This is just the beginning

The news of Google closing down some of its non-profitable services is just the beginning of what we will see during the coming times. Either popular websites and services will start to be closed or something has to change in how they make their income.

Sure, web services are closed down all the time because of non-existant revenue models, bad management, small traction or other reasons. When that happens, many say, no big deal. What is different this time and the months and years to come is we will see closure of many good, popular, loved sites which have become part of our life.

Many consumers consider it self-evident, that we can use free web services, not thinking who pays for developing and running them. We do forget, that companies are giving us expensive gifts and not getting much back. “$0.00 is the future of business,” wrote Chris Anderson for Wired. At the same time Google kept developing and running close to 50 services, which bring them nothing more than fame and losses.

What Google under their new CFO has done is effectively saying: “You were not paying for what you got, we were making losses, it was not fair to us, so that’s the end of it”. Sure, closing Google Notebook or Jaiku might not matter to many. Pulling the plug on Youtube, Picasa, Orkut or hundreds of other top services, still loss-making, either from Google or others is a different matter. But these things will happen to some of them.

It was fun, while VC money was pouring down the skies. Free was sexy. During the recession, now that CFO’s rule and profitability will be the key, nobody cares about sexy. You make losses – you either restructure or you kill it.

Sure, investors and enterpreneurs will suffer. The bigger problem is that the consumers will suffer. The only reason to that is being used to the “Church of the Free”. We’d rather see things we love going down the drain than being willing to find the $1, $10 or $100 to pay for what we consume. After all, The Church said the right price is $0.00 and someone else should pay, the mystic Advertisers.

The solution? I am not sure, but I do believe we have to start paying more for what we as consumers use and charge more for what we as web startups provide. The payment systems have to evolve, either in micro-payments or subscription models. Our mentality must change in being willing to pay.

The question is not just about startups and more mature companies surviving or profiting. It’s all about continuing innovation, creating value by people who get paid and find motivation to do something. It’s about media investing into journalists, photographers, videographers and us as citizens having quality news sources, based on deep research, in addition to yellow entertainment news snippets produced cheaply by cut-down media organisations under the pressure of decreasing ad revenues.

Free will not disappear and everything will not become paid. But unless there is drastic change in the current online advertising models and mechanisms, what we have become used to in the last few years will not be sustainable. Seeing that innovation in online marketing is something we should wish for, both as web enterpreneurs as well as private consumers. Until that day, follow the news of your loved ones biting the dust.


  1. Osa süüst on kindlasti kasutajatelgi. Igavesti ei saa kõike tasuta.
    Kuid ka ettevõtted, antud juhul just Google teevad vigu:

  2. toivo

    “At the same time Google kept developing and running close to 50 services, which bring them nothing more than fame and losses.”

  3. Hi to every single one, it’s truly a good for me to pay a quick visit this web site, it contains precious Information.

  4. In addition, you be interested in that the weight loss doesnt have get complication over your body.

    The convenience of these small pellets is what has them growing in popularity so quickly.
    For example, if you want to do bicep curls, you need to do five sets of

  5. For one thing, the booth encourages more intimacy when the whole
    family does get together for a meal. This includes the actual purchase price of the building,
    and most of the closing and settlement expenses, such as Realtor’s fees, surveys, deed preparation, points, loan origination fees, attorney fees,
    and appraisal fees. Therefore, you will input 1 in cells
    B8, C8, D8, and J8.

  6. Article Source: more information on how to regrow your hair check out Total Hair Regrowth Review.
    Redheads and folks with course hair will typically be higher shedders than blondes or
    those with fine hair. Such devices as KTP, ERBIUM, Pulse DYE and Alexandrite have short length
    of laser light waves, and they are very effective for removing
    unwanted hair on a light colored skin.

  7. Jim Trippon CPA and his team offer comprehensive personal and business CPA services for clients near
    the Bunker Hill Village area. Seek for the full encouragement of the people around you so
    that you’ll be motivated to fulfill your targets. Studies currently have
    shown which, about average, CPAs earn 10% more than non-CPA Accountants.

  8. They can get proper rhinoplasties are really affordable rates and hence the demand is always high.
    During your consultation visits, ask potential plastic surgeons about the financing plans they offer.
    And premature skin aging is considered to be one of those problems.

  9. We’ll show how to accomplish this with just a few simple steps.
    Often the cancer can be removed from the skin, but 2,000 people still
    die annually, according to the American Cancer Society.
    There is no reason to be self-conscious about your body in front of the woman,
    or man, who is tanning you.

  10. Click onto the Parlour X website ASAP & discover this fabulous exciting new shopping experience’.
    You will find a lot of different alternatives to choose
    from, like the number of prints, whether or not or not proofs are included, simply how much of a deposit is necessary, etc.
    In the fashion photography world, however, there is
    one man that has used the female form to delve into human nature even though
    it is viewed by many as pornographic and inappropriate.

  11. Rather, this is to make you more aware of what
    you are facing and becoming more aware means you may also become more comfortable with them before undergoing the procedure.
    There are many forms of lasers available for skin resurfacing.
    Some proper money movement and a breakaway from
    the Dolphins could land the tackle in an offense far better suited for his talents.

  12. Will the doctor performing blind dissection be able
    to adequately account for this variability in the average patient and will he
    risk operating on an unwary patient in whom these differences might be profound.
    When too much pressure is put on the hair over time it can speed up the hair shedding process,
    resulting in the loss of hairs already in the telogen phase.
    However, pulling on a scab that was adherent to the skin usually dislodged the
    graft – often several days after pulling on a hair was safe.

  13. The anglers will have better luck hooking them if they go fishing after
    hours. Trout fishing is often done in scenic country with few other anglers providing a relaxing environment.
    Techniques Blue crabs are abundant all along the Jersey coast, in tidal creeks and rivers and
    in shallow, saltwater bays, from the Hudson River to Delaware Bay.

  14. Thanks designed for sharing such a pleasant thinking, article is good, thats why i have read it entirely

  15. Dzięki takim wpisom jak te na twojej stronie pokochałem wirtualne

  16. Pretty nice post. I simply stumbled upon your weblog and wanted to say
    that I’ve really enjoyed surfing around your weblog posts.
    In any case I will be subscribing to your rss feed
    and I am hoping you write again soon!

  17. Cards are delivered in cardboard keep level mailers so that they get to excellent condition.
    In order to get the most out of such training, it is advisable to invest in a training center that offers the full
    range of courses you will need. Every training requirement and
    demand gets accomplished in just few hours beginning from
    8 hour to 30 hour course duration.

  18. You are specifically prohibited in the Amazon terms of service
    from contacting the customer if they were first acquired
    on Amazon. Even though you might be the seller of the goods,
    and shipping them to the customer, the customer mindshare is Amazons.
    Wedding photo journalism is the motto and style for this company.

  19. Gable Fronted: They are also square shaped and
    have huge roof windows. All you have to do is select beforehand the best colour that will
    not only match the style of your house, but also suit your
    personal taste. If you have old timber framed windows
    and doors you should consider replacing them
    with u – PVC windows and u – PVC doors.

  20. One-of my main products and game changer in how personally I think
    continues to be MSM.

  21. First of all I would like to say great blog! I had a quick question in which I’d like to ask if you don’t mind. I was curious to find out how you center yourself and clear your thoughts before writing. I’ve had a tough time clearing my mind in getting my ideas out. I do enjoy writing but it just seems like the first 10 to 15 minutes are usually lost simply just trying to figure out how to begin. Any ideas or hints? Many thanks!|掲示板}
    Chaussures Nike Air Max Tn Homme Gris Blanc

  22. First off I want to say great blog! I had a quick question that I’d like to ask if you don’t mind. I was interested to find out how you center yourself and clear your mind prior to writing. I have had difficulty clearing my thoughts in getting my thoughts out there. I truly do take pleasure in writing however it just seems like the first 10 to 15 minutes are usually wasted simply just trying to figure out how to begin. Any ideas or hints? Thanks!|掲示板}
    Air Max LTD Homme

  23. Wow! This blog looks exactly like my old one! It’s on a totally different topic but it has pretty much the same layout and design. Wonderful choice of colors!
    Chaussures Nike Air Jordan 8 Femme Noir

  24. Does your blog have a contact page? I’m having problems locating it but, I’d like to send you an email. I’ve got some recommendations for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it grow over time.
    Chaussures Nike Air Max Tn Femme Noir Rose Noir

2 Trackbacks

  1. […] hetk tagasi Jüri Kaljundi postitusele “This is just the beginning”, kus ta räägib, et oleme harjunud, et kõik teenused internetis on tasuta ja seetõttu suletakse […]

  2. By Online business model revenue gap - Jüri Kaljundi on 16 November, 2009 at 10:50 pm

    […] the cost base of quality businesses. Downturn in ad revenues has made this even more visible from my last posting in January, to which this posting is a continuation. Some companies talk about going fully subscription based […]

Post a Comment

Your email is never shared. Required fields are marked *