Thursday 30 November 2006

Business model in the web2.0

From the publisher angle, we don't really know how to monetize the social web. I'll try to list the Business model applied today (November 2006...) and check if it's applicable for a profesional publisher. I already hear in the background that there is not way to monetize what the community is producing... Let's see !
  1. Advertising, the most common one. Mainly driven by AdSense (but the figure must remains confidential as explained in google's terms and conditions). Surprisingly enough the better the content is the less you get paid by user (arghhhh...), did you know that 15% of the revenue generated by AdSense is originating from Domain Parking pages !
  2. Begging aka "please donate if you like my site". Wikimedia, the fundation behind wikipedia is a good example. It's also described as the "camgirl" phenomenon, which is not applicable for professional publisher (send me picture of your colleague to evaluate that business case:-). I also doubt about building a whishlist for my company...
  3. Membership. This is more intersting for me, you create executive club and ask for membership. it's not a subscription in the publisher sense because you just join a club to participate in discussion. Example salon.com
  4. Target to be acquired... Well I'm not planning to build new product with the idea of being overtaken by the competition. Nevertheless, If you have set up an original project in the legal and regulatory content world and if you targeted such business model give me a sign I might be interested (no kidding...). The latest example is YouTube being acquired by google just because of the traffic it generates.
  5. We can't target a single business model, it will often be a combination of the above mentionned model.
  6. And Finally, I Don't need a business Model ! Actulally, a lot of social web stuff are there because of some passionated and individual volunteer. They are trying stuff, mashing up ideas and jumping from one to the other. The sense of being profitable is non existing, except when they get a site which is adopted and when they are facing more cost than expected...

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