Pete Prestipino: Internet Rants and Musings

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Two Revenue Models For Yahoo!

June 20th, 2007 · No Comments

I’ve talked until I’m blue (nay, purple) in the face today about what’s wrong with Yahoo. Here’s a quick recap of this weeks Yahoo News from my perspective and then some possible solutions. This feels like deja vu all over again.

- Semel didn’t kill Yahoo, Google did.
- Yang is the right choice for Yahoo.
- Do not buy, trade, rent or lease anything from Rupert Murdoch.

Yahoo needs revenue, not acquisitions - well, maybe Facebook, but that ship sailed. If I ever make it out to Sunnyvale, I’ll make sure to write this post on a piece of recycled paper, tie it to a rock and chuck into Yang’s office. It probably won’t get his attention but at least I’ll feel like I’ve done my part.

Capitalize on MyBlogLog: Great offering, no revenue model.

How about within every Mybloglog script that appears on a weblog, Yahoo includes one advertisement at the end of the most recent readers based on the tag(s) provided by the blogger. If you’ve got 100,000 bloggers receiving just one click a day at an average CPC of 50 cents, you split the revenue, sure you’re only making 25,000 grand a day, but what if Yahoo had one million bloggers who  got ten clicks a day at the same CPC? You could buy another Myblog in four days. Do the math.

Tap The Value of De.icio.us: Great site, no practical application.
How about Yahoo! creates a del.icio.us powered weblog tool, which displayed the most common words or categories of a site, which in turn linked directly to a search return list of Yahoo advertisers? How much money are we talking about here - you can’t even grasp what I’m talking about with your tiny brain - that’s how much.

BONUS! Release YPN - it’s time has come.
I don’t mean to beat a dead horse here, but release YPN to the general Web public and you’ll see a migration of Adsense users - I promise. The result over the short term may be a flood of inventory (and a lower CPC on the content side), but you’ll be making coin all the while.

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