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Apr 4, 2008

NEWS: "Free" is Killing Us--Blame The VCs

Ed: Another great conversation starter using an argumentative opinion piece. SAI and Mr. Arrington have been masters of public stimulation.

"Free" is Killing Us--Blame The VCs
nacholibre.jpgI believe it should be possible to start a small business and to have a small number of profitable customers, and to earn a living. From there, it should be possible to work hard, and to grow your business into something substantial. Until recently, this was the American way, and it applied to technology as much as to any other business. But no more.

In today’s “free” world, in most online business categories, it is inherently impossible to start a small self-sustaining business and to grow it. This is because in the digital world, advertising, the only real revenue stream, cannot support a small digital business. If businesses were based on the idea that people paid for services then small companies could succeed at a small scale and grow. But it is very hard to charge when your competition is free...
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