What are the problems with virtually every web 2.0 company out there? Well, there are 2.0 problems:

• Just flat out bad ideas with weak value propositions. It works like this: good ideas solve problems; great ideas solve big problems; outrageously fantastic ideas solve big problems in a simple, idiot-proof way. Most web 2.0 companies aren't solving any real problem, and this will ultimately make it very difficult for them to find customers interested in giving attention to their offering.
• They are not targeting vertical markets. Consider the web 2.0 company YouOS. They are marketing straight to an undifferentiated audience; there is no clear niche in mind. This is a bit related to the first problem, as focusing on a niche forces you to clearly identify prospective customers, and thus allows you to understand their problems and build your solution accordingly. It's also a much easier way of doing things -- especically because the more horizontal you go, the more you will find yourself competing directly with the likes of Google, Yahoo, Microsoft, and even Amazon.

For these reasons, most of these web 2.0 companies won't last much longer than the term web 2.0 (which I actually like, although it is a fad).

Featured Reports

• Web 2.0 and the Assassination of John F. Kennedy [1]
• Culture 2.0 [4]
• SEO 2.0 [5]
• Publishing 2.0 [7]
• Real Heroes [1]
• The Mythology of Web 2.0 [4]
• Psychological Warfare [6]
• Superhero Marketing [5]
• Inverse Universe [6]
• Platform Strategies [6]
• Unclassifiable [6]
• Searchonomics [7]
• Open Source Strategies [12]
• Google [42]
• On Innovation [124]
• My Mistakes [9]

• Yo, Peep This: RSS Feed