Monday, January 25, 2010

Rich become richer…

I think it’s unfair when new companies suffer big difficulties while entering the market. I’m speaking about some institutional and marketing barriers that economic system creates for new-comers.

For example, many big internet sites selling the goods of other companies (like Amazon.com) permit to write testimonials and reviews on company’s services and products. Is it a good IT marketing instrument? Yes, of course. But can it help a small business just entering the market? NO and one more time NO.

Amazon allows the place comment only in 24 hours after buying the good and only if it’s bought from Amazon! For example if you bought a FSBO yard sign from Fizber.com you need to remember to return and to write a review in a day. Do you know a person who will do this? I don’t. I think that not more than 1% will do.

So, if I’m a small online boutique of Prada shoes with 30 customers per month, I’ll get 0.3 reviews per month. Conclusion I’ll get nothing at all. But my large competitor like BlueFly selling thousands of clothing every month will get 10-20 reviews. New customers will come and check for testimonials and will choose BlueFly. So, they will become richer and richer…

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