Comment plenty of ways to monetize site (Score 2, Interesting) 329
Seems like there are plenty of ways to make money from last.fm users without charging them directly.
- a craigslist/ebay style setup to buy/sell/trade music/show tickets/whatever - take a cut from the ads/transaction fee - there are forums but these are token and there isn't a Buy/Sell section anywhere AFAIK.
- use music recommendations to sell people music directly rather than linking to amazon/itunes whatever. Particularly for smaller bands that can't get recording contracts - work to hook them up with gigs and sell merchandise through the site and take a cut - essentially cut out the record labels as middle men and still provide a service that makes it easy to find smaller bands.
- they have recommendations for events in the local area but I never see them handle ticket sales at all - well why the heck not - local shows are much smaller scale than giant stadium shows and they could get a larger turnout and
Of course setting up this kind of infrastructure costs money, particularly to do it globally, but use your user base to add events in the region and use them to review and categorize bands and just make it easy for bands to offer goods through the site. Charging users directly is a good way to lose them because there are plenty of free alternatives and we've all gotten used to not paying for radio. Music fans are among the most passionate - give them services they can actually use and take a reasonable cut and they'll probably embrace it in droves.
They just do not get social networking at all.