Tuesday, April 8, 2008

Web 2.0 Revenue Models

Here's the challenge in the web 2.0 world. A lot of services are offered for free, and as Mapping the Web points out, this could well mean that all those entrepreneurs out there advocating a totally free model are saying that revenue = exit strategy.

And that in itself sounds silly, because starting a business should mean sustainability and "revenue-ability." You have to create revenue if you want to continue to run your business.

So here's an interesting idea--when you create your business idea, your revenue model should be incorporated. Of course, there's the idea of the "Long Tail," meaning that you don't always create revenue via money transactions as is in Web 1.0.

The Long Tail blog has some great ideas on different kinds of revenue models that are used in media.

Now there's something to mull over for a good long time. Dion Hinchcliff at ZDNet talks about business value in web 2.0 often, which emphasizes that Web 2.0 is not just "another cool idea." Yes, this post is more than a year or more old, but it's still very relevant.

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