This is not a post proclaiming we are in the midst of another tech bubble. I’ve discussed that before having changed my mind on several occasions. There are arguments both ways that are viable. I’m not sure what to call it.

But, whatever it is the mainstream media is catching on to what bloggers have been discussing for the last year. After reading Jason’s post - “Don’t believe BusinessWeek’s bubble-math” - I realized more than ever the media likes create a facade that perptuates bubble thinking. Don’t get me wrong, bloggers are to blame too - but mainstream media outlets still have further market reach.

I don’t know why they do this. Do they make more money during a tech bubble? Presumably. But why lie? They’ll put anything on the cover to sell copies. Luckily we have people like Jason to call them out on it. BusinessWeek and Business2.0, magazines I subscribe to, are leading the media front pioneering the bubble mentality. Stories like the valuation of YouTube at billions of dollars or Digg’s valuation of $60M are hype drivers. The math is not solid. The money is not real. I don’t care if you think YouTube is worth $1B. Have you looked at their bottom line? Are they even profitable? I hate seeing claims of virtual worth for startups that aren’t breaking even.

Hmm, sounds like 1999. Uh-oh. If you are a startup - please don’t take these stories seriously. As Jason mentioned in calling out BWeek - Althuogh essentially all you need is a laptop and a $50/mo internet connection there is a lot more that goes into it. You have to have the drive, passion, creativity, ideas, talent, patience, and good people to make it. Don’t build to flip. Don’t build a clone and expect to monetize it.

Build value-added services. Create software that solves problems. Don’t buy into the hype. And, don’t try to be a Valley Boy. I’d much rather be in Jason Fried’s shoes than Kevin Rose’s.