Wednesday, September 22, 2010

My New Blog

As you probably know by now, I am not updating this blog anymore.
I have a new blog which I try to update regularly. You can see it at:
The subjects of the new blog are similar to this one but I try to write about them more from the business aspects and less from the technical aspects.
You can subscribe for Email updates in the new blog in a similar manner as you subscribed to this one. You can find the subscription form either here, or in the right sidebar on the front page. Obviously, you can also subscribe to my RSS feed.

I hope to see you all as readers and commenters of my new blog.

Saturday, May 22, 2010

Analyzing the economy of MLM plans

Its amazing how many MLM plans there are on the net.
There is also a lot of hype around those plans. Many plans are advertised as an option to have a great option to get rich quick on the internet. There are many experts for using these plans. But, what is the economic sense of these claims, if there is one?

I didn't find any decent economic analysis of this phenomena. So I started to write some myself.

If you find a serious economic analysis of MLM plans please drop me a note in the comments

Friday, May 14, 2010

Economics and Politics of Networks

If you follow my blog you can see that my latest interest became the fascinating world of network economics. There are a lot of exponential phenomena in this realm and it is really the new frontier of the Internet.
I found a book about this subject. It is called "The Wealth of Networks". Although it was written back in 2006 it seem really interesting. You can download the book from the net or buy it from Amazon.
When I will read it I will post here a review. If you read it yourself please share your thoughts in the comments section.


Friday, May 7, 2010

Economy, Cloud and Exponential phenomena

Cloud Computing is basically an economic phenomena and not a technical one. The heart of the cloud computing phenomena is scale.

This brings us to the subject of Economy of Scale. In an economy of scale a business gets advantage from its scale.

One of the best ways to have the required scale is to use exponential phenomena. Most of the network effects are exponential, so we can try and use network effects to get to big scale.

I already wrote about the Technological Network Effect. One can find an exponential phenomena also in MLM plans. The WWW itself is an exponential phenomena. By using links you get an exponential explosion of content. The best evidence is Google's enormous scale.

The phenomena of social networks is also an exponential one. The connections between the people in the social network increases exponentially.

Exponential phenomena are indeed a great force. We should learn how to analyze and predict those phenomena. There are some modern tools we can try to use when analyzing exponential phenomena, such as modern economy theory and chaos theory. But the application of these tools is not simple, since we are used to think in linear terms.

I want to try to apply those modern tools to exponential phenomena in future posts. If you have some ideas of how to apply interesting tools to interesting exponential phenomena please write about it in the comments section.

Monday, April 26, 2010

Multi-Level Marketing

About two month ago I wrote about Network Effects. What fascinates my in Network Effects is their exponential nature. Our human brain is used to think about linear phenomena. It is very hard for us to deeply understand and predict exponential phenomena.
Another exponential economic phenomena is the phenomena of MLM (Multi-Level Marketing). This is a way to build a marketing organization by compensating an affiliate marketer for bringing more affiliate marketers to market the company's product or service.
A powerful combination is to combine MLM and the web to create Online MLM. This is a powerful economic activity which harness the power of the online world to do marketing in a wide scale.
There are many who think MLM is just a scam. You can find a good criticism of MLM in the following link: Even though the criticism can have merits in some MLM plans, I don't think it proves that MLM plans can't produce a good, healthy and stable organization.
In a later post I plan on showing why Vandruff's arguments does not rule out all possible MLM's programs. But in the meantime you can try a some Online MLM yourself. Choose a program in the Internet MLM page and join it using my sponsorship link.

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Cloud Computing Blog by Khen Ofek is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 2.5 Israel License.