Bubble 2.0 coming soon?
June 13, 2006 – 10:45 amIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
The last few days there have been a huge number of ebullient posts concerning Web 2.0 startups. People are either landing more money or getting their first round of financing. People are leaving their jobs and starting “Web 2.0″ companies. The hype machine is in full bloom, but I see nary a mention of the numbers behind any of these deals. In fact, a number of the websites that are launching would be very hard-pressed to find viable business models.
It appears that Google Adsense has spawned tens of thousands of sites looking to cash in on the idea of driving eyeballs to the site and having Google monetize the pages for them. But is it really bringing in any money? YouTube running AdSense ads on video pages seems particularity counter-productive. It’s almost beginning to look like people are attempting to put round pegs in square holes just to get a website funded. Good luck to all of them, but their survival will still rely on their performance over time.
One thing about big money is that it chases after big money. The more people who are spending to fund startups, the more likely the trend is to continue. Even vloggers are rushing to get paid. If you’re into organizing a team of people, you might want to draw up your business plan and see if you can get a project funded. There’s probably still plenty of time left to join the fun.
The interesting thing will be to see what becomes of these companies in the immediate future. More will likely fail than succeed, especially if they aren’t adept at monetizing their traffic.
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