The Web 2.0 Economic Conundrum
When the little dot-coms blow up, says Steve Rubel, the sites funded by their advertising will go under too.
The sites and blogs that cover Web 2.0 are largely supported by ads from startups that also are hoping to capitalize in the rising interest in online advertising. This creates a vicious cycle that's unhealthy for the earning potential of bloggers who cover Web 2.0.
You can't sustain momentum. If the economy hits a speed bump it will upset the apple cart enough to cause the Web 2.0 advertising economy to sink. It might mean these bloggers will need to return to their day jobs.
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