Thoughts on the underlying principles of the Web
2.0 business model:
2.0 business model:
- Capitalism 1.0: creating value for shareholders
- Capitalism 2.0: sustainably creating value for all stakeholders
The design pattern for the Web 2.0 business model
(aka Capitalism 2.0) is based on authority rather than power:
- Power comes from acquiring assets
- Authority comes from giving power away
The way to extract value from assets is via creative self-giving rather than transactions:
1. Create community by socializing knowledge [give]
2. Create assets by internalizing understanding [learn]
3. Monetize assets by externalizing value [sell]
This creates a virtuous cycle that grows the value network — so close the loop as quickly as possible!
So far, there appear to be four ways to monetize free knowledge :
a. Sales: get a piece of the transaction
b. Marketing: give a piece of the eyeballs
c. Support: ensure it doesn’t break
d. Rent: provide richer infrastructure
It will be interesting to see if this model can accurately predict (or at least characterize) the winners.
iHack, therefore iBlog 
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