MappingTheWeb //

I think it finally dawned on me…

A web 2.0 company is one that “doesn’t scale proportionately with its user base”. As it leverages user-contribution and user-generated content (UGC), like photos and videos, much of the manpower is built in via the systems and functionality in place.

Harnessing the power of social media, a web 2.0 site or start-up relies more heavily on the technology than on its internal work force. This is the reason why many small operations have become so large and successful without having to scale up personnel.

Add to that the fact that very little financial resources are needed, manpower aside, and it’s no wonder we see so many start-ups trying to make a go of it.

Traditional Internet plays, like Amazon for example, need to scale in correlation with user growth. Human labour is needed to keep up with demand. For this reason, exponential growth is hard to achieve. On the flip side, Amazon will not plunge either, though a web 2.0 play could very well do so.

If you give people the tools to be successful and productive, let them be. They will do the rest. But be sure to listen to their feedback and constantly innovate.