6 revenue models for your eCommerce business in Zimbabwe
A revenue model is how your eCommerce business makes money. Therefore, it is how your business will earn income from its target customers of the product or service that you are offering. Revenue can be generated from an innumerable of sources, such as adverts, subscriptions and pay-per-view models.
1. Freemium Model
The freemium model is one in which the company’s basic services are offered for free, however your customers must pay for additional premium features or extensions. The most popular company that uses this model is LinkedIn.
2. Subscription Model
This model is a great example of a recurring revenue strategy. The subscription revenue model involves offering your customers a product or service that they periodically pay for monthly or weekly. Kwese iFlix is some of the companies that use this model.
3. Pay-as-you-go Model
Unlike other models, the pay-as-you-go model charges your customers for the actual quantity they have used. Because this model is common in telecom and cloud-based services industries, the best examples of the companies that use it include Microsoft Azure.
4. Affiliate Model
The affiliate model is arguably the most popular eCommerce revenue model. It allows people or organizations to promote your eCommerce products or services and receive a commission for any sales made. ProGifts and eBay are some of the eCommerce companies that are using this model.
5. Ad-Based Model
6. Transactional Model
Countless companies, both eCommerce businesses and otherwise, use the transactional revenue model as it is one of the most direct means of generating income. Your eCommerce company earns money from a one-time purchase from the customers. Foodworld uses this model.