First let me back pedal slightly and make sure you know what Web 2.0 is. Web 2.0 is the phrase coined to describe the new, changing character of the web. This new web can be described as user contributed content. In other words, initially most websites were read only sites. now there is more user interaction.

Web 2.0 can be also be described as the networking of communities on the web. The communities revolve around common interests. As a result of the emergence of Web 2.0 new sites, and new tools have evolved to facilitate user interaction. One of those sites is Squidoo.

Squidoo is a large site that encourages users to set up a page for any information they may want to share with the rest of web community. There are pages set with individual bios, there are pages for issues that are important to the page creator, there are pages set up for just about anything.

Unlike many other sites, Squidoo encourages promotion of your business. Squidoo is a for profit entity so they know that business promotion will help them reach their potential. The only rule in promoting your business or product or website is, you can not just put up ads. You must put up content that is interesting and useful to your niche.

Along with the content, of course you can create links to get them to the sites you are targeting, which is part of how you market on Squidoo. If you have a blog, it is easy to add an RSS feed to your Squidoo page so that whenever you update your blog, you also add fresh content to your Squidoo page. In fact you can set it up so that if the reader wants to read more, they end up on your blog.

Pages on Squidoo are called lenses instead of pages. Webmasters on Squidoo are called lensmasters. Squidoo is absolutely free. There is no cost no matter how many pages or lenses you set up.

Another feature of your Squidoo page is that you can set up, through their easy to use module system, Amazon sales blocks, eBay sales blocks and other affiliate programs that you will get paid for if sales are made through your lens.

Additionally, Google adsense ads are inserted in your page automatically and you get paid for those clicks. There is the ability to get your page listed on some of the social bookmarking sites like Digg, Del.ico.us, and others. Readers can rate your lens and add it to their favorites or recommend it and email it to their friends.

So what are the benefits of setting up lenses on Squidoo. First, it is a very popular site. There is a lot of traffic so it is one more place where you can expose potential customers to your products. Second, it is another place the search engines can find links back to your product site or blog. Third, you can set up as many lenses as you want at no charge.

You can set up 20 or 30 lenses, each on a different product or each on a different aspect of the same product. You just can't spam the site though. As I indicated earlier, you need to have good useful content on all your lenses. But if you can get 20 or 30 pages on Sqidoo all pointing back to your blog or your product page, think what that will do to your search engine rank.

Finally, as you market your products on Squidoo, you can earn money from all of the ads on your lenses. You can also get paid to get new sign ups.

Squidoo is a very good marketing tool for any internet marketer. It's takes no effort to set up, it can have self updating content and you can make some money right off the page. Squidoo is one more way you can take advantage of Web 2.0 as part of your internet marketing strategy.