Thursday, April 24, 2008

How does ChaCha make money?

I just found out about and had one pressing question: "How does ChaCha generate revenue?". Well, I dutifully texted that question into ChaCha and got this response:

ChaCha earns revenue from advertising on its website and through its strategic partnerships. Please text more questions to answer!

I don't see any advertising on their site, so I guess I don't really buy that answer. I think the real answer is, "ChaCha doesn't generate revenue yet, but hopefully we will some day, somehow". Or maybe they're funded by phone companies for some reason?


Jon said...

> "ChaCha doesn't generate revenue yet, but hopefully we will some day, somehow"

Hey, that was the business model for Google for the first several years, and it worked for them, right?

But wait a minute, that was also the business model for those innumerable early-2000s dotcom-bust companies, and it didn't work out too well for most of them...

Anyway, I hadn't heard of ChaCha before, either. Interesting concept.

Anonymous said...

I wonder the same thing... They seem to be paying a lot of money per answer.

Amazon has a similar service that is free to use over the Kindle, and will presumably open up to more people using other devices later:

Anonymous said...


That's all I can see, and I guess it could work, not sure how easily you can scale a coupon distribution system on a national level unless it's dealing only with big name brands and shops... could work though, that's where the masses of people go anyway.

Anonymous said...

Last option - they can replace how 411 services are run. 411 is a *huge* market and the telecom companies don't want to lose it as people get better phones capable of browsing the web, find maps, etc. This will hopefully keep users going back to 411 if it were able to find as much information as chacha.

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