"This shouldn’t actually be that hard if they’re smart and realistic about how much revenue they can generate given their value proposition. And if they look at their leading users to figure out what they want.
Google is Search; Users want to find something; Advertisers want to pay to be found so they can sell something;
Yahoo is an Information Hub / Community Hub; Users can good info and to be a part of a community they like; Revenue is good around branding good info and brands associating themselves to communities they want to identify with.
MySpace is a Music / Entertainment Hub; Users want to connect with musicians and entertainers; Musicians, entertainers, and brands want to build relationships with users, so they should pay for that (not for adds above their inbox, those are worthless).
Facebook is a Socializing Hub; Users want to connect with real life friends and find out about social events; You would think people throwing said social events would be willing to pay, plus advertisers would be willing to associate with the right events. Instead I think their revenue model is something about taking over the world.
Twitter is a Communication Platform; Users want to follow people they want to hear from; Some users have a very strong reason to want a lot of people to follow them. You would think companies, professionals and would-bes trying to build their reputations would be willing to pay for one of the world’s best PR platforms…
But maybe they’d rather be Facebook and think they’re going to be worth as much as google when, fundamentally, no advertising will ever be worth as much as search advertising that connects would-be clients with advertisers selling products they might purchase."
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