157 weeks agoMaking money with Web2.0

People are still trying to understand and define what Web2.0 is going to be. I am part of the camp that believes that web2.0 is not about API's and that technology we need to make web2.0 happen is already available. What we need is to understand what is the essense of the change and then find our place in it. I am confident that a recent essay by Peter Merholz from Adaptive Path describes the very core principle of how web2.0 is going to function. It's about letting go of control, doing your best at everything and keeping an eye for a direction where money will come from. Online world is too fast and dynamic to have detailed plans. Just do your best, money will follow. (One example of such approach in action is bloglines) Opening up your data seems like giving away your most precious asset, if users can view and use your data as they wish you can't force them to view advertisements, you can't make their experience terrible unless they upgrade, you can't control how good they feel and exactly what do they see. It seems like web2.0 companies should have a hard time making money. At least they wouldn't be able to advertise. In my opinion money are going to be earned by offering services. Web2.0 will put an end to selling audiences to advertisers. To earn money one will have to be nice to people and offer valuable service, not just data. Looks like Google, among others, is making a fortune with advertising, doesn't it prove me wrong? I believe it does not, because the reason Google is able to be successful with its advertising is exactly because it offers advertising of a quality so high that it becomes a service to the individual who is recieving it. This is the point I'm trying to make, web is not a push medium, in the end you will fail controlling users, it's just the way it is, so better embrace this fact and start offering something valuable. Forget about control. Being of use is the most important factor of success in the coming era, let's hope it is.

Questions?