Business model Quote by Joshua Green
““Bannon had become fascinated by the size and agency of the audiences congregating on MMO message boards such as Wowhead, Allakhazam, and (his favorite) Thottbot. “In 2006, 2007, they were doing 1.5 billion page views a month,” he recalled. “Just insane traffic. I thought we could monetize it, but it turned out I couldn’t give the advertising away.” Instead, the gamers ended up wrecking IGE’s business model by organizing themselves on the message boards and forcing the companies behind World of Warcraft and other MMO games to curb the disruptive practice of gold farming. IGE’s investors lost millions of dollars. But Bannon gained a perverse appreciation for the gamers who’d done him in. “These””
About This Quote
Source Article: Bloomberg Businessweek, “The Bannon Effect on MMO Communities”, 2008
Bannon saw massive traffic on MMO forums and tried to monetize it, but gamers organized to stop gold farming, ruining his business model while earning his respect.
In simple terms: Bannon tried to profit from gamer forums, but gamers turned the tables, hurting his venture and gaining his admiration.
Key Takeaway
Recognize that community power can disrupt profit motives.
Themes
advertising
gaming
community power
business disruption
Mood
cautious
reflective
Type
analytical
critical
When to use this quote
- Online gaming forums
- advertising strategies
- business model risk
- community activism
Key Concepts
Monetization
collective action
digital economies
Questions to Reflect On
- How can businesses ethically engage passionate online communities?
- What safeguards protect against community backlash?
A Different Perspective
Gamers may lack interest in profit motives, limiting revenue potential.
