Sunday, February 1, 2009

revune cycle ---> Google, Ebay ,

There have 5 major types of revenue models. They are
 Advertising revenue model
 Subscription revenue model
 Transaction fee revenue model
 Sales revenue model
 Affiliate revenue model
Obvious differences between Google, and Ebay in revenue models, broadly: Advertising for Google, commissions for Ebay and sales minus costs for

The main source of Google’s revenue is from advertising. Google has multiple revenue models. One of the most familiar revenue models for Google is Google AdWords which offers pay-per-click (PPC) advertising, site. Others include Google AdSense, Google Answers, and Froogle.
First, AdWords, is a pay per click advertising (PPC) programme which allows advertiser shows relevant or related advertisement from what users searching for. It can be targeted advertising for both text and banner advertising. This program includes local, national, and international distribution.

Second, Google AdSense is an advertising 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.
Third, Google Answers is an Internet search and research service offered for a fee by Google. It was launched by Google in April 2002.
Instead of performing the search themselves users pay someone else to do the same. Customers ask questions, offer a price for an answer, and researchers answer them. Researchers are not Google employees. Prices for questions range from $2 to $200; after a question is answered, Google keeps 25% of the payment, sends the rest to the Researchers.
Fourth, 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 Inc.

Ebay is an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. Millions of collectibles, appliances, computers, furniture, equipment, vehicles, and other miscellaneous items are listed, bought, and sold daily. EBay generates revenue from a number of fees such as insertion fees, promotional fees, and final value fees.

1. Insertion fees.
It exits when an item listed on Ebay, this nonrefundable fee is charged.

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

3. Final value fees.
That is the commission that charged to the seller at the end of the auction.

Furthermore, Ebay generate revenue by sales revenue model through its subsidiary,, offers fixed price, person-to-person selling of goods, including books, CDs, videos and games, charging a 15% commission on completed sales.

Amazon Marketplace is’s fixed price online marketplace that allows sellers to offer their goods alongside Amazon’s offerings. Buyers can buy new and used items sold directly by a third party through using Amazon Marketplace. This sales strategy and program has been very profitable for Amazon charges a commission rate based on the sale price, a transaction fee, and a variable closing fee, which are sales revenue model and transaction fee revenue model.
Moreover, also generates revenue by Affiliate revenue model. Amazon was one of the first online businesses to set up an affiliate marketing program. AStore is an affiliate product which website owners can use to create an online store on their site. The store does not allow website owners to sell their own products directly. Website owners pick products from Amazon’s store and earn referral fees on the products purchased by their readers. The fee structure is currently the same as for the other affiliate links and ranges from 4% to 10% of the product price.

Possibly related posts: (automatically generated)

· August 2009: How Google beat Amazon and Ebay to the Semantic Web
· Google's Revenue Model