Wij
I am a FH squatter
- Joined
- Dec 23, 2003
- Messages
- 18,228
I don't really have much an idea about how you make money from internet sites.
I know they are somehow worth millions of pounds for no apparent reason but correct me if I am wrong, doesn't any real revenue come from marketing, advertising or the sale of goods? For example, I have absolutely no idea how Facebook is worth so much money, they don't charge you for anything and if they did people would stop using it. Unless they sell certain information on to other companies (which is surely limited by data protection/privacy laws?)
Having 100,000+ people look at your website a day cannot make you any money unless you either charge them something or advertise something to them surely? With traditional advertising coughing up its last breath I can't see there being much point or way of making money in most websites.
"OMG buy this naow!" doesn't work any more.
Facebook sells advertising and if you can reach 500 odd million people then it is worth spending the money! How it is valued...well that depends on the Facebook balance sheet...and it's potential for drawing in more revenue!
What percentage of those adverts are for other .com2.0 services though ? If it's significant then a bit of a house of cards style shitola could occur.
(not a rhetorical question, i don't actually know)