Monday, February 2, 2009

Identify and compare the revenue model for Google, and eBay

After I review the websites of Google,, and eBay, I finally can differentiate the revenue models of this 3 “companies”. It is not easy to identify the revenue models if you never study e-commerce.
First, let me talk about the most familiar websites to us, Google. Actually when my first time using Google, I also wondering how Google earn money and now I know the secret(hehe). The revenue model of Google is based on advertising, nearly 80% of Google revenues are come from advertising fees. Until now maybe you still not very clear about how Google earn.OK, let me explain on it. Every times you search whatever by using Google, you will realize that some advertising box will appear at the side of your pages and for sure you will get many links relate to your search, once you click on those links or boxes, Google will earn money from their advertiser, that how it works.
I am sure you all hear about but how many of you got visit this website and really get use on it, I think not many. Wondering why this websites so successful and earning money? Based on the evidence from this websites, I find out the revenue model of is based on its affiliate fees. provides a platform for “home consumer” to choose their preferred products on that produce by other producers. This will be good news for those consumers far away from town and doesn’t like travel. However, to have a competitive advantage on this kind of e-business, must have many types of products to satisfy those customers from whole world.
Lastly, come to the websites that appear in “Transformer”, eBay. What is the different between eBay and The mainly different is eBay is platforms for consumer trade with consumer, unlike eBay just provide a platform let consumer bids consumer products. What did eBay earn? eBay revenue model is based on the transaction make by the consumer. In other word, eBay earning the transaction fees on the transaction makes.
I am surprise how amazing of e-commerce to earn money on such a creative way, I may be a next Google(XD). Please visit my ads---->.

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