Below is an interesting talk by David Heinemeier Hansson of 37signals about his philosophy for making money online. In case you don’t have time to watch it, here’s a summary:

• Go for the millions, not the billions, and sell subscriptions rather than giving stuff away for free.
• Target small and medium sized businesses, not large businesses or consumers.
• Focus on a simple problem that these businesses have, and execute well.
• 2,000 customers x $40/month x 12 months = ~$1,000,000 per year.