Web 2.0 Business Models Destined for Disaster?

As businesses on the web continue to proliferate and diversify, the emphasis on ‘Web 2.0’-based business models has undergone rapid changes and shifts for hundreds of brick-and-mortar stores.  The Internet now has an ample serving of new brands and creations. Companies are adapting to the increases of online visitor potential, along with the attractive options in analyzing visitor traffic, encouraging customers to participate with a business directly, and increasing brand awareness by tapping into viral marketing programs.

Business models that are climbing onto the Web 2.0 wagon are offering innovative ways to conduct traditional transactions, gain customer feedback, and increase visitors naturally. Web 2.0 business models offer the unique dimension of ‘real-time’ interaction between customers and businesses. Brands can be built and spearheaded in phenomenal proportions through viral marketing campaigns that can target visitors directly through contextual advertising; in addition, the heavy reliance on visitor use and engagement lets people extend their networks and create a word of mouth buzz faster and more efficiently than ever. More buzz, less marketing, and increased visitors are just some of the blueprints of success for many startups.

Because Web 2.0 involves heavy user interaction and participation, both the public and the business can engage in a platform linked directly to their customers sharing opinions, and essentially providing ‘live’ feedback in an open forum format. The O’Reilly Radar offers an excellent article on the merits of Web 2.0 and the different ‘levels’ a company may be assigned to given their business model. The article ‘Levels of the Game: The Hierarchy of Web 2.0 Applications,’ differentiates between levels 0-3, and includes examples of where sites such as Wikipedia, Del.ici.ous, Yahoo!, and Amazon rank in the 'bigger picture.'