Brad Fidler's "Reality Based" Business Model: Proof in Pain
Wednesday, January 7, 2009 at 11:21PM Brad Fidler offers a cogent analysis of 12seconds.com's business model, on the heels of Robert Scoble's silly views about "reality based" business models. I think Brad get's everything correct for 12seconds right now, as a start up, but he misses the role of dominant capital later in their development.
it is their relationship with the quasi-capitalist operation, their separation from all the forces of the market, their passion or whatever, that makes it even possible for them to exist with few resources in the first place, AND makes community orientation a given. It is not simply that poverty makes you listen to people more.
Regardless. 12seconds.tv was taking this path before anyone forced them to. They took this approach because they wanted to. The next time your bleeding social web managers venture out to field some Q&A's and plead for love -- ask yourself it is just market desparation, or the same passion they had before the economy left people beggars.
But, as I commented,
That's a great view and analysis, but I'd argue that's more a strategy for "start ups" than other forms of capital. What you suggest is something like open source and Craigslist, mixed together and minus some of the hippy-dippy. Looking at Craigslist is an interesting example, I think, for it highlights something important that you've missed.
Craigslist used to be a plucky startup like 12seconds, and like them, Craig was doing his list for the love of it. As it grew two things happened:
- Growth required some capital, so Craig sold a 25% stake to eBay. He now regrets that decision I think, since he is, like you said above, beholden to the decisions of eBay (although, their 25% stake isn't worth too much leverage, thankfully).
- More significantly, now that Craigslist is a SERIOUS threat to dominant capital it can't get by on the laurels of love and funzies. 12seconds, like Craigslist before it, BECOMES a capitalist operation as it challenges dominant capital. As it stands, 12seconds has a LONG way to go before it starts to challenge dominant capital in any way, but if they do, they may find themselves in a Craigslist-type scenario. Thankfully, because Craig is such a hippy, Craigslist has resisted most of the temptations and forces that have come with its position. But, I think Craigslist is the exception to the rule, so we'll see how 12seconds fairs when they grown out of their startup stage.
Reader Comments (1)
Yes, I was talking about startups. Everything changes with growth.