How To Make Money Online: The Brokerage Business Model

On Wall Street, they call brokers, market makers. This is because they make a market for buyers and sellers. As of recently a term of art has appeared on the internet, the brokerage model.

When speaking about online revenue models, the brokerage model entails putting a buyer and seller on the same web page to make a transaction. Examples of websites that utilize the brokerage revenue model include, and eBay.  None of the businesses before stated carry any inventory and their sole purpose within the brokerage revenue model is to connect a buyer and seller.

The brokerage model online generally can be broken down into three categories:. The first category is business to business. The second category is business to consumer. The third category is consumer to consumer.

An example of a business to business online brokerage revenue model consist of web sites such as

An example of a consumer to consumer online brokerage revenue model is EBay, we're an individual can post an item they have for sale, and sell it to another individual across the world.

Creating an online brokerage model for your website where web development project is capital intensive in the sense that you must hire a tech guru that can actually program your website to connect the two buyers and sellers. This business model does not rely on inventory, and thus is very lucrative to have a viral effect.
In the example of Amazon, the virtual marketplace leverages multiple sellers and multiple buyers around the world and acts as a platform to connect the two. An auction broker, such as eBay, is very similar to Amazon and allows sellers to place their items up for auction.

Another type of transaction brokerage is PayPal. This type of service does not include the brokering of any items, rather it includes the brokering of monies. The web property PayPal takes a commission for transferring money from one user to another, in other words brokering the deal.

The key to developing a sustainable online profitable transaction brokerage model includes the ability for the software on the website to properly allow sellers to sell their objects and buyers to buy the objects from a seller.

Please feel free to comment or add any other additional information in regards to the brokerage business model online below.

Hope this was helpful,

The PushYourRank Team
Author: Nicholas Coriano

About The Author: Nicholas Coriano is an Entrepreneur, Web Developer, Social Media Marketer, SEO Consultant and the founder of this blog and The  While developing websites for his own businesses and marketing his entrepreneurial ventures online, he began blogging useful tips and "how-to" articles on for reference purposes.  To retain Nicholas for help with your Website, Social Media, SEO or other online/technology needs, email

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