from Seth’s Blog
Actually, there are two.
The first is the tax we each pay so that companies can bid against each other to buy traffic from Google. Because their revenue model is (cleverly) built on both direct marketing and an auction, they are able to keep a significant portion of the margin from many industries. They’ve become the internet’s landlord.
The difference between a successful business in New York and an unsuccessful one is just a few percentage points–the successful ones pay 95% of their profit to landlords, while the unsuccessful ones pay 105%.