http://en.wikipedia.org/wiki/Classmates.com
Classmates Media Corporation's business model is based on user-generated content and revenue from paid subscriptions and advertising sales.[5] As of June 30, 2008, Classmates Media had more than 50 million members, but only 3.8 million pay subscribers.[6]
Classmates Media pay accounts grew 41 percent in Q2 2008, June 30, 2008 versus June 30, 2007, and increased a net 288,000 during Q2 2008 to more than 3.8 million pay accounts.[7] In Q1 2008 net growth of paid accounts was a record 322,000.[8]
Classmates Media revenues for Q2 of 2008 were $57.0 million, an increase of 19% compared to the year ago quarter.[9] In Q1 of 2008, Classmates Media revenues grew 22% to $51.9 million, compared to the year ago quarter.[6]
The Online Publishers Association Paid Content U.S. Market Spending Report, Classmates.com was Number 4 among the Top 25 Web Destinations Ranked by Consumer Content Revenue in both 2002 and 2003[10] (the last years that individual site rankings were broken out).
Under increasing competitive pressure from Facebook, United Online is repositioning its Classmates division as a nostalgia site. Classmates will relaunch by the end of 2010 to highlight its nostalgia content. This will enable members to view newspaper clippings, and radio and TV broadcasts from the year they graduated from high school. One of the main features of the new website will be digital copies of thousands of old high school yearbooks.[11] The overhaul is now being rolled in preview form via (surprise) email invitations to existing Classmates Gold members.[12]