1 Online Start-Up Makes A Profit
Many online companies are established and gain an immense following, only later looking to capitalize on the investment. Facebook and Google were created with minimal focus on capitalizing, yet when the number of monthly uniques hit the million mark the money began to pour in through advertisements.
In the 2.0 space, Twitter has become one of the most familiar microblogging platforms. Created as a free service and lacking advertisements, Twitter makes no monthly revenue! It is amazing that Twitter has approximately 2.2 monthly users and does not capitalize on these visitors.
However, a new microblogging site, Yammer, focuses on corporate users and has found a way to generate revenue from the onset. Anyone who uses the platform can join the network for free. When a company officially joins the network it will pay a $1 monthly fee for each employee using the service for tighter security and to gain more control over how their employees are using the service.
In an example like this, it is important when starting your own company to fully develop your business model. There will always be competitors, but you have to find an innovative way to make profits while being the first mover in the industry. If you wait until later to introduce ways to make money by charging your consumers or throwing advertisements at them, they may not be as receptive to your brand/service. Food for thought.
Category: Startups, web 2.0 | Tags: Start Ups, twitter, Yammer
About the Author Erica is the Interactive Coordinator for Ketchum Interactive specializing in interactive strategies and blogger/social media outreach. She is also the founder of www.6inchvinyl.com, a music blog that features her opinion of new and timeless lyrical creations. Oh yea, she's also a graduate of the Georgia Institute of Technology = a nerd! Go Jackets!
See all posts by Erica Hartfield.
I ove your show it is a Goded thank you.
Twitter can likely leverage the fact that they have 2.2 million cell numbers in their database to turn a profit. Plus I can see them offering premium services at some point. I wonder what their overhead is. I LAUGH out loud when I read that someone is pouring 4.5 million into a web site. Are you serious? that’s setting you up for a failure. You could launch 1000 websites for that much and increase the odds of success a thousand fold.