Saturday, 8 November 2008

E business – How to generate income?

There are a few ways to make money using an online site. One of them is obviously selling e-merchandise (products and services) and getting your return from a markup or simply for your expertise work and time invested (if you sell a service).
But money can be made also without selling a particular product. Providing good information on your site so that it becomes an attraction for others is enough. Independent online newspapers earn their income this way. They provide free news that attract a lot of visitors. The more visitors you have, the more valuable is the web space in which you public the news. Advertising companies may want to "rent" a portion of your web page in order to advertise their products. The most common practices are the following:
I will use Facebook, because it came handy. But please keep in mind that these prices are a bit hi, since Facebook is a well known, frequently visited web site.

The site mentions 2 options(these are quotes from www.facebook.com):
"Daily Budget: What is the most you want to spend per day?(min US$1.00)" - the standard bid was set at 25$
"Max Bid: What is the most you are willing to pay per click?(min US$0.01)
Suggested bid: US$0.31 - 0.42"
So, the first option displays the banner and does not count the click on it, while the second pays only if a click is done. For both, the more you pay, the bigger the chances of your add to pop-up.

Entrepreneur.com talks about the costs that may be associated with putting the site up. It says that allowing credit card payment on your site increases the monthly fee for maintaining the site. You should also consider the fact that there is another monthly processing fee, and all these fees vary with the amount of transactions you make.

So in this post I talked about the website's owner options of earning income, either by selling products, services or space, but also about the cost he/she may incur when making web transactions and the income he/she may receive when selling virtual space.

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