Identify and compare the revenue model for Google, Amazon.com and eBay

Google Inc. is an American public corporation. Its revenue model included Google Adwords, Google Adsense and Google Answers.

Google Adwords is a pay per click advertising program which is designed by Google to allow advertisers to present advertisements to the people who are looking for information related to what the advertiser offered. It is an online advertising payment model and the advertiser has to pay every time while his ad receives a click. Besides, Google launched the Google Publication Ads Program which allow advertisers distribute their ads for publication in magazines and chargeable.

Google Adsense is an ad serving program and allow website owners enroll in this program to enable text, image, and video advertisement on their sites. Google’s advertisers are required to pay Google a fee each time a user clicks on their ads displayed on Google Network members’ website.

Google Answers is an internet search and research service offered for a fee by Google. The researchers ask customers questions and offer a price for answer. After a question is answered, 25% of the payment will be charged by Google.

eBay.com is owned by eBay Inc. which is an American Internet company. It is an online auction and shopping website in which people could sell and buy good and service online. Its revenue included Listing Fees and Transaction Revenue. Sellers have to pay some fees to list a product in eBay.com and commission is received in each successful transaction. Besides, eBay also owns PayPal (online payment transaction system), Skype (internet communication software program), and Stubhub (online ticket scalper market).

Amazon.com, Inc. is an American electronic commerce company. It is one of the first major companies to sell goods online. The revenue model of Amazon.com is Distributor Model which means the intermediary takes ownership of the product to sell and earn the margin. For example, I purchase a product for $10.00 and resell it for $20.00, so the $10.00 is my margin before cost. Revenues of Amazon.com keep increasing due to product diversification (started from merely an online bookstore) and an international presence.