Erick Schonfeld of Business 2.0 writes on profits in the current culture of participation. Web 2.0 businesses are largely about the culture of participation, as they rely on user-generated content and user participation to allow firms to develop into relationship hubs and information aggregators.

Essentially these firms are building assets on user contributions. Should users profit from their contribution?

The inevitable answer is yes. Web 2.0 businesses can be described as network businesses; their real value is in creating a network by connecting content contributors. As a result, these companies benefit from empowering contributors, and incentivizing them to joing their platform. Eventually, a market will develop to incentivize quality contributors to make contributions to a network.

The web 2.0 companies that learn how to do this best will be the ones that really clean up in terms of profits.

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