Evolution of business models - is it inevitable?

Odd how often my husband and I will get into discussions (we often have differing opinions!) and then I'll find an article that pertains to what we just discussed.

Here's a link to MSN news that has stories about Martha Stewart's empire, WalMart's problems, etc.

Just the other day we had a discussion about internet marketing and he feels very strongly that it, too, will ultimately change. His point was that just like domain name sales, at some point it becomes a saturated market and it will fall out of favor; just how many people now could come up with 300 never mind 300,000 useful, relevant domain names that someone would want to buy? And his point was that as more and more people get online with affiliate sites, or selling things, etc. the markeplace will become so diluted that no one will be able to make enough money to make it worth it.

Now keep in mind this was the man who said video stores would never last!!! So sometimes he's wrong! But when I got into day-trading when the stock market was going crazy he just shook his head and said it couldn't last, the fundamentals of the companies were being ignored and at some point it had to come back to that. Then when I bought real estate during the boom he was there saying, "but it can't last, the economics of it don't support it."

So, is he right or wrong this time? And why?

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