Advertising Subscription Mixed Revenue Models

Advertising Subscription Mixed Revenue ModelsA tax model is the business plan for a company or website to make funds. It is also known as business model. It is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income. Revenue is calculated by multiplying the price at which goods or services are interchange by the number of units or amount sold. There are many different types of revenue models yet because of the importance of an Internet presence for any practicable company, the below will discuss different revenue models which can be used on the Internet. It describes how the firm will earn revenue, generate profits, and produce a superior return on invested capital. It specifically describes different techniques or skills used in generating income from the publishers websites and the way a business, typically an online business, to convert its services.Common e-commerce revenue models blade catalog revenue modelsDigital cloy revenue modelsAdvertising-supported revenue modelsAdvertising-subscription mixed revenue modelsFee-for-transaction revenue modelsFee-for-services revenue models clear catalog revenue modelsIn this revenue model, the sellers print catalog and mail to prospective buyers. Buyers place order by mail or by phone to sellers. It proves to be achieverful for wide variant of consumer item. It is often called as the mail order or catalog model. When this company wishes to enter the e-commerce market, they transfer their catalog with online version. It is then called the Web Catalog Revenue Models subsequently the catalogue model is expanded in this way. It works best for standardized products with little quality concerns much(prenominal) as (New) Books, music, videos, computers and consumer electronics and also wish to purchases such as gifts and electronics.A p ersonal shopper application is used to create an interface that customer can virtually choose and purchase the products or goods. This is an intelligent program that learns the customers preferences and makes suggestions.Benefits of Web Catalog Revenue ModelSuch catalog can offer a high degree of configuration flexibility to its customers.To sell products and services such as books, music and videos.Luxury goods are do to provide information to shoppers not to generate revenue.ExampleComputer companies such as QQeStore has a gravid success selling on the Web.FIGURE 1Advertising-Supported revenue modelsMost television channel output is allowed by an Advertising-Supported Revenue Models. Broadcasters provide big programme to an audience along with announce messages. It provides free programming to attract viewers, and then sell ads to marketers based on viewership. Some major problems had stopped the total success of online advertising. First is no proper usage has emerged on how to measure and charge for site visitor views. It is difficult for web advertisers to develop a standard for advertising charges.Stickiness of the website has an ability to retain visitors.Sticky content e-mail, message boards and chatNon-sticky content news and searchIn addition to the number of visitors or page views, stickiness is a critical element in creating a presence that attracts advertisers. If a website is sticky, people will spend more time on it, visit it always and bookmark it.The second problem is that very few websites have a sufficient number of visitors to interest large advertisers.Not very effectiveLow CPM rate due to low ad effectiveness.Non-sticky content costs moneyExample.Web portal- Site uses as a launching point to enter the web. close always includes a Web directory and search engine.FIGURE 2Advertising-Subscription Mixed Revenue ModelsIt has been used for many years by traditional print newspaper and magazines. Subscribers or visitors have to pay a fee and accept some level of advertising. Subscribers are generally subjected to much less advertising.Subscription fee charged for favorite(a) content (like cable TV) examples likeNew York Times (crosswords)Wall Street Journal (special articles)CBS Marketwatch (archived articles)AOL (monthly fee for ISP connection)Pornographic web sites.Usually a combination of free and premium contentAttract customers using free content, and then try to make them pay for premium content.ExampleBusiness Week- Offers some free content at its Business Week online site and requires visitors to buy a subscription to the Business Week print magazine.FIGURE 3Fee-for-Transaction Revenue ModelsBusinesses offer services or charge a fee based on the number or size of proceeding processed. Commission earned based on the volume of the transactions (the higher the volume, the higher the transaction fees will be) or fee per transaction conducted at the website (a fixed fee per trade regardless of the volume). A nu mber of online give-up the ghost agency began doing business on the web. Stock brokerage firms use a fee-for-transaction model. They charge their consumer a commission for each trade carry out but much cheaper than traditional transaction service providers.E-bay Listing free + percentage of highest bid (commission).Ameritrade $8 flat per trade.Expedia $5 surcharge per ticket.Ticketmaster Commission per ticker purchased. plagiarisation services Surcharge per term paper downloadedDisintermediationRemoval of an intermediary from a value chain.ReintermediationIntroduction of a new intermediary.Online banking and financial services important own offered is account aggregation ability to declare bank, investment, loan and financial account information from many websites and show it all in one location at the banks website. A bill presentment service provides an electronic version of an invoice or billing statement.Benefits of Fee-For-Transaction Revenue ModelAutomobile Sales- Auto dea lers buy cars from the shaper and sell them to consumers.Insurance Brokers- Insurance companies have been slow to offer policies and investments for sale on the web.ExampleE-Bay- earned transaction fees from each successful transaction made by the bidders.FIGURE 4Fee-for-Service Revenue ModelsThe fee in this model is based on the value of the service provided. These are broker services or based on the number or size of transactions processed. Services range from games and entertainment to financial advice.Channel Conflict and CannibalizationChannel conflict gross sales activities on a companys website create with its existing sale outlets-aka cannibalization because the websites sales consume sales that would be made in the companys other channels.Giving customers access to products through coordinated channels-channel cooperation.Benefits of Fee-For-Service Revenue ModelsOnline games- Growing number of sites include premium games in their offerings and site visitors have to pay to play these premium games.Concerts and films- As more households obtain broadband access to the Internet, companies are providing streaming video of concerts and films to paying subscribersProfessional services- State laws are one of the main forces preventing U.S professional from extending their practices to the web. Prepaid legal, dental insurance, countenance and others services marketed and sold through the Web.FIGURE 6ConclusionThe best revenue models that suit Cricket pleasure E-Zine website are Advertising-Supported Revenue Model, because Cricket Sport E-Zine website services are either free. It also provides free programming to attract viewers and subscribers. Website are present accurate and helpful resources for subscribers. Stickiness of the website have an ability to save up visitors and attract repeat visitors. The publishing company earns money from advertisements and visitors or readers no longer have to pay to access. The content is basically paid for by money f rom the advertisers who in turn, gain exposure among the readers.