The concept is not new or novel, I am sure we may have seen it in one form or the other. But swoopo may have got the execution just right. The potential the site offers is amazing and the numbers once you start crunching them are mind boggling.
Its so simple in concept that you will hit yourself in the head for not doing it yourself. :)
But then its always the case after its been done by someone. Check out Swoopo here.
looks like one of those models where scaling beyond a point is not good for the business.
ReplyDeletehttp://www.alexa.com/siteinfo/swoopo.com+woot.com
-FirstBallSix
Swoopo's business model is different and traffic on the site is not directly proportional to their revenues.
ReplyDeleteThe best parameter to judge their
performance will be number of items sold and the price at which these items were sold.
For ex if an iphone sold for a 100 Dollars, it essentially means Swoopo makes $7600.
Thats one iphone!!!
I am not sure if you were trying to point out anything else?
ok this is what i meant:
ReplyDeleteso there is a threshold. so for example if there are 100 ppl, bids are so-so someone wins, model works. if there are 200 ppl, bids are more, someone wins, model works. at some point x, everyone thinks there is no scope to win, nobody (well, someone does, but)bids - model breaks.
the threshold is not necessarily number of users: it can be the number of bids on an item as well. but these are related - that was my point. simply put, when i know there are tonnes of ppl looking at an item, i will simply not bid.
-FirstBallSix
It can't get any better than this.
ReplyDelete