Friday, February 15, 2008

Multiple earnings via internet business

During my e-commerce class today, there was a discussion on the several different revenue models in e-business. There are various ways where we can earn from the internet. It was a very interesting discussion and after hearing all that was said, we listed the following money-making methods. These points can also be found in the third edition of E-Commerce by Kenneth C Laudon and Carol Guercio Traver (2007) as per the picture below. A very detailed book. I would strongly recommend this reading.



1- Advertising revenue
According to Kenneth & Carol(2007), this happens when a company provides advertisement spaces and opportunities for other companies and earn fees for that space.

2-Subscription Revenue Model
When a person subscribes to a magazine or newspaper, it gives income to the company for a period of time. This is where, in my opinion, e-business can generate residual income to site owners.

3- Transaction Fee
Transaction fee is usually paid to those who played the role of a middleman. For example, a broker helps a buyer make a purchase of stocks or shares and made earnings for that particular transaction.

4- Sales revenue model
This is what i think most people are very familiar with. The more goods or services we sell, the more we will earn.

5- Affiliate Revenue model
This is the model that Chief Affiliate Officer is designed for. We earn from referral sales.

So how do you want to earn from your website? You decide. If you can combine all, that is the best BUT BE VERY CAREFUL. Confusing the cunsumers is the last thing that we would want to do.

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