Web Based Business Models Brokerage model, Freemium Model, Community Model, Advertising MOdel, Intermediary Model, Subscription Model, Utility Model.

1. IAE–Assignment Web-Based Business Models

2. Brokerage Model
Their job is to bring sellers and buyers together by providing a service that
will make their life easier. In exchange for the service, companies using the
brokerage model usually earn by charging a fee or commission for each
transaction processed. Again, this is a very powerful model because you are
simply in charge of the technology, not the items which the sellers are
selling. They charges a fee or commission for each transaction it enables.
The formula for fees can vary.
Founders: Elon Musk
Luke Nosek
Ken Howery
Founded: 1998
Users: 173 million
HQ: San Joes, California
Revenue: $ 8.03 billion
It is an American company operating
a worldwide online payments
system. It serve as electronic
alternatives to traditional paper
methods.
PayPal, users can send or receive
payments for online auctions on
websites like eBay, purchase or sell
goods and services, or donate
money or receive donations.
Founders: Ben Milne
Shane Neuerburg
Founded: 2010
Users: 500000
HQ: Des Moines Lowa
Revenue: $ 8.03 billion
Dwolla had charged flat fees of
$0.25 per transaction over $10,
later on Dwolla has switched to
a Freemium model, with free basic
sending/receiving of money (up to
a $5,000 limit for personal
accounts, or a $10,000 limit for
business, government or non-profit
accounts)

3. Merchant Models
The merchant model is used by all the online wholesalers and retailers of
good and services. This models, such as Amazon, operate storefronts on the
Internet that provide a shopping experience similar to catalogue shopping.
The advantages of a merchant model is that you get to keep the biggest
portion of profits. Since you own the products, you get to decide what to do
with the money you earn. Overall, this model can yield the highest revenue
since you also have control over the prices
Founders: Jeff Bezos
Founded: 1994
HQ: Seattle, Washington
Revenue: $ 88.98 billion
The company was founded in 1994.
Amazon.com lets almost anyone sell
almost anything using its platform.
Amazon is selling non-exclusive
items, the only way to differentiate
from competitors was to slash prices.
Amazon encourages customers to
check out products in brick-and-
mortar stores (like Target and
Walmart) and then hunt them out on
Amazon for a price comparison.
Amazon doesn’t reveal how many
third party sellers it has in its
marketplace, but some 40% of all
goods sold on the site are via third
party sellers, accounting for roughly
12% of Amazon’s total revenue.
Amazon’s relationship with third
party sellers has been a rocky one
Founders: Kunal Bahl
Rohit Bansal
Founded: 2010
HQ: New Delhi
Revenue: $90 million
Snapdeal was started on 4
February 2010 as a daily deals
platform but expanded in
September 2011 to become an
online marketplace. They have tie-
ups with several retailers who can
sell their products through their
website. So, Snapdeal is earning a
commission for each sale, and some
of sellers even charge for posting
products on website. Snapdeal has
grown to become one of the
largest online marketplace in
India offering an assortment of
10 million products across diverse
categories from over 100,000
sellers.

4. Advertising Models
The web advertising model is an extension of the traditional media
broadcast model. The broadcaster, in this case, a web site, provides
content (usually, but not necessarily, for free) and services (like email, IM,
blogs) mixed with advertising messages in the form of banner ads. 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. Services like Google
AdSense and have made it super simple for all sites to easily add
advertising to their site. While this model is one of the easiest to
integrate, it is only truly effective with high traffic websites.
The payment can be delivered in three ways: Cost per impression, cost
per click and a fixed cost. The latter is when an advertiser pays a fixed
amount regardless of how many times their ad is clicked or viewed.
Founders: Jerry Yang
David Filo
Founded: 1994
Users – 173 million
HQ – Sunnyvale, California
Revenue – $ 4.61 billion
It is globally known for its Web
portal, search engine, Yahoo!
Search, and related services.
According to news sources,
roughly 700 million people visit
Yahoo websites every month.
Yahoo announced APT from
Yahoo, which was originally called
AMP from Yahoo, an online
advertising management
platform. The platform simplifies
advertising sales by unifying
buyer and seller markets.
Founders: Scott Kunit
Founded: 1997
HQ – New York
Revenue – $ 270 Million
Users/Visitors - 61428000
It is an Internet-based network of
content that publishes articles and
videos about various subjects on its
"topic sites," of which there are
nearly 1,000. The website
competes with other online resource
sites and encyclopaedia. The
original business plan offered
writers a minimum monthly rate
of US$250, or one-third of
the advertising revenue generated
within their topic area.

5. Informediary Model
Infomediaries are similar to infomercials because they give information
designed to subtly sell a product or service. 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.
Some websites earn money by charging for information. Nowadays, this
model is also being used in another way: premium blog posts. By adding
private blog posts, readers can pay a small fee to view the private
information.
Parent Company: TOI Group
ZigWheels.com is an automotive
website based in India. Part of Times
Internet. ZigWheels provides
automotive industry news, reviews
and advice to consumers. Earn
through advertisements & TV show.
Founders: Stephanie Abramson
Founded: 1996
HQ – New-York
Revenue – $ 3.1 billion
DoubleClick was founded as one of
the earliest known Application
Service Provider.
DoubleClick offers technology
products and services that are sold
primarily to advertising
agencies and media companies to
allow clients to traffic, target,
deliver, and report on
their interactive advertising
campaigns. The company's main
product line is formally known as
DART, which is designed for
advertisers and publishers.

6. Affiliates Model
Affiliate marketing is one of the best ways to earn money simply
because you own no part of the service or product. The company that
you’re affiliated with will take care of all sales and support queries.
Your job is simply to promote any item of your choice and wait for the
sales to come in. Of course, it is not that simple but can be truly
rewarding with some hard work, especially since you can create a very
successful business with just one person (yourself) working on it. In
contrast to the generalized portal, which seeks to drive a high volume of
traffic to one site, the affiliate model, provides purchase opportunities
wherever people may be surfing.
This model can be a huge revenue earner if your site has a healthy
amount of traffic. While the advertising model rewards the website
owner for simply advertising, this model rewards the owner each time a
user clicks on the promotion and ends up buying the product or service
or filling in a form. As an example, say a company sells a product for
$100 and they set an affiliate rate at 50%. This means that if you were
to promote this product on your own website, each time a user clicks
through your promotion and ends up buying the product, you would
earn $50.
Chris Guthrie – the guy making a
million dollars of Amazon affiliate
sales a year, of which he keeps
about 10%.
So believe it or not, but
Photography Tips is just one of
Chris’s dozens of niche sites.
Google AdSense is a program
run by Google that allows
publishers in the Google Network
of content sites to serve automatic
text, image, video, or interactive
media advertisements, that are
targeted to site content and
audience..

7. Community Models
The major players in Internet communities include the social networking
giants, Facebook, Twitter and Myspace. Other social and professional
networking communities found online are smaller, specifically working
with one demographic, such as divorce communities, cancer
communities and dating communities. Each community has a different
set of needs, and an Internet community business model focuses
products and services directly at the target community. A business can
accomplish this via blogs, web banners and becoming active forum
participants in the designated community.
Open source communities also earn money by providing their software
for free but then charging for support, tutorials, user documentation and
more.
Founders: Jimmy Wales
Larry Sanger
Founded: 2001
Users: 125367 users/editors
It is a free-access, free-
content Internet encyclopaedia,
supported and hosted by the non-
profit Wikimedia Foundation. Those
who can access the site can edit
most of its articles. Wikipedia is
ranked among the ten most popular
websites and constitutes
the Internet’s largest and most
popular general reference
Founders: Mark Zuckerberg
Eduardo Saverin
Andrew McCollum
Dustin Moskovitz
Chris Hughes
Founded: 2004
Users: 1.44 billion monthly
HQ : California
Revenue: $12.66 billion
Facebook's revenue comes from
advertising. Facebook generally has
a lower click through rate (CTR) for
advertisements than most major
Web sites. According to
BusinessWeek.com, banner
advertisements on Facebook have
generally received one-fifth the
number of clicks compared to
those on the Web as a whole,
although specific comparisons can
reveal a much larger disparity.

8. Subscription Model
Users are charged a periodic -- daily, monthly or annual -- fee to subscribe
to a service. This type of model (which has been used extensively in the
offline world through magazines and newspapers), online companies
charge a daily, weekly or monthly rate for being able to log into site and
using private applications or viewing private information. This model is
quickly gaining popularity as companies use it to deliver web content and
applications with a subscription format rather than charging a one-time fee.
MD: Mr. Vikram Mehra
Founded: 1946
HQ: Mumbai, India
Saregama is known for its music
catalogue which consists of more
than 117,000 songs in 14
languages built over a period of
more than 100 years.
Key People: Tim Armstrong
Founded: 1983
HQ: New York City
Revenue: $ 2.3 billion
It develops, grows, and invests in
brands and web sites. The
company's business spans digital
distribution of content, products,
and services, which it offers to
consumers, publishers, and
advertisers.

9. Freemium Model
A combination of the words "free" and "premium" used to describe
a business model that offers both free and premium services. The freemium
business model works by offering simple and basic services for free for the
user to try and more advanced or additional features at a premium.
Founders: Priti Kasesalu
Jaan Talinn
Founded: 2003
Users – 660 million
It is an application that specializes
in providing video chat and voice
calls. Users can also
exchange text and video
messages, files and images, as
well as create conference calls.
is an application that specializes
in providing video chat and voice
calls. Users can also
exchange text and video
messages, files and images, as
well as create conference calls.
Founded: 2007
Users – 525 million
HQ: San Francisco
Revenue – $ 8.03 billion
It offers cloud storage, file
synchronization, personal cloud,
and client software.
Dropbox uses a freemium
business model, where users are
offered a free account with a set
storage size and paid
subscriptions for accounts with
more capacity

10. Utility Model
It is somewhat like subscription model but the difference is the
customers have to pay only on the basis of their
time of usage of site . There is no
fixed subscription fees
Founder: Nicholas
Founded: 1980
Formed by: don Nicholas
Formed in the year:2004
Focus on content marketing,
multiplatform product development
and
strategic revenue optimization, our
re-search, development and
consulting teams can help business to
dominate
its niche.
Earns its revenue from the people
sub-
scribing to this site
Created by: DHI Group Inc.
Founder: Rob Cmdr Taco
Jeff Bates
Founded in the year 1997
Earns its revenue from
advertisement and optional
subscription
It features news stories on science
and technology that are submitted
and evaluated by its users
It has approximately 5.5 million
users per month

11. Second hand Market
Founders: Pranay Chulet
Founded: 2008
HQ: Bangalore
Users: 125367 users/editors
Quikr is an Indian classified
advertising platform.
Quikr has a listings in
over 1,000 cities in India in
categories such as mobile phones,
household
goods, cars, Real estate,
jobs, services
And education
Founders: Fabrice Grinda
A.C.F. Oxenford
Founded: 2006
HQ : California
OLX (OnLine - Marketing) operates
as a national
online classified marketplace for
used goods including
furniture, musical
instruments, Sporting goods,
cars, youngster and baby
items, motorcycles,
cameras, mobile
Phones and property.
Makes Money Through: Google
AdSense banner
ads,
Sponsored links,
and Featured List-ing.