Users sign up to create what is known as Len in Squidoo. A Len is basically a topic page, for example one about China Travel. A user can create multiple lenses. The premise is that each user is an expert in their topic area while different user view the same topic differently (’through their own len’).
The revenue model is also very creative. Revenue is from Google Adsense and Amazon associate. So the more page there are, the more revenue generating potential for Squidoo.
How to incentivize users to create content (lenses)? Squidoo does it by operating with a co-op model. Revenue is shared between the content creator and Squidoo. Site wide revenue is shared according to a proprietary ranking known as LensRank.
Not only is the revenue shared, a percentage of the revenue is pledged to charity. This is attractive because it tugs the heartstrings at the same time it feeds the monetary greed.
Right now Squidoo is in beta, so there is no payout yet. But smart people are already positioning themselves to gain from it when it is release.
Squidoo solve 2 problems for the user.
- Content creation
- Traffic generation
Content creation. The len creation tools are well done in Web 2.0 style. I would gladly share revenue in return for these great tools. Right now the only money making moduleis the Amazon module which can easily be inserted. I would expect more modules to be added.
Traffic generation. Compared to creating individual content website where the owner had to worry about traffic generation, Squidoo has the edge. It’s popularity means that many users will be recommending it like what I doing now. It can be centrally promoted and traffic to one page can spillover to another page.
Given Seth Godin flair in marketing, I believe it is poised to go nova.