I am purposely coming to his thread late. Figured this way, I’ll avoid being the yet another techmeme link. Jason Calacanis posted a while ago about how twitter can be a billion dollars.
“An absolute idiot with 10-20M users can make a ton of money. So, get to tens of millions of users and forget about money.”
Linkedin (a service I use because most of my business contacts keep sending me requests to connect) is such a service with 10 Million users.
I believe recruiters get a huge amount of value from Linkedin, so there’s a small population of their 10+ Million users who get some value by “paying” for premium services.
So back to Jason’s point, if you get 10 Million users, game over – trouble is, even at that number if your value is to a fraction of your 10 Million, then its really a house of cards is it not?