Comments on: Web 2.0 – Prepare For Epic Fail?

By: Robin Cannon

Robin Cannon — Thu, 12 Jun 2008 23:41:00 +0000

@Webomatica – I think that’s definitely going to be a factor. There was a good post in the Houston Startup blog about the importance of a strong economy in general.

@James – I definitely think the paid service is a no go for pretty much every service. Unless they can offer genuine value above and beyond anyone else – and this is where Facebook and the ilk offer the least value because they’re in many ways just “fluff” for entertainment – nobody is going to pay.

And even if they did have value enough to attempt a paid service, competition is such that you can easily see someone coming up with a free alternative pretty quickly.

It’s noticeable that the most effective survivors of the dot-com boom are the likes of ebay and Amazon. Basically sites that sell something (or take a percentage of things being sold by users). There’s nothing really in “Web 2.0″ that offers that same kind of model.

By: James Duthie

James Duthie — Thu, 12 Jun 2008 23:21:05 +0000

I tend to agree Robin. None of the ‘web 2.0′ success stories have established an effective revenue model – Facebook, YouTube, Twitter etc.

Advertising won’t work because people aren’t in ’search & gather’ mode as they are in search engines. Facebook has proven that. And I am highly skeptical of the number of people who value the service enough to pay for it if a subscription model is introduced.

So where does the cash come from in the long run…? Google can’t buy every start up.

James Duthies last blog post..Has Lyndon taken linkbait offline

By: Robin Cannon

Robin Cannon — Thu, 12 Jun 2008 23:18:10 +0000

I agree that any crash will likely have less of a public forum. The same kind of IPO madness isn’t there. That being said, it may not be stocks but whether it’s Newscorp buying MySpace or venture capital investments in upcoming social networking services, the market seems overvalued.

Robin Cannons last blog post..Web 2.0 – Prepare For Epic Fail?

By: Mark Dykeman

Mark Dykeman — Thu, 12 Jun 2008 16:30:17 +0000

A bust of some kind is likely inevitable through normal competition and attrition. However, it’s worth noting that very few of the Web 2.0 services appear to have any funding outside of venture capital, so there won’t be a huge impact on the stock markets if they do go bust. And, unless I’m mistaken, they don’t employ a huge number of people, either.

However, I am skeptical about their chances for success for the same reasons you are. For most, their best hope is to get acquired by someone bigger and stronger.

Mark Dykemans last blog post..Social media makes distance irrelevant

By: Webomatica

Webomatica — Thu, 12 Jun 2008 15:49:26 +0000

I think it depends on if America tips into a consumer-led recession (some say we're already there) and how long it lasts. Webomaticas last blog post..FriendFeed Fever Inspires Me To Use It For Movie Recommendations