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How Long Can This Free Web 2.0 Thing Last

Discussion in 'General Business' started by Skinny, Dec 26, 2006.

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  1. #1
    Okay I'm talking about Web2.0 websites but as well and probably more at websites that offer a service or web app. (YouTube, etc.).

    Many of these companys offer web space and bandwidth for free. Is this free thing gonna last forever? Will these companies come up with a business model to fund further growth?

    In other words is this "great service(s) for free" gonna last. If you are in the red every year, isn't that a problem?

    Skinny
     
    Skinny, Dec 26, 2006 IP
    PalSys likes this.
  2. Sohan

    Sohan Peon

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    #2
    Yeh, they can last for ever if they set their sites up properly, and know how to make income.
     
    Sohan, Dec 26, 2006 IP
  3. jhmattern

    jhmattern Illustrious Member

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    #3
    The trend is moving to "free," so yes, I think not only that they can, but that they'll have to. People have simply come to expect it, and if they stop someone else will come in and offer it for free (heck, if AOL of all companies finally gave in, I don't see the trend suddenly reversing).

    The fact of the matter is that there are simply too many talented programmers out there now, and if the larger companies don't give people what they want, someone else will (and they'll become the next big thing).
     
    jhmattern, Dec 26, 2006 IP
  4. Valrod

    Valrod Peon

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    #4
    Free webspace and bandwidth has been around for a while in some way shape or form.

    What didn't last were the free ISPs..ie netzero.
     
    Valrod, Dec 26, 2006 IP
  5. Bombaywala

    Bombaywala Peon

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    #5
    It is easy for lot of companies to offer things free because they indirectly used Google technique - ads. Except that the ads were never targeted. Now a lot of companies are moving towards that - give the users what they are discussing, viewing about - not displaying dating ad when someone searches php or java or c++ ;)
     
    Bombaywala, Dec 26, 2006 IP
  6. F1RM

    F1RM Peon

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    #6
    Everyone has profits in mind, but one can actually make more money by giving something out for free rather than selling it.

    After all, doesn't the advertising potential of having millions of visitors interested in your free resource sound better than having just a couple of people buying that product (when, as another poster mentioned, it is only a matter of time until your competition will offer the same thing for free)?

    F1RM
     
    F1RM, Dec 27, 2006 IP
  7. Skinny

    Skinny Peon

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    #7
    I think there are some good points here.

    In other words the business model is basically signing advertising deals with companies. These are definitely more lucrative than adsense.

    Skinny
     
    Skinny, Dec 27, 2006 IP
  8. soniqhost.com

    soniqhost.com Notable Member

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    #8
    They will last as long as there are profits to be made
     
    soniqhost.com, Dec 28, 2006 IP