As with its technology, Google has chosen to ignore conventional wisdom in designing its business. The company started with seed money from angel investors and brought together two competing venture capital firms to fund its first equity round. While the dotcom boom exploded around it and competitors spent millions on marketing campaigns to "build brand," Google focused instead on quietly building a better search engine.
The word quickly spread from one satisfied user to another. With superior search technology and a high volume of traffic at its Google.com site, Google's managers identified two initial opportunities for generating revenue: search services and advertising.
Google grows and business blooms
Over time, these two business lines evolved into complementary networks. Google AdWords advertisers create ads to drive qualified traffic to their sites and generate leads. Google publishing partners deliver those ads targeted to relevant search results powered by Google AdSense. With AdSense, the publisher shares in the revenue generated when readers click on the ads.
For sites wishing to have more control over their intranet or site searches, Google developed the Google Search Appliance, a scalable and secure appliance that delivers accurate search results across any number of documents.
Google continues to think about ways in which technology can improve upon existing ways of doing business. New areas are explored, ideas prototyped and budding services nurtured to make them more useful to advertisers and publishers. However, no matter how distant Google's business model grows from its origins, the root remains providing useful and relevant information to those who are the most important part of the ecosystem – the millions of individuals around the world who rely on Google search to provide the answers they are seeking.
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