The new way to make money from Web 2.0. Do it the old way

14 December 2005

I am a snark-filled reporter so I could not help but write about a recent Dave Winer post. I'm beginning to wonder whether the man behind OPML is planning one of those "Who Moved My Cheese" style self-help business books that use slightly skewed views of a situation to provide apparently dazzling insights into problems that are more readily and easily explained by conventional wisdom.

Winer explains patiently to the simple reader that, with "Internet 3", the key to making money on the Internet is to send people away from your site. They will often come back, he argues. He cites Google and Yahoo's news aggregation service as examples of pages that are designed to send people to other sites and that they make money by doing this. That is true, but the key is not that they send people away, simply that people come back because what they offer is more useful than other sites.

In the case of Yahoo's news aggregation, it is easier to go there to follow two or more media news feeds than to surf each individually. In short, things that are useful tend to make money. Because of this, we can expect RSS-based aggregators to supplant Yahoo's current generation of news aggregation service. However, judging by recent acquisitions, Yahoo appears to have sussed out where the next batch of cheese is coming from.

For my next trick, I'll explain how to make money by buying low and selling high.

1 Comment

You are a snark-filled reporter? Who would have guessed! (I imagine it's much better than being utterly gormless.)