For all the fanfare about Web 2.0, New Media, User Generated Content or <insert Next Buzzword Here>, take note.

Have you ever wonder why, despite all the buzz-fuzz-wozz-luzz, it seems that your colleague next to you is still not visiting Digg? Ever wondered why most people are still using their crippled Hotmail accounts instead of the AJAXy, pow-wow Gmail with unlimited flexibility? Ever wondered why, despite the popularity of Flickr, most people are just using it as yet-another-site-with-good-storage and are not exactly tagging them as Flickr hopes everyone will?

Probably because all the crowds that are using Digg, Slashdot, Reddit, Flickr, Gmail or the Next Big Thing is, unfortunately, the same-old-crowd. Recycled crowd. All these great websites are all probably used by the same group of people with a few differences here and there but, still, probably no larger than the entire size Slashdot crowd.

recycled flow_jpg.jpg

The graphic above (created by the stunningly simple and powerful Gliffy) best describes what I’m talking about. The entire rectangle represents the entire online population with the smaller red rectangle as the fraction of the Internet population actively visiting and using all the buzz website. It is definitely over-represented here, with the actual proportion at least 10 times smaller.

What I’m trying to drive at is that it has always been the same group of people visiting using the same few services. The pie, referring to the number of people using the buzz-fuzz services, was never enlarged, the only exception being Flickr which appeals to a drastically different crowd.

New startups need to take note that it’s not enough being Yet-Another-Digg or Yet-Another-Flickr. Whatever you are doing must capture and enlarge the pie and to allow more people to participate in your creation. Gliffy might be a notable application that is ridiculously easy and fun to use. Good luck with your next venture!