Revenue Models and Their Advantages and Disadvantages, and Examples Essay Example

support the operations of the network and the creation or purchase of the programs.

• Disadvantages: The success of Web ad
• vertising has been hampered by two major problems: –No consensus has emerged on how to measure and charge for site visitor views. –Very few Web sites have sufficient numbers of visitors to interest large advertisers. Web Portals: Only a few general-interest sites have sufficient traffic to be profitable based on advertising revenue alone.
• Newspaper publishers: It is still unclear whether advertising helps or hurts the newspaper’s business as a whole.
• Target Classified Advertisers: Employment and used-vehicle sites are successful examples of the advertising-supported revenue model. Examples: a few information sites, such as About. com, or the drudge report is successful in using advertising – supported revenue models.

Advertising-Subscription Mixed Revenue Models: In an advertising-subscription mixed revenue model, which has been used for many years by traditional print newspapers and magazines, subscribers pay a fee and accept some level of advertising. On Web sites that use the advertising-subscription revenue model, subscribers are typically subjected to much less advertising than they are on advertising-supported site Advantages and disadvantages: 1/ Offer some free content but requires a subscription to access the entire sites. / Allow no subscriber visitors to view the classified ads and certain stories from the newspaper, but most of the content is reserved for subscribers who pay an annual fee for access to the site. Visitors who already subscribe to the print edition are offered a reduced rate on subscriptions to the online edition. Examples: The New York Times and The Wall Street Journal use a

mixed advertising-subscription model. Fee-for-Transaction Revenue Model: Businesses offer services for which they charge a fee that is based on the number or size of transactions they process. Some of these services lend themselves well to operating on the Web.

To the extent that companies can offer Web site visitors the information they need about the transaction, companies can offer much of the personal service formerly provided by human agents. Stock brokerage firms use a fee-for-transaction model. They charge their customers a commission for each trade executed.

• Event Tickets: The Web offers event-promoters an ability to sell tickets from one virtual location to customers practically anywhere in the world.
• Real estate and mortgage loan brokers: Online real estate brokers provide all of the services that a traditional broker might provide. Online banking and financial services: The greatest concerns that most people have when considering moving financial transactions to the Web are security and reliability
• Insurance Brokers: Insurance companies have been slow to offer policies and investments for sale on the Web. A number of intermediaries that sell insurance policies have emerged, for example Quotesmith. com
• Examples: Web sites that offer insurance policy information, comparisons, and sales include: InsWeb, Answer Financial, Insurance. com, and YouDecide. com