How does Web 2.0 Make a Lot of Money?

Static websites are a thing of the past. The latest buzz is now around the word "Web 2.0". So what exactly does Web 2.0 mean and how do Web 2.0 websites successfully pull in a lot of money?

Web 2.0 websites are designed in a way which promotes user collaboration and interactivity. This gives rise to loads of user-produced content offered at inexpensive rates. Remember when back in the day we used to say that the internet provides us with valuable information? Now the saying is that the internet provides us with free user-produced, relevant content at rapid speeds.

This development could not have happened without the advent of Web 2.0 websites.

In the process of giving their users a lot of free information, Web 2.0 websites generate a lot of money using considerably little effort. Because Web 2.0 websites are run mainly by feedback and information from users, the website owners contribute as little as possible, which implies that the cost of running such a website is considerably low.

Because a lot of users sign up and use Web 2.0 websites, the money is made in a lot of simple ways:

1. Once a Web 2.0 website reaches a critical mass of users, well established advertises start yearning to get a piece of the action. Successful websites allow advertisers to post their banners and ads for a high fee. This generates a lot of cash-flow in the long-run.

2. Some Web 2.0 websites also allow their users to advertise. Such websites include Facebook, which has now become the number 1 social website in the whole world.

3. Web 2.0 websites also generate a considerable amount of money by using the renowned Google Adsense system. All it takes is to install a code for an advertising window into a slot of the website, and given enough users, the money starts pouring in.

4. Web 2.0 websites also sell premium website services to their users for a small fee. But because of the fact that there are a lot of users, the cash-flow in the end is considerable.

In conclusion, Web 2.0 can mean a lot of money to you if you have a good idea with a lot of demand and you implement it at the right time.

Compared to static websites, Web 2.0 websites allow for a faster recovery of the seed capital and a better return on investment in the long run.