eBook on 10 web based business models with examples. Analyzing their business models as well as their revenue generating streams.

1. 10WEBBASED
BUSINESSMODELS
CHERRY
MALHOTRA
PGDM2/1511

2. SUBSCRIPTION
MODEL
A business model where a
customer must pay
a subscription price to have
access to the product/service.
The model was pioneered by
magazines and newspapers,
• Founded: 1997
• Founders: Reed Hastings,
Marc Randolph
• Revenue Streams:
- Monthly Subscriptions
- DVD Envelope
Advertising
• Annual Revenue (2014):
$5.50 Billion
• An international provider
of on-demand Internet
streaming media
• Founded: 2007
• Founders: Jared Friedman,
Tikhon Bernstam, Trip
Adler
• Revenue Streams:
- Monthly Subscription
• A digital library and e-
book, audiobook and
comic book subscription
service that includes one
million titles.

3. MARKETPLACE
MODEL
A platform that enable a
large, fragmented base of
buyers and sellers to discover
price and transact with one
another in an environment
that is efficient, transparent
and trusted.
• Founded: 2008
• Founders: Brian Chesky,
Nathan Blecharczyk and Joe
Gebbia
• Revenue Streams:
- 6-12% of booking fee
- 3% of each successful
booking
• Annual Revenue (2013): $250
million
• It let’s people list, find, and rent
lodging. Over 1,500,000
listings in 190 countries.
• Founded: 2007
• Founders: Oliver Kharraz,
Cyrus Massoumi
• Revenue Streams:
- Monthly subscription
fees paid by doctors.
• Estimated Revenue: $118.8
million
• Online medical care
scheduling service,
information about medical
practices and doctors'
individual schedules

4. RENT INSTEAD OF
BUYING MODEL
This model lets you rent the
high end products instead
of buying them. This is
helpful as the rental cost is
a fraction of the actual cost
of buying the high end
product.
• Founded: 2005
• Founders: Osman Rashid,
Aayush Phumbhra
• Revenue Streams:
- Rental fees
- Subscription fees
• Annual Revenue (2014):
$304.8 million
• Specializes in online textbook
rentals, homework help,
online tutoring, scholarships
and internship matching
• Founded: 2009
• Founders: Jennifer Fleiss,
Jennifer Hyman
• Revenue Streams:
- Rental fees
• Estimated Revenue
(2014): $50 million
• An online service that
provides designer dress
and accessory rentals.

5. FREEMIUM
MODEL
A business model, whereby
basic services are provided
free of charge while more
advanced or premium features
must be paid for.
• Founded: 2003
• Founders: Matt Mullenweg
and Mike Little
• Revenue Streams:
- Web Hosting
- Google AdSense
- Themes & Premium
Accounts
• an online, open source
website creation tool
blogging and website
content management
system
• Founded: 2006
• Founders: Daniel Ek, Martin
Lorentzon
• Revenue Streams:
- Advertising
- Subscription fees
• Estimated Revenue (2014):
$1.2 billion
• Commercial music streaming,
podcast and video service that
provides content from record
labels and media companies

6. DIGITAL MONEY
MODEL
• Founded: December 1998
• Founders: Peter Thiel, Max
Levchin and Elon Musk.
• Acquired by eBay Inc. in 2002.
• Revenue Streams:
- 1.9-2.9% Transaction
Commission
- Interest income on escrow
transactions
• Annual Revenue (2014): $8.03
billion
• Global Leader in online
payments
• Founded: 2010
• Founder: Vijay Shekhar
Sharma
• Owner: One97
Communications
• Revenue streams:
- Advertising
- Subscription
- Transaction
- Commission
• Virtual wallet that deals
with Online bill payments
A digital or online way of a
holding money which lets
you spend your money
online by shopping in a
online marketplace,
transferring money, or
making payments and
transactions

7. CROWDFUNDING
MODEL
• Founded: 2000
• Founder: Charles Best
• Non-Profit Organisation
• Revenue Streams:
- Minimum fee for
funded projects
• Annual Revenue (2011):
$36.76 million
• connects teachers in
high-need communities
with donors who want to
help.
• Founded: 2009
• Founders: Yancey Strickler,
Charles Adler, Perry Chen
• Revenue Streams:
- 5% fees for successfully
funded projects
• Revenue (till 2011): $2
million
• A public-benefit
corporation which is a a
global crowdfunding
platform
The practice of funding a
project or venture by
raising many small amounts
of money from a large
number of people

8. DEAL OF THE DAY
MODEL
• Founded: 2004
• Founder: Matt Rutledge
• Parent Co.: Amazon.com
• Revenue Streams:
- Commission per sale
• Annual Revenue (2008):
$164 million
• Internet retailer
with limited-time offers
to sell Products
• Founded: 2008
• Founder: Eric Lefkofsky,
Brad Keywell, Andrew
Mason
• Revenue Streams:
- 50% of coupon sales
• Estimates Revenue (2010):
$713.4 million
• Global marketplace
connecting millions with
local merchants to
sell limited-time offers
The model in which a
website offers different
products for sale at a
low cost for a specific
period

9. COMMUNITY
BASED MODEL
• Founded: 2000
• Founders: Jake Nickell,
Jacob DeHart
• Revenue Streams:
- Sale Proceeds
• Estimated Revenue: $30
million
• An online community of
artists and an e-
commerce website
• Founded: 2009
• Founders: Matt Barrie
• Revenue Streams:
- Membership fees
- Subscription fees
• Annual Revenue (2013):
$18.8 million
• a global outsourcing
community, where
employers and
employees are able to
find each other
Where a community
comes together for
business for the
betterment of the
community as a whole

10. PEER-TO-PEER
MODEL
PLATFORM
MODEL