Google’s main revenue model in generating income is through advertising. The one program generating more than 90% of Google’s revenue is Google AdWords, which is a pay per click advertising program.
This is how it works: when users search for something in the search engine, ads will appear next to the search results (where the ads are related to the keywords entered by the users). Most users will be attracted to the ads because the ads match what they are already searching for in the search engine. The advertisers have to pay Google for every single click on their ads.
Google AdSense is another program that generates revenue based on per-click or per-thousand-ads-displayed. It allows website publishers to display relevant Google ads on their sites. Advertisers are required to pay Google advertising fee everytime their ads displayed on Google Network members’ sites are clicked. Google has a sophisticated system and technology that is able to match users and advertisers with its huge ads database and produce the ads that users are most likely to respond. More information on it here.
Amazon.com involves mainly buying and selling of products and services over the Internet or computer networks.
Amazon.com is a business that uses direct online sales model to gain revenue. A website is established and becomes the place for trading, directly selling to online visitors. Product delivery is often by mail, but digital files or products (eg. e-books and softwares) can be delivered instantly through downloading.
Amazon.com offers a wide range of both used and brand-new products like books, movies, electronic gadgets, jewelries, tools and many more. A list of their bestselling products in 2008.
Ebay is a shopping website and online auction giant which is a great place for people to sell their stuff.
Ebay earns from commissions or transaction fees. Normally, the eBay fees are insertion fees and final value fees charged for people doing business on the site. It means that the person who is selling has to pay eBay once for the privilege of listing an item on eBay website, and pay again when the item sells. Especially in auction-style listing, the higher the starting and selling price, the more eBay charges.
References:
http://organicspam.com/google_revenue_model.asp
http://www.school-for-champions.com/ecommerce/business_models.htm
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