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How do "free" web sites survive?
By David Lawrence
In the 21st century the Internet has grown tremendously with web site offering an amazing array of free services. An amazing number of web sites have been founded without a solid business plan for revenue. They develop a cool technology and attract traffic. Once they have the traffic - they begin to focus on how to monetize the site. Advertising - The most common revenue source for Internet sites is ad revenue. The advertising revenue may come from banner ads (usually fairly obvious as advertising), from displaying links/ads from search engines or even from directing traffic (links) to other web sites. Upsell - Many services will have a free service - but attempt to upsell the customer to a paid version that offers more features. Sometimes the paid version offers the same features - just removes all the advertising. Affiliate Sales (also known as cross-selling or revenue sharing) - Similar to advertising in that there will be some display that directs the visitor to a 2nd web site. Instead of being paid to display the ads, the 1st site is paid when the visitor buys a product or service on the 2nd site. The old adage is true - nothing is free. The consumer gets a "free" service in exchange for allowing their eyeballs to gaze at advertising messages. |
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