CMWK

The Pownce closure is symamotptic of the rush to develop things for a Web 2.0 world. People are coming up with brilliant ideas, but not considering how they'll make money from them. When asked they say they'll have some form of advertising in the future. What they haven't worked out is the fact that advertising itself is dying on its knees. There is software to remove adverts from web pages (including from software giants like Symantec) and we can skip through TV ads using Tivo or SkyPlus. So, advertising revenue is a non starter for these services like Pownce.Just because it is a brilliant idea, doesn't mean it is a business. Even the founder of Facebook has admitted in a recent interview that they have no real idea where they are going to make money and won't be worrying about that for another three years. Given the credit crunch, Facebook's investors (Microsoft) are going to need a much quicker return. With no real idea for generating revenue and with reduced advertising spends imminent, even massive sites like Facebook could disappear. Not because it isn't a good idea but because it isn't a good business.Same is true for many internet marketers they have great ideas but no real business plan (and that's why so many of them fail).

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