Andrew Chen: Want a Web 2.0 idea with a strong business model? Here's how to go upstream(andrewchen.typepad.com)
andrewchen.typepad.com
Andrew Chen: Want a Web 2.0 idea with a strong business model? Here's how to go upstream
http://andrewchen.typepad.com/andrew_chens_blog/2007/05/need_a_solid_we.html
3 comments
The idea of auctioning users is a dangerous game. It reeks of an evil empire manipulation. Social networks are built on trust. The user needs to feel that their community is safe and regulated by ethics similar to their own. A few public debacles involving said user auctions could seriously damage a sites reputation and adversely effect its presence in general. It would be much safer to build in the transactional side of the operation. This wouldn't have to be a ground up operation either, partnerships that would allow a site to reface existing transactional portals would be ideal. For example take a social network of bibliophiles. This example site has a strong sticky content with syndicated book critics and authors along with established "user2user" interactivity. The site then works out a deal with amazon that allows the biblio-site access to the amazon backend for placement and fulfillment of orders for a piece of orders driven from their site. To the book loving user the process seems seamless. This way the site reduces exposure to risk due to bad public sentiment of their intentions and operating procedures.
What do you think Google is doing when they auction you as a click to the higest bidder?
Or what do you think Priceline is doing when they auction you to the highest bidder for a hotel or airline?
In the scheme of things, Search is really brilliant because it's upstream to EVERYTHING transactional. That's the key to controlling the stream of users coming in and out of transactional places on the internet.
Or what do you think Priceline is doing when they auction you to the highest bidder for a hotel or airline?
In the scheme of things, Search is really brilliant because it's upstream to EVERYTHING transactional. That's the key to controlling the stream of users coming in and out of transactional places on the internet.
Oh snap you got me, I never thought of that. But wait we weren't talking about search were we? No... Also the methods for upstream sales; in particular with Google are passive and common knowledge.
You are right. But Google isn't a social network; neither is Priceline. Auctioning users of a community, and auctioning users of a tool or service are two different things. There is no expectation of trust, except for privacy, when using web services such as Google, or Priceline. Whereas a user in a "web community" gains trust in a particular site. If the site uses that trust for gain, without being completely open about it then its akin to forced spam.
You are right. But Google isn't a social network; neither is Priceline. Auctioning users of a community, and auctioning users of a tool or service are two different things. There is no expectation of trust, except for privacy, when using web services such as Google, or Priceline. Whereas a user in a "web community" gains trust in a particular site. If the site uses that trust for gain, without being completely open about it then its akin to forced spam.