Tuesday, November 07, 2006

Deja Vu - A Dot Com Era Business Emerges Again

If you don't recall a service called Keen allow me to refresh you memories. Keen was originally launched in 1999 as a sort of online 1-900 number. The basic idea being that you pay to call an expert. Since anyone could set themselves up as an expert with no real credentials of any kind the site eventually devolved into an online way to reach psychics, and well lonely ladies looking for someone to chat to. So what's the difference between Keen and a new service called Ether?

Nothing. That's right both Keen and Ether are owned by the same company Ingenio. So will the service have any better luck the second time around?

There is actually one difference between Ether and it's predecessor Keen. Keen has an E-bay like directory set up so you can browse through the services whereas Ether has no way of searching its listings at all. One member has started a directory through the forums and from what I can tell there are already a few psychics on board as well as several "experts" who are charging $25/hr or less which is fairly cheap for expert advice. Your average psychiatrist, or lawyer can charge upwards of $100/hr for their services.

The truth is when most people want expert advice they don't want an anonymous Internet expert. The want someone they've heard of, who friends have recommended, and who perhaps they can consult with in person if need be.

The other problem is that since E-bay has bought Skype you could essentially arrange the same thing through E-bay which allows you to use PayPal unlike Ether. While E-bay has more of a low end feel (it's basically an online flea market)they could create a spin-off site should there be a demand for this sort of thing.

Four months ago I signed up for Ether just to give a shot and see if it was worthwhile. I started my advice rate at $100/hr, but having received no calls lowered it to $75/hr last month. It doesn't cost anything to sign up, and in fact you only pay %15 commission on your calls. So Ether doesn't make money unless you do.

The only way to make money on Ether currently is to bring your own customer base, because there's no way to search the site for listings. The problem is that the same old idea has been relaunched without addressing the real issue. Are people willing to pay for advice online, and if so how much? Besides there is still the problem that the experts are still essentially self-proclaimed, and there's no way to search the listings and it doesn't take a psychic to tell you that this doesn't bode well.

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