Everyone’s talking about Web 2.0 this and Web 2.0 that, but in reality, most people don’t really know what Web 2.0 is. If you ask 10 different people to define it, I’d bet my left shoe that you’ll get 10 different answers.

The phrase “Web 2.0” was coined in 2004 by Tim O’Reilly of O’Reilly and refers to the second generation second generation of internet based services.

As defined by O’Reilly, “Web 2.0 is the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. Chief among those rules is this: Build applications that harness network effects to get better the more people use them.”

This article may be a little late in its coming, however the whole Web 2.0 phenomenon is exploding like never before and I thought it time to address it.

So what exactly is Web 2.0?

In simple (or not so simple) terms Web 2.0 is all about building online relationships though the emphasis of online collaboration, interaction and sharing among users including heavy reliance on the distribution of user generated content. While Web 1.0 it was all about designing great looking websites whereas with Web 2.0 it’s all about delivering great experiences.

For example, the Online Encyclopedia Britannica was Web 1.0 whereas Wikipedia is the new Web 2.0 alternative. It creates a community of empowerment and trust because anyone can add and edit the contents of its pages.

If you’re just starting to get into Web 2.0 now, you’re allready behind. As I’ve said before, on the internet if you’re not early, you’re late.

Web 2.0 compliant sites can be broken down into the following categories:

a) Social Networking
b) Social Bookmarking
c) Content Management Systems
d) Wikis
e) Video/Audio (Podcasting) Sites
f) Blogs
g) RSS

Social Networking Sites - Social networking sites like MySpace connect people with all different types of interests, and allows them to interact within different forms of media such as text, audio, video, pictures and so on.

Social Bookmarking - Social bookmarking is the online activity which allows users to save and categorize personal collections of bookmarks and share them with others. Some popular social bookmarking sites include:

• del.icio.us http://del.icio.us
• Digg - http://digg.com
• Flickr - http://flickr.com
• Technorati - http://www.technorati.com
• Squidoo - http://www.squidoo.com

Content Management Systems - A content management system is an easy way for you to manage your website’s content and allows you to change the entire layout/design without having to recode each and every page. If your site has more than a couple of pages content management could save you hours of time and is definitely something you’ll want to learn about. Some examples of CMS systems include Joomla and Drupal.

Wikis - Wikis are websites that allows the visitors to easily add, remove, and edit available content, typically without the need for registration. The most famous of all Wikis, Wikipedia, allows users to add encyclopedic entries and edit content input by others and thus has created the largest online encyclopedia.

Video/Audio Sites - These sites are exploding like never before and allow users to download the latest videos of almost everything known to man on sites like YouTube.com or Yahoo! Video. Podcasting and/or VideoCasting has also never been hotter due to the influx of the iPod over the last couple of years.

Blogs - Blogging, of course, is one of those defining elements of Web 2.0. If you don’t have a blog by now, you’re a little behind the eight ball, so go out and get one. This in Web 2.o in it’s simpliest forms and allows to interact with your customers by starting a dialogue with them.

RSS - RSS stands for Really Simple Syndication and allows your website visitors to subscribe to your content and receive updates automatically every time you change or add to your content.

As a marketer, how can you use Web 2.0 to your advantage? For one, think viral.

The concept of viral marketing will never die out. There are 2 basic elements that determine the success of your marketing virus: The strength of the message or ad the medium by which it is spread. Common viral elements include video and posting it to YouTube which can result in millions of views and thousands of dollars as a result.

Other ways to use Web 2.0 is through the interaction with you customers through a personal or company blog, or more simply relying on user generated content for your site. MySpace advertising is also all the rage and some people have been extremely successful utilizing the social aspect of it to make money, or simply network and meet new people and create new business oppurtunities. Your mind is really the limit in what you can do with Web 2.0.

In conclusion, the potential of Web 2.0 is huge – just look at Google’s purchase of YouTube for $1.65 Billion dollars. With that kind of money on the table, everyone eager to become a part of Web 2.0 and cash in the online millions.

Web 2.0… Everybody is doing it. Are you?

For more great tips, traffic generation methods and strategies for making money on the internet, be sure to pick up a copy of my brand new internet marketing book at http://www.InternetMarketingBook.com.