com customers to the sellers' websites.
AStore Amazon
AStore Amazon is one of the Amazon.com's product for Amazon associates. It enables Amazon associates to create their own stores featuring Amazon.com products in an easy and fast method. It also can be embedded within or linked to from any website. The AStore Amazon provides features of products, offer shoppoing cart for customers, and essentially, it shows product details. Only referal charges will be applied on the creation of AStore.
eBay's Revenue Model
eBay was born in 1995, created by Pierre Omidya as an online auction website. eBay provides an open trading platform where the market determines the value of items
that are sold. Over the years, the site always being referred, as it provides a view into what objects consumers want most at any time. A few aquisitions of e-commerce companies such as shopping.com, rent.com, stubhub and etc has strenghten eBay's Inc in this sector. As result, this website has become the world's largest online marketplace. For more information, please watch the video provided by eBay : How Does eBay Work?
Generally, eBay generates profit through transaction fee revenue model and advertising revenue model. Fees charged on selling on eBay include:
Insertion fees
Insertion fee is charged when seller lists any product on eBay paid sites such as eBay US, UK and etc. For eBay Malaysia, insertion fee is excluded.
Final value fees
Commission is charged on the seller once the items is sold. However, eBay Malaysia does not charge such fees on the seller unless the seller lists items on other eBay paid sites.
Optional feature fees
Seller can choose to add additional features to increase bid and chances of selling success. Different charges will be applied on each additional feature used in the process of auctioning such as reserve fees, listing upgrade fees, eBay picture hosting fees, and seller tool fees.
Related links
Google AdSense
Google AdWords
Google Checkout
AStore Amazon
When people search on Google, related advertisements will be shown on the sidebar. Advertisers would have a greater opportunity to promote their product and fulfill the needs and wants of their customers.
Google Adsense
A program that enables website publishers of all sizes to display relevant Google advertisements and earn. These advertisements generate revenue on per-click or per-thousand-impression basis.
Google Checkout
A fast and secure check out process which helps companies to attract new leads, convert more sales, and protect them from frauds. When company uses Google checkout to process their sales, fees are charged per transaction, depending on monthly sales volume.
Amazon.com's Revenue Model
Amazon.com, one of the huge online retailers in America was started its business as online bookstore. Soon, it started to diversify its business into product lines of DVD, music CDs and MP3s, computer software and etc. It provides a fixed-priced online marketplace which enables sellers to offer their products alongside with Amazon.com offerings.
The revenue models of Amazon.com are transaction fee revenue model and affiliate revenue model. Amazon.com will receive commission from each transaction dealed to generate profit. Besides that, Amazon.com also charges affiliate fees from seller for refering Amazon.com customers to the sellers' websites.
AStore Amazon
AStore Amazon is one of the Amazon.com's product for Amazon associates. It enables Amazon associates to create their own stores featuring Amazon.com products in an easy and fast method. It also can be embedded within or linked to from any website. The AStore Amazon provides features of products, offer shoppoing cart for customers, and essentially, it shows product details. Only referal charges will be applied on the creation of AStore.
eBay's Revenue Model
eBay was born in 1995, created by Pierre Omidya as an online auction website. eBay provides an open trading platform where the market determines the value of items
that are sold. Over the years, the site always being referred, as it provides a view into what objects consumers want most at any time. A few aquisitions of e-commerce companies such as shopping.com, rent.com, stubhub and etc has strenghten eBay's Inc in this sector. As result, this website has become the world's largest online marketplace. For more information, please watch the video provided by eBay : How Does eBay Work?Generally, eBay generates profit through transaction fee revenue model and advertising revenue model. Fees charged on selling on eBay include:
Insertion fees
Insertion fee is charged when seller lists any product on eBay paid sites such as eBay US, UK and etc. For eBay Malaysia, insertion fee is excluded.
Final value fees
Commission is charged on the seller once the items is sold. However, eBay Malaysia does not charge such fees on the seller unless the seller lists items on other eBay paid sites.
Optional feature fees
Seller can choose to add additional features to increase bid and chances of selling success. Different charges will be applied on each additional feature used in the process of auctioning such as reserve fees, listing upgrade fees, eBay picture hosting fees, and seller tool fees.
Related links
Google AdSense
Google AdWords
Google Checkout
AStore Amazon
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