Author Question: What is a revenue model? Identify four major revenue models. What will be an ideal ... (Read 118 times)

vicky · **on:** Jul 7, 2018

What is a revenue model? Identify four major revenue models.

What will be an ideal response?

Question 2

Identify and briefly describe five typical EC business models.

What will be an ideal response?

Question 3

Eastern Mountain Sports uses Web 2.0 tools to increase collaboration, information sharing, and communication among their employees, suppliers, and customers.

Indicate whether the statement is true or false

SAUXC · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

A revenue model describes how the organization or the EC project will generate revenue. Major revenue models include sales, transaction fees, subscription fees, advertising fees, affiliate fees, licensing fees, and other revenue sources. The sales revenue model occurs when companies generate revenue from selling merchandise or services over their Web sites. The transaction fee revenue model occurs when the company receives a commission based on the volume of transactions made, or transaction fees can be levied per transaction. With the subscription fee revenue model, customers pay a fixed amount, usually monthly, to get some type of service. With the advertising fees model, companies charge others for allowing them to place a banner on their sites. With the affiliate fees model, companies receive commissions for referring customers to others' Web sites. The licensing fees model assesses an annual fee or a per usage fee. Other revenue sources include charging people to play games or watch sports events.

Answer to Question 2

Saved me massive time.

Answer to Question 3

TRUE