David Beisel writes:
web companies who are attempting to leverage network effects to drive sustainable long term value are having difficulty because of the volume of companies launching places a strain on the available pool of true early adopters willing to try a service. The loud echo-chamber marketplace makes it extremely difficult now (vs. two years ago) to rise about the noise to spread the word in the blogosphere or other natural communications forums applicable to the target market.
As a consequence, consumer web services are being forced to attract customers outside this ecosystem. While Ive seen some entrepreneurs with successes in utilizing offline marketing to incite behavior online, my experience has shown that the best way to get people do something online is while their online after all, theyre already there. I think that as some Web 2.0 shakeout emerges over the coming months, well see a trend that the ones which endure beyond the initial flash are those which have incorporated the marketing of the service directly into the service itself.