Qihoo 360 started with selling third-party antivirus software online. Soon it realized the potential of the freemium business model in the Chinese market and started to provide its own antivirus products free of charge. In short time, Qihoo 360's security products gained popularity and market share in China. The revenues are generated by leveraging its massive user base through online advertising and services like online games, remote technical support, and system integration.
Qihoo 360's main revenue sources include advertising space on 360 Startup Page, as well as revenue sharing with independent games developers which have published their games on the 360 Mobile Assistant. The revenue breakdown in 2012 was split between the revenue streams as follows: 67% from advertising, 31% from internet value added services and less than 1% from selling third party software. The revenues increased by 96.0% from $167.9 million in 2011 to $329.0 million in 2012. As of January 2014, the market cap is $11.42B