The profit or revenue from membership sites is the result of using resources reported to as Intangible Assets. An emerging economic trend for business ownership shows that owning a tangible asset is less likely to provide as large a financial return as owning intangible assets.
The basis of the study provides a clear insight into the underlying reason that Google as an Intangible based company has outpaced Microsoft in not only profits but also web users. Marissa Mayer, Google's director of consumer Web products, said "Google's goal is to organize information and make it universally accessible, and that goes far beyond search engines."
Google has surpassed its stated mission and as a result has eclipsed the efforts of Microsoft in its ability to profit from the new economic model. Even though Microsoft is a multi-billion dollar behemoth with its software products, licensing and other tangible computer based business ventures, the hands down leader in the competition to derive income from intangible assets is Google.
Microsoft derived its fortune from creating the infrastructure for the issuance of information. But Google eclipsed Microsoft's success by focusing on an intangible asset, which is the web content arena. The ability of Google to provide access to voluminous depths of information to the consumer quickly and efficiently provided a distinct competitive advantage over Microsoft.
The proof of success is always seen in the balance sheets of the corporations. Taking into account that Google was incorporated as Google Inc. in 1998 in Menlo Park, California and Microsoft was incorporated in June of 1991 in Bellevue, Washington, the competitive position of each corporation can be shown in their earnings reports.
In the first the first quarter of fiscal year 2007, which ended September 30. Microsoft, the software giant bought in $ 10.81 billion in total revenue, and enjoyed a net income of $ 3.48 billion while the
Worldwide gross revenue from Google will total $ 11.8 billion in 2007 according to a new report from Internet research firm, eMarketer.
While both earnings reports are impressive, it is interesting and important to know that Google is responsible for the profiting from the new information age by capitalizing on this knowledge based Economy that drives the Internet.
Many marketing analyst view the Internet as a global market place filled with huge shopping malls. These global shopping malls do provide a cornucopia of products and represent a stable source of income for several small as well as huge retail conglomerates.
But it is the access to information that provides the highest and most stable revenues from the Internet. Providing content is the most stable as well as the prolific revenue generator on the Internet. The Information age began in earnest in 1992 when the computer became the more accessible to the general public.
Membership sites seek their income from providing access to specific niche based information. The benefit of a membership site is convenience and accessibility. In some corporate environments, it is information that shares the bottom line.
Because membership sites are so specific in their acquisition and disclosure of data, they can become a resource of incredible value to their membership. The types of membership sites that are being developed online run the gamut from dog owner membership to sites for individuals who consider themselves chocolate addicts.
Owners of Membership sites will provide content as well as a sense of camaraderie to its members. Online consumers as well as offline individuals have an innate need to belong. Membership sites offer not only information but also familiarization to its members. Members are demographically as well as socially linked in their desire for a specific type of information.
Some individuals have a ravenous appetite for information and join several diverse categories of sites to stay abreast of information on several topics. The Internet is full of info-holics who have a ravenous "need to know". Membership sites offer these individuals access to a voluminous amount of valuable content for their own use.
Knowledge is power and is there before a valuable commodity online as well as offline. Being "in the know" is a highly prized attribute among certain segments of the population. This craving for knowledge from these consumers will form the foundation of the revenue generated from businesses that can provide relevant content to the information starved Internet consumers.
This "need to know" of consumers drives the fortunes and the profits of huge corporations as well single individuals who choose to capitalize on these intangible assets. Content is the primary asset that many Internet entrepreneurs use to fuel their AdSense income, ezine and article marketing campaign.
Content is king of the Internet and will continue its reign from now until perpetuity (whenever that is).