Startups Are Afraid of Other’s Generosity? Maybe

The business of some webapp startups are heavily depending on the wishes of bigger players in the Internet world. If the bigger ones are more generous, the small webapp starups will have a hard time.
Formerly, we have to pay to store our pics on line, then sites such as flickr.com and photobucket.com can give your much space for pic storage. The business model of photobucket.com is simple: free membership+ premium membership (more storage space). But when the cost of storage is decreasing so rapidly, the question of the sustainability of this business strategy is harder to answer. But one can have reasons to worry about it. Some image sharing site, such as shareapic is aggressively paying people to unload their pics with unlimited pictures storage and No file size restrictions. So, you can see the competition is throat- cutting there.
Such examples are abundant: the statistic service of Feedburner Pro, formerly a paid now free service, and not everyone is happy about it. Without Google Analytics, many providers of similar service would think they would have more sales. And just think about the impact that reliable web operating systems could have on the software packages now available.
One man’s generosity is another man’s poison, some may put it. But generosity is a marketing strategy, which is often adopted. Instead of asking whether there will be more generosity or even a paradigm shift, we should ask ourselves when and if we are ready?

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1 comment:

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