The aggregator firm reaches out to the goods/service providers and proposes a partnership based on several terms. These terms are usually regarding the commission charges and the service uniformity. Then the aggregator firm works upon the brand building and the marketing strategies.

The aggregator firm becomes the public front which means the customers do not have any information regarding the goods/service provider. Customers make purchases through the online aggregators and in this way, the providers get more customers without spending an arm and a leg for the marketing. With each order, the aggregator firm gets the pre-decided commission. Let us have some insight upon the revenue streams for the aggregator business model.

How do Aggregator Sites Make Money?

The revenue generation in an Aggregator Business Model is similar to that of the marketplace business model. The partners of the company are the source of the revenue. The company generates revenue through commissions. There are two ways of generating revenue;

I.The company could fix a take-up rate, i.e. the providers fix the price and the aggregator firm quotes the final price to the customers after adding their take-up rate.

II.The company could decide the commission rate per purchase from the providers for bringing in the customers.

The commission rate revenue stream is followed by Uber. However, there is no fixed revenue stream for an aggregator business model. It could change in different scenarios as it is a flexible model.
Examples of Online Aggregators
To have a better understanding of how the aggregator business model works, let us have a look upon the online aggregators that have adopted this model.

How do Aggregator Sites Make Money?