Social Media-Understanding Online Business Models

The internet has changed the way the world does business. We once operated in an economy where good became more expensive over time, however now we are transitioning to an economy where things are becoming cheaper and the internet is driving this revolution. Through open source, the blogosphere, and things like this information is being user-generated and shared for free.

“The Web is all about scale, finding ways to attract the most users for centralized resources, spreading those costs over larger and larger audiences as the technology gets more and more capable.”

While devastating the bubble that the dot com industry went through sort of forged it in fire. Hundreds if not thousands of unthoughtful useless startups emerged in the buildup and the bubble bursting purged the market of these underperformers. The companies that remain have become a part of our everyday life. While everything companies like Google offer may be free to us-the end user- Google is gaining infinite wealth through information about us and our habits.