Saturday, February 14, 2009

Web Real Estate vs. Content

Business

Raising funding in the current economical situation is tough. However,Twitter has raised $35 million from Venture Capitalist. Well done for them for the amazing service that I as well use. Thou this raises some questions about the current state of online business and so called real estate.

For me, working on the online's content side, all the technological development and platform systems with API's are like real estate land. Currently everyone is racking up users as fast as they can, still not aiming to make money from the huge amount of users populating their service. Like Facebook, over 200 million regular users and very low income compared to their size. Obviously there are few examples like Finnish Habbo Hotel, which are actually racking up a solid cashflow.

I think all this architecture building should start looking for more opportunities. Like what to build on this land they have acquired? Technology, or kinda infrastructure is important and a base on everything, though the actual service and monetizing that service is very important.

Just relying on user generated content is not enough, because no one is really not interested to pay anything for it. It is low quality, badly designed and it is not regularly generated.

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