The revenue model for Google, Amazon.com, and eBay

Everything businesses succeed in its ability to acquire and earn profits where capture all necessary revenue and value from the customers through offering the right products and services. Three of the following businesses indicate their revenue model and how it's generated to make the business success.

Google

Google AdWords and Google AdSense - A pay per click advertisement program developed by Google that generates profits from receiving every payment from advertisers whenever the published ads were clicked by anyone that try to surf for information. Try find for more information about Google Adsense and Google Adwords here.












Last year (2008) through the above methods deployed by Google, it made a revenue of $ 21 million where is a 31% growth in the growth rate compare to past earnings. The financial statement of Google indicates that the business is going in a downfall because advertisers are becoming more and more concern about the fraud and error that will appear when advertised through online.

Served as one of the most successful third part e-commerce business, Amazon was first stand as an online bookstore wherein selling new and used books and other reading materials through online. Amazon can even provide more than 200,000 titles compare to those brick-and-mortar bookstores. Then the business diversified its product line by selling instead of books, Amazon sold videos, musics, computer software, furniture, apparel and etc.

Amazon Marketplace is one of the most successful determinant for Amazon success, it enable buyers to sort and browse for the products then buy it through online. By charging a commision rate based on the selling product's price where this act as a transactional fee wherein Amazon have a revenue of $19 billion over the year of 2008.

In 1996, Amazon launched an affiliate marketing program called aStore where by having website owners serve as affiliates of having the program installed on their website, Amazon rewards affiliates for every customers brought by the website owners.

The final example of business, eBay. eBay is an online auction and shopping website in which people and businesses buy and sell goods and services worldwide. You can possibly find whatever you can think of in eBay. It provides over millions of collectables, equipment, appliances and even vehicles. eBay generates two main kinds of fees that is the promotional fees and final value fees.

• Promotional fees are the fees that charged for additional listing options that help attract attention for an item, for example those highlighted of bold items.


• Final value fees are the commission that are charged to the seller at the end of the auction.

Online advertising tends to play an important role in eBay's revenue. On the trasaction fees revenue, eBay offers PayPal where enabling the holders of PayPal to exchange money over the Internet .

Furthermore, eBay generates its sales revenue through subsidiaries such as Half.com and eBay express. Where both of the subsidiaries offer a fixed price for selling the product but eBay will charge a 15% commission on the complete sales.