Online business revenue models can be broadly classified into two types.
1. Revenue from conventional b2b, b2c and c2c business models.
2. Revenue from Internet specific, innovative business models.
1. Revenue from conventional b2b, b2c and c2c business models.
Online stores selling goods in business to business (b2b) and business to consumer business models by their very theme suggest that their revenue is through selling goods on Internet.
Business to business (b2b) and business to consumer models can also sell services on Internet, again the revenue mode being money for services. Examples can be like a business model between a web hosting company and a web hosting sub dealer or a job web site and a consultant.
In online consumer to consumer (c2c) business model, the website may charge the consumer for exhibiting his product or might charge a commission when a transaction is made. Example can be like a consumer being charged commission for every transaction that he makes through ebay.com.
2. Revenue from Internet specific, innovative business models.
Most websites generate revenue by placing advertisements in their web pages. These advertisements can be information about a physical business or a link to another website.
These advertising and revenue models are largely classified as PPC, CPM, PPL, PPS and other sponsored ads.
PPC is pay per click revenue model where an advertisement is charged based on the number of clicks it gets through the advertising site.
CPM is cost per thousand impression (M is thousand in roman numeral) is a revenue model where an advertisement is charged for every thousand impressions that it gets on the advertising site.
PPL is pay per lead is a revenue model where an advertisement is charged for every successful lead such as signup for a hosting service or a dating service.
PPS is pay per sale revenue model where an advertisement is charged a commission for every successful sale that it contributes.
Sponsored ads can be a permanent banner or a rotating banner placed on an advertising website and is charged for a fixed time interval like monthly, quarterly, yearly etc.
Today there are a number of agencies through which you can signup to publish advertisements in your site. You can signup for both PPC and CPM models.
Example-1: Google Adsense (http://adsense.google.com)
Example-2: Overture (http://www.overture.com)
Example-3: GoClick (http://www.goclick.com)
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