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What is the source of revenue for email service providing companies?


Date: 12 Aug 2016    Group: Opinion About    Category: Miscellaneous   

No fee is charged by the email service providing companies like Gmail, Yahoo Mail, AOL Mail and Outlook.com etc. How such companies earn a profit? Do they use the data submitted by the users for commercial purposes for the purpose of earning a profit?

Wondering how an email service provider earns revenue? Find answers to this intriguing query from the responses below.


Author: Sandesh kanungo    13 Aug 2016      Member Level: Bronze     Points : 1  (Rs 1)    Voting Score: 0

Yes all these kind of companies provide us such things for free and companies does not charge for this and they got profit by targeting ads on their different other services.
They do not use your data for personal use and never share your data with any other services for any charge or commercial profit. So the way to earn by these sites is email marketing and advertisement.


Author: [Anonymous]    13 Aug 2016      Member Level: Gold     Points : 7  (Rs 7)    Voting Score: 0

Dear Questioner,

First of all, thanks for asking such a good question. Most of the email service providers, as mentioned by you are providing their services for free for different purposes. There is no doubt that a majority of us will be having an account or two on Gmail, Yahoo or Outlook. Actually, the revenue they make from the FREE services is pretty much intelligently planned and implemented. For a normal email user like you and me, the services seem free. We can access our accounts, send and receive as many emails as we want, including the attachments that may contain different media files and all of that for free.

But the inside story revolves around them scanning our emails and usage behavior, for nothing but understanding which kind of ads can be displayed to us when we access their email site or any other website or service that comes under their network. Hereby, Google stands as the best example for the same. If you are a Gmail user, which I guess you have had been, you must have noticed some random ads running on a side of our email window. When we deeply notice these ads, we will find that we are being shown ads of a USB pen drive or broadband connection for we had exchanged several emails mentioning about these products. Otherwise, we may have had searched it on their search engine or YouTube.

Even for other competitors, the goal is pretty much the same. They provide us free services so that more and more people can use their services. In return, they use this opportunity to learn our browsing behaviour and to show us advertisements for such products that we are actually looking for. Again, as an example, if we are shown advertisements of cheap hotels in our city at a time when we are actually searching for hotels since some days, then it becomes more likely that we will click on such an ad, to just check if it is what we are looking for. Now, how will they know that we were looking for a hotel? Most probably, from the email conversations that we were having in recent days, or from a search that we did on one of the popular search engines that come out to be powered by same parent companies.

Another beneficial point that has worked well for them is that whenever those millions or billions of users use their email services, it becomes more likely that they will want to visit the rest of these sites. And as we are aware, most email service providers; say Google and Yahoo have their email services as one of many services that they provide. Some other services that they provide are Search Engines, Online journal, weather reports and many more. So, when those billions of users make use of the other services of these companies, once again they are shown advertisements based on their need and usage behavior. It becomes like a chain in which they keep getting free visitors to their different services, not just email. Looking it as a whole, that is how they keep getting audiences who use their services, letting email companies understand their users better and then earning revenue from perfectly targeted ads.

Although we can remain assured, our online browsing behaviour and emails are scanned only for the targeted advertisement purposes. As we can expect from them, our personal and sensitive data is never ever sold to third parties, at least by reputed services like Google and Yahoo Mail.

Also, if you are not aware, several companies directly charge a certain fee from the users for using their email services. From a few years, even Google Mail has started their additional service in which you can access your emails directly at yourname@yoursitename.com than yourname@gmail.com. Google likes to call this facility as Gmail for Business, which lets you have a professional looking email address without any hassles, for a minimal fee.

Moreover, we can expect from companies like Google to use their collected data for bringing up another good service in future and also to perfect their existing products, by understanding what exactly users are looking for.


Author: Mahesh    13 Aug 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

Email companies offer variety of services and recover their revenue.

1. Free email service. Supported by banner ads.
2. Hosted email service. Supported by monthly subscription.
3. Mail marketing service. Supported by monthly or yearly subscription.
4. Domain filtering and spam filtering subscription service.

These are some of the ways they make money from the free services. Apart from that a lot of mail services are starting to turn into paid mail services. So you may find that they are sustaining with such service.


Author: Venkiteswaran.    13 Aug 2016      Member Level: Diamond     Points : 3  (Rs 3)    Voting Score: 0

Free services 'online' generally earn revenue by advertisements displayed on web page. E mail also falls under same category. In fact as we are familiar with walls to paste posters, web page also functions as a wall for pasting(rather posting) advertisements. The e mail users facilitate advisements by providing space, providing spread by opening mails and sending mails. The ads are thus viewed and some even clicked. All these generate revenue for the email service providers.

However we can just 'believe ' that respited and popular email providers do not use our profile and usage data for other purposes. I am not convinced beyond doubt about that. The proof is the advertisements we may see tailored as per our usage. For example we may see advertisements of airlines after we book air ticket and get the confirmation or ticket itself via our email. Similarly if we do online purchase of a particular item, then we start getting ads of similar items or similar online portals.





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