The Internet Has Turned Out to Be an Important Part of Every Business - Essay Example

Running head: Revenue models Revenue Models: E-Business Application Author Author Affiliation August 25, 2009 Abstract Internet has turned out to be an important part of every business. And most of the business activities are carried out on Internet. This essay presents the detailed analysis of the revenue models assessment and analysis. For this research I will present the online website revenue model assessment and analysis. This essay will outline the revenue model of the http://www.realestate.com.au. In the last I will present another revenue model and its comparison to above website. The Revenue models particularly explain diverse methods for creating profits. The revenue model describes the huge business earnings and its relation to the sales of products or services. This can be both for selling straightly from the main or, dealer of the service in the course of a mediator who will obtain a cut of the selling cost (Carter, 2009). In this essay I am going to present a detailed analytical research of the revenue model for the online property websites. The main website we have is the realestate.com that provides the facility for online estate dealing in Australia. At this web site we can search plots and living apartments for purchase or rent. This also provides some additional facilities like local estate map, loan offers, consultation, selling offers, construction facilities, etc. In this essay, I will judge the revenue model of this website and also suggest that are not being used by realestate.com.au. The second website I have selected is also an Australian property dealing website www.aussieproperty.com. This website is comprehensive combination of the Australian property dealing, selling, promotion, consultation, rental facility, purchase and visiting. At this web site we can have all things those are necessary for the online property website. This website also provides better facilities for the students and researchers for the research and market analysis articles. In this essay I will provide a better insight into the main revenue models used in this website and its comparison to the www.realestate.com.au. Revenue and Ecommerce There are several ways for the online revenue generation. The ecommerce has devised lot of online revenue generation techniques. 1. The business of online selling of the physical goods has now emerged to a solid e-business; lots of online business organizations are creating revenue from this business (Laudon & Laudon, 2006). 2. Online advertisement is also a huge business in this regard where organizations can utilize the websites for the promotion of their business products and services. In this regard they can generate revenue through online ads, promotions and newsletters (Laudon & Laudon, 2006). 3. Earnings per click are fairly small income means however it provides a vital way regarding the online promotions and ads. It required a lot more online user traffic to formulate good capital. As well as not the entire data and informational subjects are gainful. For instance, searchers for amusement as well as games information do not be inclined to click on advertisements or else purchase anything (Laudon & Laudon, 2006). 4. When we encourage other people’s products as an associate, we would be seated among the last two alternatives- it would be able to disburse enhanced than advertisements as well as be fewer irritate than solid supplies. However we yet have to offer content on gainful themes, as well as we require being at ease plus effectual vendor for the goods that disburse our bills (Laudon & Laudon, 2006). 5. Moreover it can not be finished without pointing out that organizations are able to sell their business services through the web. If we mention regarding what we do whether we are a doctor, lawyer, web designer, carpenter, psychologist, no matter what we are, we would obtain web visits from projection in our confined region as well as revolve those groups into clients (Laudon & Laudon, 2006). Ecommerce and Revenue models The Internet and the increasing growth of electronic commerce (eCommerce) in the mid-1990s rendered business-to-business (B2B) and business-to-customer (B2C) relationships more interactive and appropriate for travel-related businesses. This facilitated alterations in customer behaviors and attitude regarding travel products by means of integrative and mutually supportive means for information exchange (Adams et al, 1997). The development of the Internet, which significantly increased the use of eCommerce by airline companies during the mid-1990s, performed a crucial function in reducing distribution costs, in that it helped lower the ratio of fixed costs in the cost structure (Onlinebusiness.starmatrimonials, 2009). Revenue Models There different revenue models that are involved in business, especially in online (e-commerce) business. Revenue model is an explanation of how the business will make profits, generate earnings as well as make a better return on provided assets. The main revenue models are (DuNg, 2009): Transaction fee revenue model is model that a business obtains a payment for allowing or performing a business. It is based on the capacity of dealings made. Subscription revenue model is model for business that charges a payment costs from the client that right to use to the data, information or other content as well as services obtainable. Sales revenue model provides business that obtains the income through selling products, information, goods or services. Advertising revenue model for a business offers an opportunity for ads as well as obtains costs from the corporations that promote their products. Affiliate revenue model for a corporation obtains payments for referring clients to others websites (Onlinebusiness.starmatrimonials, 2009). Publisher revenue models Publisher revenue model is about the online website business (selling, promotion, and advertisement). Here we have different type of the publisher revenue model. Here I will identify a website and its related type of the Publisher revenue model. The website www.ft.com is an online website that provides the access to online information and data contents for digital technology section for around €80 per year. Subscription access to content is type of revenue model provides variety of data, information, and contents that can be used for a particular time. We can pay subscription fee for a specific time period. www.market­ingsherpa.com is an online website that provides access to the detailed best-practice guides on Internet marketing from marketing Sherpa. In this type of the publisher revenue model Pay per view model for using and taking access to website data, information, and special documents contents. In this type of the access we can only access the required document through a single payment and single access. This type of access includes the retrieval of the entertainment contents such as music or video clip. These website contents may not be confined by means of a digital rights or password management. FT.com is an online website that provides the facility for the online advertisement. This uses Cost per thousand or CPM type of publisher revenue model that includes the website those are involved in the display advertising. Here we can have banner ads as well as skyscrapers. Cost per Thousand Revenue Model provides the facility of ads that can be supplied through the website proprietor’s own advertisement server or else additional usually in the course of a 3rd party advertisement network service like that Google AdSense. www.adsense.google.com is an online website that provides the online promotion for the pay-per-click, publisher promotion model. Cost per click or CPC promotion on website is about its promotion. Here we pay for the advertisers when each ad is displayed to user or accessed by the use. Here we pay simply for the number of times their promotion ads or marketing detailed is displayed, on the other hand according to the amount of times they are viewed. These are normally text advertisements provided through a search engine like that Google or else on a system like that Google Adsense. Here these types of business costs per click are amazingly high. www.wanadoo.com provides the facility for the online marketing and promotion and for a fixed amount per year. This type is sponsorship of site sections or else content categories. Here in this type of revenue generation process we pay the fixed fee for the advertisement for time period. A business is able to recompense to promote a website section or channel. In these types of deals we frequently hit for a pre-established amount each year. It can as well be fraction of a mutual contract, occasionally recognized as a contra-deal in which group pays. www.yahoo.com provides the user data to different business organizations for promotion and advertisement. This next type of the promotion revenue model is subscriber data right to use for e-mail promotion. In this way of business a website owns a valuable data for the customers and this data is given to other website for promoting their products to those customers. This can be done through by sending an advertising email message form the company who purchase the rights to drive a marketing advertisement of products or services to particular set of customers. In this type of promotion the website owner can charge for adverts placed in its newsletter or be able to convey through a separate message on behalf of the advertiser. This type of subscriber data right can also use for the market research with the site customers. Revenue models used by Realestate.com.au Basically Realestate.com.au uses main revenue model that is “direct product sales of product or service”. At this web site plots, living areas, shops and other residential areas are sold for direct rates. This website uses the Affiliate revenue generation technique for the publisher revenue generation model. In this way of revenue generation Realestate.com.au generates the revenue for the affiliation to some other estate dealing specific business. On the website we can see the affiliation to the www.homeguru.com. Revenue models used by Aussieproperty.com Aussieproperty.com basically uses combination of revenue models those are: Direct product sales of product or service Subscription or rental of service Commission-based sales (affiliate, auction, marketplace) For the direct product sales of product or service Aussieproperty.com uses sales for the house, residential colonies, agriculture land, and commercial areas for direct and fixed price sales. For the subscription or rental of service Aussieproperty.com uses the rental services for the house and commercial areas and there rental dealing. Here this business also provides the facility for the online consultation through the subscription of user for specific fee. The Commission-based sales method is also a revenue model that uses by the Aussieproperty.com. In this scenario Aussieproperty.com has established the variety of businesses of (affiliate, auction, and marketplace) estate dealing that includes: Australian Property Investment Australian Expatriate or Intended Migrant best quality information Australia's leading developers Property promoters Property support and service Market place research Estate advisors This website uses the publisher revenue such as Affiliate revenue (CPA). Here this website has also established the Affiliation to above given list of estate market. Through this affiliation those Affiliates also pay the subscription fee for the online permission, working, and access. Suggestion other revenue models I have researched the Realestate.com.au and got that there are huge enhancement can be possible for the generation of the online revenue. Here we can add subscription or rental of service, Commission-based sales (affiliate, auction, and marketplace) and Advertising (banner ads, sponsorship). These types of revenue generation areas will add the rental, auction, estate advisory, estate promotion, estate business ads, research contents facility and lot of other option for the estate business. This will enhance the business of the Realestate.com.au, because the website visitor will get all the estate regarding contents at the same place and it offers better services and facilities for the business and dealing. Conclusion In this revenue models based research essay I have presented the detailed analysis of the different revenue models and their implementation for the business. I have discussed about the different areas and implementations for the revenue models. In this essay I have also presented a detailed analysis for two websites and their concerning revenue models. Here I have identified the revenues models for the http://www.realestate.com.au and Aussieproperty.com. In this essay I have also suggested the potential implementation of the revenue models for the http://www.realestate.com.au. This essay will provide a deep insight into the identification of the revenue models and their potential implementation in the make place. References Carter, B. (2009). The 5 Best Revenue Models in E-Commerce History. Retrieved 08 23, 2009, from http://ezinearticles.com/?The-5-Best-Revenue-Models-in-E-Commerce-History&id=102842 DuNg, A. (2009, June 12). Revenue model for Google, Amazon.com and EBay. Retrieved 08 23, 2009, from http://milkmom.blogspot.com/2008/06/revenue-model-for-google-amazoncom-and.html Laudon, K. C., & Laudon, J. P. (2006). Management Information Systems: Managing the Digital Firm--9th Ed. New Jersey: Pearson. Onlinebusiness.starmatrimonials. (2009). Online Business Revenue Models. Retrieved 08 23, 2009, from http://onlinebusiness.starmatrimonials.com/onlinerevenuemodels.php Read More