Compare revenue model

Google’s yearly income is generated from advertisement fees. Google’s design, Google AdWards is a pay per click advertising program to allow advertiser to present advertisement to people online. Information related to the advertiser has being offered instantaneously to people who are looking for it through Google AdWards. An advertiser has to pay every time his ad receives a click. Google generate most of the revenue from Google AdWards. Besides, Google AdSense is an ad serving program that allow Website owner to enroll in this program to enable text, image and video advertisement in this site. Advertisers are required to pay Google a fee each time user click on one of their ads displayed on Google site. This is known as affiliate fees. Furthermore, Google also offer a research service called Google Answers. When customers ask questions, offer a price for the answer and researcher will answer them. The researcher is not Google’s employee but Google will keep 25% of the payment and the balance will subject to the researchers. Of all the revenue for Google, AdWords generates the most, which is more than 90% of the revenue. Currently, Google is testing a new revenue model that pay site owner based on a Cost-Per-Click model. It is a new way offered to advertiser to earn revenue from their Websites that are compensated based on Cost-Per-Action (CPA) basis.

E-bay earned transaction fees from each successful transaction made by the bidders or seller in an auction. It has built a streamlined and globalized person-to-person trading community on the Internet through World Wide Web. This facilitates easy exploration for buyers and allows the seller to immediately list those items for sale. Sellers and buyers are brought together in a manner where sellers are allowed to list items for sale and buyers can bid on the items interested. In the meanwhile, all eBay users can browse through the listed items in a fully automated way. Sellers are charged with two kinds of charges. First charge is charged on an item that are being listed on eBay which is called as nonrefundable Insertion fee which ranges between 30 cents and $3.30, depending on the seller’s opening bid on the item. . A fee is charged for additional listing options to promote the item, such as highlighted or bold listing. Secondly, a fee is charged at the end of the seller’s auction which ranges between 1.25% and 5% of the final sale price.

Amazon.com is an American electronic commerce company in Seattle, Washington. It is one of the first major companies involved in selling of goods by Internet. It was started as an online bookstore but later was diversified to product lines of DVDs, VCDs, computer software, video games, furniture, food and etc. In 2001, Amazon.com has launched the Honor System that allowed customers to make donations or buy digital content. With that, Amazon has collected 2.9% of the payment plus a flat free of $0.30 USD. For example, after 2004 earthquake and tsunami in the Indonesia Ocean, Amazon has set up an online donation channel to the American Red Cross, waiving its processing fee. Besides, Amazon has also launched an online storage service called Amazon Simple Storage Service. The service charges monthly fees for data stored and data transferred. Using Amazon technology, Webstore, allows businesses to create e-commerce websites. Merchants can customize their websites using their own photos and even branding. Sellers have to pay a commission of 7% to Amazon.com, which includes credit card processing fees and fraud protection fee; subscription fee of $59.95 per month for an unlimited numbers of webstores and listings. Moreover, Amazon has launched Associates affiliate programme which run like this way: associate drive internet traffic to Amazon.com through links that allows user to track sales and other activity. Then, associates can earn up to 10% in referral fees on all qualifying revenue made via their links.