How to Architect a Web 2.0 Revenue Sharing Empire – Part 4

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Now that we know what particular benefits and criticisms exist for both the owners, and the users, of Web 2.0 revenue sharing websites, we can begin to look at the specific arrangements and business models that exist in the online world. Whether you utilize these sites for the online promotion of your website, blog, or business, or for pure recreational or revenue share purposes, these sites are so useful yet dynamic and ever-changing. The reason this is so is because, just as Google is continually attempting to serve online users the best most accurate individualized search results, so also are these Web 2.0 sites attempting to predict what search engines want in order to best maximize their revenue.

Just like a business (which they are), you will encounter these sites in varying stages of growth and development. Some, by virtue of simply having been around longer, will present with a much greater matured database of content along with a high search engine authority that has been catapulted by the collective userbases’ contribution of content and backlinking. In this industry, this is exactly why an owner’s success in architecting their own Web 2.0 platform will be directly related to their ability to leverage and motivate their community with clear goals, guidelines, and incentives. Even still, motivating does little good if a solid, yet workable, incentivized business model infrastructure is not in existence.

Great headway can be made by owner’s by simply analyzing, researching, and understanding the current business models and revenue share arrangements that exist online. Know these well, and you will be better prepared to lay a solid game plan for the execution and success of your own Web 2.0 revenue sharing website.

• 1) Simple Revenue Share — In this revenue sharing model, owners of Web 2.0 sites essentially establish and implement a revenue share arrangement that will place content provider’s advertisement network ID# into an impression based system. If a website claims to share 50% of it’s revenue, a user will have their advertisement network ID#’s placed into a rotation where, if their advertisements are clicked on while they are being displayed for 50% of the impressions, users will earn a 100% revenue share. Bear in mind, in this model, users do not earn 50% of the revenue, but, rather, they earn 100% of the revenue (for the ‘click’) when their advertisements are displayed up to 50% of the time.
• 2) Tiered Model Payment Scheme Hybrid — These revenue sharing model can become rather complex, complicated, and convoluted. Essentially, the fundamental premise underlying this particular Web 2.0 revenue sharing model is the deep-founded belief that Google values continually updated content. On many sites, users will simply submit content, only to never return and update it. In this model, a system is devised that essentially monetarily incentivizes content providers to continually update their content. An internal ranking system, which allocates payment in accordance with structured and pre-determined tiers, can be created which inherently encourages continually updated content (in order to qualify for the monthly structured tiered payment).
• 3) Escalating Revenue Sharing Model — Rather than provide a simple percentage share of revenue with content providers, this revenue sharing arrangement inherently embeds incentivization of quality content production within an escalating revenue sharing arrangement. For each given month, a content provider can be afforded the opportunity to earn a greater revenue share, from a baseline revenue share, by making some sort of internal achievement. A points system could be devised which could incentivize users to produce longer articles, and therefore be tied into an escalating revenue sharing arrangement.

This entry was written by Howie and posted on September 1, 2010 at 12:07 pm and filed under Web 2.0. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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