Revenue Model for Google, Amazon.com and eBay

A revenue model is a way to generate revenues, like charging your customers or advertising. The revenue model has little to do with the reasons why a business will eventually succeed or fail. This is the time to introduce the revenue models for Google, Amazon.com and eBay to everyone.

Revenue Model for Google

Actually, Google has various types of revenue model, such as and Pay per Click Advertising to as well as AdSense, AdWords, which are helping Google to make profit through the advertisement fees and allow those advertisers to promote their latest products or services in the google web page.

AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes.

Pay per Click Advertising is the best way to send immediate, targeted traffic to your website. It is an online advertising payment model in which payment is based on qualifying click-throughs. An advertiser has to pay every time his ad receives a click. The Advertisers decide the keywords relevant to their offer that should display their ad and the maximum amount they are willing to pay per click for that keyword. This function is a very useful function and will continue to bring about an increase in income especially if the number of people clicking on these ads increase. However, Google should take care that this function is not misused. There might be and increase in click frauds when manipulation of search results are not dealt with properly.

AdSense is an advertisement application run by Google. Website owners can enroll in this program to enable text, image, and more recently, video advertisements on their websites.

Revenue model for Amazon.com

Amazon. Com is one of the most successful e-commerce providers in which its income are mostly generated from transaction fees, affiliate fees and subscription fees. Amazon started as an online bookstore, but soon diversified its product lines from DVD to food..Moreover, Amazon.com 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 Amazon.com 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.



Revenue model for ebay

eBay does not have inventory like Amazon.com. It only provides technology platforms and tools for e-commerce. ebay has various revenue model, it earns transaction fee from owning paypal, an online paying service system for users to buy items online more conveniently. ebay also gains sales from the service of listing customer’s product to be sold to other users as well as some advertisement fee. ebay generated overall revenue around $6 billion from its three primary business: auctions, payments (PayPal) and communication (Skype).