Evaluating Wikipedia Business Model & How does Wikipedia make Money – UE Analysis
Wikipedia, the God-Father of World Knowledge! They are the only internet company which does not require earned money/VC money to survive. It survives because the people that gain knowledge (well few of them) from Wikipedia actually care enough to donate few cups of coffee worth of cash to Wikimedia Foundation (the charity/not for profit that runs Wiki Properties of Wikipedia, Wikianswers, Wiktionary etc.). I love their story, seriously! Read more on their story here.
This post is really about the core principle as I outlined in DuoLingo Business Model – that education should essentially be free for all. If you do not intend to read philosophical thoughts, I suggest you click here. 🙂
About Wikipedia, Funders, Founders and Facts
Wikipedia was launched on January 15, 2001, There was only the English language version initially, but it quickly developed similar versions in other languages, which differ in content and in editing practices. With 5 million+ articles, the English Wikipedia is the largest of the more than 290 Wikipedia encyclopedias. Overall, Wikipedia consists of more than 40 million articles in more than 250 different languages and, as of 2014, it had 18 billion page views and nearly 500 million unique visitors each month.
Wikipedia Founders: Jimmy Wales and Larry Sanger. Sanger coined its name.
Wikipedia Funding: It was always a Non-Profit. It is funded by charities and fund -aisers done by Wikimedia Foundation who owns the Trade Mark of Wiki.
Wikipedia Business Model
Wikipedia Business Model is to essentially remain free of monetization goals because as and when properties as large as Wikipedia think of making money, the core objective behind the site being alive is lost forever.
That is the reason that Wikimedia is tasked with the responsibility of raising public funds (charity, donations etc) from the users to ensure Wikipedia never really has to monetize its efforts.
How does Wikipedia make Money
How does Wikipedia make money is by way of asking users whenever they visit Wikipedia around Xmas, users are prompted (haunted) for donating to keep Wikipedia alive (when that is not even the case anymore)!
Wikipedia requires little under $3 million for running its annual operations smoothly. It has almost $80+ million in its bank right now (2017) and still keeps pestering people for more donations to stay secured for the rainy day I presume.
How does Wikipedia Work
Wikipedia is governed by public moderators, community managers etc. who monitor the quality of content that users post, edit etc. Some level of proof-reading is done by a bot that they have deployed to reduce man power requirements, but ultimate decision to approve or dis-approve the content is taken by the human moderators.
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