Social web business models
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There is no shortage of discussion about Internet business models these days. And they almost always focus on revenues. But revenues are only half of the value creation equation.
says Paul Verna , quoted by Daniel Lyons in his latest article debunking some of the myths around bloggin g. Most (99.99%) blogs don’t make money and at best create value in an indirect way (exposure, network, invitations). I agree with the main point of the article: the business model for social media is yet to be found. It feels like 2002, when Google was still looking for a model while Overture was leading the way with a far from perfect offering. From the 2002 New York Times: [...] while Google is the leader in searching Web pages, it is a tiny force in the rapidly growing market for selling advertising related to search.
After last month’s TechCrunch Disrupt , and to provide a business companion to the popular “Lean Startup” customer development methodology, this TC Teardown focuses not on how one specific company makes money but rather seeks to provide a breakdown of the main general ways consumer Internet startups try to make money. Consider it a guide to Internet business models. If you are currently thinking about or are in the process of developing your own consumer startup idea, these key business models will help give you a working knowledge of what it takes to get to $10 million in revenues (assuming you have a good product that the market wants). (Before you post in the comments about how unique your startup is, this list is not meant to capture every consumer business permutation.
Editor’s note: This post is the second part of an analysis of different consumer Internet business models by guest author Steven Carpenter . It is suggested that you first read Part I . Most consumer Internet startups fall into a baker’s dozen of possible business models. In the first part of this post, I tried to lay out the three main buckets those business models fall into (media, paid service, and physical commerce) and then began to sketch out the first four business models (search, gaming, social networks, and new media). In my analysis, I include a rough financial model showing the key drivers necessary for each different type of business model to generate $10 million in annual revenues.
Web 2.0 monetization