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Saturday, 13 September 2008

Business model behind revenue engine

When people joined in Qyao, many of them have problems with understanding how things there work. But the fact is that there is no hidden magician or wizzard, it is pretty simple basic economics in sales and marketing within the corporate world of business.

Let' say that you have your own web site and you have various advertisers there who pay you XXX ammount for anyone that clicks on their links. Now you have a choice - to leave things as they are and wait for enough people who'll click on your ads or - you could setup a basic membership and share revenue with your members. It's up to you how much you'll share with your members.
It's possible to pay people 99% of everything and you still make a profit. This is in principle, how Qyao started, innitialy as a forum, after realising they could increase coverage of their fees.

The next question is how to get the returned income even though you're not actually doing any clicks at site or their sponsors? The answer is pretty simple, again.

You have your own web site and you want to increase the potential click through rate. You take your members money and use this funds as investmens in your own advertising campaigns on offer in the PPC area. And from that you increase the earning potential and get more income, above 100% and have the ability to pay an substantial sum back to your members, which are - in business language - your investors.

To understand this process better, imagine you own a company and you have shareholders, who pay for their shares in the company. You would use that money from your investors to increase the size of your company and to create more areas to make better profits. So in return for the extra money they had given to you, you pay them a dividend on their investment/share holding of the company.

In Qyao, social and economic network, they don't have shares, they just allow usage of Qyao funds in the members advertising accounts. And this is the basics how Qyao works.

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