As some of you may know I don't really get the valuations of these Web 2.0 business, nor do I fully understand the way they will or are making money today. I put it down to my age....I'm 31.0 which is bigger than 2.0. Recently I have found some users of Facebook that are really using it properly and by properly I mean not simply as a glorified contacts manager( Like I do) and one of these super users gave me an example which sparked a thought.
His wife had recently started making jewellery and had posted some pictures on her Facebook page for her friends to see, the next morning she had 3 orders.....WOW
Apart from being able to market to your friends has Facebook created a network of potential customers that trust you because you are a part of their network. No one asked her "Is this stuff for real?", they knew her and trusted her and they went straight to check out. That sparked another question, could Facebook be used to ignite the one man business, a business based on implied trust?
Will Facebook be the next place you sell your car?
Who knows, but I can tell you its a great place to count how many friends you have ;)
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Exciting thought, but my mind does however drift to the many risks of doing business with friends. Good life balance requires one to be able to separate work from friends. Also one must not forget about the need for critcal mass, how much time will you spend finding new friends who will accept your profile?
ReplyDeleteI will conceed that the thought of alternative outlet channels is exciting, and not just because the brick and motar costs can be avoided. The thought of being able to contact customers in the calm and trusting surroundings of their home or at their convenience 24/7 just opens up a world of opportunties.
the business challenge - product selection and supply chain
the marketing challenge - profiling and customisation
the finacial challenge - critical mass, collections and sustainability
the ethical challenge - building trust and warranty
the IT challenge - back office capability and support
the competition challenge - ease of entry is countered by seriiously strong existing players
Who wants to be the next great mobile/internet powerhouse? Next step ... understand the market place well enough to build a sustainable strategy.
Great comment, spot on!
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