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Romasha
Posts: 10
Online: 
NEObie
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| 04/12/2006 3:42 PM |
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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?
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