1. I guess it depends a bit on whether social networks fit into the lipstick index. When your budget gets tight, internet access certainly makes for a sound entertainment investment. Skip pubs, clubs, movies, gigs, etc… any of which can cost as much as a month of connectivity. Maybe.

    But the downturn is certainly likely to put the screws on any service with no clear ROI/business plan.

  2. Still think this economic crisis will really show us how much people value social networks and social media. Up until now the users have chickens & not pigs. Be interesting to see how much people want to keep their social media alive when there are economic consequences to that decision.

  3. @200ok yeah I heard about the rise in purchases of lipstick and luxury cosmetics from an Estee Lauder documentary. Fascinating. I don’t wear lippy myself 🙂

    @Kate In times of crisis we turn to community – in spite of the fact we have to share more, be more vulnerable. Apparently New Yorkers for the first time in their lives bonded on the streets post 9/11.

    I’m guessing that the community will try to keep Twitter alive, for instance. I personally will put a few million* into the donation pool.

    *monopoly money.:)

  4. Great post. Several of the companies you featured have enjoyed high valuations pre-revenue, and from those valuations attracted lots of capital. The true test of their real value will come when people have to potentially lose them or pay for them, and that payment may mean going without something else.

    No question this downturn will be hard on most of us but I believe there will those who learn to thrive in the hard times. Those people just won’t have the luxury of building the audience first and monetizing later. Models that work will monetize immediately.

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