Start Up Blog

Omnipresent deflation & the longer tail

Posted in entrepreneurship by Steve Sammartino on October 2, 2012

I’m convinced that pretty much everything is getting cheaper as time progresses. Relative to incomes there are not many things I can think of that have increased in price over time (excluding property). I wrote about this in a recent business manifesto post:

Omnipresent Deflation – While tabloids decry the rising cost of living and most everything we purchase, the reality is the opposite of what is being reported. Energy, housing, technology, entertainment and even food are all getting cheaper in ‘real terms’. Rapid technological change, Moore’s law and developing nation labour forces will ensure this continues. It’s creating the great business revenue maintenance challenge as we quickly move the price of ‘free’.

This is good news for startups. The barriers to entry have been infinitely reduced to well, almost nothing. One such service that is so cheap it is ridiculous is fiverr.com While it may not represent a bastion of quality, there sure is a lot of interesting services one can get for $5. Some of which could form interesting fun stuff to pimp your new brand. Many of these services could never have been available at such low prices… while many would never exist at all without the craziness that goes with all things web. Here’s a few of my fav’s from Fiverr:

Another case of the tail getting longer and the impact of connected labour.

Just when it feels like it’s all been done, it seems that the next idea will just take that niche a little further, and they’ll be some people who demand it too.

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