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How to make money for web 2.0 companies

 fordchao 2006-08-26

Since there are more and more web 2.0 startups emerged in China. Many people question how can they make money and sustain themselves. But wait, before you ask the same question, try to ask another question first, “how can a so called web 2.0 service solve a problem?”. When we talk about web 2.0, please don’t just apply “web 2.0″ as a label to their service, the core is to solve a problem in a field. If so, I think they can make money anyway, why?

let me show you a picture first, it’s from Christian Montoya:
Shear

But remember, Web 2.0 entrepreneurs; It’s not so simple to be monetary like shearing a sheep. There are still some problems to be resolved before you can really shear the money from your sheep. Firstly, you have to make your sheet fat, and respect people’s contribution. If people really apply your service as their daily problem solving tool(e.g. Ajaxwhois), you can really get people’s participation all the time and get the furs grow faster. Secondly, the furs are belongs to users who created them in property view. So you can’t just simply sell the “content” to others, but you can smartly get the content showed on your site to attact audience with the permission of users. Most of the time, users would like to do it in default because they like your service hosting their “fur”. Thirdly, you can try to find more extensive opportunities to present the content, e.g. hardware devices, mobile, as well package of content to see if it’s possible to get more accessibilities for those content consumers. All these possibilities can always accompanied with advertisement on more and more content, of course, to cover your cost in a way.
Along with Christian said, “Web 2.0 I$ About Money”, I think it depends on how can you grow “fur” and how to shear them as harvest.

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