where’s the catch

as a magician talked about how most people take it as a challenge to uncover the trick behind the ‘magic’, isn’t it similar in business.

WordPress is good. it’s impressive. very impressive.. they are big,  constantly innovating, they are getting in major shares of the new bloggers. and most of all, there’s loads of ‘talk’ about it!!

now, the question is – what’s their business model ?

they have to have one. they host the servers that serve the pages. they pay for the spam control technologies, they maintain the portal. they develop new themes, pay the staff. and all that.. they got to be getting money from somewhere ..

i don’t see ads on wordpress. i don’t think that’s the model they are using. ( very unlike ibnlive.com, wonder if they make all their profit on their web portal :D ).

WordPress infact raised money about $1.1 million in angel funding. and $ 29.5 million in round B. and before that turns down a $200 million buy-out bid. founder Matt is talking big.

right. what interests the VC’s so much. social networks on the web are only now developing and placing huge bets on them does come with a risk, doesn’t it ?

anyway, coming back to wordpress’s business model – they do have paid products http://wordpress.com/products/ and VIP hosting. but how many will take it if all they want comes free..

maybe its a question of time before paid-features are more aggressively pushed. maybe they are waiting for the critical mass. But still, monetizing soial networks is still a challenge.   advertising, subscription, data mining, sponsorship, affiliate marketing are the general possibilities, but none looks like a viable model yet for such huge social network sites.

linkedin i think is one portal that has started a bussiness from selling contacts and information to generate revenue. It’s a great site btw.

btw, back to wodrpress’s business model again – don’t know. not returns-time yet ?

nor do i know that of orkut, youtube, facebook (ads), myspace (ads), google docs (no ads), and so many more.. do you?

reminds me of similar questions on GPL. where’s the money. that’s for another day’s post..

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