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http://andrewchenblog.com/2007/05/13/need-a-solid-web-20-business-idea-go-upstream-from-a-proven-model/ -
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Minimum Desirable Product
The best way for a high volume sticky website to monetize upstream traffic is with a Google search box...A well placed branded search box can make atleast 20% of your traffic exit thro it. Doing the math, with a typical $50 Search CPM and assuming a 20% search box usage that comes to $10 CPM in incremental revenue.
I guess most of myspace or even hi5 or Tagged.com's revenue is thro the search box rather than with the display ads in their own sites!
AC-
I totally agree with many of your points especially about transactions. I think that it is pretty dangerous to only sell ads.
While reading this post a thought popped in my head - A good amount of web 20 is features (that should be used to increase transactions). Shouldn't every commerce site have a reddit functionality? Shouldn't every product come with the youTube 'how to" video link?
It's a good article I understand. The only concern for most of these companies, as they scale up, is that their proven business models end up stagnating as other competitors enter the market. If you are interesting visit the site business brainstorming