I do respect the left coasts Caligula-like ability to party like there is no
tomorrow! Ms. Wodke made a comment 2 weeks ago about SF/BayArea being ground
zero for the internet - and for VC's and their cash - it seems true that
investor money vaporizes faster than asphalt after an a-bomb blast :-) God
bless u guys for keepin it real - we on the right coast haven't had that
kind of fun since Razorfish days of '99

On Tue, Oct 14, 2008 at 10:06 AM, Rich Rogan <[EMAIL PROTECTED]> wrote:

> This is an interesting discussion on a "pure play internet" company, and it
> smells a lot like 2000 in San Francisco.
>
>
> Facebook, as an offering, is imminently repeatable by competitors, with
> their strongest advantages being a virtuous circle of:
>
>
>
> 1. They have critical mass
>
> 2. They have "0" cost barriers to entry, (don't charge anything).
>
>
>
> Changing advantage #2.- "charging users in a way that would generate
> reasonable P/E ratios for a multi-billion dollar company", would almost
> instantly remove advantage #1.
>
>
>
> Maybe Facebook needs to "get real", and admit its best business model most
> probably is as an advertising based site worth a respectable $100 to 500
> million, (of course they can spend 100% of investor's cash to come to this
> conclusion, when did we last see that happen? ...).
>
>
>
> Internet companies are young in concept and inception, but not "that" young
> any more. It's good for us and Internet Companies to have grownup business
> models, with respectable valuations based on real profits.
>
>
>
> Our field offers real value, we don't need the "Facebook hype" of a "5 to
> 20
> billion dollar co.", and in fact I think it lowers our value as a whole.
>
> We're in a down swinging market, (factorially larger then the "dot com"
> crash). As in all bubbles it was based in faith of the ever growing pie.
>
>
> Capital markets are changing in a generational fashion right now. I'll bet
> money that realism, and the display of real value, is going to be a very
> strong message for a very long time. Conversely gambling will probably be
> more of a sideshow.
>
>
> On Sat, Oct 11, 2008 at 12:24 PM, Jared Spool <[EMAIL PROTECTED]> wrote:
>
> >
> >
> > 1) either you keep your internal costs lower than all your competitors,
> so
> > that your margins are always naturally higher, or
> >
> > 2) you keep your quality high enough that you can charge premium prices
> to
> > keep your margins higher than your competitor.
> >
> >
>
>
> --
> Joseph Rich Rogan
> President UX/UI Inc.
> http://www.jrrogan.com
> ________________________________________________________________
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-- 
~ will

"Where you innovate, how you innovate,
and what you innovate are design problems"

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Will Evans | User Experience Architect
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