Monday, May 24, 2004

Plaxo gets a plan

According to News.com Plaxo, the contact management company, has finally come up with a way to make money. For the companies sake I hope there is a better plan than the one outlined by the News.com article. The plan is incredibly unimaginative and I question the real value proposition to users. Apparently there will be a VIP service from Plaxo that for $19.95 a year will offer things such as automatic synchronization with portable devices and better customer service. Also, since everyone else is making money off search Plaxo has entered that game too with a Toolbar for search within Outlook. I don't think either of these services will generate much revenue and Plaxo should probably go back to the drawing board. My guess is that the firm has something else up their sleeve, how else would they have gotten Cisco and others to get in on a second round of funding.

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