Internet Revenue Models

Dec 17 2012

The goal of starting a business online is to make money.  And there are a whole lot of ways to do it.  Fred Wilson, with the help of various people put together the most complete list of revenue models I’ve seen yet.  I’ve added the domain investing models at the bottom

Web And Mobile Revenue Models

Advertising
  • Display Ads – ex. Yahoo!
  • Search Ads – ex. Google
  • Text Ads – ex. Google
  • Video Ads – ex. Hulu
  • Audio Ads – ex. Pandora
  • Promoted Content – ex. Twitter, Tumblr
  • Paid content links – ex. Outbrain
  • Recruitment Ads – ex. LinkedIn
  • Lead Generation – ex. MoneySuperMarket, ZocDoc
  • Affiliate Fees – ex. Amazon Affiliate Program
  • Classifieds – ex. Craiglist
  • Featured listings – e.g. Yelp, Super Pages;
  • Email Ads – as done by Yahoo, MSN
  • Ad Retargeting – ex. Criteo
  • Real-time Intent Ad Delivery
  • Location-based offers – ex/ Foursquare
  • Sponsorships / Site Takeovers –  ex. Pandora
Commerce
  • Retailing – ex. Zappos
  • Marketplace – ex. Etsy
  • Crowdsourced Marketplace – ex. Threadless
  • Excess Capacity Markets – Uber, AirBnB
  • Vertically Integrated Commerce – ex. Warby Parker
  • Aggregator – ex. Lastminute.com
  • Flash Sales:  Gilt Groupe, Vente Privee
  • Group buying – ex. Groupon
  • Digital goods / downloads – ex. iTunes
  • Virtual goods – ex. Zynga
  • Training – ex. Cloudera (??), -> Coursera
  • Pay what you want – ex. Radiohead
  • Commission – ex. SharesPost
  • Commission per order – ex. Seamless, GrubHub
  • Auction – ex. eBay
  • Reverse Auction – ex Priceline
  • Barter for services ex. SwapRight
Subscription
  • Software as a Service (SAAS) – ex. Salesforce
  • Service as a Service – ex. Shopify
  • Content as a Service – ex: Spotify, Netflix
  • Infrastructure/Platform As A Service – ex. AWS
  • Freemium SAAS – ex. Dropbox
  • Donations – ex. Wikipedia
  • Sampling – ex Birchbox
  • Membership Services – ex Amazon Prime
  • Support and Maintenance – ex 10gen, Red Hat
  • Paywall – ex. NYTimes
  • Voice and video-conferencing – ex. Uberconference
Peer to Peer
  • Peer-to-Peer Lending – ex. Lending Club,
  • Peer-to-Peer Gambling – ex. BetFair
  • Peer-to-peer buying – ex Etsy
  • Peer-to-peer insurance/home/car – ex (??)
  • Peer-to-peer computing (CrasPlan storage, or SETI@home)
  • Peer-to-peer service – ex. Mechanical Turk, TaskRabbit
  • Peer-to-peer Mobile WiFi/Tethering – ex (??)
Transaction processing
  • Merchant Acquiring – ex. PayPal (Online / Offline), Stripe (Online), Square (Offline)
  • Intermediary – ex. IP Commerce (POS 2.0), CardSpring
  • Acquiring Processing – ex. Paymentech
  • Bank Transfer – ex. Dwolla
  • Bank Depository Offering – ex. Simple, Movenbank (spread on average deposits)
  • Bank Card Issuance – ex. Simple (interchange fee per transaction)
  • Fullfilment – ex. Amazon
  • Messaging – ex. Peer-to-Peer SMS, IM, Group Messaging
  • Telephony – ex. termination/origination in public telephony networks (skype out/in)
  • Telephony – ex. termination/origination within private telephony cloud (e.g. native skype)
  • Payment Gateways: Mobile -ex. Braintree
  • Platform Monetization (“Tax”) – Facebook Credits; iO6 30% cut.
Licensing
  • Per Seat License – ex. Sencha
  • Per Device/Server License – ex. QlikView
  • Per Application instance – ex. Adobe Photoshop
  • Per Site License – ex. Private cloud on internal infrastructure
  • Patent Licensing – ex. Qualcomm
  • Brand Licensing – ex. Sesame Street
  • Indirect Licensing – ex. Apple Volume Purchasing
Data
  • User data – ex. BlueKai
  • Business data – ex. Duedil
  • User intelligence – ex. Yougov
  • Search Data – ex. Chango
  • Real-time Consumer Intent Data – ex. Yieldbot
  • Benchmarking services – ex. Comscore
  • Market research – ex. GLG
Mobile
  • Paid App Downloads – ex. WhatsApp
  • In-app purchases – ex. Zynga Poker
  • In-app subscriptions – ex. NY Times app
  • Advertising – ex. Flurry, AdMob
  • Digital-to-physical – ex. Red Stamp, Postagram
Gaming
  • Freemium – Free to play w/ virtual currency – ex. Zynga
  • Subscription-  ex. World of Warcraft
  • Premium – ex. xBox games
  • DLC – (Downloadable Content)  – ex. Call of Duty
  • Ad Supported – ex – addictinggames.com

Domaining

  • Parking Ads (Google or Yahoo Feed)   ex. 20% of all domains
  • Domain Sale  ex Investing.com
  • Hope and Pray  ex too many domains to list

Source Fred Wilson

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