Tuesday, March 28, 2006

B 2.0's Meets the Head of Digg

The story of Digg is the story of the concept of community, injected into a business model. Business2.0 captures this in a quick article about the site and its founder.
Not that Rose intends for Digg to restrict itself to news. Imagine being able, for example, to use Digg to explore the popularity of consumer products such as cell phones or plasma TVs--to be able, as Rose put it, "to drill down among your set of friends or the masses and see their opinions." Then imagine this capacity married to the recommendation-engine feature that Rose and his team are working on. In other words, Consumer Reports, look out.

So, how about that. The creation of the community is a brand asset. I so firmly believe that. In fact, I would like to see the finance department begin to examine these communities to understand precisely how much value they contain. P&G is able to save money on launching new products, because it has the 6 million + emails from Home Made Simple. That represents real value, real money.

The valuation of your community is probably more important than guesses at lifetime value.
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