>
> This is where it becomes relevant to IxD, in my mind. Every time
> Facebook has tried to change the design to open a space for revenue
> generating functionality, the users have borked. The users have made
> it clear they don't want ads in their feeds. They don't want Facebook
> using them as a sales reference ("Your buddy, Jared, just bought shoes
> at Amazon -- you should too!"). They want to stay connected, but not
> pay for that privilege.
Jared brings up the everpresent, and hugely important question.

How -does- one monetize this kind of service? It seems that more and
more "web 2.0 (cringe)" companies are following the
get-users-first-then-monetize model, but with no apparent idea of how to
actually jump from A to B (underwear gnomes, anyone?) without alienating
users.

Is there enough advertising revenue out there to pay for our favorite
web apps? Is advertising revenue even a feasible solution for some of
these apps?

This reminds me on a few years back when Salon.com (which I admit I
don't read much except for articles by Paglia) was going down the tubes,
tried a pay-subscription based solution (which didn't work) and ended up
shifting its model.

And here's the other frustrating question: Why -shouldn't- users be ok
with advertising? Yeah, it is annoying. I hate it too, but for a free
service, I mean... someone has to pay the bills.

Is this all a market maturity issue? Are monetize-later ventures
acclimating users to the idea that they shouldn't have to pay for
services (via advertising or cash) and hence hurting their own chances
of jumping to a profitable model later?

I think this issue is going to keep coming up, but the chickens will
come home to roost, and probably sooner rather than later considering
the economic climate. Someone is going to say "where's the money" loudly
enough, and then there's going to be some change. I'm vaguely worried
about the Dutch Tulip market scenario, although of course, that metaphor
is tortured, unapt, and possibly not fit for this scenario. But in
general, we have a questions of how much users are willing to pay (in
money, attention, and time) for services that are currently presented as
free.

It is indeed an IxD issue.... how to capture eyes without annoying eyes.

I boggle at it.

-Damon
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