Premium Services Fastest Way To Web Site Profitability

April 16, 2009

The thinking among Web entrepreneurs is changing. Online advertising is out and premium services are in.

With more newspapers and news organizations talking about imposing online subscription fees, one might think the Web is headed toward a future of private clubs and walled enclaves.

Online advertising is losing favor, but subscriptions dont appear to be the answer

Online advertising is losing favor, but subscriptions don't appear to be the answer

But most entrepreneurs appear to believe a combination of free and for-fee services might be the key to their digital futures.

This thinking was reflected in a survey of attendees at the recent Web 2.0 Expo in San Francisco. The study, commissioned by Yola, found that 78 percent of respondents believed the combination would help them weather the downturn.

In contrast, 42 percent believed a subscription model would be the fastest way to profitability.

This change in thinking could still alter the freewheeling, everything-for-free environment of the Internet. And it could prompt a shift away from online advertising.

The same survey found that only 39 percent of people believed hosted ads would bring profitability. And only 8 percent said online auction sites would grow this year.

The Internet appears poised for another key shift in thinking. It is time to noodle on that.


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