What are the revenue models for social networking sites themselves?

Entire service was offered free of service initially, due to the number of users were too small initially. Only after 250,000 people have been registered, models of subscriptions have been introduced. There are several membership models availed in the website such as gold membership and free basic models for viewing the profile. For example, golden membership requires the member to view the complete profile and exchange their message through their platform. Other ways the website generated are through advertisement displayed on the website.

Revenue model Revenue drivers
Number of users Willingness to pay Trust
Advertising models + Less Less
Subscription models +- + -+
Transaction models Less -+ +
- No impact + very high impact -+ medium impact

Advertising models: Advertising is one of the important areas to be focused, where it helps to create revenue generation. Two forms of advertising such as affiliate models and banner advertising. In the case of affiliate model, referral fee or receives a referral fee or sales percentage, for example in return for sponsorship, the website offers an option for the creating of a special group. In terms of advertising which is a banner, for the display of the advertisement, allows platform operators to charge a fee. Subscription models: This is the another major second source where the users are subscribed fee for access to all its offering or for some, and only the basic features are free for them to use, others are charged. In transaction models, the company received for executing transactions either exogenous or endogenous where digital goods and services can be bought through a platform such as virtual gifts.