Pat at ConversionRater has a hilarious post on the similarities between some Web 2.0 business models and the underpants gnomes of South Park.
- Collect underpants.
- ????????
- Profit!
Somehow, I don't think these guys are getting a lot of funding.
By: Rand Fishkin
Underpants Gnomes Business Model
Online Advertising
The author's views are entirely his or her own (excluding the unlikely event of hypnosis) and may not always reflect the views of Moz.
George Soros had a theory back in '99 called the reflective economic theory. Increasing stock prices reflect favorably on economic output, which reflects upon even higher stock prices (he showed then that it would work both ways...which we all know it did).
Anyhow, in the early stages of this bubble, only the best ones will receive funding, but the greed gets the best of people, to the point where VCs and Investment houses will be throwing money at any potential 2.0 game. Long story short, some of these probably will get funding.
Rand, have you ever read Dot.Con? It was a pretty decent read.
Cygnus
Great business model!
Seriously, that is a hilarious and classic episode. It seems to be very true with a lot of companies though, especially web companies. With all this "Web 2.0" hype, it doesn't surprise me much.