Web 2.0 Business Models

According to Yarmosh (2005), there are mainly two Web 2.0 business models. Namely technology focus and network effect focus. The two models are said to be both closely related and in some ways, rely on the other for true success.

Yarmosh (2005) also states that the technology focus model is based on innovation which offers a unique value proposition. And that t is important to observe that in certain cases of the technology business model, such as Skype, network effects help drive both the adoption and value of the service.

The technology focus model, also enable the possibilities for partnerships. Where a web 2.0 click company will partner with a brick and mortar company to make a profit, for example FeedBurner can use their technology to help manage content delivery for newspapers.

Secondly Yarmosh (2005) states that the network effects business model is mainly based on user base and user interaction but however technology is key because it is used as an infrastructure tool but it is not the focus.

Reference:
Yarmosh, K, 2005, Web 2.0 Business Models, viewed on 27th September 2010,

http://kenyarmosh.com/web-20-business-models/