Is Digg Really That Great Of A Business Model?

There should be an image here!If you were to ask me if Digg is a model example a grassroots method of getting a lot of people on board with sharing the latest news out there, I would agree. But to think of this as a stellar business model is still a bit premature I think. After all, like so many DotComs of the ’90’s, Digg has yet to become profitable.

So while there is projected potential for profitability this year, I remain very skeptical despite Digg being considered one of the famed top 50 websites out there. It just lacks an ad-friendly audience in my opinion. And I may very well be wrong on this, but my gut tells me I am spot on.

Down the road, with nothing more than sheer volume, I can see Digg moving itself into the green with regard to actual earnings without more funding. But I also think that they could do so much better with better, more on topic advertising. Despite the included video on the link above, I have yet to see evidence of any targeting whatsoever.

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  • http://ictheworld.wordpress.com Hotrao

    I agree on the fact that Digg is a way to get lot of people on board.
    I think that Digg has a quite solid idea behind.

    But I also think that Digg has to find some way to differentiate from other “news sharing sites”, also in the way used to make revenues.

    Sometimes reminds me something that has happened in communication within telco.

    In late 90’s SMS for GSM were a break through because of easiness of use (an Digg has it), no frills look and velocity of use (and Digg has at different extent both of them).
    Since MMS have been introduced, high value services (with advertisement built in) helped their diffusion.
    But this times are passed.
    I see Digg (or some similar service) using in the near future something more disruptive than “simple advertisement”. What will it be? I don’t know, but the one who will get the point will get in the green and survive in this niche created by Digg and similar sites.