The ± Factors Google's revenue model celebrates 173 years

Google's revenue model celebrates 173 years

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Google - of courseDid you know that the revenue model for Google can celebrate 173 years? Ok, I admit. There are some minor modifications, but they are smaller than you think. The modifications are actually representing nothing else than a change of infrastructure - and Google was the company discovering it. The people at Google attended history class, showed attention, and did something with it (I am in awe, really).

I am currently finishing off a new text on stakeholders for my site's members - my 1KTF. The text is dealing with the customer - aka "the ultimate stakeholder". During research, I found that we need to address customer types, and each customer type has to be split into different customer roles. Basic information that is taught in every business school, but basic information that is so basic that we forget it. Google did not.

The customers are typically defined as the ones generating company revenue. A salesman, or the advertising agency, can find the different types and convince them to buy, one way or another. The successful salesman - on the other hand - understands that each customer type can be divided into different customer roles. When defining this, the salesman knows that he customer roles are the ones showing how the customer's "cost" is allocated to satisfy each role, which as a consequence makes "the happy sale". (A complete walkthrough of customer types/roles/costs/etc. is available for my site members).

The roles I talk about in the membership area are the user role, the purchaser role and the financer role. In B2B these roles are normally different persons and each one of them must be addressed according to their needs. We start to see a slight move to the same role definition in B2C when talking about web solutions - and especially when talking about the Google revenue model. But surprisingly enough, it did not start with the web and it did not start some decades ago.

In juni 1836, the French newspaper La Presse was the first mass media to include paid advertising in its publication. The owner did it to make it possible for the paper to lower its price, extend its readership and increase its profitability. Sounds pretty Web 2.0, does it not? And the revenue structure?

Customer type/Customer role

User

Purchaser

Financer

-          La Presse-customer

X

X

X – % of Y

-          La Presse-advertiser

Y

Y

Y

X and Y being input from the customer type presented in some form.

 

And how does Google's revenue structure compare to this:

Customer type/Customer role

User

Purchaser

Payer

-          Google-customer

X

X

X – % of Y

-          Google-advertiser

Y

Y

Y

 X and Y being input from the customer type presented in some form.

 

What Google did that differentiate them from La Presse, is that they use the current information infra structure providing them with free material, making the advertiser's role a pure financial contributor to Google without the need of using manhours, costs for print, paper costs, etc. Although that was impossible in France 1836, in 2009 I just have to say "Way to go, Google!"

Feel free to comment, or in the true spirit of La Presse and Google - visit my sponsors you find to the right for other people's opinions (provided by Google, of course).

 

 

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