The Hotmail Business Model

In 1996, the first free, web-based email platform was created.

An amazing creation, Hotmail was unique – people asked how they made any profit from something they gave away for nothing, but this user virally distributed service was set to become the industry standard in personal email addresses, and make hundreds of millions of dollars for the company.

So, how did they do it?

If you still use Hotmail, Windows Live Hotmail or online, you would have noticed a link in the footer of every email you send out, or receive from another Hotmail account encouraging the receiver to sign up for a free Hotmail or Live email address – we were marketing Hotmail for them virally – they had no need to splash out on expensive online advertising, usually associated with web businesses.

And so it grew… But how did a free service make money, and to later be sold to Microsoft for an estimated $400 million?

As of 2011, Hotmail had 360 million users per month, all visiting the website, sending and receiving email… Clicking on adverts.

Hotmail had the advertising high ground. With that much traffic, everyone and his dog wanted to have their business advertised on the website, making Hotmail an absolute fortune, very quickly, and for very little outlay – we did all the hard work for them sending out their viral message in every email we sent.

Nowadays, it’s easy to have your own domain name and email address associated with your business or company – Get your free domain name here!

I still maintain that Hotmail is all well and good for a personal email address service, but on the side of a builders van, or in a shop window, NO! It looks unprofessional, for something so cheaply obtainable, adding class to your business.

For more info on getting your Free Domain names, visit Jawbone, or get in touch.

Happy New Year to you all, 2014 is going to be BIG!

To your success,

David White

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