21
Jul 09

Monetize twoth

This is one of the fundamental differences with our web2.0 world, first create value, then monetize. Did the google guys have a clear picture of how to turn a great search into a fortune when they started down the road?

Value and Volume provide the opportunities, and in the rapidly evolving ecology of the web the revenue mechanisms evolve later. They come second to establishing the offering and fettling the functions to ensure best bang for buck.

Why people value a new service or product often takes time to understand and is the subject of the classic adoption curve. The bleeding edge guys want it because its new, the teens and fringes are experimenting and have low stickiness, but sooner or later, given enough volume, enough durability, and enough oxygen (read cash) then the value proposition to business becomes more defined and businesses adopt. Think social networking/twitter/auctions.

Build the volume and understand the value, then evolve the mechanisms to monetize. That’s business 2.0.


21
Jul 09

Be the point of pain in your market

Rod Oram has a great line about “being the point of pain’ in your market, where people have to either deal with you or go out of their way not to. Think Google/Microsoft and Trademe/eBay, Telecom/Vodafone etc. Love them or (often) hate them its hard to work around them. Everyone else becomes a bit player.

His point is that a dominant position no matter how small the niche, provides a fundamental advantage, opportunities and promotes even the smallest enterprise to a position where they can become a price maker rather than price taker.

I had the privilege of working with Rod on couple of projects and this insight was proved repeatedly as we talked to many companies about their competitive strategies. In the main companies had not set out to dominate a market, however when they found themselves in that position they took a fundamental step forward.

Be the point of pain..