Destination Or Distribution?
There seem to be three models now for building web based companies: destination, distribution, or hybrid.
Destination sites, like zagat.com, match.com, etc. have to drive traffic to their sites. They need to invest time and money in building community, or simply in paying to acquire customers through large media buys, search engine optimization, etc.
Distribution sites syndicate or push their content out to third party sites. Pure distribution sites bring some traffic back to their sites, but they are not ultimately a destination.
Hybrid Destination-Distribution sites have a mixed model; they syndicate out some portion of their content to use as a teaser to drive traffic to their destination sites. I think this makes a ton of sense.
These sites offer "free" content to third party sites, hoping that click-throughs will produce traffic to their destination site. The benefit here is that these sites can minimize their cost of customer acquisition because other sites will want to include their content.
Destination sites, like zagat.com, match.com, etc. have to drive traffic to their sites. They need to invest time and money in building community, or simply in paying to acquire customers through large media buys, search engine optimization, etc.
Distribution sites syndicate or push their content out to third party sites. Pure distribution sites bring some traffic back to their sites, but they are not ultimately a destination.
Hybrid Destination-Distribution sites have a mixed model; they syndicate out some portion of their content to use as a teaser to drive traffic to their destination sites. I think this makes a ton of sense.
These sites offer "free" content to third party sites, hoping that click-throughs will produce traffic to their destination site. The benefit here is that these sites can minimize their cost of customer acquisition because other sites will want to include their content.
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