For Discussion: Web 2.0 Companies Making Big Money

There are web 2.0 companies that are making good money with use of their business mo

del as well as their revenue model. These companies are not as flashy or as popular as Skype, Facebook, My Space or Twitter and they do not grow like mushrooms either. These companies serve corporate social application needs. They saw that there was a market in corporate social networks and they took full advantage of that.

According to Bernoff (2008), these companies are not your typical Web 2.0 business paradigm, since serving corporate customers means lots of client service, which is people-intensive.

These companies do not lift off miraculously like a pure technology startup. In fact, in many of these companies, the technology itself is positively ordinary. But the startups grow because they deliver value for which they can charge a premium and get customer loyalty. The customers of these companies do not defect when something shiny and new comes along, because they like the service that they are getting. Unlike Facebook or Twitter, customers can just decided to close their accounts when something else better comes along just like they did with Myspace when Facebook came along and some even defected when Twitter came along.

Reference

Bernoff, J, 2008, The Real Business Model for Web 2.0: Corporate Clients, viewed on 30^th of September 2010,

http://forrester.typepad.com/groundswell/2008/06/why-id-bet-on-w.html