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Old 18th June 2008, 11:43 AM   #1

Join Date: Jun 2008
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Question How Do Web 2.0 Companies Make Money?!

I have seen a lot of online services during the Web 2.0 era that provide services for free? I was under the impression that the revenue model includes ads on the site, but a lot of them don't have any ads.

How do they make money to pay expenses related to site administration, staff and capital goods?

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Old 18th June 2008, 10:24 PM   #2
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Many of them don't turn a profit, and many of them have no viable monetization strategy at all.

Instead, they rely on venture capital.

The VCs look at the traffic and engagement numbers and figure there must be some money to be made there (somehow) and they want to be in on the ground floor. Unfortunately, the VCs are liable to lose a good chunk of that money unless they and the other website owners eventually come up with a good monetization strategy.


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Whether you think you can, or that you can't, you are usually right.
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Old 1st July 2008, 10:37 AM   #3
Kurt Henninger

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If you look around at some of the more popular 2.0 sites, they do make money by affiliate marketing. Getting as many people on there and doing affiliate marketing is a big business model for some of them.

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