Comments on: Response to Chris Anderson’s Economics of Giving it Away http://sephskerritt.com/2009/02/03/response-to-chris-andersons-economics-of-giving-it-away/ Startups, Design, Marketing, User Experience, New York, Life Thu, 18 Feb 2010 15:46:24 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: seph250 http://sephskerritt.com/2009/02/03/response-to-chris-andersons-economics-of-giving-it-away/comment-page-1/#comment-69 seph250 Tue, 03 Feb 2009 22:02:33 +0000 http://sephskerritt.com/2009/02/03/response-to-chris-andersons-economics-of-giving-it-away/#comment-69 Santi, I think you give them too much credit. Regardless, assume all these players have the same business model (sell data to advertising/research agencies), then won't the value and willingness to pay for this consumer data also fall? Isn't this what happened with online advertising already? I'm concerned your plan assumes you will be able to sell algorithms/data in 2 years for their market value today. Remember the startups funded 5 years ago with business plans assuming they'd get $20 CPM's today? Santi, I think you give them too much credit. Regardless, assume all these players have the same business model (sell data to advertising/research agencies), then won’t the value and willingness to pay for this consumer data also fall? Isn’t this what happened with online advertising already?

I’m concerned your plan assumes you will be able to sell algorithms/data in 2 years for their market value today. Remember the startups funded 5 years ago with business plans assuming they’d get $20 CPM’s today?

]]> By: Santi Siri http://sephskerritt.com/2009/02/03/response-to-chris-andersons-economics-of-giving-it-away/comment-page-1/#comment-68 Santi Siri Tue, 03 Feb 2009 21:35:39 +0000 http://sephskerritt.com/2009/02/03/response-to-chris-andersons-economics-of-giving-it-away/#comment-68 Hi Seph.. interesting post. My take (or suspicion) on Twtitter, Facebook, Digg, etc. is that they can't reveal to the wide public what their actual business model is. These networks essentially have plenty of information of user's interests and can sell that data to any advertising/research agency in the world. But they haven't been very straightforward with that model, so in the meantime they struggle to find alternative sources of revenues so they can go public with them. That said.. what I can tell you about us, good ol' Popego, is that we are focusing on selling our algorithms and API access to third parties, and these get trained by the inputs our users do on our consumer app. It seems that we might have a sexy business model afterall... Yet, you know quite well that for us, it took a while until we could figure out which way to go.. Innovation is a risky game indeed. Hi Seph.. interesting post. My take (or suspicion) on Twtitter, Facebook, Digg, etc. is that they can’t reveal to the wide public what their actual business model is. These networks essentially have plenty of information of user’s interests and can sell that data to any advertising/research agency in the world. But they haven’t been very straightforward with that model, so in the meantime they struggle to find alternative sources of revenues so they can go public with them.

That said.. what I can tell you about us, good ol’ Popego, is that we are focusing on selling our algorithms and API access to third parties, and these get trained by the inputs our users do on our consumer app. It seems that we might have a sexy business model afterall… Yet, you know quite well that for us, it took a while until we could figure out which way to go.. Innovation is a risky game indeed.

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