Thinkcorps

I never really had much to add to the whole Web 2.0 debate. In fact, I was just happy we were having it and that so much of 2.0 hinged on individuals (both creators and users) driving next-generation Web apps. But there’s a limit to how far all this can go, which I think becomes clear when you look at where Web 2.0 isn’t. Mind you, I don’t really care. I’m just happy that despite all of it, things will continue to move on. :)

I think my key point here revolves around the social aspects of these new Web apps. Generally, what’s made them great is that they’re made by and for people. Individuals come first, not companies. That’s why so many of these apps are so interesting, and also why so many will fail as they try and build traditional organizations with commensurate revenue streams. Niche is niche for a reason.

There’s a huge difference between an individual and a company. We don’t make the same types of decisions, and we never will. But there are analogs: as individuals, we have friends who we love and value. A company has partners, vendors and advertisers (among others). The truth is, a company values them just as much as you would your friends.

So when you start your Web 2.0 company, you want to help or impress your circle of friends. And you make decisions independent of anything outside of what will help that circle. They’re your market, after all.

But as a company, you now have to contend with both sets of friends: your users and your partners. And that’s a delicate balance to maintain. The needs of each are very different and they’re often going to clash.

I’m tasked right now with building out a new Web presence for my company, and I can already see potential conflicts on ideas that seem great for users, but would drive companies mad.

I’m pretty user-centric myself, but I don’t need the headaches, I can tell you. If you piss off a user, you might get an angry email. If you piss off a partner, you get chewed out by the head of the company.

Now, you can say you’re going to stand firm and uphold your values, but you won’t. Because that person chewing you out controls your paycheck, and you like your paycheck. No matter how right you think you are, you are going to bend.

Look at YouTube. They’re already bending like a willow tree in a soft breeze. Same thing’s going to happen to MySpace. They aren’t communities anymore. They are corporate entities. And they cannot help but act like what they truly are.

So, it’s a battle between these two aspects of your company: the needs of users and the needs of partners. I’m not saying you can’t strike a balance. Thousands of businesses do it every day. But it’s hard work and shouldn’t be underestimated.

But you have to start somewhere, and it’s pretty clear that users have to come first.

Great ideas develop within a real market. That’s why beta is so important. Real users help you develop a real product. And these early users don’t just help find bugs, they help find features! They define you in so many ways.

But when the buzz is high and the scent of money is in the air, people begin launching companies based on the “idea of people.” There’s no time to develop organically, so the user base is extrapolated from a Powerpoint slide and a marketing budget.

When you start like this, I think you’re doomed. That was the true hallmark of the first bubble: all those projected market share slides.

I’m not sure you can really learn to love your users without spending a good deal of time solely focused on them, completely outside of the concerns of business and money.

In fact, I’d argue that what made the companies acquired by Google/Yahoo so attractive was their lack of an exit strategy. They were honestly focused on building a great product. And greatness, you can’t fake.