– Business-to-consumer (B2C)
– Business-to-business (B2B)
Revenue models can generate income through advertising, web catalogs and through digital content.
Web Catologs expands existing the traditional model.
- Adapted from mail-order (catalog) model: Seller establishs brand image, Printed information to prospective buyers order are then placed by mail or phone…
- Expands traditional model: A web catalog replaces or compliments print catalogs. Orders can be placed in multiple ways (i.e. mail, phone or web). This web revenue model creates additional sales outlets for existing businesses.
- Discount Retailers: Offer large discounts off retails prices... I.e. OO.com and overstock.com. Traditional retailers have now adopted online sales like Kmart and BigW.
- Uses multiple marketing channels: Lower costs on advertising and more revenue as a result. Cheaper advertising.
- Adds a personal touch: Ability for the end-user to customize how the catalog is displayed, view by category, size etc.
An example of an early adopter of online shopping is; Lands’ End online Web shopping assistance - Lands’ End Live (1999) - Online text chat and call-back feature - Ability to push Web pages to customer’s browser.
Fee-for-Content Revenue Model
Electronic Books - Google Books, Amazon Books and Kindle, iTunes Bookstore.
Music Applications - Ubuntu One, iTunes.
Complications with Music online includes: No single store, Individual stores promote their own music file formats, Some artists/recording companies partner with specific store or boycott online sales altogether, DRM (Digital Rights Management) - Limits the systems authorized to play a file based upon user accounts etc.
Fee-For-Transactions Revenue Models - Amazon (Offers books, newspapers, magazines, and other
digital format items - Delivered directly to its line of Kindle readers), Audible (Allows monthly download of a certain number of books - Pricing is per book)
Advertising Supported Revenue Models - Advertisers’ fees in place of users’ subscriptions, Advertising-supported revenue models, Site Portals...Web Directories, Advertising-supported online classified sites, web employment advertising, Used vehicle sites.
Fee for Transaction Revenue Model - Service fee charged based on transaction number or size, web site offers visitor transaction information... Stoke broker sites (fee per stock etc)
Changing Strategies: Revenue Models in Transition: Companies must change revenue model to meet needs of the evolving web user. Changes in revenue models includes; Slate magazine which has upscaled news and current events. Success expectations were high - Experienced writers and editors, acclaim for incisive reporting and excellent writing. (The Herald Sun)
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