Media Business Models on the Web

Chris Anderson started a list of Business Models on the Web and Fred Wilson added his thoughts what Dave McClure also did. So far there are 28 different models:

– CPM ads (“cost per thousand views”; banner ads online and regular ads in print, TV and radio)
– CPC ads (“cost per click”; think Google ads)
– CPT ads (“cost per transaction”; you pay only if the customer brought to you from a media sites becomes a paying customer. Here’s an example.)
– Lead generation (you pay for qualified names of potential customers)
– Subscription revenues
– Affiliate revenues (think: Amazon Associates)
– Rental of subscriber lists
– Sale of information (selling data about users–aggregate/statistical or individual–to third parties)

– Licensing of brand (people pay to use a media brand as implied endorsement)
– Licensing of content (syndication)
– Getting the users to create something of value for free and applying any of the above to monetize it. (Like – Digg or our own Reddit
– Upgraded service/content (ed: aka “freemium”)
– Alternate output (pdf; print/print-on-demand; customized Shared Book style; etc.)
– Custom services/feeds
– Live events
– “Souvenirs”/”Merchandise”
– Co-branded spinoff

– Cost Per Install (popular with top Facebook apps who can help others get installs)
– E-commerce (selling stuff directly on your website)
– Sponsorships (ads of some sort that are sold based on time, not on the number of impressions)
– Listings (paying a time based amount to list something like a job or real estate on your website)
– Paid Inclusion (a form of CPC advertising where an advertiser pays to be included in a search result)
– Streaming Audio Advertising (like radio advertising delivered in the audio stream after a certain amount of audio content has been delivered)
– Streaming Video Advertising (like streaming audio but in video)
– API Fees (charging third parties to access your API)

– Feed Sense (Enable platform users to earn money by sharing in platform revenue from clicks on the News Feed)
– FeedSearch (Create a Search bar at the top of the News Feed that enables people to search for activity in their network by keyword or suggested example)
– FanPageApps (Connect Developers directly with Advertisers, by allowing Advertisers to set open bids for clicks, users, or other activity that occurs via platform apps)

To that impressive list I’d add the B2B side:
– Market Research (information on user behaviour)
– Drive traffic to media partners (e.g. blog widgets)
– PR Portal (Offer PR agencies publsih their content on your site)

A long list compared with the typical answer of Web CEOs how their companies generate revenues: “Advertising and premium fees.” Any more ideas?

One thought on “Media Business Models on the Web

  1. Good list, looking forward to other ideas. May I suggest to group these ideas for clarity? Many of the ideas are variants of the advertising model. It would be easier to go through the lsit if it had that sort of grouping.
    I did not see it but what about platform licensing?

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