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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.

Google

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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

LinkedIn

Founder: Jack Dorsey, Noah

Glass, Biz Stone, Evan

Williams

Launched: March 21, 2006

Generates: 302 million

Added paying for "promoted" tweets

Advertising

Twitter

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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