The old 8 to 10 second rule has diverged into the haves and have nots. Broadband users expect faster response times, while narrowband users have been left behind. As broadband becomes more widespread the size of the average web page has increased to over 300KB and the average number of objects has increased to over 50 per page. Users experience psychological and physiological effects when interacting with web pages, experiencing frustration when not completing tasks and engagement at faster web sites. Narrowband users are suffering the most from the speed tax of objects that now dominates most web page delays. Increasing the speed of your site will improve your conversion rates, reduce shopping cart bailout rates, and make your site more appealing to users.

The fast-growing company, which works hard to recruit people to join, says to its newest employees: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.” Zappos actually bribes its new employees to quit!

Why? Because if you’re willing to take the company up on the offer, you obviously don’t have the sense of commitment they are looking for. It’s hard to describe the level of energy in the Zappos culture—which means, by definition, it’s not for everybody. Zappos wants to learn if there’s a bad fit between what makes the organization tick and what makes individual employees tick—and it’s willing to pay to learn sooner rather than later. (About ten percent of new call-center employees take the money and run.)

The Giffen good is a strange beast from economic theory. For most goods, demand decreases as price increases. A Giffen good defies this normal market behavior — the demand for it increases even as its price increases.

Giffen goods have a very interesting history. They were postulated originally by Alfred Marshall in his 1895 book The Principles of Economics. The classic example is staple foods such as rice, wheat, and potatoes. As their price goes up, poor people on a tight budget actually consume more of them, because they are forced to cut back on luxuries such as meat, but still need the same number of calories to survive. Until recently, Giffen goods remained a theoretical beast, with no real documented examples — until 2007, when two Harvard economists demonstrated that rice and noodles behave as Giffen goods in certain poor parts of China.

Google’s recent results raise the possibility that search advertising might be a Giffen good. Here’s a simple model. Company X spends marketing dollars on two channels: search advertising and brand advertising (on the web or on TV and magazines). Search advertising drives customers directly to their site, resulting in immediate sales. Brand advertising drives organic traffic, albeit in a more unmeasurable way.

Users fell 5% to 8.5 million in January from 8.9 million in December, according to data from Nielsen Online… “Social networking is as much about who isn’t on the site as who is - when Tory MPs and major corporations start profiles on Facebook, its brand is devalued, driving its core user base into the arms of newer and more credible alternatives,” he said.