What are some ways that online businesses generate income?


Quick Answer

Some ways that online businesses generate income is collecting advertising revenue, selling merchandise, providing Internet-based services and using a subscription business model. Another way online businesses generate income is using a skimming model.

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Full Answer

Websites such as news sites and discussion forums can generate advertising revenue by selling advertising space to companies. Consultants can use the Internet to connect with prospective customers, and Web designers can take orders and provide services online. The subscription model is commonly used by newspapers and magazines, and it provides a steady income. The skimming business model is used by businesses such as eBay and Amazon. With this business model, an online marketplace is created for buyers and sellers, and the website owner gets a percentage of each sale.

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