Web 2.0 is Not a Bubble and Here is Why
Monday, November 5th, 2007Markus Frind of Plentyoffish.com has an unique perspective on the Web 2.0 bubble. Basically, there is no Web 2.0 bubble. Things like social networks, ebay auctions, affiliate marketing, and online advertising are here to stay. The evidence that Web 2.0 is not a bubble like the first internet bubble, but a paradigm shift are as follows:
1. Stupid ideas are being funded, but at a lot less cost. The ROI is that only 1 in 10 ideas need to be successful if the one idea’s revenues can cover the cost of the other bad ideas. New internet business ideas can be tested for 10s of thousands of dollars versus millions asked for during the first internet bubble.
2. People are not throwing millions at internet business ideas anymore that someone came up with last night.
3. People are a lot more experienced about the internet. Instant experts are not leading major internet startup initiatives.
4. Internet businesses need to show some level of revenue now-a-days before there is any talk of an IPO.
5. Internet advertising, one of the biggest source of money on the internet, is not going to dry up. Internet advertising is cheap compared to traditional advertising media such as TV and print.
6. Hundreds of thousands, if not millions, are making money on the internet through affiliate marketing, ebay, and so on. The money to be made on the internet is not going to dry up.
Read more from Plentyoffish.com posting, Bubble Bubble Bubble.
