“It is now clear that successful Web 2.0 companies will be the ones managing to reach ‘escape velocity’, which basically means attracting millions of users, with a big zero cost of acquisition, at a rate of tens of thousands new users signing on per day. These “must join” networks (MySpace, Skype, potentially the Facebook) have risen to levels of usage and popularity that created strongholds very difficult to duplicate. Interestingly, technology had nothing to do with the differentiation at all, and sort of proves Ross Mayfield’s statement that Wed 2.0 is made of people (or the network thereof) — at least as a valuation metric.”

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