Reliance’s BigAdda, Rediff’s iShare and Naurki’s Brijj.com are the latest dotcoms to hit the Indian social networking marketplace. It may trigger the next dotcom explosion with many more mindless dotcoms in line with these me-too networking sites by public listed biggies of India. Soon, we will forget why the first dotcom boom wave came down crashing after showing colorful dreams to thousands of tech-entrepreneurs worldwide.
I will personally advise new startups to keep away from such me-too type projects unless they have a solid niche, a risk-managed business model and a proper revenue model.
In fact, I am not at all optimistic about success of any of these new ventures unless they offer a great reason to be a part of it. The market place is already saturated and people are finding it difficult to manage their multiple social networking accounts and commitments. Besides, most of these sites do not offer any value addition apart from entertainment. Gautam Ghosh, an avid blogger shares a simmilar view on the subject.
If I have to select a possible winner among these biggies, I will go for brijj.com, which can take a turn towards the business model adopted by yellowjobs.com of NDTV. Another reason for possible success of brijj.com is that it is designed to be a business networking portal. It offers you a reason to spend time and have a clearly marked revenue model. In comparison other sites, just like their global originals heavily depend upon a speculative value creation and are looking for a buy-out similar to youtube.com which will make them rich overnight.
Do check out how many times people are referring to "Internet advertising" as their business model for their social networking website. It is not that Internet advertising is not BIG business. But it will just not work for social media websites in long term. And it is a foolishness to bet on Internet advertising as a revenue channel. We know it from the Y2K dotcom meltdown. In fact I can see the same madness as Y2K. We are not yet there, but we know it can peak very quickly 🙂
Do you think these sites will bloom?
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