10 Web Business Models Of the 21 Century

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Web Business Models Of

the enturyWendell Godinho

Brokerage ModelAdvertising ModelInfomediary ModelMerchant ModelManufacturer ModelAffiliate ModelCommunity ModelSubscription ModelUtility ModelFreemium 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 ModelThe 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 ModelThe 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



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 ModelThe 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



Amazon Associates Founder: Gilad

Elbaz and Adam Weissman

Launched: June 18, 2003

Generates: US $3.4 billion A program that

allowspublishers 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 indominateits niche.

Mequoda Founder: Rob

Cmdr Taco Jeff Bates

Launched: 1997 Generates: 5.5

millionRevenue 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 baseThis 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(

FreemuimAdvertisements

WordPress

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