Making Money From Websites???
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Discussion

itstony

Original Poster:

960 posts

248 months

Thursday 11th January 2007
quotequote all
Following on from Petrol Teds announcement about the Pistonhead and Haymarket merger www.pistonheads.com/gassing/topic.asp?t=343742&f=24&h=0 ,

This has promopted me to ask, how exactly do you make money off websites. I've seen that on Pistonheads in particular has some adverts along with some classifieds but then you hear of websites like www.myspace.com, www.bebo.com and www.facebook.com which don't openly plaster their websites with adverts being sold for huge amounts of cash. I know the more hits you get the better and there are things that google adwords, but how does having a high traffic website give you a license to print money, as someone told me in the past. Or, do you make the big money when you sell the website on.

I'm just curious.

Vesuvius 996

35,829 posts

302 months

Thursday 11th January 2007
quotequote all


Customer data is worth loads of money.

PH has big number of subscribers, high net worth on average so it's very attractive to advertise on.

Plotloss

67,280 posts

301 months

Thursday 11th January 2007
quotequote all
Depends on the model employed by the site.

myspace etc are valued as they are a list of prospects and a list of eyes to view adverts, sites which generate huge traffic are valuable for all sorts of reasons.

Some are overvalued mind you, FriendsReunited seemed to be ludicrous money for what it was.

Fidgits

17,202 posts

260 months

Thursday 11th January 2007
quotequote all
websites DONT make any money at all.

Advertisments on websites CAN make money, but usually they are click-through agreements so dont pay very much.


However, what people pay a lot of information for is USERS.


Using YouTube and here as an example - the amount of traffic both sites recieve is relative to their value.

The reason for companies to purchase these has various reasons, usually marketing or as someone said, personal data, or simply targetted markets.


The days of setting up www.mygreatidea.com and making a fortune are gone - you need to be established and making serious amounts of traffic before you stand a chance of even being considered.