How do you monetize social?   Social Web 2.0 couse notes:

• Mergers and Acquisitions
  • Startups get purchased by larger organizations
    • With minimal expenditure, create:
    • Unique identity
    • Hip attitude
    • Attract a large user base

• Advertising
  • Are we providing valuable content that is driving traffic that is leading to advertising revenue?

• Online Advertising Lingo
  • Page views
  • CPM
    • Cost per mille (thousand)
    • Usually 2.9$ per thousand views
  • Ad impressions
    • Ad images presented, around three per page view
  • CPC
    • Cost per click through
    • Anywhere from 10 cents to 85$
• Google analytics

• Alexa Ranking Info

• Subscription Services
  • Fixed rate
    • Per user per month
  • Variable rate
    • Pay according to level of usage
    • E.g. preferred membership subscriptions (LinkedIn, Biznik), special search and communication features
    • Storage (photo sites, imageevents, )
  • Fixed plus variable
• Transaction Commissions
  • Trading fees
    • Ebay auctions
    • Paypal
      • per transaction 2.9% + .30
  • Service commissions
    • Amazon Mechanical Turk
    • Biznik, % of fee for workshops
  • Aggregation fees
    • ITunes, $ goes to record industry, shave off % per transaction
    • Zazzle/Café Press: notion of base price: e.g. $8.99 for shirt, designer marks up over and keeps difference
    • Artocracy: 25% of sale (each ~30$) for site
• Successful Businesses
  • Keeping market share, critical mass
  • Patented techniques
    • Google
  • Hard to recreate data sources
  • Copyrighted content
    • ITunes, music & video library
  • Secret formulae
    • Google
    • From: http://web2.wsj2.com/making_web_20_commercially_successful.htm