4.16.2009

the worst biz model in the world.

I've been noticing the continued popularity of the worst business model in the world.  (No, this is not a joke-post about twitter.)


The worst business model in the world is conceptually very common, but rarely implemented.  It goes something like this: "A successful company (or industry) has a point of contact with our business, and we think they should have to pay us, because we are not successful, and, well, there is a point of contact."

The most recent example, of course, is newspapers and Google.  Ignoring the fact that Google, by pointing people to the source of information, is increasing traffic to newspapers, Google doesn't sell news as a products, and Google's major sources of revenue have more or less nothing to do with news.

The record industry has tried this, arguing that a chunk of ISP income should be given to them, or that internet connections should come with a levy.  Which would make sense, if the internet was only useful for downloading records.

Note my earlier description: "point of contact" doesn't mean "incorporate someone else's technology or IP of value and then sell it".  It means two businesses cross over slightly, but not in a profitable way, and the less successful one takes a good look at the success and sees dollar signs.

It's the worst business model in the world.  Worse than buying patents to sue companies that actually create things.  Those lawsuits at least have arguable merit on paper.


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