Communications and Technology Industry Research

Of the most-popular 100 Web sites in the United Kingdom, advertising represents the revenue model used by 34 percent of the sites. Another 12 percent of the top sites have a “variable subscription” or “freemium” model, where users can use some basic features for no additional charge, while additional features are available for an incremental payment.

 

Another eight percent of sites sell related products in a related version of the “freemium” model, where a free product is offered as an entry to other for-fee products. Between them, the ad-support and freemium models (product or subscription) represent more than half (54 percent) of top-100-site business models.

 

About eight percent of sites have a digital download or commerce business model. Pay-per-use is a model used by eight percent of the top-100 sites.

 

Some sites receive fees for referrals to third sites. Some sites attempt to create products from user-generated content while others are platforms that act as a marketplace for third parties. In other cases, there is no direct business model. The effort is devoted to branding that supports some other business model.

 

Numerous subscription models exist. Some sites require a fixed minimum contract while others use a contract with additional free consumption based on contract use. Others offer a free trial period, then followed by a subscription requirement to keep using the site. Some offer discount periods, or an “advertising free” alternative to ad-supported use. Some offer variable programs where additional or “premium” content is offered for an additional fee. In other cases use of advanced features or access to the application programming interface are available for an additional fee. Some offer a “support for a fee” option.

 

Third party support models typically are based on ad placements, sponsorships, paid content placement or for-free inclusion in listings, catalogs or directories. In some cases content licensing serves as the revenue model.