Web Business Models

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Web
Business Models Of the entury
Wendell Godinho

2. Brokerage Model
Advertising Model
Infomediary Model
Merchant Model
Manufacturer Model
Affiliate Model
Community Model
Subscription Model
Utility Model
Freemium Model

3. 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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4. 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$66.001 billion
 Subscribers: Revenue from
Google Fiber, Google Cloud
Platform, Google Apps, Google
Play store.
Google
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5. 3. Infomediary Model
Data about consumers and their
consumption habits are valuable,
especially when that information is
carefully analyzed and used to target
marketing campaigns.
Independently collected data about
producers and their products are useful
to consumers when considering a
purchase.
Some firms function as infomediaries
(information intermediaries) assisting
buyers and/or sellers understand a
given market.
 Founder: Arthur Nielsen
 Launched: 2007
 Generates: US$ 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.
03

6. 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
04

7. 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.co
m
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8. 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
06

9. 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
07

10. 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
08

11. 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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12. 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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13. The