90% with one Revenue Stream

Google is one of the most valuable company in the world. Google helps us to organize, communicated, travel and search the internet. A day without google would be much more inefficient and complicated. But wait did you ever pay for any using google products? No, because google earns money through advertisement, not only a small percentage but in 2015 90% of googles revenue comes from advertisement. 90% revenue out of one single revenue stream!

So if google only earns money with advertisement, why does google have products which doesn’t even show the advertisements(e.g Chrome)? The idea of products like Chrome is, to give the user a powerful, convenient tool, which the user love to use. Each google product links back to the websites or services where google shows sponsored links. For example: The smart phone OS Android does not contain advertisement, but the google search (which contains the sponsored links) is always easy to access on those smart phones with Android. In this way google ensures that its revenue-machine is always running also in the future.

How much do we need to focus on the revenue stream when we develop a great product at the beginning?

Google is able, through its huge cash reserves ($67 bils. in 2015), to develop ideas without specifying which customer needs they are solving or where the money will come from.

For example: the engineers and product developer are still not sure how the business model for the google car is going to look like. Wether its going to be a cap ride like uber or a free ride with advertisement inside the car.

To ensure that only good ideas are developed google has the culture of fast failing. That means to drive through an idea and see wether the chinks make the idea blow up or if its tough enough to survive. Therefor employees define perviously  what indicator will tell us that we failing? And while going through the testing of an idea, pushing hard the risk to see whats happens - so to fail fast or getting the certainty that its a great idea.

So how do you get the people in a organization to live fast failing? I think this has a lot to do with the culture in a company. At google people have open work spaces, flat hierarchy and are encouraged to network with their co-workers. We at streetTube have a great product wich we are certain people will love. But we are not sure what the best revenue stream is, so to establish a fail-fast culture like at google is very important for us at streetTube.