Anaheim, CA (PRWEB) March 15, 2007
As the number of websites swell past 100 million, Internet companies are looking for more creative ways to generate revenue. One inventive entrepreneur, Romeo Mendoza, founder of web start-up WiseRep.com, says the secret is simple -- give your services away for free.
It seems counterintuitive, but there is a method to the madness of offering complimentary usage of a website. "Our primary goal is to build a large user base," says Mendoza, whose site WiseRep.com helps sellers take their products to a higher level by connecting them to retailers who purchase in bulk.
He created this virtual trade show after seeing how difficult it was for entrepreneurs with products to break into stores. Making the service free eliminates financial risk for buyers and sellers. It also boosts traffic to WiseRep.com, increasing client and company exposure.
That will strengthen Mendoza's other revenue prospects. Part of the income will materialize via a partnership with Google AdSense, a revenue sharing program that allows websites to post Google-sponsored ads. Every time someone clicks on the ads, Google pays WiseRep.com a few cents. It may seem minuscule, but it translates into sizeable profits if WiseRep.com attracts a lot of users.
In their early days, MySpace and YouTube relied on AdSense for revenues. Last year alone, Google paid out over $2.4 billion to companies that used AdSense.
Mendoza also plans to sell banner ads and develop an online store. "Gaining exposure to a huge target market is something corporations are willing to spend money to achieve," says Mendoza. He intends to start banner ads at $10,000 per placement. Designs for an online store are also in the works where Mendoza will take a percentage of purchases made.
Mendoza expects his nine-person company to hit revenues of 4 million this year. So when thinking about how to generate profit with your website, consider this -- build it, make it free and it will come.