Christopher Brown of The Confusatory with such a great piece on web sites making money. Mostly fueled by Twitter’s recent addition of the Quick Bar, which everyone has pretty much agreed is a way for them to finally monetize. I have been somewhat defending Twitter because they have to pay back their investors. Brown seems to agree on this theory:
One, you want your product to become popular and an intricate part of at least a few peoples’ lives (a.k.a “get users”). Two, you need to “monetize” something somehow to pay back the VC money that you’re now burning (a.k.a. “pay the bills”). For a while, VCs are ok with you concentrating on the first of those. But eventually, they’ll push harder and harder for their investment to pay out.
Brown seems to be an advocate for charging for a product from day 1, because its hard to make money off of ads and users get angry if you start charging later. Brown also encourages users to pay for services if you can because free things can’t last forever and money helps products and services improve.
(via The Brooks Review)