Anne Giles Clelland posed an interesting question via Twitter about Web 2.0 monetization strategies for the SMB. It is a great question, and one a lot of people are asking these days: "cut through all the hype, what can this technology really do for my business in a tough economy?"
The question is not an easy one to answer in general terms because there are so many different types of businesses, and the term "Web 2.0" is a bit amorphous.
But I'll do my best.
There are direct and indirect monetization strategies. When it comes to direct monetization, there are two primary vehicles: ads and subscriptions.
Both have there ins and outs, people have proven to be pretty reluctant to pay subscriptions for information or buy Web memberships. Despite all the attention given to the long tail, unless you have beaucoup traffic you will not make much from ads.
Forrester recently came out with a report on community platforms, which was mentioned on Read Write Web. These are solutions that let you leverage various Web 2.0 technologies to put in place anything from a simple blog or website to Web-based hubs that help build community amongst your extended business network including customers, prospective customers and partners.
Near-Time, a vendor that I have worked with quite a bit over the years, is a provider of one such platform. It combines blogs, Wikis, file sharing and calendars. As an example, Near-Time makes it easy to put up a Web-based community that you can monetize by running ads. It also features an e- commerce engine that lets you charge for premium content and access to private forums.
Community platforms are ideal for information rich businesses. For example, Near Time has been used by publishers (traditional and online, consumer and B2B), analysts and consultants. Their website also lists customers in retirements benefits and staff augmentation. Other examples include golf instruction (see Golf by Design) and a website for keyboard and piano enthusiasts (see Whole Octave).
In terms of indirect monetization, many are using Web 2.0 types of tools such as blogging and micro-blogging to build awareness of their offerings, establish reputations and drive traffic to the their websites. Handshake 2.0 can help small and mid-sized businesses with this. The agency I work for, Fusion PR, helps tech companies leverage social media for PR and demand generation.
Although soft benefits seem less compelling these days, it would be a mistake to ignore the potential of Web 2.0 to improve communications, support and collaboration amongst customers and business partners. Web 2.0 tools like RSS, and many different types of search can help you keep your finger on the pulse of the marketplace.
Better communications and information inevitably lead to stronger bonds with customers and better business decisions for those who master these tools and act on the information gained.
Thank you so much for your thoughtful reply to my question. You inspired me! The comment I had in mind turned into a whole blog post!
It's here:
http://www.handshake20.com/2009/01/the-great-forward.html
Can't wait to read the next chapter in this saga!
Posted by: Anne Clelland | January 28, 2009 at 09:11 AM
Has anyone heard of www.Spiceworks.com? SMB IT application and social business network? Over 600,000 IT pros use spiceworks to monitor IP related assets and engage in a social community around IT related topics. Pretty cool stuff.
Posted by: Yakbutter Blacktea | February 14, 2009 at 01:22 AM