The Wall Street Journal just published an article about the boom now sweeping through the Silicon Valley’s public relations community as Web 2.0 start-ups clamor for market attention. Some PR consultants are even back to accepting equity as payment for their services.
This is pure craziness. It’s absolute lunacy. Good heavens… it's officially 1999!
Strategic Communications Group (Strategic) went been down this path a decade ago. We represented such dot com darlings as OnlineConversatory.com, OnScreen Interactive, iAutoMortgage.com and aTelo.
Never again! If a company cannot explain in plain English their business model and how they generate revenue, they are not in a position to derive value from any external communications activity.
Why these Web 2.0s may seem exciting, most represent unsustainable business for any public relations shop. I know exactly where this ends because I’ve lived it -- broken hearts and unpaid invoices.