This document summarizes 10 different web-based business models: 1. Recruitment ads models like LinkedIn and Viadeo that generate revenue from professional networking and recruiting. 2. Excess capacity markets like Uber and Oyo Rooms that monetize unused capacity (e.g. empty car seats, unoccupied hotel rooms). 3. Group buying models exemplified by Groupon and LivingSocial where users receive discounts for group purchases. 4. Digital goods/downloads models represented by iTunes and Amazon Music that sell digital media online. 5. Freemium models like Dropbox and WordPress that offer basic services for free and premium features for a fee.

1. 10 WEB
BASED
BUSINESS
MODELS
Vishal Agarwal
CMBA6/1521

2. Recruitment Ads Model
LinkedIn
Founder: Reid Hoffman, Konstantin
Guericke, Jean-Luc Valliant, Allen
Blue, Eric Ly
■ Launched: On May 5th 2003
■ Revenue: $2.21 billion (2014)
■ Subscribers: 400 million user(2015)
■ Includes professional people looking
for new employment positions, as well
as those other people that already
have positions but would like to have a
business profile that everyone can see.
Viadeo
Founder: Dan Serfaty, Thierry Lunati
■ Launched: on May 2004
■ Revenue: $60 million (2014 estimation)
■ Subscribers: 65 million members
■ The populations are indeed very
different. For example, Viadeo has a much
higher percentage of premium members than
LinkedIn. Viadeo has essentially grown
through acquisition in many countries, buying
the local "business network." It has, as such,
a more local feel in many countries.

3. Excess Capacity Market Model
Uber
Founder: Travis Kalanick, Garrett Camp
■ Launched: March 2009
■ Generates: $10 billion of revenue per year.
■ Subscriber: 8-10million users
■ Hip and Trendy + Safety & Experience,
Language barriers are gone, More time to
drive equals more income, Taxi driver will
regain people’s trust.
Oyo Rooms
Founder: Ritesh Agarwal
■ Launched: May 2013
■ Revenue: $80 million
■ From a single hotel in May 2013 to over
3500+ hotels at present, Oyo has been an
inspiring journey from a smart idea to India's
largest branded network of hotels with the
dream of becoming the world's largest
branded network of hotels.

4. Group Buying Model
Groupon
Founder: Andrew Mason
■ Launched: January 15, 2008
■ Generates: $ 3.2 billion (2014)
■ Subscriber: 48.6million users
■ Include a day-of discount, or a return-visit
offer (like $20 off $100 purchase) to ensure
that the next deal your guest purchases is
with you, For their offers, they waive the
membership initiation fee to their special
club.
LivingSocial Inc
Founder: Aaron Batalion, Eddie Frederick,
Val Aleksenko
■ Launched: 2007
■ Revenue: $57 million
■ Subscriber: 30million users
■ Living Social.com features daily inspiration
on things to do locally, travel adventures, and
fabulous products, all while giving you
fantastic deals and discounts.

5. Digital Goods/Downloads Model
Itunes
Founder: Steve Jobs(Apple Inc)
■ Launched: April 28th 2003
■ Generates: $ 5billion
■ Subscriber: 800million accounts
■ When Apple first launched its iTunes
digital music service it had already
signed deals with major record labels.
Big names such as, Universal Music
Group (UMG), EMI, Warner, and BMG
all signed up to make their music
available on the iTunes Store.
Amazon Music
Founder: Jeff Bezos (Amazon.com)
■ Launched: September 25, 2007
■ Subscriber: 40-50million users
■ What’s not to like? Amazon’s digital music
web page is easy to use, its selection is huge,
and it sells the same product as iTunes for
less.

6. Freemium Model
Dropbox
Founder: Drew Houston
■ Launched: June 2007
■ Generates: $ 10billion
■ Subscriber: 800million accounts
■ Drop box is a very simple brand, and
simplicity is very attractive. Their
approach works because they allow you
to backup from anywhere, including your
mobile device. And anyone with photos
and videos can tell you that 2GB of
space will never be enough.
WordPress
Founder: Matt Mullenweg and Mike little
■ Launched: May 27, 2003
■ Generates: $20K+/month
■ Open source of online website creation tool
blogging and website content management
system.

7. Subscription Model
Netflix
Founder: Reed Hastings, Marc Randolph
■ Launched: August 29, 1997
■ Income: $5.50 Billion(2014)
■ Subscriber: 69.7million
■ An international provider of on-
demand Internet streaming media
Spotify
Founder: : Daniel Ek, Martin Lorentzon
■ Launched: May 27, 2003
■ Generates: 1.2 billion
■ Subscriber: 20million paying
■ Commercial music streaming, podcast and
video service that provides content from
record labels and media companies

8. Freemium Video Subscription Model
Youtube
Founder: Chad Hurley, Steve Chen,
Jawed Karim
■ Launched: February 14, 2005
■ Generates: $1.6Billion (U.S)
■ Over a billion users
■ YouTube can expand as a powerful force
for social causes, education and change,
key insights and lessons for all non-profits
on how to best utilize video, unexpected
facts and figures about YouTube
intersecting with the social sector
Twitch.tv
Owner: : Jeff Bezos (Amazon.com)
■ Launched: June 6, 2011
■ Generates: $3.8 billion
■ Subscribers: 45 million unique viewers
■ When news broke that Amazon was buying
Twitch, a videogame-themed online streaming
site, for nearly $1 billion, the most striking thing
in all the media reports—at least to me—was the
sheer number of people who will willingly watch
other people play video games. I’d previously
thought that when somebody else was holding
the Xbox controller it was time to prepare oneself
a snack.

9. Telephony(public Network) Model
Skype Out/In
Founder: Janus Friis, Niklas Zennström
■ Generates: $2 billion in annual sales.
■ Launched: 2003
■ Subscribers: Over a 300millions users
■ Skype allows these registered users to
communicate through both instant
messaging and voice chat. Voice chat
allows telephone calls between pairs of
users and conference calling and uses a
proprietary audio codec.
Google Hangout
Founder: Larry Page(Google)
■ Launched: May 15, 2013
■ Subscribers: 100 million active users
■ Hangouts is a messaging app that lets you
send and receive messages, photos and more,
and even start free video and voice calls — one-
on-one or with a group! Include all your friends
with group chats for up to 100 people.

10. Premium Model
Xbox
Founder: Microsoft Corporation
■ Launched: November 15, 2001
■ Generates: $21.7 billion
■ Subscribers: Over a 31 Million users
■ Factors such as price competitiveness,
offering choice ,great content and exclusive
games, an open conversation with fans
about features they would like added to our
monthly platform updates, a close
partnership with retailers – these have all
been critical to our share growth.
PlayStation
Founder: Sony Computer Entertainment
■ Launched: December 3, 1994
■ Sales: 13.92 million units sold in 2014
■ Subscribers: 150 million registered accounts
■ We know that Sony is at the forefront of
technology innovation. They simply always
amaze the world with there new inventions
which people long for. The CD technology in the
Playstation range of products has enabled the
games to hold more information. And bigger
space, allows bigger and better games.

11. Brokerage Model
Ebay
Founder: Pierre Omidyar
■ Launched: September 3, 1995
■ Generates: US$17.90 billion (2014)
■ Subscribers: 159 million active users
■ Number of varieties, Deals, secure,
convenience, and safe .
Paypal
Founder: Elon Musk, Luke Nosek,Ken Howery,
Max Levchin,Peter Thiel
■ Launched: December 1998
■ Revenue: $8.03 billion (2014)
■ Subscribers: 173 million accounts were active
■ PayPal is the cost-effective way for eBay sellers
to accept credit card, debit card, and bank
account payments. Sellers only pay low
transaction fees when they receive payments for
eBay items.