Revenue models for Online Businesses:

Monetizing any website is probably the biggest factor in determining the right marketing plan. For example, you'll often hear Internet marketers talk about "monetizing website visitors." This is another way of saying that the marketers are trying to figure out a way of making money from website visitors, such as through advertising, e-commerce, etc.

 

Did You Inc. has a very simple Monetization Model that you are welcome to use,.

1. Determine what are your service or product margins. Take for example our website that sells Catering Food. Our Overhead factors about 75% of the cost of goods sold, so for every person that we "Bill and Collect" say $20 we may see a profit margin of 25% or $5 per person. This $5 represents our total profit and we would want to keep that as much as possible, but if we try to average out a Marketing Budget of say 20% this would take away an additional $1. Follow me thus far; So now we are left with $4. So if you "invested" or "Spend" 20% into marketing online, we would hope to increase our sales and increase our profits. The benefits of online marketing correctly are that once you get SEO working, you dont need to maintain a 20% marketing budget, however you may want to alternate those funds into another campaign such as "Social Media" or "Banner Ads". Monetizing your website is simply finding a way to keep some of the profit margins that you generate from the sale of goods or services off your website. Did You inc. works with customers to achieve a very high return on what would normally cost much more from traditional media sources. send us your comments info@didyou.com

 

The Majority of Ad based websites that try to earn money on these revenue models below are designed to help promote your business or services to an audience of web visitors. Engaging any online advertising campaign should follow some caution, as the so called visitors or clicks may not be a target prospect for your business. Did You inc. will help you identify which programs best suit your website and help monetize your investment.

 

The three most common ways in which online advertising is purchased are CPM, CPC, and CPA.

• CPM (Cost Per Mille), also called "Cost Per Thousand (CPT), is where advertisers pay for exposure of their message to a specific audience. "Per mille" means per thousand impressions, or loads of an advertisement. However, some impressions may not be counted, such as a reload or internal user action.

• CPV (Cost Per Visitor) is where advertisers pay for the delivery of a Targeted Visitor to the advertisers website.
• CPV (Cost Per View) is when an advertiser pays for each unique user view of an advertisement or website (usually used with pop-ups, pop-unders and interstitial ads).

• CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market. Under the Pay per click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site. Recently CPC has been scrutinized for Fraud Clicks by competitors, or firms seeking to bump you off the search engines in order to drive their own Ads up. have some comments about this info@didyou.com

• CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up. This is the best type of rate to pay for banner advertisements and the worst type of rate to charge.
  • Similarly, CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale.
  • Also common, CPO (Cost Per Order) advertising is based on each time an order is transacted.
  • CPE (Cost Per Engagement) is a form of Cost Per Action pricing first introduced in March 2008. Differing from cost-per-impression or cost-per-click models, a CPE model means advertising impressions are free and advertisers pay only when a user engages with their specific ad unit. Engagement is defined as a user interacting with an ad in any number of ways.

• Cost per conversion Describes the cost of acquiring a customer, typically calculated by dividing the total cost of an ad campaign by the number of conversions. The definition of "Conversion" varies depending on the situation: it is sometimes considered to be a lead, a sale, or a purchase.

 

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