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Assignment # 03 IT430 Student ID: Bs160202171: Advantages

The document discusses 5 potential revenue models for online businesses: an advertising supported model, a web catalog model, a fee for transaction model, a fee for service model, and a digital content revenue model. It provides an overview of each model, including how they work and potential advantages and disadvantages. The models range from generating revenue through advertising, transaction fees, membership fees for digital content access, and charging for individual services.

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37 views

Assignment # 03 IT430 Student ID: Bs160202171: Advantages

The document discusses 5 potential revenue models for online businesses: an advertising supported model, a web catalog model, a fee for transaction model, a fee for service model, and a digital content revenue model. It provides an overview of each model, including how they work and potential advantages and disadvantages. The models range from generating revenue through advertising, transaction fees, membership fees for digital content access, and charging for individual services.

Uploaded by

عبدالرحمن مھر
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment # 03

IT430

Student ID: Bs160202171

1) Solution: Advertising Supported Revenue Model

An advertising supported revenue model is a business approach that underlines the offer of
promoting as a significant source of income. This structure is generally unmistakable in
traditional broadcasting and print media, as well as online media. Media organization for the
most part acquires revenue from publicizing, client memberships or a combination of the two.

Advantages:

The benefit of an advertising supported revenue model is that on the off chance that you have a

group of people, you can quite often discover organizations that need to pay to arrive at it. This is

particularly evident when you can explicit insights regarding the idea for your crowd. When you

work with a 100 percent ad-supported model, you can more easily attracts users with free

content.

Disadvantages:

The major drawback of an entirely ad-supported revenue model is the innate absence of

enhancement. Organizations for the most part incline toward numerous revenue streams

whenever the situation allows. In a down economy, publicist may back off their ventures, which

can all the more contrarily influences a medium that has no membership income.

2) Solution: Web Catalogue Revenue Model

The web catalogue revenue model is basically electronic variant of the conventional inventory
based retail revenue model. The web catalogue model was formed through the evolution of the
data time. With the appearance of the web and its expanded accessibility, printed inventories
have been either totally supplanted or enhanced by a computerized online list contacting a more
extensive crowd in a shorter space of time. Just as the traditional catalog-based model, also
known as the mail order or catalog model, allows buyers to order via mail or telephone.

Challenge: The web catalog model meets its difficulties with clients who are not ready to send
their own data over the web. Numerous web clients are dreadful of their data, especially credit
card information, ending up in the wrong hands. How safe is their information in the hands of an
online business? Although this fear has decreased considerably in the past ten years, this will
consistency be a worry in light of the fact that as security improves does as well,
misrepresentation and hacking.

3) Solution: Fee for Transaction Revenue Model

An organization gets commission dependent on volume for empowering or executing


transactions. The revenue is generated through exchange charges by the client paying an expense
for an exchange to the administrator of a stage. The organization is a commercial center
administrator furnishing the client with a stage to put his exchanges. During this procedure the
client might be exhibited as a purchaser just as a merchant. To effectively partake in this
advertise, clients must enroll, so the two gatherings of an exchange occurring are distinguished.
From a business perspective, the offer is determined by others as customers offer their goods
online and are acting as sellers. The amount of the transaction fee can be both- fixed and
percentage calculated.

4) Solution: Fee for Service Revenue Model

Fee for service is installment for every unit of administration, for example, a visit or surgical
procedure. Payment for a complete service covering the whole period of an illness or another
type of care such as obstetric care including prenatal care and delivery, or other, is called case
payment. Change for administration is truly the regular strategy for paying for specialists
administrations is as yet the standard in Canada, Germany and different nations. In certain spots,
Installments might be as indicated by a fixed-charge plan haggled between the protection
instruments.
5) Solution: Digital Content Revenue Model

The fundamental thought behind this model is that computerized substance is bundled with non-
advanced substance or administrations as a membership. This is an all-get to show, in which
clients pay a specific expense for utilization of the services for a particular timeframe.

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