Category Archives: Startups

Discussion of startups.

Foursquare Is Going To Keep Rolling

It’s funny how early adoption works and how you start to see recurring patterns. When I started using Twitter there were numerous people who questioned what it was, why it was useful, and mocked it. A couple of years later, Twitter is still on a tear.

I’m seeing the same thing with Foursquare today. Early adopters are using it, it’s starting to spread, and once again people I know are confused by it, think it’s useless, and that it has no real business.
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Tynt Is A Cool Specialized Analytic Service

John Battelle’s recent post as well as an email from a friend turned me to Tynt. John goes into a bunch of detail that I won’t repeat here, but essentially what Tynt does is tracks what people are copying and pasting from your site’s content while also adding an attribution link to your site when they do so.
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Loving the Citizen Sports Acquisition

My employer Yahoo! announced the acquisition of Citizen Sports yesterday. As an avid user of their iPhone application Sportacular, I can personally attest that get social and sports really well, and it’ll be interesting to see what they do hooked into the #1 sports destination on the web in Yahoo! Sports.
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Pinch Media Launches With Funding

Congratulations to former Right Media and Yahoo! colleagues Greg Yardley and Jesse Rohland who have announced an investment in their new company Pinch Media from a strong group of investors.
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Web Business Lessons Learned From a Basketball Player

porter.jpgIn honor of my team advancing from the Sweet 16 of the NCAA Tournament to the Elite 8 to take on defending national champion Florida, I thought I’d tell the story of Tajuan Porter and see what we can learn from it as it relates to running a web business.

Tajuan Porter is a 5-foot 6-inch freshman who plays for the Oregon Ducks. This is obscenely short for college basketball standards, as there are only a couple of players in the entire country who are that small, and they usually don’t have much success.

Porter was successful in high school, but college coaches who saw him chose not to offer him scholarships due to his height and figured he couldn’t succeed at the high college level. Ernie Kent, coach of the Oregon Ducks, saw something special in Porter and was the only major-conference school to offer him a scholarship. Oregon fans and players figured Porter was a backup plan who wouldn’t make much of an impact at Oregon.

When thinking about starting a website or blog, you may have something that’s standing in the way of your success. Perhaps it’s not knowing much about the web, perhaps it’s a lack of time, perhaps it’s a lack of money to get it started, perhaps it’s a lack of technology skill, or perhaps people just think you’re crazy. Your friends, coworkers, or family may be saying things about you like people were saying about Porter. That you just can’t get it done for whatever reason. Are you going to let people be right? Or are you going to focus on improving in every area you can to get it done?

When Porter arrived in the summer before basketball season tipped off, the players saw Porter and like everyone else figured his height would keep him from succeeding.

What players, fans, and other college coaches didn’t realize was that instead of letting people tell Porter what he couldn’t do because of his size, he chose not to dwell on what he couldn’t change and instead develop skills and abilities that would allow him to actually succeed.

Porter started the first game of the year for the Ducks, and scored 28 pts, an amazing amount for a freshman in his first college game. Many thought it was a fluke until in the next two games he scored 27 pts and then set an Oregon freshman record by scoring 38 pts and hitting 10 three-point shots.

You’d think everyone would have immediately started to believe in Porter at this point. But again, people pointed out that the teams Oregon was playing weren’t very good, and that Porter was just lucky that weekend.

Sure enough, Porter cooled off after injurying his toe but continued to play with the pain. He had some games where he didn’t play that well, and fans and local media began to question his defense and wonder if he was hurting the team by being out on the floor if he wasn’t scoring like he was before.

Some websites and blogs get off to a great start like Porter did, but then hit a down period where the buzz cools off and time gets tough. People start to question whether you can do it, whether you’re on the right path, and if you can make it happen. Businesses don’t just rise on a steady growth path. There are peaks and valleys, and the valleys may really test you.

As the end of the regular season came around Porter got over his injury and started scoring and playing like he did at the beginning of the year. He was the MVP of the Pac-10 tournament the Ducks won. Now in the NCAA tournament he shot the Ducks through the 2nd round by hitting 4 three-ponit shots in the 2nd half, and then followed it up by tying a record with hitting 8 three-point shots and scoring 33 pts against UNLV to advance to the Elite 8. Now he’s not only playing well, he’s totally overcome his height disadvantage and is simply dominating the competition. The reward? He now gets to play defending champion Florida to go to the Final Four. How is Porter going to react going up against possibly the best team in the country on the biggest stage?

The comparison for a web business is that when you do fight through your weaknesses and achieve solid to great success, sometimes your reward is that you get to take on the big dog, such as Google, or Yahoo, or Microsoft. Or on a smaller level, once your blog achieves great success in your niche, perhaps you’re now competing with the biggest blog in your space. You may feel like it’s a battle that can’t be won. Are you going to give up?

Really, it’s a classic story, but it’s one of the reasons I enjoy the entertainment and stories in sports. You get to witness how people react in various situations, and Porter’s story has been fun and motivating to follow. The 5-6 underdog has used his weakness to grow his skills in other areas and build up such a strong heart and build his confidence to the point of playing like one of the best in the country. It doesn’t seem possible, but he’s doing it. Congratulations Porter, and let’s hope that we can all fight through the weaknesses in our websites and blogs to become big successes as well.

Business 2.0 Releases the Next Net 25

Business 2.0 Magazine just released their 2nd annual hit article the Next Net 25. Featured in this year’s Net 25 are some of the darlings of the blog and new media world this year:

Social Media
StumbleUpon
Bebo
Meebo
Slide
Wikia

Video
Joost
Blip.tv
Dabble
Metacafe
Revision3

Mobile
Fon
Loopt
Mobio
Soonr
Tiny Pictures

Advertising
Turn
Adify
AdMob
Spot Runner
ViTrue

Enterprise
SuccessFactors
Rearden Commerce
Janrain
Logoworks
SimulScribe

I admittedly don’t know a ton about the mobile and enterprise companies on the list, but I’m not too surprised by any of the other ones. I think there are some very good companies missing, but when you’re cutting a list to 25 with multiple categories, it can be tough to get everybody worthwhile in there.

Last year’s list is doing pretty well, as Google itself bought YouTube, Jotspot, and Writely, and many of the other companies like Digg and Last.fm are doing really well.

VoFiles.com December Stats Update

I’m a bit late on the update, but here’s a wrap up for the month of December for our advertising case study project VoFiles.com. You can also read more about how we set up our initial advertising strategy.

December was the first full month of VoFiles and it started out well as we told some initial friends and coworkers to check it out, and did about an hour’s worth of work with some initial submission of Myspace profiles one night. Traffic really died down though as we moved towards the holidays and didn’t do anything, and the initial momentum didn’t seem to sustain itself. Thus implying that we don’t have the site right yet for social network users to really see any purpose or value in submitting profiles or having people vote for their own.

We did see VoFiles.com start to appear in some search rankings towards the end of the month as we made it into some regular Google results and Google Blog Search results for search terms such as:

  • mitchy the kid
  • the best profile layouts
  • christine dolce
  • tummy sticks
  • vofiles
  • speedini
  • ray lamontagne
  • marc broussard voice
  • dear lord baby jesus
  • christmas profile

I’m not really sure on whether to be happy about those results, shocked, or just confused. I’ll just go ahead and say that January’s terms are even more special.

Overall, the message was clear though that if we want this site to grow and sustain on it’s own, we have to adjust some things to get social networking users to see more value in using it, and get more link popularity to do better with search results for it to grow. Now on to the overall December results.

DECEMBER STATS
User Accounts: 22
Visits: 515
Page Views: 2,978
Ad Revenue: $1.74
Overall eCPM: $0.19
Google Page Rank: 2/10
Alexa Rank: 123,024 (so skewed)

Alexa Graph:

RMX Direct Advertiser Report: (click to enlarge)untitled-1.jpg

Scrybe Reminds Me Why I Love the Web

I have no idea if new productivity application Scrybe will ge as good as people say and as it looks in the video below, but watching the video reminded me of why I love the web.

It’s such a fantastic platform for building tools quickly that can help people work, educate, interact, and entertain in better ways. It ‘s also great to see companies you’ve never heard of pop up out of nowhere and create cool applications.

I’d Buy Zecco

Techcrunch profiled the upcoming launch of a startup called Zecco that aims to bring free stock trading to the online brokerage world, along with throwing more community features into the mix in true 2.0 fashion.

The Techcrunch article is a bit negative on Zecco because of three reasons:

1. Most people don’t trade that often, so free trades don’t matter.

This is true, that a large percentage of investors don’t trade that often. However, I’d say a strong reason people don’t trade more is commissions! I know personally I trade less than I would if I had free trades, and I’m not alone.

2. Discount brokerages already expect commissions to go to $0.

So? A couple of reviews I read all are pitting Zecco up against Schwab, Merrill Lynch, eTrade, and others and thinks that it needs to dominate those companies to be a success. It doesn’t. If Zecco keeps their costs low, they can have a great business by winning customers from other discount brokerages.

PlentyOfFish.com is a great example of this concept as it’s a dating site that came along when all the dating sites had paid memberships and offered a free membership, and they also kept their overhead very small. Did it kill Date.com? No, but the guy running PlentyOfFish.com is making a ton of cash and it’s a great business for him.

3. Just because it’s cheap, it doesn’t mean people want it. Relationships matter.

Relationships do matter, to some people. The thought here is that because their trades are free, they can’t offer the great service of Schwab and others. Guess what, I’ve been trading and paying commissions for years and never talked once to a single human at three different brokerages. Where’s the relationship? Sure, I’m probably way too small of a customer to warrant the personal attention, but that’s exactly why I think this reason won’t hold Zecco back.

Zecco also is building in many community features that may make it have a different kind of relationship with it’s customers, they’ll actually feel like part of a community instead of feeling like they’re just another one of a big company’s customers.

Good luck to Zecco, I’ll be watching to see if they can shake up the brokerage industry a little, and if they don’t, they can still make a nice business out of it.

Revisiting Top 10 Web Predictions of 2006

As 2006 began I made a set of predictions for what I thought would happen related to web applications, comipanies, and “Web 2.0″.

We’re two-thirds through 2006, so I figured it was a good time to revisit how many of them have come true, and if any are still likely to occur in the rest of 2006.

1. RSS will become two-way with the help of Simple Sharing Extensions.

Hmm, well, this is slowly improving, but I don’t think I really nailed this one. Hopefully we’ll see more of this in the future but the buzz around it seems to have died down or just moved behind the scenes.

2. Social news site Digg will expand into other content areas and media types and then will be acquired.

I was half right on this one. Digg did indeed expand into other content areas and media types, but no acquisition has occurred. Will that still happen? There hasn’t been any buzz around it lately, and Digg has gone through some recent problems as bloggers have noticed that Digg might not be as democratic as we thought, and they’ve lost some top users to Netscape’s offer to pay top social news finders.

Digg also faces competition from other social news services like Reddit, Newsvine, and Netscape, and while none of them has gotten to Digg’s level, it’s still early in the social news race. There are also numerous sites launching all the time which work just like Digg but are focused on specific verticals. It may be that what they’re doing isn’t unique enough now to really warrant someone wanting to acquire them that badly.

3. Web 2.0 will be looked down upon as a buzzword, and it’s usage will drop off dramatically.

This has definitely occurred, and more people seem to be moving past the term into just accepting things as new web applications. We’re also hearing “social web” or “social media” for a lot of Web 2.0 applications.

4. Face-recognition photo application Riya will be acquired by a major player.

Oops, didn’t happen yet either. Riya switched up their model a bit and are taking on an even bigger challenge of web image search with their facial recognition technology being a big part of that mix. I’d say at this point an acquisition in 2006 is unlikely, but I wouldn’t rule it out in the long term.

5. Some ecommerce shopping applications using the more recent advancements in social web technologies will be developed and will succeed.

Web shopping seems to move a little slower than other applications, but we have seen some cool new shopping applications. Jellyfish probably has made the most noise this year with their Value Per Action advertising model, but taking a look at this Alexa graph it doesn’t look they’ve had much traffic uptake from consumers. Of course, don’t always trust Alexa, I think Jellyfish is compelling although not revolutionary, but has a long way to go before it’s a major player. jellyfishgraph.png

6. Google Analytics will again drop the hammer on the web analytics industry.

Another one I missed, there hasn’t been much out of Google Analytics besides finally opening up to the public. Google may be spread too thin in this case, or maybe they have no new analytics ideas, but they haven’t done anything special with it since launching it.

7. A forward thinking company will build technology to support transparency, efficiency, and relationships in the online advertising business.

Hey, what do you know, Right Media is doing this. Okay, I’ll admit this was a loaded prediction when I knew it was happening. Still, I think we’ve made great progress in 2006 thus far, and the rest of the year and 2007 could be really special.

8. Microsoft will launch a contextual advertising network that will either be huge, or fail miserably.

They have started issuing beta invites for advertisers to particiate in their content ad network. So we don’t really know yet if it will be a success or not. There hasn’t even been much detail yet on what the service will consist of, but if Adcenter is any indication it could have some interesting features, but be very IE-specific and bug heavy.

9. Two to three new startups will be so cool and successful they will make the heroes of 2005 like Flickr and del.icio.us seem small and insignificant.

I think YouTube makes a strong case for this being a correct prediction, and Digg has also been pretty cool and successful, although neither of them have been acquired like Flickr or Delicious. Of course, let’s recall that those two were not acquired for huge amounts of money though.

10. The venture capital investments and acquisition bubble will heat up even more, then deflate in the 2nd half of 2006 after a number of companies fail..

It seems as if things have cooled a bit in the 2nd half of 2006. Rojo was recently acquired by Six Apart, and there have been some recent venture capital investments but nothing too crazy.

Overall

Not bad, but I think I can do better with future predictions. I think I’m just early on a few of them, and maybe flat out wrong on one or two.