Pricing & Revenue Generation Model Of Net Elixir
This project report is a effort to highlight and give glimpse of the working of Net Elixir company. This project report highlights various details of the pricing and revenue generation model of the organisation
Published on: Mar 4, 2016
Transcripts - Pricing & Revenue Generation Model Of Net Elixir
ONLINE MARKETING PROJECT REPORT
Prepared for: To understand the working and business model of Net Elixir.
Prepared by: SIDHARTH MALHOTRA
This report is to understand the role of net elixir as a company that is basically
talking about the extended arm to the digital wing of the company. The company
deals with the services like PPC management, SEO, Facebook advertising, SEM,
This report explores the various working models, pricing models and the trends of
the digital industry and what is the scope for the survival of the existing companies
like net-elixir. The various business model and pricing model of the company is
been explained in the report.
Further in the conclusion and suggestion of some opportunities in the future market
is been talked of. The report highlights the various techniques and methods that
were used to collect and gather data. It has a detailed projection of the work done.
CHAPTER 1: INTRODUCTION
Through this project we are trying to understand the working and business model of Net
1.2) ABOUT THE COMPANY:
The NetElixir team consists of a multitude of search marketing engineers, data scientists,
technologists, and global operations managers, all of whom are constantly ideating,
innovating, and implementing unique practices that drive towards the vision of
empowering search advertisers.
1.2.1) BUSINESS PORTFOLIO:
Net Elixir offers services that enhance their digital marketing efforts. They obsess over
the numbers, analytics, and strategy.
Fig 1.1 Business Portfolio
126.96.36.199) PAY PER CLICK (PPC aka CPC)
It’s an Internet advertising model that is used to direct traffic to sites, in which advertiser pays
the publisher when the ads are clicked. It can be defined as “the amount that is spent to get an
advertisement to be clicked.
188.8.131.52) SEARCH ENGINE OPTIMIZATION (SEO)
Itis the process of affecting the visibility of the siteor the page in a search engines "natural" or
un-paid ("organic") search results.
In general, the earlier (or higher ranked on the search results page), and more frequently a site
appears in the search results list, the more visitors it will receive from the search engine's users.
SEO may target different kinds of search, including image search, local search, video
search, academic search, news search and industry-specific vertical search engines.
184.108.40.206)SEARCH ENGINE MARKETING (SEM)
A form of Internet marketing that involves the promotion of thewebsites by increasing the
visibility in search engine result pages (SERPs) through optimization and advertising. SEM may
use search engine optimization (SEO), that adjusts or rewrites they site content to achieve a
higher ranking in search engine results pages or use pay per click listings.
Net Elixir offers full-service Facebook advertising solutions. Their advanced technology
combines the power of automated bid management and precise targeting (demographics,
location, likes and interests, education/work, and connections) with deep reporting capabilities.
220.127.116.11) COMPARISON SHOPPING ONLINE
Net-elixir manages shopping engine and marketplace campaigns for their clients using their
proprietary feed management, optimization, and reporting platform.
Net elixir is continuously making an effort and finding out new ways of mobile advertising.
Their mobile search technologists are continuously researching and developing methods in
running successful mobile search campaigns.
18.104.22.168) TECHNICAL SERVICES
Net Elixir technical services team helps marketers conduct marketing programs and their site
Fig 1.2 Client Base of Net Elixir
CHAPTER 2: METHODOLOGY
2.1) SCOPE OF THE PROJECT:
The project was carried out by all team members, two meeting were done with the net elixir
officials. In this study we mainly tried and focused on the working of the company and how is it
working as of now.
The interviews for the research were carried out and thus after analysis of the data we came to
We used the market research tool of in-depth interview. The main reason for opting in-depth
interview was first to understand:
a.) As we are in our early days of understanding the subject and the industry, so more of insights
would help us get a better insights and findings for the study.
b.) The data that was to be collected was totally qualitative.
A set of question thus was prepared and then an in-depth interview was carried out. The
interaction was carried out with the key account manager of the Net elixir. The key account
managers of Net elixir told and made us understand the role of Net elixir, in the firms that are
still into traditional business and how the company generates revenue.
Who are the client base of the company and how it efficiently manages business of the foreign
clients by sitting in India.
How the business model works and what are the various differentiating point of the company in
respect to the other competitors that are there in the market.
CHAPTER 3: FINDINGS
After the analysis of the company and the response collected from the in depth interview, we try
and analyze. The various facets of the company that makes It different and in there words the
formulas that makes them different.
3.2) PRICING MODEL OF NET – ELIXIR:
There are four kinds of models that are been followed by Net-elixir for pricing.
3.2.1)PERCENT OF REVENUE SEM AGENCY FEES:
This is one kind of particular model that the company follows for its client. In this particular
model the agency that is managing SEM for the particular advertiser will be getting revenue only
and after the company start making some resulting revenue.
3.2.2) PERCENT OF AD SPEND SEM AGENCY FEES:
In this model the advertising agency first run a campaign on their own. Then the advertiser that is
client over here for the Net-elixir pays after the advertising spends is been done. The percentage
of their search agencies spend is then been charged from the client.
3.2.3) FLAT MONTHLY FEE
This model of the company is very similar to the subscription-based model of the company as in
this model the fixed amount of money is been charged by the company from the client.
In this fees company runs various campaigns and follow-ups for the clients. The fees structure is
monthly based and varies from services been provided.
3.2.4) PERCENT AD SPENDS, CAPPED, WITH FAST OUT
This model is just like a stop loss model of the financial management company, a monthly fees is
been charged according to the percentage spend on the client, but the company puts a minimum
and maximum cap, so that the client and agency both don’t end up with loss.
3.3) UNMATCHED SERVICES & PROPERITERY TOOLS:
The company provides with the unmatched tools and proprietary services that are the point of
difference tool for the company. The clients are being provided with the LXR tool, that is a
unique proprietary of the company. This tool helps in making a more precise enabling, quickly
identify opportunities, create effective strategies, and implement changes – all on one
3.3.1) Working of LXR:
This LXR provides a customer value proposition by providing various differentiated convenient
services that are:
1.) Access to Your Online Customer Acquisition Process
It grants direct web-based access, across multiple campaigns and channels, all from a single
2.) Real-Time Paid Search Campaign Optimization
It uses our proprietary algorithms to yield the best results for your online campaigns.
3.) Integration of Keywords with Your Inventory Management System
It synchronizes with your internal inventory management system to ensure your keyword search
ads match your available inventory.
4.) The Net Elixir Client Service Commitment
We are on call 24x7x365 to ensure that you get the most out of LXR.
5.) Shopping Feed Management and Reporting Dashboard
It facilitates multi-shopping engine feed customization, auto-categorization, submission, and
optimization, all in real time.
6.) Facebook Advertising Management and Reporting
It integrates keyword search advertising and social media channels.
3.3.2) NET ELIXIR UNIVERSITY EMPOWERS BUSINESSES:
Net Elixir University empowers businesses with strategies and analytical tools to be able to run
successful search marketing campaign, through research, workshop, and webinars. It aspires
digital marketing space through knowledge and expertise sharing.
3.4) INDUSTRY OVERVIEW:
It’s a growing industry with many numbers of players. Still to have a look at the trend of the
various companies, we can see this chart:
Limousines.com, Aston Martin, Simone
France, House of Brides, Shade Saver
Holts Cigar Company, Rand Spear the
Accident Lawyer, AWMA, Belfor USA,
The Solid Wood Cabinet Company
Holts Cigar Company, Rand Spear the
Accident Lawyer, AWMA, Belfor USA,
The Solid Wood Cabinet Company
Author Solutions Incorporated, Orbis
Corporation, Cook Medical
Toys R Us, Rockler, Vans, Onedia
Lenovo, Reed & Barton
Table 3.1 Industry major players
Industry is highly consolidated as everyone is providing almost same kind of services. So a
differentiated marketing strategy is required to survive.
CHAPTER 4: CONCLUSION
4.1) CONCLUSION & SUGGESTIONS:
Net elixir has place itself in a very different and unique manner than to industry and is very
successful in many terms. The special proprietarytools of the company are making a different
statement for the company as whole.
It’s having client from abroad only. As this company is operating in India and India is a growing
economy, with a internet YOY penetration growth rate of 34%, it will be a opportunity for the
company to extend the operations to this emerging economy.
As this is growing industry and people are trying to bring inline the traditional and modern ways,
it’s a nice attempt to explore the market of India for future business.
As company already have many acquiring program like, Net elixir university it will be able to
bring the awareness about the tools in the market, that are yet not targeted at an effective cost
and low effort.
http://www.netelixir.com, 3:10 PM, 15-09-2013,Net-elixir.
http://www.netelixir.com/#technology, ,2:10 PM, 15-09-2013,Net-elixir.
http://www.netelixir.com/#analytics, 2:15 PM, 14-09-2013,Net-elixir.
http://www.netelixir.com/#about,, 3:10 PM, 14-09-2013,Net-elixir.
http://www.netelixir.com/#results, 3:15 PM, 15-09-2013,Net-elixir.