Building Companies So That Others Can Profit

There's a line written by Dave Winer in a blog post yesterday that struck me as being extremely prescient. 

Winer advises web entrepreneur Jason Calacanis -

"..he needs to figure out a way to build the company so that many others can profit from it."

What impresses me so much about the comment is that it truly is the perfect definition of "Web 2.0"  The companies that are succeeding today are those that are open and  allow other companies to be born, and to succeed as well, off their backs.  This is what the open API movement is all about.  Sharing the information and ultimately sharing the profit. 

Google is worth billions, but there are probably hundreds of companies that are worth hundreds of millions, and thousands of companies that are worth millions, that were created because of Google.  As Winer points out, Google is a success because others can profit from it.  The more they share the wealth, the more valuable they become.

Historically we think about building companies so that we (management, employees, and investors) can be the ones to profit.  But as Winer points out, there's now a fourth party that needs to be in on the action - the community. 

Sage advice indeed.   

 

Comments

[Dave Winer]

Thanks!

I am glad someone is focusing on the substance of the Gnomedex discussion.

[Niall Larkin]

The perfect definition of Web 2.0. I really like that. I think you nailed it.

[puma baylee future cat shoes]

It was so funny that I saw this wallet online as a fluke. I was purchasing an intimate birthday gift for my fiance when I saw an ad for a duct tape . My son who is 15 actually made his own wallet out of actual duct tape. It wasn't practical because his school ID and other cards, etc. would get ruined and stick to the wallet. He refused to use another, though. So - when I saw this the first words out of my mouth were, "No way!" I couldn't believe that someone out there had the same idea as my son. He loves the wallet. He shows it to all his friends. a good conversation piece for me and my friends as well. No one can believe someone would actually make such a product! Well - with this teenager - http://www.puma7.com/ a hit!