The "bubble" thing...and the "two-o" song.

I really like this post on The Register.
It very neatly sums up not just the hype that existed in 2000 but also the fact that there seems to be a repeat of the same happening again in the current time. Web2.0!! and dont even say Voice2.0!!!!!

Probably the only difference is that the build-up is a bit more subtle this time and not as much in-your-face. There are ventures I know of building portals and social networks purely to get "users???" to the site but without a clear plan on the monetizing aspect of it. YASN anyone?

I think most portal ventures believe that they will be the best implementation of a certain concept and eventually get millions of users, who will find the service being offered "indispensable"...really? How indespensable can you be when there are around a dozen wannabe sites simillar to the ones you are building? And the barrier to entry is dropping all the time.

The free-e-sumer(my term for the intErnet conSUMER who will sign up for a product or service as long as its FREE but is'nt interested in paying for them) is an extremely fickle and pampered lot - not to mention they are also easily tempted to move should something better (and still free) comes along. And better things do come along and the free-e-sumer stay free and mobile (aka unloyal to YOU - but loyal to themselves and thier needs).

There are some traditional (in e-commerce timeframe) clear cut business models and NO - Google splurging 1.6 BILLION USD is NOT the same thing as someone else building a similar site to get a million hits.Google wants digital "properites" and preferably ones that allow detecting "context" - that goes some way in making google ads more relevant on those properties. Ads ARE the money spinner for google - the *tubes bring in more ad clicks - Ad clicks 'not equal' to Eyeballs.
By the way - even Google might have some issue's selling ads on youTube.

Sure innovation lies in creating new waves of opportunity - but you need to understand a underserved market need first (precise search) OR create/unlock one (eBay) - dont build it just because you can. Build it as long as it will offer 'real' value to users, and there are reasonable 'non-trivial' ways of generating a cash flow from the value chain. Even if its just advertising. My take though on advertising is that - if it indeed becomes super targeted and behavioural, why the hell would I "stumble" upon ads in random websites, I might as well sign up for a "What YOU want.com" (free) account and see all my ads there, click / interact / buy etc. all from one place. Why? Cause I do'nt like the cluttered crap on the sites I browse and I will start switching to those which are ad free. Should something like this happen - guess what's gonna happen to all those ad-clicks you wanted on your portal -(shudder!!).

"Wanting" to make a lot of money by "hoping" to get a lot of "users" is not a bad thing - as long as there is some notion of revenue in the whole story.

Otherwise you need to take a number and hope that you are enough of a nuisance to a real business that they might buy you just to shut you down. Hey lets face it - companies (especially tech. ones) are accquired all the time - but there are cases when the accquired technology / product / innovation never sees the light of day. This happens for various reasons, the prime one being that the guys signing the check are the main revenue channel and in the long term planning the (technology from the) guy being given the cheque is'nt that good a strategic fit - but neither is it competition anymore.

So all you out there - watch it! Don't start dreaming of the bling just coz your site has the words "Web2.0" "Voice2.0" or any other two-o in it. But on the off-chance you do hit it rich - hey I always knew you guys were the Bomb! now where my stock options at ;)