Professional Documents
Culture Documents
Revenue Model
Revenue Model
Revenue Model
E-Business
Web business revenue-
generating models
Web catalog
Digital content
Advertising-supported
Advertising-subscription mixed
Fee-based
Revenue Models
x
Revenue Models
x
Revenue Models
Advertising
• measuring visitor
• # of visitors, # of unique visitors, # of click-
throughs
• Stickiness
• Keeping visitors at site and attracting repeat visitors
• Exposed to more advertising in a sticky site
FIGURE 4-2 Three strategies for an advertising-supported revenue model
7
Advertising
Advertising ...
Newspaper and magazine publishers
Targeted classified advertising sites
Flat Sale, Career, Real Estate, Services,
Business
• higher rates than general advertising
Web advertising
• Most successful targeted classified advertising
• Examples: CareerBuilder.com, bdjobs.com
Revenue Models
Advertising-Subscription Mixed
Subscribers pay fee and accept advertising
• The New York Times- and
• The Wall Street Journal- Subscription revenue
weighted more heavily
ESPN
• Leverages brand name and
• Sells advertising, offers free information.
x
Revenue Models
Fee-for-Transaction
Service fee charged based on transaction ...
Travel agency
• Web-based travel agencies are new entrants
• Travelocity, Expedia, Hotels.com,
• generate advertising revenue
• Specialized travel agents (cruises, hotels)
Insurance brokers
Health Insurance, life insurance
Revenue Models
Fee-for-Transaction ...
Online games -
premium games
Physicians’ online consultations
Lawyer's company consultation
Revenue Models
Strategy
Companies must adapt to revenue model
• or went out of business
Some e-commerce Web sites needed years to grow
large enough to become profitable (CNN and ESPN)
Management Issues
• Web revenue models implementation issues
• Long term or short term
Adaptation of market changes due to switching
consumer mind.
Formulate strategies to survive during this pandemic.
x
Managing
Strategy- Channel conflict
(cannibalization)
• Web sales/activities interfere with existing
• Consider
• Web sites no longer sell products
• Sites now provide product, retail distributor
information
• Online purchases returnable at retail stores
• Required compensation and bonus plans
adjustments to support Web site
• Channel Cooperation made it successful
Managing
Strategy
Strategic alliance
• Amazon.com joined with Target, Sears
E-generation join with ajkerdeal
Web Presence
Benchmarking
Review e-commerce Web sites for
• Better customer service
Expert Support
• Sell the gathered information directly to the
companies operating Websites
▪ Include suggestions for improvements
EX: BizRate.com posts ratings
• Provides comparison shopping service
• Compiles ratings by conducting surveys of
sites’ customers
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