Comparison websites

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1 minute read

In a world where geographical constraints are no more, economic rules have to be re-evaluated. Due to online commerce, things like location, facilities and technical advisory are no longer competitive advantages. If I, as a customer, can have all the technical advisory I need from the web, and can buy whatever I want with a simple point and click, then price will become the ultimate decision maker.

This leads to the rise of a new business model, price comparison websites. This are websites than scan online stores, collect all the information about their products, organize it and present it to the customer in a easy, efficient way. Additionally, users can increase the value of information by adding reviews, comments, rankings and personal experiences.

Test Freaks is the new kid in the block. They went into public beta last December, and gave a step further: they collect information not only from online stores, but also from other websites, forums and blogs, which largely enhances the information available for the end user. Additionally, the allow users to add reviews to all the products, and finally, with all this data, they rank the product (with a proprietary algorithm) which provides a quick way for users to find the best products in different categories.

The web interface is very 2.0, with live search, user generated content and a lot of ajax. I'm still wondering where they get the money to pay the bills, since there isn't any visible advertising. Can they be earning it through affiliate programs? I wonder...

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