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ERC / Portal Proposed Revenue Models -by Sawan Ruparel Sunday, June 7, 2009
Revenue Sources 2. Banner Advertising 3. Transaction Broker 4. Supply Chain Integration 5. Business 2 Business via Consortia 6. Training and Education 7. Recruitment of Staff/Access to Expertise 8. Membership 9. Hosting and Promotion 10. Auction Platform 11. Business Knowledge 1. Industry Pain Points 12. Networking 13. E-distributor
1. Industry Pain Points ERC / Portal should act as service provider. Selection of the services that needs to be provided, should address at least 1 SME and 1 ISV pain point. Services that will be provided would be state of art and backed by knowledge and experience of Microsoft / Cluster Pulse & other partners involved.
2. Banner Advertising Revenues from Banner Advertising should be considered but are not to be depended upon in the market conditions currently available.  It is to be noted that advertising may erode the credibility and honest brokering of a portal.
3. Transaction broker The revenue in  Business 2 Business Business 2 Consumer service tendering inter-trading on a trading platform can be shared. Sub-contracting Lead exchange
3. Transaction broker The Internet creates the potential for the new areas of transactional environment that goes well with a ERC/Portal revenue model. These are products and services for which potentially SMEs would pay. Examples are: Market Intelligence Education and training Fulfillment/collaborative purchasing and procurement Relevant and appropriate business consultancy/brokerage Business opportunities and tenders Expert advice/access
4. Supply Chain Integration Complete integration of the supply chain reducing overall costs. This is an area where intermediary/consultative assistance is needed together with introducing ERC/portal based on-line support services and the higher level SMEs are willing to pay.
5. Business 2 Business via  Consortia approach There are many consortia based opportunities for lower level tier suppliers to collaborate and establish trading hubs with larger organisations that they could not address individually. This is not entirely new business model and as a consequence an area where businesses are willing to pay for membership and for transaction (although limited in%).
6. Training and Education Market forces, awareness and SME needs are increasing. Many professional bodies have a requirement for continuing professional development of their members, with implications for continuing education and training. SMEs are willing to pay for specific education and training. This is a potential major support strategy.  The fact that employee motivation increases with training, this is a service SMEs will pay for, but only to key/essential staff.
6. Training and Education There are many on-line training and education organisations delivering such training via portal services eg e-learninging module being developed for IDI,
7. Recruitment of  Staff/Access to Expertise This is a major on-line service. Staff recruitment is one of the large costs of running a business. Currently the recruitment companies charge between 10% and 35% of the annual salary for staff recruitment. A recruitment service, which is used to help staff placement, can be used as a direct revenue stream for a portal, with the service outsourced.
8. Membership In our experience, SMEs will pay for membership of appropriate organisations and business associations. However, they expect direct benefits back.  With the low propensity to pay and the need within a portal for volume of businesses, there should be levels of structured value added service together with a structured payment model. This could be developed along with lines of SAS, which can demonstrate and motivate ISVs in the clusters too. Levels for each cluster needs to be decided based on services offered
9. Hosting and Promotion It is our experience that there is a propensity for SMEs to pay for basic services such as hosting of web sites and/or access to Web Services, which varies according to the business need and service relevance. Some small firms see tremendous value in a micro site for their business.
10. Auction Platform Businesses often have assets that they are not using, ranging from machinery, spare capacity, etc. If a trading platform could be established within business sectors or in a region then the value of these excess assets could be realised on a Business 2 Business trading platform which would also enable revenue sharing.
11. Business Knowledge SMEs will pay for business advantage, whether this be in the form of knowledge and business services that may be more difficult to access elsewhere or more costly elsewhere.
12. Networking There are various ongoing services which can be offered as free or fee based on the individual cluster strategy. This could include following: Members database Govt. Policies News/announcement from organisations/associations Discussion forum Important industry related articles (Blog) Newsletter subscription to get frequent updates Online Poll Event Calendar
13. E-distributor Set up by one company seeking to serve many customers More products and services = more attractive Earn money on sales of goods

More Related Content

Portal Based Revenue Models by contact@sawan.me

  • 1. ERC / Portal Proposed Revenue Models -by Sawan Ruparel Sunday, June 7, 2009
  • 2. Revenue Sources 2. Banner Advertising 3. Transaction Broker 4. Supply Chain Integration 5. Business 2 Business via Consortia 6. Training and Education 7. Recruitment of Staff/Access to Expertise 8. Membership 9. Hosting and Promotion 10. Auction Platform 11. Business Knowledge 1. Industry Pain Points 12. Networking 13. E-distributor
  • 3. 1. Industry Pain Points ERC / Portal should act as service provider. Selection of the services that needs to be provided, should address at least 1 SME and 1 ISV pain point. Services that will be provided would be state of art and backed by knowledge and experience of Microsoft / Cluster Pulse & other partners involved.
  • 4. 2. Banner Advertising Revenues from Banner Advertising should be considered but are not to be depended upon in the market conditions currently available. It is to be noted that advertising may erode the credibility and honest brokering of a portal.
  • 5. 3. Transaction broker The revenue in Business 2 Business Business 2 Consumer service tendering inter-trading on a trading platform can be shared. Sub-contracting Lead exchange
  • 6. 3. Transaction broker The Internet creates the potential for the new areas of transactional environment that goes well with a ERC/Portal revenue model. These are products and services for which potentially SMEs would pay. Examples are: Market Intelligence Education and training Fulfillment/collaborative purchasing and procurement Relevant and appropriate business consultancy/brokerage Business opportunities and tenders Expert advice/access
  • 7. 4. Supply Chain Integration Complete integration of the supply chain reducing overall costs. This is an area where intermediary/consultative assistance is needed together with introducing ERC/portal based on-line support services and the higher level SMEs are willing to pay.
  • 8. 5. Business 2 Business via Consortia approach There are many consortia based opportunities for lower level tier suppliers to collaborate and establish trading hubs with larger organisations that they could not address individually. This is not entirely new business model and as a consequence an area where businesses are willing to pay for membership and for transaction (although limited in%).
  • 9. 6. Training and Education Market forces, awareness and SME needs are increasing. Many professional bodies have a requirement for continuing professional development of their members, with implications for continuing education and training. SMEs are willing to pay for specific education and training. This is a potential major support strategy. The fact that employee motivation increases with training, this is a service SMEs will pay for, but only to key/essential staff.
  • 10. 6. Training and Education There are many on-line training and education organisations delivering such training via portal services eg e-learninging module being developed for IDI,
  • 11. 7. Recruitment of Staff/Access to Expertise This is a major on-line service. Staff recruitment is one of the large costs of running a business. Currently the recruitment companies charge between 10% and 35% of the annual salary for staff recruitment. A recruitment service, which is used to help staff placement, can be used as a direct revenue stream for a portal, with the service outsourced.
  • 12. 8. Membership In our experience, SMEs will pay for membership of appropriate organisations and business associations. However, they expect direct benefits back. With the low propensity to pay and the need within a portal for volume of businesses, there should be levels of structured value added service together with a structured payment model. This could be developed along with lines of SAS, which can demonstrate and motivate ISVs in the clusters too. Levels for each cluster needs to be decided based on services offered
  • 13. 9. Hosting and Promotion It is our experience that there is a propensity for SMEs to pay for basic services such as hosting of web sites and/or access to Web Services, which varies according to the business need and service relevance. Some small firms see tremendous value in a micro site for their business.
  • 14. 10. Auction Platform Businesses often have assets that they are not using, ranging from machinery, spare capacity, etc. If a trading platform could be established within business sectors or in a region then the value of these excess assets could be realised on a Business 2 Business trading platform which would also enable revenue sharing.
  • 15. 11. Business Knowledge SMEs will pay for business advantage, whether this be in the form of knowledge and business services that may be more difficult to access elsewhere or more costly elsewhere.
  • 16. 12. Networking There are various ongoing services which can be offered as free or fee based on the individual cluster strategy. This could include following: Members database Govt. Policies News/announcement from organisations/associations Discussion forum Important industry related articles (Blog) Newsletter subscription to get frequent updates Online Poll Event Calendar
  • 17. 13. E-distributor Set up by one company seeking to serve many customers More products and services = more attractive Earn money on sales of goods