Business Models for the Web
by Neil Kenealy
1. Subscriptions
1.1. FIXED: A single, fixed subscription cost (e.g. to access an online magazine or a specific service).
1.2. VARIABLE: A number of fixed-price subscriptions are available to the end-user; fee dictates feature/usage limitations, etc. This includes the ‘Freemium’ model; a (usually limited) ‘free’ option alongside one or more paid options.
1.3. THIRD PARTY: The end-user receives the service for free; a third-party pays the fee for a returned service.
1.4. Advertising: One or more third-parties place clearly defined adverts within the website/application. Variations of adverts include graphical banners, text, inline, pop-over, interstitial, etc. Normally charged by cost per click, cost per action, or cost per thousand impressions.
1.5. SPONSORSHIP: One or more third parties become the ‘official’ sponsor(s) of the website. This could include fixed (non-rotating, typically prominent) adverts, integration of third-party branding (colours, slogans) and/or licensing agreements.
1.6. Paid Content Advertorials: third-parties pay to include marketing-led content on the website.
1.7. Advertorials: third-parties pay to include marketing-led content on the website.
2. Online Market Place - Exchange