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1. Come up with a great idea for a Internet based service that is needed. (Fill a GAP between currently successful services)
2. Develop (or buy) a web service to provide consumers (B2C) or businesses (B2B) with a needed tool or service.
3. GIVE AWAY this amazing service for FREE (running the service at a LOSS for the first several months or years).
4. Build up a large following of "satisfied users" and allow the user base to become "viral", spreading to thousands or millions of satisfied users.
5. Slowly introduce add-on services, up-sells, for a small fee or "donations", Adwords and/or all the above. (Slowly)
6. Re-invest all profits back into the service to grow the quality and promote the brand.
7. After 3 years of success and growth, begin to show a "profit".
8. Continue to grow the revenues.
9. Keep the company and/or sell-off the service to a bigger player.
10. Repeat again with spin-offs and new ideas.
The attached diagram helps explain the "traditional" Internet Success Strategy.
Is the popularity of an Internet service driven only by organic viral growth?
Or does it help to dump some money into advertising to spread the website name throughout the community?