Today, Xiake Webmaster Station and other webmasters analyze the five main profit models of the website:
1. Advertising model.
Advertising is the most common and commonplace on the Internet, but it is also the biggest piece of cake. It is almost the most natural profit model for all websites. Website advertising was born in the United States in October 1994. The famous American magazine wired placed advertising banners from 14 customers including AT&T in its online version hotwired. China Internet commercial advertising appeared in March 1997. Chinabyte published advertisements from clients such as IBM and Intel on its website. Internet advertising has developed for more than 10 years. ZenithOptimedia estimates that the global Internet advertising market will reach US$34.2 billion in 2008, exceeding the advertising scale of outdoor billboards and radio broadcasts. According to Analysys International's forecast, China's Internet advertising market will reach 6.87 billion yuan in 2008. Advertising has become one of the largest sources of revenue for Internet websites.
The profitability of Internet advertising reflects the core nature of the Internet as a new media, which reflects the trend that the Internet is increasingly occupying people's living space. Advertising only has value where people gather. The more amazing thing about the Internet is that it can discover potential customer groups through in-depth data mining. Compared with other media, such as television, radio and other media, it is easier to discover potential customer groups.
2. Internet value-added services.
Internet value-added services generally refer to value-added services based on Internet platforms such as membership services, community services, games and entertainment, video phones, and voice chats. Tencent is currently one of the most eye-catching Internet companies in China and one of the Chinese Internet companies with the highest revenue. In its overall revenue structure, Internet value-added services account for more than half of its revenue. According to its 2006 annual report , the annual revenue was 2.8 billion yuan, and Internet value-added service revenue reached 1.83 billion yuan, accounting for more than 65% of the overall revenue. At the same time, compared with the same period last year, the growth rate reached 132%. Tencent's success in China's Internet value-added services fully illustrates the huge development speed of this market and also illustrates that Internet value-added services are a potential profit model. Tencent's post-IPO statements show that Internet value-added services have the best growth potential in its overall revenue structure.
Tencent's three types of revenue are Internet value-added services, advertising, and SP business. Among them, Internet value-added services include online virtual images (QQ Show), online communities (Qzone), leisure games (QQ Fantasy, QQ Sonic, QQ Hall), etc. Among these businesses, as the industry environment deteriorated after 2005, the proportion of SP business in the revenue structure dropped significantly, while Internet value-added services began to gradually increase. This fully illustrates the important position of Internet value-added service business in the Internet profit model.
3. E-commerce model.
E-commerce mainly includes B2B, B2C, and C2C websites.
C2C website profit model.
C2C websites are actually personal trading platforms, of which eBay is currently the highest representative. Website transactions adopt an auction method. It is one of the websites with the highest market value among American Internet companies. eBay charges a handling fee of 1.25 to 5% from each transaction of its users. This profit model is simply printing money and is undoubtedly one of the best business models.
China's C2C website is represented by Taobao, but currently Taobao still adopts a free strategy. For C2C websites, unless you have huge funds and marketing resources, building a comprehensive C2C website is less likely to succeed. Of course, if you are doing C2C in vertical fields, such as C2C that provides certain aspects of secondhand goods trading, there are still opportunities. At present, many merchants have entered Taobao. In a sense, it is no longer a pure C2C website, but a service that combines B2C and C2C.
B2B website profit model.
B2B websites are represented by Alibaba, which is the world's largest, multi-channel and highly profitable B2B website. At present, China has more than 7 million domestic corporate members and more than 2 million foreign corporate members.
At present, Alibaba's main profit model sources are services from Chinese suppliers, Chengxintong services, commissioned design company websites and online promotion project services.
B2C website profit model.
The most successful representative at present is Amazon.com. Amazon began to focus on book sales. Consumers can read book reviews or part of the content online and then choose to purchase. It is a typical B2C website. Its profits are mainly obtained by lowering publisher profits and reducing sales costs (no sales venue, personnel, etc. expenses). At present, due to logistics and other costs, there are still very few profitable B2C websites, including retailers in traditional industries such as Dangdang and Wal-Mart. After several years of development, cash flow, logistics, and information flow have improved a lot, and e-commerce has become more and more mature. However, even so, unless you have a strong resource background, the risk of entering this type of industry is very high.
Usually B2C online retail has two modes of operation: one is to distribute products by oneself and sell them through the Internet. For example, manufacturers of clothes sell directly online; the other is to establish an online retail platform to allow more merchants to sell their products through this platform. For example, a flower sales website can establish cooperative relationships with flower shops across the country and build stores for the website, because flowers are time-sensitive commodities. Only by cooperating with local merchants can we solve logistics problems and the timeliness of goods. In terms of settlement, websites and local exchanges can also form a relatively standardized system.
4. Mobile value-added service model.
The mobile value-added service industry is also called the SP industry. This industry combines the Internet with the telecommunications industry to provide services such as SMS, MMS, and ringtone downloads.
Mobile value-added services were once the lifeline of China’s Internet. In the early days of the development of the Internet, major websites were popular but had no income. The combination of the Internet and the telecommunications industry provided a good profit model. Internet text messages and ringtone downloads have brought more exciting services to users' mobile phones. At the same time, this is a rare profit model for websites that don't know how to turn popularity into profits. The operating income of SMS ringtones once accounted for about 40% of the total income of the three major domestic portals, and its importance is evident. In a few years, the number of domestic SMS ringtone service providers (telecom value-added service SP) has reached about 5,000, and the professional SMS ringtone website "Pocket Link" was listed on Nasdaq. Mobile value-added services used to be one of the most profitable profit models on the Internet. However, the mobile market such as SMS and ringtones is relatively saturated, and the overall performance has a downward trend. Telecom companies are increasingly inclined to direct cooperation with content providers. Therefore, for For a website, providing unique content is key.
5. Online game mode.
Online games are currently one of the most powerful Internet revenue models in China, creating large online game companies such as Shanda, NetEase, The9, Kingsoft, and Giant. In essence, online games can also be regarded as an Internet value-added service.
Online games are currently divided into time-based charging models and free-to-play online games. The so-called paid online games charge players according to their online time. Players purchase point cards, which are linked to online time. Typical games include World of Warcraft and Fantasy Westward Journey. There is another type of game that is a free model online game. In fact, it is only compared to the time-based charging model. Users of free online games can enter the game for free, and online game companies make money by selling equipment and props. This charging model can also be very profitable, such as games such as Bubble Hall, Audition, Kart Racing and Journey. The success of online games is not only related to whether the work itself is well planned and whether it is close to the needs of players, but promotion is also a very important factor. Good promotion can make up for the shortcomings of the product to a certain extent.
Although there are only the above-mentioned main profit models on the Internet, for specific Internet websites, the specific operation of the profit model is often different. For example, for the same advertisement, there are many differences between the banner advertisement of the portal and the bidding ranking and keyword advertisement of the search engine. Big difference. It meets the needs of different users and has different commercial values. Therefore, to a certain extent, the profit model itself can also create value through innovation. (Text/Xia Ke)
The article comes from: Xia Ke Webmaster Station (www.xkzzz.com)