Thursday, March 06, 2008

Natural Cost (Supernova conversation)

Jerry Michalski just made a great point about looking at "natural cost" -

"The fear that Craigslist should be putting in the hearts of classified and Yellow Pages execs worldwide is: what if the "natural cost" of delivering local ads and fostering local markets is incredibly low? If you don't have operators on duty to transcribe (and misspell) ads and if you don't print on paper and haul it all over the place, you can afford to charge only one kind of advertiser -- say, companies placing want ads -- and have that pay for the rest and spill money out the other end.

And that's just classifieds. In Ads and Google we theorized about how Google might just be able to fund major communication infrastructure as a by-product of its core business (which, notably, is also self-serve advertising). What's the natural cost of telecommunications? Customer service? Other sectors?"

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