[fnid]

I think in this case, ad hominem is appropriate. He is arguing about mispriced assets while investing in companies that sells more virtual tractors than John Deere.

He's saying, in effect, Amazon isn't paying you enough to waste your time posting links to their books, while making other people pay good money to waste their time growing virtual gardens.

Rationale like that doesn't work well for him.

[cwan]

Virtual goods are entertainment. Granted, I don't play Farmville or any other game (and I do find all those updates on fb annoying). I assume the pricing is pretty transparent. Just as I find buying tickets to sports games to be a waste of my time (with a particular net negative on baseball), to each their own.

Affiliate marketing however, is where the assignment of value somewhat more arbitrarily/discreetly decided as it depends on actions of third parties. Besides, it's about pointing out an opportunity that exists - and in that light, even if I were take your position, you could make the argument that it's one that he's very qualified to make.

[fredwilson]

virtual goods is a way for people who play the game to pay for it in a very elegant freemium model.

you are mixing two issues up.

affiliate marketing is about helping publishers/creators of content make more money for the work they do

virtual goods is about helping game developers get paid for building games people like to play without having to charge upfront