The document outlines six steps to building a billion dollar business model on the web: 1) share something valuable for free to attract a large audience, 2) sell complementary products or services, 3) build a community around your offerings, 4) create an ecosystem where others can also profit, 5) build an infrastructure like a website to support everything, and 6) use information technology creatively. Examples are given for each step like how Google provides free search and sells advertising or how Amazon allows third-party sellers. Common mistakes made by entrepreneurs are also listed.

1. The Billion Business Model

3. Did you know? In the last 10 years there were more than 1,150 web 2.0 acquisitions for around US$ 30 billion (strategy & business magazine)

4. Did you know that?

6. The answer is yes

7. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The Billion Business Model

8. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The Billion Business Model

9. Share something

12. Share something examples

13. Google: free search engine

14. Google has around 127 million users per month

15. Skype: free calls pc to pc

16. Skype has around 10 million users per day

17. Monster: free job searching

18. Monster has around 20 million visits per month

19. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The Billion Business Model

20. Sell something

22. Sell something The more relationship between the free good and the paid one the more probability of sales

23. Sell something examples

24. Google sells advertising Are searching and advertising good complementors?

25. Google sold US$ 16 billion past year

26. Skype sells paid calls pc to phone Are free calls and paid calls good complementors?

27. www.ipdemocracy.com Skype sold almost US$ 400 million past year

28. Monster is paid for employers Are free job searching and paid job posting good complementors?

29. Monster sold around US$ one billion past year

30. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The Billion Business Model

31. Build a community around your offering

33. Build a community around your offering The bigger the community the more valuable your offering and the more the chance of sales

34. Community examples

35. IBM academic initiative This is a community of computer science professors who teach their courses using IBM’s content and products

36. Microsoft “cinco estrellas” program This is a community of programmers trained gratis by Microsoft and rewarding them with “starts” accordingly its MS products expertise

37. SAP community programs SAP encourage participation of the community using several rewarding programs

38. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The Billion Business Model

39. Build an ecosystem around your offering

41. Build an ecosystem around your offering The bigger the ecosystem the more the opportunity of cross-selling

42. Ecosystem examples

43. Amazon

44. E-Bay

45. SAP ecosystem and partner programs

46. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The Billion Business Model

47. Build an infrastructure of cooperation

49. Build an infrastructure of cooperation The better the experience in your website the more audience you get

50. Infrastructure examples

51. MySpace

52. Flickr

53. iTunes

54. Audience

55. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology The being-billion strategy

56. Use information technology

58. Use information technology The more sophisticated the technology the better the offerings

59. Use of information technology examples

60. Google maps

61. Second life

62. MyCybertwin (democratizing artificial intelligence)

63. Don’t forget to make your offering mobile Mobile users: 3+ billions Internet users: 1.4+ billion Source: ITU

64. 1 Share something 2 Sell something 3 Build a community Billion Dollar Business 4 Build a ecosystem 5 Build an infra. of cooperation 6 Use information technology Remember

66. Cooperate without being a saint Compete w/o killing the competition (Branderburger & Nalebuff)

69. Marcelo Honores Economist Master in E-Busienss 15 years of experience in IT [email_address] marcelo-honores.blogspot.com Not billionaire yet Looking for partners