Business model based on iPhone Apps?

In the past few years, we have seen quite a few Web 2.0 companies emerge. Some have been very successful and some are currently part of the dead pool. We have seen many companies with advertising as a business model. I am not a big fan of this type of business model. I think this will not work in the long run. But then, who am I to talk when the companies themselves are comfortable with this model.

One option I certainly am betting on seeing is businesses offering free web apps and making money from their mobile offerings. Most of the consumer web apps are currently available for free. There are many content sites with advertising as a business model. On the internet, content is the king. When this content is offered as a mobile application, I am sure many users will be willing to pay, especially when it adds value. We have seen apps like Zagat very successful even when priced @ $9.99. I can image this being the business model for some other startups. In some cases, I think this can bring in more revenues than the advertising model.

This model might work for small businesses. For larger business, this will just remain as an effective additional revenue stream. Note that I am talking primarily about web apps using mobile apps as a business model. There are many businesses that have started just doing iPhone apps, ours included. I am looking forward to seeing web apps developing their business strategy around mobile apps.

What do you think? Do you agree?


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