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| Revenue Optimization |
| Tuesday, July 24, 2007 |
 Revenue Optimization - if building website is not your hobby, then our purpose should be "make money".
If you cannot make "1 buck" from your website, basically you don't need to take care of this "optimization process".
To make money from your website, you can sell services, products and advertisements.
Different revenue models have different entrance levels.
1. Selling Advertisements
It's the easiest model for web publisher. Since 2003, pay-per-click advertising program like Google Adwords offered a publisher program - Google Adsense, more people can enjoy the money making process on the internet.
Nowadays, there are many publisher programs available like Bidvertiser, Adbrite, Yahoo Publisher Program..etc. You can choose either one to suit your current business model.
Indeed, more programs don't mean you have better profit potential. More new publishers come from Asia and South America are competing the same size of biscuit with you. From the annual financial report from either Google and Yahoo, the growth of the revenue from their advertising program don't grow sharply. However, the no. of the web publishers grow enormously.
Many people complain it is tough to make a dime from Google. They are 50% right.
Honestly if you can approach the global market properly, it's not so difficult to make good money from PPC program like Adsense.
2. Selling Products & Services
This model has higher entrance level compared to PPC program.
However, we still have wide range of the models with different entrance levels.
A. Selling digital products & services
The boom of digital products and services make this industry over competitive (according to newbie's level)
For example, anyone can create a ebook (just a pdf file).
Website membership is sightly a little bit difficult because it requires some more website programming knowledge. However, it is not difficult for you to create such website because too many web scripts are available in the market.
Software (e.g. VB, C++, .net) is better coz it requires more programming knowledge. The entrace level is the highest one compared to other kind of digital products.
If you currently have a brand name in the market, then it is still easy to sell these products and services. For the new comers, you need to gain some credibility before selling these kinds of products. The sales volume is quite depending on your reputation plus marketing campaign.
B. Selling physical products
Selling physical product has the highest entrance level. Compared to the digital products, this business is less competitive. Most starters do not consider this business since they are afraid of the complexity and the capital size of the model.
Indeed, it's not difficult to sell physical products. At least, it doesn't depend on my reputation. It relies on the credbility of the website far more than the name of "Kelvin Hui".
The ownership of this e-commerce model is transferable. This means, there is always a "value" behind it.
The logistic and merchandising process can be solved by find a right partner with you. Like my model, I have several partners to manage these process for me, and I focus on site building and sales conversion.
Personally, I suggest the publisher in intermediate level to try to sell the physical products.Labels: path to excellence, revenue optimization |
posted by Kelvin Hui @ 11:34 AM  |
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| About Kelvin Hui |
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Name: Kelvin Hui
About Me: I.T. Skinhead
See my complete profile
Name: Apisith Chawla
About Me: Owner of the online
silver jewelry store, &
friend of Kelvin Hui
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