HN Explorer

Ask HN: Evil but brilliant business models?

6 points by raquo ↗ HN
Think Swoopo (http://www.codinghorror.com/blog/archives/001196.html) or Demand Media (http://www.wired.com/magazine/2009/10/ff_demandmedia).

Do you know any other examples? What do you think about the evilness of these? Is it unethical or is it a normal use of free markets?

13 comments

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noodle
automatically generated spam blogs. i hate running across them, but people make some serious $ off of them.
ErrantX
I cant decide over Demand Media; I mean as I read it they dont necessarily provide really bad content (though not great content either).

On the other hand they are employing a reasonable number of people and spreading some good money around (so it's not like they treat the content providers wholly unethically).

It feels like one of those borderline business models which is actually ok but could very easily slide the wrong way.

callmeed
"Is it unethical or is it a normal use of free markets?"

Are those mutually exclusive?

Are you asking about business models that are unethical/immoral but legal?

Those are pretty good examples with regards to Internet companies. I think you can find just as dubious actions in the finance industry. From charging $30 for a $1 overdraft to raising credit card interest rates at whim ... hopefully, new regulations will change that.

earl
The domain tasting companies -- I read a profile of one, whose name I unfortunately have forgotten, but this company seemed to have a ~$17MM annual run rate by bulk purchasing domain names, running ads on them, and returning the ones that didn't generate enough income during a trial week. Really really scummy business, and stupidly lucrative -- the founder was running the operation with himself and two employees.
joeycfan
ah - the Goldman Sachs thread...
JimmyL
Inkjet printer cartridges/Gillette Fusion razors/battery-powered electric toothbrushes/etc. (all the same model in different guises)