The whole "web 2.0" obsession with being "innovative" applies not just to these companies, unfortunately. My company was one of those suckered into building an island in Second Life, which we devoted basically an entire full time position to maintaining, all so we could put on little shows for the maximum 50 people that could be on the island at any given time.
Meanwhile, I could whip up an email blast that I could send to hundreds of thousands of people in the span of about 15 minutes.
The secret to making money on the web is that there is no secret to it. There's no "interesting" or "innovative" way of making money - it is all about promoting your products to the most people with the smallest effort and expense. That means doing things in ways that may be unsexy, but are very effective.
But of course, that's pretty much the opposite of what "Web 2.0" is all about.
"It turns out Dell SOLD $3 million worth of computer gear through its Twitter feed alone, meaning it has MADE $3 million more off Twitter than Twitter itself." You don't just "make" money by "selling" stuff, you make money by having your business income exceed your expenses. And while Dell almost certainly "made" money off its Twitter feed, it probably wasn't $3 million. (Dell delivers computers in exchange for payment, which is generally a significant expense.)
@Moriturus: Well for what it's worth, Dell is probaby the Nike of computer markups. They charge normal prices for the most godawful pieces of junk...I've had 2 Dells and they've both made me nearly homicidal. I had my current rig built from parts, but if Dell sold something comprable, I'm guessing it would cost about $7,000.
@Mount_Prion: The couple of times I've opened a Dell up I've just larfed. And as a matter of fact they probably do charge you a ridiculous amount for your current computer. They own Alienware, so go check out comparable prices on that website.
@Moriturus: No shit? When'd they buy AW? I mean, those computers have always been way overpriced (you gotta pay for that green glowing light leaking mystically from your tower), but damn.
It's obvious they are ignoring business opportunities because they know they will underperform and the resulting PR blitz will decimate any inflated valuation they currently enjoy. Smoke and mirrors, the lot of them.
Would have loved to Putin try that crap with Steve Jobs.
Oh, that's right - Steve wouldn't be in the audience, he would have been on stage, and he wouldn't be dumb enough to ask Putin a question. And Putin would just be another Jobs fanboy, instead of some defensive paranoid nitwit...
Computers are made in China/Taiwan/Malaysia anyway. Why should Russia pay margins to Dell for packaging & support? A monkey could do that.
This is the reason why Dell's stock and revenue is in a shitter anyway... they stopped innovating and are just making cases & slapping their logos on them.
06/12/09
Meanwhile, I could whip up an email blast that I could send to hundreds of thousands of people in the span of about 15 minutes.
The secret to making money on the web is that there is no secret to it. There's no "interesting" or "innovative" way of making money - it is all about promoting your products to the most people with the smallest effort and expense. That means doing things in ways that may be unsexy, but are very effective.
But of course, that's pretty much the opposite of what "Web 2.0" is all about.
06/12/09
06/12/09
06/12/09
06/12/09
06/12/09
06/12/09
06/12/09
True that.
01/28/09
Oh, that's right - Steve wouldn't be in the audience, he would have been on stage, and he wouldn't be dumb enough to ask Putin a question. And Putin would just be another Jobs fanboy, instead of some defensive paranoid nitwit...
01/29/09
To be fair, God knows he needs it more than ever now.
01/28/09
This is the reason why Dell's stock and revenue is in a shitter anyway... they stopped innovating and are just making cases & slapping their logos on them.
01/28/09
01/29/09
01/28/09
01/28/09
01/28/09