How leading Web companies make money

Each day we see more web-based technology companies coming online with a growing range of services and products to resolve the needs and problems of specific user groups.

Today’s web services help demanding consumers purchase goods and services better (and often at a lower price); they give eager news-seekers or music lovers the content they want, how they want it; they provide the curious and the impulsive with instant access to the information they seek based on profile, location and needs; they allow modern organizations to promote themselves in new ways and run their business 24×7.

The most successful Web-based companies are not only great at designing winning products that deliver a great customer experience, but also providing users with more value than its competitors. In return, they also capture more customer value in various ways.

Today’s Web-based tech companies use a combination of different business models to make money, including:

  • Subscriptions – standard & freemium models
  • Advertising – ad placement fees, per-click
  • Commissions –fees from referrals, leads and on transactions
  • Selling information – structured & unstructured customer-related data
  • Licensing – usage fees, revenue sharing, royalties

The following chart provides an overview of how some of the leading web-based companies make money today through their products and services.

To be successful in today’s Web world, tech companies must find scalable and viable ways to monetize their offers. Otherwise they are just creating great products and services with no future.

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