It’s not even yet Spring, and dotcom fever has beaten avian flu to become the first pandemic of the year. Those infected are either dusting off their elevator pitches from 1999 and getting their Aeron chairs out of hock, or profoundly suspicious that it’s all a false alarm: that the slow boom is about to turn to another decisive bust. Google is the poster child of Dotcom 2.0, but recently lost a (meaningless) $15.3b of share value in a single day. What does it all mean?
As we’ve said before: we think, this time around, that what will sort the winners from the losers, the dotgones from the dotgonnas, is the degree to which the hopeful new startups, all beamingly optimistic and wifi-ready, realise one simple truth:
Dotcom 2.0 isn’t about selling stuff over the web.
It’s about creating and giving away tools through which consumers themselves can create: new media, new businesses, new ways of being. And then using those innovations — the user-created ones — in turn as fresh media channels through which to spread content, marketing messages, other tools which in themselves create more opportunities for innovation — a self-feeding networked ecosystem, Gaia for the Internet, in which there’s opportunity aplenty for everyone with an idea or something to say.
That’s the dream. The reality? Compare and contrast, for example, Kodak’s latest attempt to get with the wired generation (oh, and survive as a brand): a subscription-based photoblogging system — which has been roundly dissed from all sides — with the storming success of Flickr. Sometimes dreams come true.
This isn’t the old ‘give away the razor and charge for the blades’ business model. It’s about genuinely giving away the best technology available, and then making it even more useful by allowing others to hack it, expand it, use it for their own purposes — retaining just enough control over the resulting creations that there’s still ad-sales, profiling or some other revenue stream built-in to the DNA [or technically, the EULA and API] of whatever the community makes with it downstream. Look at Skype. Look at Google. Look at eBay. They’re not flogging a product — they’re blazing a trail. Dotcom 2.0 is all about accelerating its own evolution, and empowering consumers — even people simply uploading and tagging their holiday snaps — to work as hackers who are adding value, information and with every action pushing the whole thing forward. Dotcom 2.1? Ready for demo this afternoon. 2.2.1? Here Monday. We’re all part of it.
With the above in mind, we offer you in closing the venture capitalist David Hornick’s recent anecdote Company Building For Eight Year Olds (via Gawker), in which an attempt to explain to his son ‘what daddy does at the office’ turns into an object lesson of how the Dotcom 2.0 ecosystem works to enable (even small) people to make their mark on the world. To horribly paraphrase Frank-N-Furter, Don’t Sell It, Spread It.