Interesting article about getting value from your customers:
“It costs less and less for us to get up and running. Still, sooner or later – you need to make money. By not getting value back from users, we’re increasing the failure rate of our businesses.”
It still boggles my mind when I read about a company with $0 in revenue getting a muiltimillion dollar valuation. I can see indirect value, as in Google News bringing more people to Google, which makes Google more money in the long run. But for something like Twitter to be valued at… what? $75m? I can’t fathom that.
One day this’ll all make sense.
Update: This article by Greg Sterling, an eBusiness guru, expresses similar concern:
Stepping back, it strikes me that there’s something quite “dysfunctional” going on in the way that many entrepreneurs and funders think about building online businesses. Historically people in the real world who start businesses have not gone in with the attitude: in three years someone will buy me and I’ll never work again or maybe I’ll go start another business that will be acquired in another three years.