Executive Summary (This is a document excerpt)

Hundreds of consumer-focused Web 2.0 companies have sprung up, but most struggle to attract traffic and monetize it. This is why some worry that Web 2.0 is a bubble. But much of the current value in this market comes from corporate applications; many startups that help with those are thriving. Interactive marketers should adopt two guidelines for dealing with Web 2.0 startups. First, ignore consumer-facing startups, except those that already have big audiences, like Facebook, Twitter, Digg, and Ning. And second, create relationships with business-facing startups with a proven track record for helping marketers accomplish one of the five groundswell objectives: listening to, talking with, energizing, supporting, and embracing customers. When working with these vendors, start small, plan for growth, and make sure you have a contingency plan in case your partner goes under.

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