Is The Information Business Worthless?
March 27, 2008
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Recently, I’ve heard some people say that they see no value in much of the Internet - particularly in blogs. Some people have even gone so far as to say that you can’t build a real business on information alone.
I’ve pondered these ideas a great deal. Can there really no value in information? Is a business built on information alone truly worthless? After all, the sharing of information and knowledge has been pretty popular since the Phoenicians first developed an alphabet in 3500 BC.
What would the world be like if we couldn’t communicate or share information?
So, language hasn’t been invented - you get up in the morning, then what?
Breakfast with your family: That would be a pretty strange affair. How would you communicate with them if language hadn’t been invented? And what would you be eating?
So you go to work: Or do you? Would there be any jobs available if nobody could communicate?
Maybe you could just watch TV: So who invented the TV? And how did they tell other folks about it if there was no means to communicate? And would there be anything exciting to watch if nobody spoke the same language?
So How Valuable Is Communication and The Sharing Of Information?
It sounds as though we’d be in the shit without it right? There probably wouldn’t be a lot going on in the world. In fact, I’m guessing we’d still be living like cavemen without communication. What do you think?
But Do People Still Value The Sharing Of Information?
Obviously, different people value different things. But how important is acquiring knowledge and sharing information in the whole scheme of things? And can businesses really profit from information alone?
In 2007 Amazon did $9 billion in media sales alone: I doubt whether all those book buyers order from Amazon, just to look at the pictures, or admire the beautiful book covers.
By the end of 2007, 1,319,872,109 of the World’s population were using the Internet - that’s a lot of people looking for information.
Popular blogger Perez Hilton gets millions of viewers a day and is rumoured to earn around $2 million a year from his blog - so there’s a lot of people looking for information on celebrities.
Ask The Builder provides information and advice on DIY. Site owner Tim Carter makes over $30,000 a month in Google Adsense revenue alone - there must be lots of people looking for DIY information on the Internet.
Of course, there’s many more popular sites that provide information. Do you use the Internet to find information? What sort of information?
Are you Skeptical?
Do you still believe a business selling products or services is more important than one which provides information?
What do you do when you want to make a reasonably large online purchase? As soon as you log on, do you go looking for someone who can sell you the product? How do you go about choosing which one is best for you? Do you take the word of the seller?
And how do you go about choosing the seller? Do you just pick the website that looks the most interesting and cross your fingers that they’ll be ok?
Or do you look for information first? Do you look for the reviews and opinions of real people - people who have already purchased that product?
Do you sell products or services online or offline? How do you think potential customers will go about finding you in the future?
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17 Responses to “Is The Information Business Worthless?”
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Hmm…it would be interesting to find out what kind of vocation, age and education level of those folks you referred to who see no value in the internet.
The value of information is evident from the first time a mother shows a baby a teet or a bottle, when the infant learns that sucking on it will make the pain of hunger go away.
Also interesting is the mention of 1.3 billion people using the internet — that leaves approximately 4.7 billion NOT using it. Actually, I know a number of people who don’t use it, and lead otherwise normal, happy lives.
Nez’s last blog post..Dial ?M? for Blogger
Cath, I’m not sure about the distinction. Offering quality information is a service, isn’t it? Traditional jobs like teachers and journalists fall into this category.
Now the key word is QUALITY. Just repeating the same information that can be found elsewhere is not quality (it can even be considered stealing.) One way to add unique quality is to share one’s own experiences and opinions.
When I write, I strive to inform and inspire my readers. I can see that is what you are doing, too. And that is a valuable work.
Akemi - Yes to Me’s last blog post..True Life Purpose Goes Beyond The Illusion Of Self
Hi Nez - I love the example you use. And it’s true, we are information collectors from the moment we are born. In fact some would claim we do this even before we’re born. A few years ago, I read some research that claimed an unborn child is actually able to recognise voices and sounds whilst still in the womb.
Hi Akemi - Yes, I believe offering quality information is a service.
I agree on quality though - it is important to add a unique angle and something different to whatever you write. You certainly achieve that and I’m looking forward to interviewing you.
Hi Catherine,
Hmmmm. Thought provoking post!
Don’t they call the internet, the “information highway”?
I do agree some of what is on the internet is useless. Some blogs regurgitate and/or rehash (thanks Hunter) other bloggers posts and call it their own, and it becomes obvious quite quickly they don’t know what they’re talking about, nor can they stand behind their words. So in that sense, they’re “just words”.
However, other blogs are filled with massive pages of valuable information that now only helps others in their daily lives, but teaches.
It makes me wonder, is the internet all that different than the local library?
I would venture to guess, those that say you can’t build a business on information only, thought they could make money online “fast”, tried it, failed, and are now blaming the internet for their own lack of research.
Barbara Swafford’s last blog post..1066 Links, Lessons or Tips For Bloggers
Stumbled this, really only stopped b/c I saw of picture of Bond University in Oz.
http://www.bond.edu.au/
Hi Barbara - I think Hunter is always going to be famous for that rehasher from now on. But, some folks don’t even rehash. I just found one guy who copied a full post of mine and others from hundreds of blogs. I want to send a cease and desist, but there isn’t even any contact info on his blog. It’s just made for adsense crap.
I think you’re right when you say it’s those who tried and failed who have this attitude. As you say, they’re probably regurgitating what others have written, with no understanding of the subject matter in the hope of making a quick buck.
I like blogs like your blog that make people think, after they’ve read your post. There’s others like that too - Liz Strauss, Joanna Young, Kelly at She Power and Elizabeth at AbleReach spring to mind immediately but there’s many others.
Hi Patrick - Thank you. I’m glad it stopped you in your tracks. I used it because it’s the fountain of knowledge.
Pretty obviously not. But it may not always be lucrative either. As Akemi says, a lot depends on whether or not you can offer something specific which people will find particularly useful. For instance, while I find one of the most popular personal finance blogs (The Simple Dollar) average on some levels, I think he does phenomenal book reviews. I sometimes use them to get an idea of whether I’d really like the book and often use them to absorb the book’s key elements without ever needing to read it. Very useful, helps me save time and learn more.
Hi Mrs M - I’m always looking for cheap and free ways to read the books I want and this is a great tip.
Companies worldwide spend more than $400 billion a year to provide sales messages to which most of us are exposed at the rate of more than one per waking minute and we humans have a built-in need for the new (or the news), according to John Naish, whose book called “Enough” will be out soon.
“The Australian Weekend Magazine” ran an excerpt recently in which Naish recommended we defend ourselves from “infobesity” by a vigilant “enoughist” policy. His advice, as I read it, boils down to: be clear on what matters to you, ignore as much of the rest as you can, focus, and give yourself time off.
Even though technology has intensified info-glut enormously (the latest iPods can provide you with 38 full, no-sleep days worth of your favorite music), Naish says we can use tech-tools to help us lower our need-to-know burden.
Focused blogs such as this, Cath, give a clear channel of choice, free of major distractions, to people who want to know the views and information you offer. I blog for people interested in Australia and how it is similar to and different from the United States. Over time, one hopes, those who need us will find us and, from the growing flood of information not important to them at this time, take what they need.
Good topic. Thanks. — Bob
Robert Hill’s last blog post..Climbing Australia’s old baldie
Thanks Mrs M - I’ll check it out.
Hi Robert - A sales message every waking minute is a terrifying thought. No wonder so many people are stressed. And no wonder they’re now ignoring so many traditional marketing messages. I’m going to be reading that book.
As you say though this is great for us and anyone else who doesn’t have the massive budget for traditional advertising methods.
Hi Catherine. Good food for thought. Selling information is definitely more scalable than selling goods or services.
Your questions at the end of the post made it clear to me that even if you are selling goods & services, you need to put information out there to attract & convert customers.
Speaking of Information Business, I’m curious about your blog. With all of the valuable information your provide are you planning on someday offering professional business consulting services? Are you planning to monetize through ads? Or is this blog just a fun hobby for you?
Sterling Okura | bizlift’s last blog post..Update - New Champ, Paris-Nice and Full Feed
Hi Sterling - definitely. As Robert said - people have been flooded by traditional marketing and they now block much of it out. The marketing of the future will be much different.
As for this blog, when I began it, I started with an end in mind and I will be monetizing it at some point - most likely with my own products.
I suppose the first few months were a trial to see how it went, and also to see what readers are looking for, which is important, but I always had a plan.
I don’t plan to do consultancy though. People have asked before, but it would be too much additional work to take on. Plus, I’d be totally useless during my PMT week and my clients would probably sack me!
Catherine, solid ad revenue would be much more desirable than hourly consulting income. At the rate your blog is growing, you’ll be a huge success.
Sterling Okura | bizlift’s last blog post..Update - New Champ, Paris-Nice and Full Feed
Hi Sterling - Men with Pens made me a great ad widget thing. But, I’m reluctant to put it up yet.
I noticed many people with similar traffic levels to me don’t charge much and I worry that if I started off charging low amounts, it would be harder to increase my prices. So, I’ll probably wait a little while longer. It would be very nice to get paid just for folks to advertise on here.
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