Rent Vs. Own in the Internet Space
Nice analogy. Would you spend $20,000 to upgrade your renatl apartment? No, of course not, you could lose your investment on a whim of the landlord. But companies are investing proportionally large amounts of money into 'rented' space on Twitter, Facebook and other internet landlord platforms. "In real life, the landlord stops by and sees all of the upgrades. He says to himself, 'Man, this place is nice. I'm going to have to double the rent.' And now your friend is paying for the upgrades twice, or perhaps, your friend can no longer afford the apartment. On the Internet, Facebook now asks its page owners to pay all over again to reach the audience they have spent the past few years paying to build." I'll use these service when it's convenient. But I would never make a major investment in them.
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