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Dec 30
  • Time to Reboot America – NYTimes.com – Thomas Friedman hits the nail on the head: “My fellow Americans, we can’t continue in this mode of “Dumb as we wanna be.” We’ve indulged ourselves for too long with tax cuts that we can’t afford, bailouts of auto companies that have become giant wealth-destruction machines, energy prices that do not encourage investment in 21st-century renewable power systems or efficient cars, public schools with no national standards to prevent illiterates from graduating and immigration policies that have our colleges educating the world’s best scientists and engineers and then, when these foreigners graduate, instead of stapling green cards to their diplomas, we order them to go home and start companies to compete against ours.”
  • Google, WalMart, and MyBarackObama.com: The Power of the Real Time Enterprise – O’Reilly Radar – A great post from Tim gets back to what “Web 2.0” is truly about (networked products that explicitly leverage network effects). Lately the “2.0” sticker is getting attached to many things that aren’t really increasing value of the network.
  • Adult Learning Styles – A great summary of the three major theories on different learning styles. Good to keep in mind during learning design. But remember that supporters of the universal design for learning (UDL) believes ideal curriculum design makes learning styles a moot point.
  • Content Sites Bracing For 50% Revenue Slowdown – Ouch. Perhaps it is time to revisit the “freemium” model?
  • When People Don’t Want to Change – Marshall Goldsmith – The great Marshall Goldsmith with a brief post about not wasting time on people who do not want to change. To help those people who do want to change, check out the Progressing Through Change tool at: http://csolved.com/ptc/
  • Innovating in the Great Disruption – Scott Anthony – Scott Anthony provides interesting ideas on keeping your innovative edge in this era of constant change.
  • Knewton Takes Adaptive Learning To The Next Level

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Dec 04

I wanted to post this video for two reasons: 1) They used the nearly the same headline as I did (and who knows how many others have ;o); and 2) while my post is a dry review of the ways to generate revenue on the Web, Charlene Li and Sarah Lacy have a brief but interesting discussion about why monetizing social networks is different from search and other general Web advertising (the favored monetization model on the Web).  I especially liked Charlene’s comment that Twitter may be amassing a more valuable data set than Facebook because they capture what “people are paying attention to” right now.  Take five minutes to check it out:

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May 25

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Mar 17

These are my links for March 15th through March 17th:

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Feb 19

Here is a simple illustration I put together for a client that displays the six primary monetization methods on the Web. Is is a simplification and expansion on a post from Dion Hinchcliffe from awhile back. The only real “Web 2.0” advances in monetization lurk in the “back door” that was opened up using APIs. Recently, Larry Dignan reiterated a common refrain that APIs are the future of Web monetization based on very rough numbers of how much Amazon makes from its numerous Web Services (additional interesting point here). While the numbers are not yet firm they are the only new monetization method that has arisen with Web 2.0. The illustration shows the monetization methods from the traditional “front door” of a Website as well the new opportunities opened up by APIs (all presented simply enough for even the busiest executive):


And here is a very brief summary of the six methods:

Advertising: The Web site owner sells spots on the website (“inventory”) to advertisers. There are numerous models for this type of monetization. Some are fixed price, some are per displays (“impressions”), other are based on the visitor clicking or taking some other action from the add link. Example: AOL sells premium ad banner locations for up to $500K per day.

Subscriptions: The Web site owner only makes some or all of the content or functionality available to customers who create an account and use a credit card (or other means) to subscribe to use the content or services. Rhapsody.com charges users $10/month to be able to listen to millions of songs from thousand of artists anytime, anywhere (online – additional charge to download a song).

Retail: The Web site sells products or services directly to the site visitor. This is a single transaction as opposed to an ongoing subscription. Example: iTunes makes it money be selling individual songs for download.

Donations: The Web site allows people who find the site’s content or services useful to donate money to keep the service functional. Example: RadioParadise.com is a user-supported online radio station that generates all its revenue from listener donations.

Fees: This is a B2B charge where the Web site makes some or all of its content or services available to other businesses for a fixed fee. Example: Amazon.com opened many of its online merchant functionality to other companies and generated an additional $250M in revenue in 2005.

Commissions: This is a B2B charge where the Web site makes some or all of its content or services available to other businesses and collects a percentage of the other business’ resulting revenue. Example: Google AdSense allows everyone to put Google text ads on their website and get a percentage of the money Google makes from the advertising.

And that is a wrap of the original document. But…

Coming Soon: Web 2.0 Show Me The Money (Part 2) – wherein I revisit the illustration and update it based on recent developments and the great monetization summary article from Professor Michael Rappa. (I will try to get part two up in the next 30 days!). In the meantime, please leave comments especially if you can point out everything I missed!

written by Jeff Kelly \\ tags: , , , , , , , , , , , , ,

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