Photo: Abandoned farm shed by serendipitypeace2007, modified under a Creative Commons license.
Anyone looking for a place to live invariably needs to first answer this question: "should I rent or buy?" Each has pros and cons.
If you rent a house or an apartment, you control your own destiny. It's easy to get out if you want to move. Then again, you're limited in what you can do to remodel.
On the other side, owning real estate has advantages too - a tax break, flexibility and potentially a lot income if you flip it later on. The downsides? Lots. You can't easily sell in a down market and you're on your own when it comes to repairs.
The same can be said about choosing where to participate online. I had this discussion recently with a colleague who asked me why I am investing all this time in building Twitter's "equity" rather than doing so on my own blog, which I have been writing for four years now. It was a rather thought-provoking question.
Running a blog on your own domain (even if you use a hosted provider like TypePad, as I do) carries with it lots of perks. I can remodel pretty much any way I want as long as I follow proper blog protocols. I can track my returns - Google Juice, subscribers, comments, traffic, leads, press quotes, etc. TypePad really doesn't realize the same kind of benefits that I do personally by writing this blog. Then again, it has downsides too. Namely, Twitter has community built right in.
Investing time on Twitter, on the other hand, truly is starting to feel like renting. When the landlord is doing a good job, everyone is happy. When the landlord is negligent, the tenants get testy and threaten to move. I now view Twitter like a summer rental that you hope doesn't get hit by a hurricane while my blog is casa de Steve. I may be alone here.
It seems to me like "renting" online equity is now what's in vogue. Long-form blogging is less prevalent because the competition for attention from pro-bloggers is steep. That's why I love the Friendfeed model. It's like a co-op. I can invest in my blog and realize benefits not only here but also on Frienfeed. Or, I can invest in Twitter and see the same return on Friendfeed, though certain provisions apply. You're still beholden to the landlord.
I remain a fan of all of these services. However, the big question on my mind of late is this: where should we invest our time and sweat equity online? Will people continue to build equity in sites like Twitter that have community today, but most likely will be gone one day? Or should we look for hybrids like Friendfeed where we can take control?
If the marketplace for online equity is as cyclical as the real estate biz, then change is a given.
