Starting an internet business at home may seem easy at first. You just have to create a website, choose what to sell and promote your website to make money online, right? Maybe. If you play your cards right. How successful your venture is going to be in the long term depends a lot on your revenue model.
An interesting model that’s often neglected is the comparison website model. A comparison website is the one that allows search engine readers to look up and compare prices of different products and services companies offer. The products and services can be general or for a specific location. For example, on AlbertaEnergyProviders.com, consumers from Alberta can compare rates of different of natural gas and electricity service providers.
Online comparison sites are growing in popularity
A report from e-consultancy shows that online comparison sites are dominating organic and paid search. The main reason is search engine users develop affection with such websites. Here are some of the reasons why these sites appeal to readers:
1. Save money
Consumers are quickly able to navigate and compare prices/rates of different products and services. It also saves them traveling expenses spent in having to go into different stores, banks or airline agencies to compare rates.
Online comparison websites are quite convenient for consumers as most of the transactions take place from home. They don’t need to physically go to a retailer to buy a product or service and a lot of time is saved as a result.
3. Special deals and offers
Consumers are able to find a lot of items and services at prices that are far below what a retailer would charge originally. This is usually done for the sake of marketing and standing out in a competitive comparison environment. Readers therefore are able to take advantage and purchase more items.
How to make money with a price comparison website?
This is the most important question because revenue plays a major role in the viability of long-term internet business success. There have been many online business owners who started blogging from home and saw success for a year or so, but were only able to go so far because their revenue options became limited.
On the other hand, there are several sources of revenue that can be applied to a price comparison website. Here are some of them in detail:
1. Paid per click
Paid per click is the most conventional method of making revenue that can be used on a price comparison website. Two pay per click models that can be used include Google Adsense and BuySell advertisements. They have the highest paying revenue per click compared to other platforms.
2. Commission from sales/affiliate marketing
The main income of price comparison website comes from commission generated from sales. Such sites usually display products and services and when consumers click on an item for a desired purchase, they are redirected to the website of the original seller as a ‘referral’, and the comparison site receives commission if a sale is made.
3. Direct advertisements
Just as in an offline business, some retailers/companies will pay directly to the owner of the comparison website to display advertisements. This mostly happens when the website is popular on social media and is receiving high traffic.
Here is all you need to know about the price comparison website model. It’s important that you consider long-term revenue viability before starting an internet business from home so you don’t hit the rack after a couple of years.