Do you love making money? Is money really the answer to all our problems? Does it truly bring happiness into our life?
Making money off the internet isn’t as easy as we speak off. There are 5 different types of revenue models and big companies use either one or the other to sustain in this industry and we call it the BIG 5.
Advertising
Advertising is the cheapest and easiest way to do and it helps to build brand awareness.
This is what I happened to chance upon while scrolling my Facebook and it is there to drive foot traffic to their website.
Subscription
Some of the popular sites like Netflix are the norm in everyone’s phone nowadays and we have to agree that we cannot live without them now.
I no longer watch the Television now that all my shows are on Netflix.
Transaction Fee
E-Commerce sites mostly deals with transaction fees where a portion of the deal goes back to them for convenience fees and one of the example would be Amazon.
Sales
Selling a service online is also one the way to make money off the internet and a good example would be Fiverr. Sometimes we need the help of freelancers to help design a logo for your new business and you can easily find someone on Fiverr to help you with that.
Affiliate
I personally have been part of the affiliate for Grab in Singapore. Back then when Grab entered the market in 2013, I was the first few to download it for its services and I immediately introduced it to my family and they gave me “$5 off the next ride”
In conclusion, out of the BIG5, I feel that Affiliate Marketing is one of the most important criteria models for start-up and SME as it helps to drive your traffic up by a tremendous amount. It is always important to do the math to ensure you are not on the losing end as both party benefits from everything.
I would like to ask my readers which of the BIG5 models do you think is the most important model for companies? Do comment in the section below!
Digital Marketing Blog 
Hello Nigel, that was a good read!
To answer your question, I feel that Advertising is the most important revenue model for companies. Advertising has been dated as far back as Ancient Egypt and it has always served as a critical avenue for brands and businesses to communicate and compete with one another for the attention of buyers. Not only can advertising serve as a strong external call to action, but it can also serve as a strong internal reinforcement to the brands and companies sales team.
Overall, regardless of time and place, advertising remains as essential to all kinds of businesses. Furthermore, with the evolution of the digital era, numerous advertising options have become viable and easier for brands and companies to gain more exposure, revenue and communications with their consumers.
LikeLike
Hi Weijian, Interesting insight on your part. I have to agree that advertising is indeed very critical for many businesses. There are so many similar products in the market with slight differences and the product that has the best advertising will definitely warm the cockles of our heart.
Advertising seems like the backbone of many new companies and it is the only way in the current era that we live in that has the ability to reach the highest exposure in the shortest time span. I fully agree with you that the advertising options are endless and we have to take into account where our target audience frequent the most and that will be the formula for success! Don’t you agree?
LikeLike
I feel each model would be ideal and beneficial for different companies. Personally, I consider subscription model important and most relatable to me because honestly, is anyone here not guilty of having subscribed to various platforms? This model can easily help companies to continue generating recurring revenue as users like us are either too lazy to cancel our subscription or we get too comfortable and used to our subscription.
LikeLike
I have to agree that each model does have its own pros and cons to it. I have subscribed to channels like Netflix and Spotify as it was a gamer changer and it made life so convenient and now it has became a habit that we cannot make do without.
LikeLike
Hey! Pretty useful information on the big 5 internet revenue models! In the business owners’ perspective, this is indeed easy money to earn. However, in consumer mindsets it may not be as much as I’ve seen a lot problems and complaints with people paying subscription fee and end up not satisfied with what was delivered. Such as some entertainment platforms make users to pay the subscription fee to view episodes ahead of others but they do no enjoy the benefits of a “member”. What do you think businesses can do to help close the gap between reality and expectations for consumers?
LikeLike
Hello Joan, that is a really good point there! What I feel businesses could do is to offer trial periods for new customers. I think a month of using their services is a good gauge for us if we want to continue using their services. Many big companies like Netflix and Spotify allow us to use their services and I personally felt that it was a reasonable timeframe for me to gauge if I need to continue the service that they offer.
LikeLike
Hello Nigel. I feel each model has its advantages. Personally, I feel that the subscription model is rather popular nowadays. I’m also a subscriber of Netflix and to be honest, I don’t use it very often but I don’t have the urge to cancel the subscription. This is because I can still watch Netflix whenever I want to and the most important thing is that it doesn’t cost much!
LikeLike
Hello Delwyn! I am sure the convenience factor is just too strong for us to and their price fits perfectly within our comfort range. If we were to pay $30 a month for it, I am sure we will think twice before subscribing to it.
LikeLike