The 7 Most Common Website Profit Models

The 7 Most Common Profit Models for Websites (Internet, Network Companies):

1. Advertising. Advertising is almost the lifeline of portals and most websites. Without advertising, there would be no internet as we know it today. It's precisely because of numerous advertisers that China's internet industry has grown robustly. From Sina’s revenue structure, advertising income accounts for more than one-third, while some smaller websites almost entirely rely on advertising to survive. Therefore, advertising is the top profit weapon for websites. However, not everyone can secure advertising resources. For example, Sina.com, with its large audience, is suitable for mass-market advertisers, whereas Donews, a hub for IT professionals, naturally attracts IT-related advertisers. If it's a local portal, then the ad space should be designed to cater to the preferences of local clients.

2. Mobile Value-Added Services (SMS). This is arguably the most distinctive profit model in China's internet sector. Misleading and non-standardized guidance has led to the rampant proliferation of SP (Service Provider) companies. The cost of regulation has resulted in penalties for both Sina and Sohu by the mobile carriers. It’s clear that this profit model isn't accessible to everyone; those without connections or technical expertise are bound to fail. More importantly, in the long term, the outlook for a regulated SP market is not as optimistic as imagined. However, there is still market demand, which ensures that this segment will not generate excessive income but will also never completely disappear.

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