March 10, 2006
Why the internet is UNDERvalued
Again, like the railroads which connect towns and cities, the internet is global and web 2.0 is making it person to person.
You think railroads are borrrrring - check out their stock prices the last few years - 80? plus years after they began connecting people and places.
I love finding other writers that can summarize my thinking better than me. This today from www.chartreuse.wordpress.com:
...So business flocked online and websites were thrown up all over the place and business models were based on the fact that they had audiences watching them.Web 2.0 is different. It’s upside down. It’s Army of One. It’s power to the people. It’s the human algorithm.Now audiences create the content, they categorize it, and they tell you how they really feel about it.
That’s the difference. And it’s huge.
Tagging. Blogging. Social-Networks. All do the same thing.They allow the audience to segment and classify themselves in a million ways.They give the audience power.
In the Web 2.0 world financial power lies in all the information that consumers are giving you by you giving up the wheel.
...Look at Google.
Look at Overture (now Yahoo Search Marketing).
These are the most profitable advertising business models around, because consumers tell advertisers what they’re looking for first, rather than advertisers telling consumers what they should buy and hoping for the best.The audience is running the entire thing.The internet is the largest direct marketing platform on the planet and now the audience can tell you exactly what it wants.Who needs a sustainable business model when you have audience? Get it?
Wow - Great stuff. Really great stuff. Information to make you money if you take it in and think about how young the internet really is. The information revolution is a goldmine in pure hypergrowth.