The Monetization Challenge for Internet Based Companies

February 18th, 2010

One of the most complex problems that Internet based companies face is how to sustainably generate profits.

Having a huge user base has proved not to be a guarantee of becoming profitable. Some of the great players in the market have had trouble doing so, even when they have strategic relationships with marketing agencies, vast amounts of cash to advertise their products and experienced business developers. The cases are well known, You Tube, Facebook, Twitter. The increasing pressure from stockholders to bring in cash has pushed their business developers along with the engineering teams to look for more creative ways to translate usage into money. When it comes to generating revenues there are currently two ways to go: