I just renamed a category (tag) from "Doing Business on the Web" to "Bubble 2.0" because I think we need to be realistic about what is happening on the web right now.
Money is being made all over the Internet these days. Some of it by good old fashioned revenues and cash flow. That's the foundation for the recovery in Internet investing we've been enjoying for the past couple years. But increasingly money is being made the way we made it from 1998 to early 2000; mometum investing, speculation, fast money chasing deals, caution being thrown to the wind, and amateurs jumping in on the action.
So why am I now getting this increasingly uneasy feeling? I was chatting with a veteran of Bubble 1.0 recently and I think he hit on the thing that makes those of us who've seen this movie before most nervous. He pointed out that there are a large number of "companies" being created again for the express purpose of being acquired.
I've been blogging on the various DIGG clones and different open source business models and 2.0 UIs and Ajax techs… but what remains is to develop a working business model.
Once someone told me a piece of advice and it goes like this: fish where the fish are. To survive a company needs to fish where there are paying customers (unless your business model is to be bought out). Where are the fish biting? Where are the fish that will pay money? I may have massacred the analogy, but you get my point.
In my opinion the consumer market is so full of free software and free hosted services run by advertising, the only place to find fish that still bite is on the corporate intranet.
I'd like to hear your thoughts on this.