Website profits

[JTrader]

Hi


Here's a few random questions................

I'm just wondering how websites make a profit?

is this achieved by number of hits to day? if so, how does this convert to profit for the website owner?

Or does it simply come down to sponsorship and advertisements on the website?..............

.................And what about TV viewing figures? say Eastenders beats Emmerdale by 10 million viewers to 6 million viewers - is there a direct relationship to profit and loss for the TV channel?

Many thanks

jtrader.

 

[sidinuk]

The easiest way for a TV station to make money is by forcing every household in the country to pay £120 per year extra in tax. Then you spend the vast amount collected on channels that only a minority of the country can receive and even less care about. Of course it does mean you don't get an ad break during Eastenders, so well worth it then.

 

[rossored]

Most revenue for websites is generated either by companies paying a monthly fee to place adverts on the site, or by selling a product.

Obviously the more hits a site receives (actual page impressions, rather than hits) the more a site can demand for advertising campaigns. This has to translate into good click-through from adverts though - there's no point in displaying them if no-one bothers clicking on them.

ADVFN, for example, charge around £6000 a month for some of the high-impact placements on their homepage - but they get around 30 million impressions a month, I believe.

 

[JTrader]

Thanks rossored.

So are/can successful websites that have many members, and can generate substantial profits through advertising, routinely bought and sold in the same way as a milkround or window cleaning round?

Cheers

jtrader.

 

[rossored]

I know you can buy established web businesses, yes, in just the same way as any other business may be bought or sold.