Natural Search Blog


Is Web 2.0 Bogus as a Business Model?

For all of us who survived the exuberance of the dot-bombs era, a little blog entry by my friend, Randy Weber, entitled “Business Development 2.0 is BS 1.0” could serve as a nice dose of logic amid all the hype going on.

In his post, he lists out some salient points on why some of the Web 2.0 companies’ business plans are woefully lacking. It makes some sense. After all, if you’re sharing your core content and intellectual property (in the form of free apps), anyone can replicate your site, and they might just do it better than you, and you won’t see any of the money they’re making!

Web 2.0 maybe doesn’t have a simple definition beyond “I know it when I experience it”, but at base it seems to be founded on user-generated content and syndication of that content along with application services. So, businesses based on Web 2.0 would seem to be counter-intuitive to the normal mechanics of classic biz, and those businesses founded on it might have a lot more risk associated with them.

I think there are just a few caveats to Randy’s post, though. Read on and I’ll explain.

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