Digital Interactive Services

Revenue generation models for digital businesses

With over 4.66 billion people on the internet and 4.2 billion on social media, businesses are eyeing a pie of this large customer base. Whether a start-up or a global conglomerate, everyone wants to generate revenue from their website, mobile app, and social media channels.

However, it is important to understand the type of revenue model that suits your products and services before choosing one. It is also important to execute the model in the right manner for maximum ROI. A well-defined revenue model helps your business operate efficiently, remain competitive in the market, and deliver higher profits.

Top revenue generation models for digital businesses

The revenue model is a crucial element of a business plan. It provides a blueprint on how an enterprise can generate revenue from the value it offers to customers through its products or services. It covers revenue streams and cost structure and determines a business’ sales strategy, growth rates, the kind of investments needed, and the value of customer relationships to build on, which leads to profits and future success*. Here are a few revenue generation models for digital business:

One-off sale:

This traditional form of selling focuses on a win–lose single transaction-based approach. This model is about one-time retail sales without focusing on relationship building. However, it is less attractive than recurring revenue models because the company has to invest in the time and effort required to acquire a new customer from scratch each time.

Affiliate referral (CPA):

Create a pool of online influencers to market and sell your products for a small fee per sale. This is a popular win-win method both for the company and the influencer. When someone clicks a link on the influencer’s blog, they land on the company’s website, which is tracked through affiliate marketing software. Even if the sale does not happen right away, the influencer gets paid for driving customers to the merchant site within a pre-defined number of days. There are different payment methods that you can follow:

  • Pay per click:
  • The influencer gets paid when the link is clicked on.

  • Pay per impression:
  • The influencer is paid when a potential customer lands on the company website.

  • Pay per lead:
  • When the person lands on the website and acts on it (e.g., completing a form)

  • Pay per sale:
  • The influencer receives a percentage of the cost of the product.

Subscription for email marketing:

If your website provides valuable information to visitors, you can encourage them to subscribe to your email newsletter. With modern CRM systems, you can send highly targeted and relevant emails to your subscriber base since you have access to their purchase patterns, demography, and past interactions with your team.

Display advertising (CPM):

You can pay a fixed fee for the number of banner or skyscraper ads shown to site visitors. Generally, a particular rate card determines the number of ads, location on the website, and duration of the display.

Text advertising (CPC):

Cost per click (CPC) is a cost for each click on the advertisements delivered over the web through the Google AdSense network. Such advertisements could also include display graphics and streamed videos.

Pay-per-view (PPV) access:

This refers to payment for single access to a document, a report, an audio file, a video, or an image. You can also limit the number of downloads for a pre-defined fee. The content may or may not be protected under Digital Rights Management (DRM), which regulates the distribution of digital services or content such as software, music, movies, or other online data.

eCommerce sales:

An online marketplace is one of the most popular ways to sell products and services. However, it requires you to manage the e-commerce portal efficiently. Simultaneously, you can also sell via third-party websites.

Digital subscription:

This requires customers to pay a fixed monthly, quarterly, or yearly fee for using your products or services. For example, SaaS (software as a service) providers enable cloud-based access for users who subscribe to them.

Search engine optimisation (SEO):

An effective SEO strategy keeps your business active online and ranks it higher in search results. SEO is purely based on the content you post online, the keywords you use, and their relevance in search results on different search engines. Companies can promote their products and services through useful blogs and articles on third-party websites, which funnels back to the seller’s website.

How Infosys BPM can help?

Through Infosys BPM digital solutions, we offer clients across industries services that transform a business and make it thrive through strategic insights and execution. We provide a large range of services and offer a one-stop shop for everything digital, including revenue generation. In addition, our effective and efficient digital process framework, through the 3Es (Efficiency, Effectiveness, and Experience), helps us provide top quality and credible product information, enabling enhanced customer experience and delivering better sales leads and conversions.

Tap into our 2,000+ strong workforce that ensures faster speed to market, greater accuracy of deliverables, and enhanced return-on-marketing investments.

* For organizations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed on organizational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive, yet modular suite of services is doing exactly that. Equipping organizations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organizations that are innovating collaboratively for the future.

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