If I Can’t Have a Revenue Model, Then Neither Can You!

Here’s what I don’t understand.

People try so hard to couch the Web 2.0, blogosphere, etc. thing as a real business, but when a real business, with an actual revenue model, makes a smart and logical business decision to protect that revenue, a lot of those same people cry foul.

How in the world have we gotten to a place where eBay saying no to Google’s checkout service is lame, yet AOL giving away its services to broadband users is a good idea?

If you want to know why many real businesses don’t take the blogosphere seriously, this is Exhibit No. 1.

No right thinking business with the dominant market share eBay has would allow a competitor like Google, who is also rumored to be about to enter the auction market, to walk into its store and sell services to its customers.

The entire Web 2.0 movement and many desperate older web companies have climbed on the back of the ad dollar. Ad revenue simply cannot bear that burden for the long haul.

Sometimes I feel like the Web 2.0 groupthink is “if I can’t have a sustainable revenue model, then you can’t either!”

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  • This Web 2.0 Groupthink perception problem is encouraged by the "virtual" environment and has been an issue far longer then Web 2.0. The .com group was in some part guilty of the same type of thinking. I agree with Randy that part of the problem is that the majority of the Web 2.0 Group are not businessmen. I also belive that contributing to this attitude is the fact that there are investors who will put up substantial funds without requiring a substainable revenue stream plan based upon something other then just ad revenue. As far as EBay's move to prevent Google's Checkout Service, they have every right to run their business the way they want to.
  • Excellent post. Of course, most of the Web 2.0 group think are engineers, not businessmen.
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