How do Internet companies make money? How do Internet companies make money? What is the profit model?

How do Internet companies make money? In the Internet era, traffic is king. Whoever controls the entrance to traffic will make a lot of money. Therefore, Internet companies mainly rely on page views.

Expand data

By studying typical Internet companies such as BAT (Baidu, Alibaba, Tencent), TMD (Tencent, Meituan, Didi), many Internet profit models can be analyzed. Basically, they are B2B, B2C, C2C, O2O and other models or their variants, as well as the recently very popular "sharing model". The characteristic of these models is that they appear to be free in the early stages and do not charge users much money. But when the traffic increases, the user base increases, and user stickiness continues to increase, the profitability of the Internet begins.

There are the following profit models, various examples from the early days of the Internet to the present, for reference only:

1. Online advertising is the most important and common online profit model. The better ones in China are the major portals (Sina, Sohu, etc.), including industry portals. And the profit model of most personal websites is the same, relying on other people's advertising to survive. Emerging online short video websites play online advertisements from advertisers (Youku, Tudou, etc.) through the waiting time before and after audio and video loading, and social platforms can also advertise, such as Weibo and WeChat;

2 Downloading ringtones, multimedia messages, text messages and other value-added telecommunications forms were one of the craziest online profit models in the early days. Almost every business website and personal website ranked among the top 100,000 in the world is gaining financial returns through SP. Currently, due to restrictions by operators such as China Mobile, profit margins have declined, and the market value of listed companies that mainly focus on such models has shrunk;

3. Product trading website: a. Selling other people’s products through the website Products (C2C and B2C models), such as Taobao (C2C) and b. Selling the company’s own products through the website, factory direct sales model (including B2C and agents);

4. Provide unique resources to members Provide value-added services and earn profits. This type of model is represented by Tencent (various members) and Alibaba (a model of Chinese B2B).

5. Online game operations, virtual equipment and prop trading, etc. , Representatives: NetEase, Shanda;

6. Search competition, product investment, classified websites and information integration, paid recommendations and profit extraction, represented by Baidu, Sogou, hao123, etc.

7. Advertising company. Advertising alliance websites make profits by serving advertisers and webmasters and selling advertisements to earn price differences;

8. Enterprise information services. a. Help enterprises build, maintain and promote websites; b. Act as an agent to sell network products of major companies; c. Provide basic network services; d. Professional consulting company for network marketing planning and search engine optimization;

9. Financing UGC websites generally contain content created by users. With community activity, it will naturally attract the attention of VCs, but later it will make money through advertising, such as: Bilibili;;

10. Recruitment websites provide enterprises with accurate information by establishing a membership database. Marketing services. This is through a large number of network members, providing some companies with a large number of potential candidates. Representatives include: 51job;

11. Establish online products and earn income by selling products and services. For example, some information system manufacturers develop open source software or provide ASP system services. These websites themselves are products and services. Internet users can purchase some technical services, such as video conferencing system rental services. For example: Alibaba Cloud, Shengwang, etc.

12. Share the platform, advertise on APP or portal, or import into the mall, etc.

However, the most profitable Internet companies at present often master core technologies and make profits mainly in the form of advertising fees, selling technology and services, and collecting patent fees. The Internet is ever-changing, and various profit-making variants emerge one after another, and some even wander in the gray area of ??the law.