Every day I see or hear someone talking about the current internet boom and drawing comparisons to the last boom and the inevitable bust. Sure, business is cyclical, but I think the real, comprehensive shift that the internet imposes on business, society, and culture is still in its infancy. I’m not prone to hyperbole or breathless prognostications, and I write this from the perspective of someone who maintains a healthy degree of skepticism.
Here’s an example: I’m reviewing life insurance policies to ensure that we have the proper coverage for my family. I did some research and found two online brokers / aggregators: AccuQuote and Insure.com. I ended up going with Insure.com to connect me with the right policy for two reasons: 1) AccuQuote sent my information (without my permission) to dozens of local agents, who then bombarded me with calls over the next few days and 2) Insure.com has a clean process, better rates, and a clear rating system for their partner’s policies.
One of the local agents that called me did have a better over-the-phone pitch than the others, so I agreed to meet him in person. I’ve done a lot of research on my own and have a decent enough knowledge of the financial landscape (thanks to a variety of self-service tools on the web) to make my own decisions. What amused me was every single decision I have made in regards to my own investment portfolio (types of insurance, indexes vs. stocks / managed funds, etc.) was criticized by this local agent (who is also a “financial planner” and who also has direct incentives to steer me away from things like non-managed index funds. (If you want to read a great book on this subject, I highly recommend The Four Pillars of Investment).
He quoted me a plan that was six times higher than what I found online (and three times higher than what I knew a comparable plan would be elsewhere online) and lost all credibility when he told me “we’ll get control of your assets and move them out of index funds.” And I bet he would.
The point is this: based on my experience, AccuQuote and Insure.com don’t even come close to sexy Web 2.0 applications. There is no social networking application built yet for this space. But I was able to quickly find the information I need and make an informed decision for far less work and, most importantly, I had the confidence that I was only buying what I needed. I wasn’t being sold anything.
This is the difference between “full service” and self-service. You take only what you need, and if you need more you come back to trusted sources. This is what the internet helps to enable and it’s going to take more than the 10-15 years we’ve had so far to complete the revolution of over 500 years of business practices and socialization.