
Andrew Chen: Want a Web 2.0 idea with a strong business model? Here's how to go upstream - andrew_null
http://andrewchen.typepad.com/andrew_chens_blog/2007/05/need_a_solid_we.html
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asher_gm
The idea of auctioning users is a dangerous game. It reeks of an evil empire
manipulation. Social networks are built on trust. The user needs to feel that
their community is safe and regulated by ethics similar to their own. A few
public debacles involving said user auctions could seriously damage a sites
reputation and adversely effect its presence in general. It would be much
safer to build in the transactional side of the operation. This wouldn't have
to be a ground up operation either, partnerships that would allow a site to
reface existing transactional portals would be ideal. For example take a
social network of bibliophiles. This example site has a strong sticky content
with syndicated book critics and authors along with established "user2user"
interactivity. The site then works out a deal with amazon that allows the
biblio-site access to the amazon backend for placement and fulfillment of
orders for a piece of orders driven from their site. To the book loving user
the process seems seamless. This way the site reduces exposure to risk due to
bad public sentiment of their intentions and operating procedures.

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andrew_null
What do you think Google is doing when they auction you as a click to the
higest bidder?

Or what do you think Priceline is doing when they auction you to the highest
bidder for a hotel or airline?

In the scheme of things, Search is really brilliant because it's upstream to
EVERYTHING transactional. That's the key to controlling the stream of users
coming in and out of transactional places on the internet.

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asher_gm
Oh snap you got me, I never thought of that. But wait we weren't talking about
search were we? No... Also the methods for upstream sales; in particular with
Google are passive and common knowledge.

You are right. But Google isn't a social network; neither is Priceline.
Auctioning users of a community, and auctioning users of a tool or service are
two different things. There is no expectation of trust, except for privacy,
when using web services such as Google, or Priceline. Whereas a user in a "web
community" gains trust in a particular site. If the site uses that trust for
gain, without being completely open about it then its akin to forced spam.

