§ If you decide to sell the eggs even before they are laid to discover later that your Goose is slower than normal in laying eggs, you may land up killing the Goose while trying to force it to lay eggs. To illustrate, MySpace was spoilt early on by Google when they received guaranteed revenue commitments from Google who exclusively took over selling ads on MySpace. Past the first year, Google figured that this was a loss making deal for them (they made less revenue from MySpace ads than what they had guaranteed to pay MySpace) and did not renew their agreement. But by then, MySpace had got addicted to ‘revenue’ toplines and went ahead and ruined their site by spraying ugly ads all over the site and aggressively selling them. MySpace, as I remember looked like a website that had only ugly ad hoardings all over and this quickly drove away lots of their users. The lure of only generating revenue ruined MySpace forever.
§ On the other hand, if you determine the price of eggs before they are laid, you may land up selling ‘golden’ eggs at the price of ‘normal’ eggs. Facebook managed this beautifully – they took their own sweet time to just to understand their ‘Magical Goose’ and what it was really going to be valuable for. It’s amazing to see how slowly and elegantly they have sold ads (so they priced their golden eggs appropriately) and more so, introduced non obtrusive revenue streams like ‘facebook credits’ – a la creating value from the feathers of the Magical goose in addition to the eggs it lays!