₦airaland Forum

Technology has continued to challenge, define and redefine how businesses make money in the present global space. Technology innovations and the speed with which they happen have brought many traditional businesses either to their knees or constructively destroyed many of them.

Has technology made the business world better or worse?

The answer depends on which side of the divide you find yourself however, it is important to quickly point out the fact that the business world is producing more millionaires and billionaires today than ever experienced in the entire recorded history.

Below is a brief review of 8 interesting service based technology companies as an example to show how businesses make money and impact the business world today and a pointer to the future.

1. Google: Google is today’s most valuable company haven overtaken Apple since February 2016; it is worth $500 billion. Similar to Facebook model, 89% of Google’s $75 billion revenue in 2015 came from ads shown as part of the search results. The 2 major advertising platforms Google has woven into its search engine system that brings this massive revenue are Google AdWords and Google AdSense. Google search engine like Facebook is given to users free however; the money you and I should have been paying has been given to the advertisers to pay. No matter how you look at it we the users are the ones generating the massive revenue.

2. Facebook: facebook has 1.2 billion monthly active users and makes its money majorly from advertising which is over $1 billion per quarter. Facebook is currently worth more than $100 billon. It is obvious that facebook invites advertisers of all sizes however, the target is same which is the ‘likes’ and ‘shares’. Facebook instead of selling its wonderful social media platform (www.facebook.com) service to the users like our traditional businesses has chosen to give it out ‘free’ while passing the average $5.32 per user revenue to its numerous advertisers (Ford, VISA, HSBC, McDonalds, Nestle, Dell, Samsung, etc). How much commission is facebook paying us the ‘workers’ who make the company more than $1 billion per quarter? The answer is obvious.

3. Alibaba: Alibaba holds a world record as the largest IPO ever, worth $25 billion in September 2014. It is a Chinese e-commerce giant best described as fusion of Amazon, eBay, Paypal, and a bit of Google. Alibaba’s original business www.alibaba.com modelled like Amazon, is a trading platform that connects Chinese businesses to international businesses that need Chinese manufacturers but, unlike Amazon, the platform does not keep inventory or participate in logistics. Alibaba makes money from the platform in 2 ways. First, subscription fees charged to businesses that maintain their storefront on the platform and secondly, commission on successful transactions on the platform.

4. Twitter: Twitter earns over 85% of its revenue from advertising which amounted to $277 million in second quarter of 2014. Twitter sells promoted tweets to marketers which eventually appear on users’ timelines. Twitter also places advertisers paid promoted accounts on targeted users “Who to Follow” lists. Twitter also makes additional money through data licensing to data mining companies who have access to all our tweets.

5. Uber: With Ubers cars now operating in more than 140 cities around the world, this multi-billion dollar company fast rise is unprecedented. Uber makes its money primarily by charging commission on each payment made by riders of the cars. In most cases however, the hiring of the vehicle by a customer and the payment is entirely handled by Uber rather than the driver. Uber is currently worth about $66 billion!

6. Ding: Ding formerly known as ezetop is a huge multi-million dollar company doing just one unique business. The company online portal allows you to top up any prepaid phone in over 130 countries with your credit or debit cards. Ding sees over 80,000 transactions everyday and makes money through commission charged to users.

7. Quickteller: Quickteller is a Nigeria owned company doing the top up service similar to Ding only that it operates within Nigeria. Besides, Quickteller also offers few other services like cable/TV subscription, bill (Electricity, Water, etc) payments. This company has grown to become a household name in Nigeria especially among the working class despite the limitations of payment options and lack of global coverage like Ding. Quickteller makes money majorly from charges customers pay each time they use the services.

8. Piuni: Piuni is a new entrant in the game but with very bold, revolutionary and impressive business model. This company offers all services as Ding and Quickteller in that it enables top up of airtime and data bundle purchase in over 140 countries including Nigeria without a charge to the customers. This young multi-million dollar global company newly registered in Nigeria with CAC, supports over 50,000 services and 600 carriers covering Telecom, Health care, e-commerce, transportation, etc. Unlike most of the companies described earlier Piuni business model is such that its profits are shared among the global team of affiliate marketers. By the way, anyone can still sign up as a Piuni affiliate.

Businesses that must not only survive the impact of the ever changing business environment but also excel, must be quick to assess and adapt to the inevitable changes which continues to happen headed by technology.


http://www.yooglo.com

Comments and contributions are welcomed...

You forgot to add http://www.nigerianpalace.com

Na puini abi punini network marketing u wan advertise

millhouse:
Na puini abi punini network marketing u wan advertise

You have issues with Piuni. Let's hear it.

Xflint:
You forgot to add http://www.nigerianpalace.com

You can include it. Tell us what they do and how they make the money!

I will be adding more companies soon...