Posted By Romasha on 04/12/2006 3:42 PM Do web2.0 companies actually make money? Do they have concrete business models? Though the strategy most of them have seems to be wait and get acquired by a microsoft, google or yahoo and the others depend on ads. But the question is, how long would a company survive on ads? The general business model for a web2.0 company i can figure is release the first version (normally beta) for free, attract a whole lot of users and then offer them premium services at a cost. Flickr, Box.net and many other such apps follow a similar model. The advantage that these companies have is that once a user puts his/her data in a service, it becomes slightly difficult for them to move out and shift loyalties. And as time passes by, a few companies might stay others might be acquired by the industry biggies. So, i think this can be called a successful business model, that most of these web2.0 companies are following. But the doubt is, will one of these companies grow to be another google or yahoo or microsoft? hello guys i am new here dear i read your comment i learn alot of things from your comment it's great dear thanx for this information. -------- Girish --------
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