Fee-for-Transaction Revenue Models
Website offers visitor transaction information
-personal service formerly provided by a human agent (Kayak, Expedia)
Value chain
-disintermediation (intermediary, human agent removed)
Reintermediation (new intermediary, fee for transaction Web site) introduced
Web created easy to find central marketplace facilitating buyer-seller negotiations
Even tickets, web allows event promoters to sell tickets from on virtual location to customers worldwide
Online agencies earn a fee on every ticket sold (TicketMaster)
Web created secondary ticket market (StubHub, TicketsNow)
-brokers connecting ticket owners with buyers
-earn fees on tickets resold for others, buy ticket blocks
Online banking and financial services
-no physical product
-easy to offer on web
-slow to take off due to concerns about security
-Approaches
–use existing banks identification and reputation
–start online bank not affiliated with existing bank
Travel
Travel agency revenue model: receive fee facilitating a transaction
Travel sites generate revenue through:
commissions, web site advertising fees (advertising- fee revenue model)
Examples: Travelocity, Expedia, Orbitz
Automobile sales
Web sites implement the fee for transaction revenue model differently
Information service (Autobytel, Edmunds.com)
Customer selects specific car, site determines price and finds local dealer,
Locate local dealers, car sells at small premium over dealer’s nominal cost
Dealer charged a fee for service
Car salesperson (disintermediated)
Website: (Reintermediation)
Real Estate and mortgage loans
-Brokerage firms and individual real estate brokers feature online information on properties
-National Association of Realtors Web site (Realtor.com)
-2008 financial crisis (dramatically reduced number of mortgage brokers in business)
-Successful online mortgage brokers (E-loan)
-Industry is resistant to disintermediation