like Yahoo! and eBay before it, Google came on the scene
with good technology and then needed to work out a way to make money.
Fortunately, that’s where you come in. To put it simply, Google makes
money when you do. That’s the ideal, anyway. Google’s revenue model is
based largely on increasing the visibility and traffic of its thousands
of small-business partners, streamlining their marketing costs,
qualifying their leads, and helping track returns on investment. There’s
genius in Google’s method — and fortunate timing. The typical revenue
path of online media companies is lined on one side with advertising and
on the other side with special services. Consider Yahoo!. While gaining
a huge “eyeball share” with its Web directory and building its empire
on free services to its users, Yahoo! began serving up advertisements.
Although this was an old-media approach, it occurred when demand for
Yahoo’s ad space exceeded supply. So the company could easily charge
premium prices for the privilege of placing an ad on its pages. This
happy advertising era reached its height, unsurprisingly, during the
greatest inflation of the Internet bubble.
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