Why is Epinions.com Going Down the Tubes?

HMS Epinions is Sinking Fast

OK...you can't argue with success, but you CAN argue with failure. That is exactly what epinions.com is doing--failing miserably. Just take a look at this chart from alexa.com.

Since 2004, epinions' search ranking has fallen substantially. Its reach (the percentage of internet users) reached a peak of .25% in late 2003, and has slid to an all-time low of .04% in January, 2008.  

So why is the epinions.com ship sinking? Check out associatedcontent's chart. Associatedcontent.com is going through the roof!

Obviously, associatedcontent.com is doing something right. In fact, associatedcontent.com is doing several things right, while epinions.com is doing several things wrong.

Associatedcontent runs its website like a business. It has a profit motive, and, as a result, it does all it can to attract as many members as possible. More members mean more content and advertising revenue. The emphasis is on as much freedom of expression and diversity as possible.

By contrast, epinions.com runs its website more like an exclusive social club. Not as much diversity and freedom of expression is allowed. Epinions allows the members to police its site against anyone they may deem undesirable.

This would not be a bad strategy if the epinions members (who wear the armbands and behave like the KGB) were in touch with what the general public wants or needs in a products review site. But the evidence clearly shows they are out of touch.

Why? It comes back to the profit motive, or, the profit motive verses personal motives. Epinions members are not business people, and are not primarily there to make a profit. Thus, their reasons for excluding new members are largely personal ones.

Associatedcontent, by contrast, has its employees decide who gets accepted, who gets rejected, what gets published, etc. If they screw up, they don't get paid. Thus, they have a strong incentive not to let their personal issues interfere with their decisions.