Identify and compare the revenue model for google, amazon, and eBay

To generate revenue or product profit from website there are five major revenue models that organization that can refer to, that is sales revenue model, transaction fees revenue model, advertisement fees revenue model, subscription fees revenue model, and affiliate fees revenue model.

The main source of Google’s revenue is from advertising. For the year 2006, the company reported US$10.492 billion in total advertising revenues and only US$112 million in licensing and other revenues. One of the revenue model for Google is Google AdWords. Google Adwords provide pay-per-click(PPC) advertising site for any people or businessman who want their text or banner to be advertised and easily seen by the local, national and international distribution. Google’s text advertisements are short, consisting of one title line and two content text lines. Whereas eBay is the world’s largest online auction site, is one of the best examples. For eBay the revenue model is online auction which is participants bid for products and services over the internet. Amazon.com started as online bookstore, but soon diversified to vary product lines. Amazon.com was success in online shopping.

EBAY
For eBay, bids can be place anytime. This convenience increases the number of bidders. Moreover, sellers and bidders can participate from anywhere that has internet access. Because of the potential for a low price, the broad scope of products and services available, the easy way of access, and the social benefits of the auction process, there are large number of bidders.

AMAZON
Whereas for Amazon.com, is allows user to submit reviews to the web page of each product. They also have to rate the product on a rating scale from one to five stars. Moreover, the users are allows to comment on reviews. Amazon.com provides an optional option for reviewers to indicate that the reviewer is one of the top reviewers. Amazon is pioneer affiliate partnership marketing. An Amazon partner website can display Amazon books directly on their website, and sends customers to the Amazon’s website when the visitor is ready to buy it. In turn, Amazon pays a commission for the sale to the site owner.

GOOGLE
Google AdWords is allow the advertiser to present advertisement to people at the instant the people looking for the information related to what the advertiser has to offer. In addition, for advertisers, with this you can easily reach people when they are actively looking for your product and services. PPC means that you only pay when people click on your advertisement and it is easy to control costs. Moreover, this enables advertisers easily to sign up and manage account online.

In conclusion, all three of the company have their own way of generating revenue. In my opinion, Google earn the MOST REVENUE model among eBay and Amazon.com because for me the best way to generate income for the company in website is through advertisement.