A Plugin that Morphs into the Large Scale
By AZAM on March 10, 2008I was thinking that the so called widget and/or plugin that can turn into the next big thing. The most common metrics on the web to evaluate is traffic generated in lieu of revenues and profits margins. The whole for Free business model is the driver on based on assumption that traffic will offer future revenue streams. The internet model is to survive the burn rate while building an acceptable traffic numbers to be valued accordingly. A large number of these companies have been acquired by larger aggregators of traffic, but I suspect some maybe even more valuable on their own platform and as independent brands with their own user base.
Google has shown the path of growth and transformation from a simple application of a search engine for the Yahoo portal into a much larger company with very effective model of search and search adverting network. In the early days search engines were not given as much importance and were considered a tool for portals to help users make queries for relevant information. Google built a better search engine and replaced Inktomi . Google in essence developed a better mouse trap and evolved into an essential application highly valued by users. Users go onto the web to find information, and Google has been the best at providing results for users by market share. In addition, Google evolved the business model to include advertising which allowed providing the service for free to users. The simple application became highly specialized service and succeeded in meeting an unmet demand from users that was not fully addressed.
Flickr is an example of a web service that evolved from a specific application to larger community of serious users. There have been a number of websites that were address the digital photo market such as shutterfly, snapfish, picasa , and Kodak photoshare. Flickr has been successful based on its design and community of loyal users. Flickr has developed a user based of serious and dedicated following, including professional photographers. A vibrant community based on the particular interest of photography, and also formed micro groups within the community based on more specific interested within photography. Flickr has turned into a sizable social networking phenomenon on its own with real individuals in the community based around a highly specific interest.
iLike is another example of an application that has developed a large following in no time. iLike is a side tool bar for iTunes, facebook, and social networking community on its own site. iLike application in itself provides a wide variety of services for Artist, distributors, and users. The user based was recently announced at 23M which would indicate one of the most popular applications on facebook and similar sized user base. It will be interesting is iLike would be able continue its growth independently from partners and evolved into large social networking platform.
The interesting point is that these applications are developing on the network efforts by being built upon other networks. The result is a rapid growth and sizable business models that would be attractive based on their traffic and reach. In some cases, these applications could evolve into promising platforms that can continue to grow in their own trajectory. It is quite fascinating the quick time frame and the ability to scale that is creating enormous opportunity for entrepreneur building applications in the future for even further network effects.
Categories : Tech
Tags : , Flickr, Google, iLike, plugin, yahoo