The Fake Recession! Look At The Growth Of Web 2.0

Discussion in 'Stocks' started by Brandonf, Dec 20, 2008.

  1. Brandonf

    Brandonf ET Sponsor

    And who gives a damn if they can't make a profit no matter what. That's hardly the point, I mean the govt might just turn the printing presses on and do a Web 2.0 bailout. How can there be a recession when people keep going to free sites like crazy and those sites can't make any money! Obviously this is all fake. Guys like stocky have been right all along. What the hell are we thinking? Ok..well....maybe not.

    Digg, one of the lead darlings of the Web 2.0 movement just released its financials. Horrible http://www.alleyinsider.com/2008/12/diggs-miserable-business

    I really don't know what the hell is up with these people that they can't turn a profit with all the traffic they have, and the new technology etc...but they obviously don't. Web 2.0 is not a fad, it is the future of the Web and anyone who has a business and is not using Web 2.0 is going to be left behind, but these companies seem to be run by a Jenious with a capital J.
     
  2. Brandonf

    Brandonf ET Sponsor

  3. Brandonf

    Brandonf ET Sponsor

    Web 2.0 is here to stay, the consumer wants it and business simply need to learn how to use it effectively. Those who do use it effectively are doing great. I know not everyone here likes Tim Sykes, but he has basically a strategy that is entirely based upon Web 2.0, and he is right now bringing in around 50K a month. His company is not even a year old. I have a friend who started a wine site, totally web 2.0 and he is making over a million a year with. The fact that these jackasses in San Fransisco can not make any money off the sites they have and all the traffic they are getting is stupid. There will be a turn over in management of these companies for sure, its completely stupid that the 24th most popular site in the world is puking cash all over with no end in sight. My son is in 1st grade and he could figure out how to make money with all that traffic.
    So, my take would be that the people running the web 2.0 business are going to be replaced. They will still have a place with in the companies, but as IDEA people, not management people. Web 2.0 itself is not going to be going anywhere though until it morphs into web 3.0 which will come with its own challenges and hardships for some and opportunity or others.
     
  4. Sorry, but "Web 2.0" is one of those absolutely meaningless fad phrases with zero specific definition started by geeks that write articles for techie magazines. Other examples are "state of the art" and "world class." Remember "push technology" from 10 years ago? Same thing.

    Businesses are having a rough time in this economy because people aren't buying products and services. It is no more complicated than that. When the economy slowly turns, things will get better and it will have nothing to do with "Web 2.0."
     
  5. Exactly, I was surfing a website recently that I liked but has financial problems, these guys have 0 business cells in their brains!
    It's not complicated, you trade in eyeballs for revenues. That's your business model.

    I went on a chinese youtube and I was amazed not only at the technology but how good they are at monetizing their website. The layout is completely different from Youtube. Youtube has a really crappy layout, they can't put any ads anywhere. There's been a few changes every so slowly to the layout and I think that's the Google brains who are trying to monetize it, but a whole slew of these Web 2.0 websites are pathetic.
     
  6. dsq

    dsq

    what is web 2.0 and how does it differ than whatever the web is now?

    I found this very ambiguous definition:

    "Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as a platform, and an attempt to understand the rules for success on that new platform."
     
  7. Do you have any experience making money in the online business?

    Eyeballs mean nothing. As soon as you try to monetize them, they disappear. What do you think would happen to Digg's traffic if they started to bombard people with ads, upsells and "premium offers"?

    95% of these Web 2.0 sites have tons of traffic but no chance for ever evolving any type of viable long-term monetization model. They will just keep burning bandwidth and money on expensive staff without ever making any significant revenues because traffic goes where things are payment and advertisement free.

    There are 3 types of sites that make serious money purely online, and even they are hurting:

    - Online dating
    - Online porn
    - Online gambling

    Outside of that, you have 6 sigma events such as ebay, yahoo and google.

    That's it.

    Your top 20 Web 2.0 "companies" (which in fact are nothing else but Ponzi schemes burning through venture capital) don't rake in 1% of the revenues global online gambling is making, even after the US crackdown on gambling.
     
  8. Very true. That is what happened with the Web 1.0 bust (like PriceLine's attempt to name your own price for groceries - little more than an internal Ponzi scheme with their investor's money).

    For a few years, it was about getting eyeballs and attracting investor cash. They found out the hard way, that very very few companies will stick with free services and high costs.
     
  9. I don't know if "Web 2.0" is here to stay or not... what I DO know is that the web is evolving at a great rate of change, which will change our market place forever.

    For example, the line between TV and internet will be gone. Blogs, Vlogs, and information on the internet will greatly change the way people get their news, thus impacting the print media greatly. Just wait until the large corporations realize what's happening and change their marketing and sales approaches.

    You guys should check out Gary Vaynerchuk's blog. He has a very successful wine company, which features an online wine TV show. He's extremely vocal about "web 2.0" and the impacts it's having on our world.

    Chris
     
    #10     Dec 20, 2008