Five Difference Between Web 2.0 and The Dot Com Bubble

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1) Viral:

That’s right no advertising. Facebook, Feedburner, Youtube, Myspace. NONE OF THEM ARE SPENDING ANY MONEY ADVERTISING. ALL OF THE ADVERTISING IS BEING DONE by the USERS. Instead of spending money advertising the site, they are making money off of the fact that the users are doing it for them, think about facebook sells 15% of it’s whatever shares/ad space for $240 Million, and they are not advertising the success of the site is based in the fact that the users are doing the work for them while they can spend money on what is necessary to make sure that the site continues to achieve success by leaps and bounds.

Not like this site that spent all of their money on a Superbowl Commercial and a Macy’s Float. Yea, anyone else remember Pets.com? The company raised $82.5 Million in its IPO and then disappeared a year later! Ahh the 90’s you could convince anyone to buy anything with and all’s that it took was a talking sock puppet and some flash animation.

2) Success before Reward:

In the first dot Com bubble if you had a idea and got in the ear of a venture capitalists they would throw ridiculous amounts of money at you BEFORE you actually turned into a PROFIT! Well if the big boys have learned anything it’s to sit and watch before giving away your money. This has led to some companies getting scooped by the competitors but at least you’re not losing billions of dollars.

Case in Point? Webvan, the idea was simple. You shop online and they deliver to your home. Great idea right? How great of an idea is it really though? Is it great enough to value the company at $800 MILLION?!?!?! That’s right that’s how much spending money the venture capital firms gave to this dot come drive by, at one point in time the company was valued at $1.2 Billion. And Now? If you do go to the site you will simply find a parking page for a shrewd businessman that actually bought this pathetic domain.

3) Pleasure before Business:

In the first dot com bubble, it seemed like people had more of a business plan rather than a passion for what they were interested in. Let’s take a look at Wordpress. They could make huge amounts of money just by selling links or advertising space in the Wordpress dashboard, but they are not interested in doing that, they are more interested in bettering their services and providing an outlet for internet users without shoving ads in their face. Unlike the site like govWorks where they had a good idea but they got greedy, so greedy that it broke up their friendship and led to the demise of the company and being bought out by a competitor. Can you imagine if Larry and Brian got Greedy? Or, what if the YouTube guys got greedy?

4) Speed:

With Ajax and Web 2.0, nothing should take more than a feed seconds, whether it’s that video buffering on YOUTUBE or if it’s renting a DVD from Netflix. In web 1.0 you had java (shudders) and flash and pages that loaded for 3-5 minutes at a time! In a time where everyone and their dog has A.D.D, and is hopped up on Prozac you can’t have that. If I try to buy something online and the shopping cart software takes more than 30 minutes to load I am gone! Why do you think most items on eBay get their bids in the last 30 mins? It’s because we can’t wait for the damn auction to run its course!

5) THERE IS NO NUMBER 5!

I couldn’t just make list with 4 points on it now could I?

Me Personally I am not making any doomsday predictions regarding Web 2.0, I think the way that things are going are very sustainable and things will continue to prosper the way they are going so you don’t have anything to worry about!