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Commerce: What's for Sale?
It seems pretty simple – you have widgets for sale and plan to sale your widgets online. Often, however, there are other revenue streams to be considered that go beyond product sales. Adding streams to your site has the potential to increase your site traffic and generate additional income. Here are some multiple revenue stream possibilities:
- Product or service sales income: The main revenue stream of your web store. It's what you built your e-business around and should always be your top priority.
- Advertising income. After you've built up traffic to your site, you can consider turning some of that traffic into revenue. Advertisers are always looking for ways to get their product or service message out to potential customers and are willing to pay successful e-commerce sites to place an ad on their site. Banner advertising has the potential to generate from $.005 cents to $.075 cents each time the ad is shown to your site visitors. It might not sound like much, but with thousands of site visitors, the dollars add up. There are various ways to get started in this area. One popular way is with the Google “Adwords” program.
- Referral income: Another income source is to refer your shoppers to another company's web site. You might consider referring your shoppers to another merchant that offers a related product or service, in exchange for a fee (usually a standard referral fee or a percentage of the sale). Income can vary from 5 cents to $1 per click-through or from 5–20% of sales.
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These materials were developed as part of the Southern Rural Development Center’s Nationall e-Commerce Extension Initiative. They are based upon work supported by the Cooperative State Research, Education, and Extension Service, U.S. Department of Agriculture, under Award No. 2005-45064-03212
Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture or the Southern Rural Development Center. |
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