New business model for Internet startups or income generation 2.0
Now investors are looking very closely at start-ups with the revenue-sharing business model. What is this model and why is it so interesting for a startup?
And everything is very simple: Revenue Sharing implies the distribution of a part of the income among the users who created the content. Most of us have already encountered such schemes - Google shares its advertising revenue with the owners of the sites on which the ads are placed. Apple places third-party games for iPhone-iPod on iTunes, and pays them a portion of the revenue from the sale of these games. Many sites implement this model, playing out or stimulating users with gifts. There are already sites for photographers and models, including nu, which allow you to receive income from the publication of photos, exceeding the fees in Playboy and FHM.
If we consider the standard two-sided project, we will see that the model consists of the following elements:
- Platforms
- Users who generate content
- Users who consume content and rate it
- The source of income (advertising or paid services)
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Why is the revenue sharing model becoming popular and effective? And everything is very simple. It consists of a self-adjusting money-oriented mechanism. What is it?
Consider in order: some users create content, users come to good content (in some cases they are even willing to pay for it or for some additional functionality on the site), advertisers come to users, the site earns money.
If the administration’s part of the income is divided between users - content creators (the principle is not important, the same premiums are given to authors of the best 100 publications per month, simply distribute part of the income among all authors, proportionally to the rating or number of publications viewed), then the latter will be motivated to generate better and more popular content (whether specialized articles, photos or videos). And high-quality content will lead readers. And they went to a new round. Such a scheme, with the right approach, can provide an exhibitor in growth that investors love so much.
The main problem in this case is the payment of fees to the authors. In the USA and Europe this is done easily with the help of PayPal, but we already have very convenient tools for implementing such mechanisms, providing for easy payment of money on the card to the authors.
At least two projects with this model went to SeedCamp Eastern Europe , but they are still damp. It would be interesting to see the presentation.
And everything is very simple: Revenue Sharing implies the distribution of a part of the income among the users who created the content. Most of us have already encountered such schemes - Google shares its advertising revenue with the owners of the sites on which the ads are placed. Apple places third-party games for iPhone-iPod on iTunes, and pays them a portion of the revenue from the sale of these games. Many sites implement this model, playing out or stimulating users with gifts. There are already sites for photographers and models, including nu, which allow you to receive income from the publication of photos, exceeding the fees in Playboy and FHM.
If we consider the standard two-sided project, we will see that the model consists of the following elements:
- Platforms
- Users who generate content
- Users who consume content and rate it
- The source of income (advertising or paid services)
')
Why is the revenue sharing model becoming popular and effective? And everything is very simple. It consists of a self-adjusting money-oriented mechanism. What is it?
Consider in order: some users create content, users come to good content (in some cases they are even willing to pay for it or for some additional functionality on the site), advertisers come to users, the site earns money.
If the administration’s part of the income is divided between users - content creators (the principle is not important, the same premiums are given to authors of the best 100 publications per month, simply distribute part of the income among all authors, proportionally to the rating or number of publications viewed), then the latter will be motivated to generate better and more popular content (whether specialized articles, photos or videos). And high-quality content will lead readers. And they went to a new round. Such a scheme, with the right approach, can provide an exhibitor in growth that investors love so much.
The main problem in this case is the payment of fees to the authors. In the USA and Europe this is done easily with the help of PayPal, but we already have very convenient tools for implementing such mechanisms, providing for easy payment of money on the card to the authors.
At least two projects with this model went to SeedCamp Eastern Europe , but they are still damp. It would be interesting to see the presentation.
Source: https://habr.com/ru/post/24189/
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