This study is motivated by the prospect of harvesting the collective intelligence of the Internet via Web 2.0 services and aims at building a comprehensive framework for the management of Web 2.0 services development. By reviewing specific features of Web 2.0 services, we identify the acquisition of co-creators and viewers as the most influential task of Web 2.0 service development. Based on two typical Web 2.0 cases—Facebook and Wikipedia—we distinguish four phases of co-creator and viewer development throughout the life cycle of Web 2.0 services. The four phases are: model establishment, innovation dispersion, community expansion, and service re-invention. The four phases of Web 2.0 service development life cycle is then validated by industry experts and enriched by the Web 2.0 service cases. It is hoped that the elaboration of the life cycle of Web 2.0 services development can provide strategic input into the management of Web 2.0 services.