Is Web 2.0 Real? Ken Carroll

www.ChinesePod.com 5 million downloads 188 countries Thousands of subscribers No advertising In-house PR No marketing/sales department

5 million downloads

188 countries

Thousands of subscribers

No advertising

In-house PR

No marketing/sales department

The Post-Network Economy Web as platform Commoditized infrastructure Enables: E-commerce, search, market research, community building, online banking/payments, ppc advertising Uncontrolled : ‘Democratization’ as natural equilibrium Emergence of Web 2.0

Web as platform

Commoditized infrastructure

Enables: E-commerce, search, market research, community building, online banking/payments, ppc advertising

Uncontrolled : ‘Democratization’ as natural equilibrium

Emergence of Web 2.0

What is Web 2.0? ‘ Read/write web’ - From publishing to participation, collaboration - Wikipedia, EBay, Craigslist, Myspace, Youtube, Flickr, Google Harnessing collective intelligence – ‘Wisdom of the crowd’ - Google smarter with every click New tools – All about communication

‘ Read/write web’ - From publishing to participation, collaboration - Wikipedia, EBay, Craigslist, Myspace, Youtube, Flickr, Google

Harnessing collective intelligence – ‘Wisdom of the crowd’ - Google smarter with every click

New tools – All about communication

Web 2.0 economics Low cost of starting/running a business New marketing strategies - Niche, not mass market Competitiveness : Fast, lightweight, flexible Capital efficient : 15 X cheaper Less funding - Retain equity Golden Age of entrepreneurship?

Low cost of starting/running a business

New marketing strategies - Niche, not mass market

Competitiveness : Fast, lightweight, flexible

Capital efficient : 15 X cheaper

Less funding - Retain equity

Golden Age of entrepreneurship?

What is ChinesePod? Business model – Split service - ‘On ramp’ Vision: ‘Make it easy’, on-demand, fit users’ lifestyle Ethos : Responsiveness, shared ownership Tech : ‘Plumbing’, user experience

Business model – Split service - ‘On ramp’

Vision: ‘Make it easy’, on-demand, fit users’ lifestyle

Ethos : Responsiveness, shared ownership

Tech : ‘Plumbing’, user experience

Web 2.0 tools and ChinesePod Podcasting : ‘Economics of free’ RSS as advertising channel Blog : PR, market research, personalization, branding, traffic, pre-empt problems Feedback loop : User-led/relevant, product development

Podcasting : ‘Economics of free’

RSS as advertising channel

Blog : PR, market research, personalization, branding, traffic, pre-empt problems

Feedback loop : User-led/relevant, product development

New efficiencies Advertising/PR Customer education/after sales feedback Product development HR

Advertising/PR

Customer education/after sales feedback

Product development

HR

Competitive advantage New value chain Removes friction Responsiveness, relevance ‘ Community’ creates a moat : ‘Network effect’ Leadership, new categories: Turn the rest into followers Unsettle incumbents

New value chain

Removes friction

Responsiveness, relevance

‘ Community’ creates a moat : ‘Network effect’

Leadership, new categories: Turn the rest into followers

Unsettle incumbents

The bad news Low barriers will lead to oversupply Requires relinquishing control Advertising models are tough Lower valuations ‘ Economics of free’ require massive scale economies .

Low barriers will lead to oversupply

Requires relinquishing control

Advertising models are tough

Lower valuations

‘ Economics of free’ require massive scale economies .

Do Create value (for the customer!) – improve lives Find a cause – a sense of purpose – make meaning Move now – release early and often - ‘permanent beta’ Keep it simple Obsess feedback – the right feedback Stand out – Seth Godin’s ‘Purple Cow’ – remarkable beats perfect Determination beats smarts Do not play it safe : being able to take risks is everything Do things for revenue reasons , not for ‘strategic’ reasons Bootstrap – even after Series A

Create value (for the customer!) – improve lives

Find a cause – a sense of purpose – make meaning

Move now – release early and often - ‘permanent beta’

Keep it simple

Obsess feedback – the right feedback

Stand out – Seth Godin’s ‘Purple Cow’ – remarkable beats perfect

Determination beats smarts

Do not play it safe : being able to take risks is everything

Do things for revenue reasons , not for ‘strategic’ reasons

Bootstrap – even after Series A

‘ Entrepreneurial literacy’ in the Web 2.0 era John Batelle's 'Search' Technorati Youtube/Myspace Community – ‘Sharing economy’ Network effect Flckr ‘ Attention economy’ ‘ Unbundling’/’Microchunking’ Digg ‘ Tagging’

John Batelle's 'Search'

Technorati

Youtube/Myspace

Community – ‘Sharing economy’

Network effect

Flckr

‘ Attention economy’

‘ Unbundling’/’Microchunking’

Digg

‘ Tagging’