Archive for February 2012

A groundbreaking new strategy

Maciej on Pinboard

People have tried three different business models around social bookmarking:

Business Model #1: Charge Money

This is a groundbreaking new approach where a site accepts fungible tokens of value in return for a product or service.

Also

…while the business is healthy and profitable, no angel investor or venture capitalist would touch it with a long stick, as it sits on the wrong side of the risk/reward curve.

The combination of low startup costs and investor aversion means there are all kinds of opportunities lying around for a developer to run a profitable small business, provided he or she remembers to charge money.

When you’re costs are low, you’re a one-man band, you’re serving 20k users (all of whom paid to sign up), why would you bother with angel investment or VC?  Your business model is quite straightforward actually, provide a reliable service that people are prepared to pay for.

Via Marco

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Frustration Ltd.

Sadly I cannot share any details with you, dear readers, though I can share with you my response, and my spirit.  I am currently enjoying the lead-up to a multi-continental world trip extravaganza, the likes of which this young soul certainly hasn’t had the chance to experience before.  I’m about to embark on a long journey folks, and you’d be well informed to know that I’m packing board shorts.  So where does the frustration enter into this picture?  Well, suffice it to say that I’m on the cusp of committing to deliver two incredible, innovative and new artworks into being, in two different cities and with a venn diagram of participants.

Two projects that I was instrumental in shaping, in conceiving, in designing and in selling are just about to land – and I’m just about to take flight.  One brand new, one that’s been in the works for around 9 months now.  That’s frustrating.

I can’t help but think that you’ll hear more about these two projects whilst i’m abroad.  We’ll see how easy it is to do remote artworks from central and south america.  I hear there’s good Internet over there!

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Let me pay you again

MG on Netflix.

Huge win for Netflix. The Weinstein Company is one of the few production houses where quality absolutely trumps quantity. If I wasn’t already a member, I’d consider signing up for Netflix just for this alone.

That’s a pretty strong endorsement.  It’s a shame I’ve already paid you, because I really want to pay you again.  Maybe Netflix should offer a ‘well, I just really like you’ account so you can choose to pay more than the standard service fees, just because.

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Their plus to bear

MG on Google Plus

I think we’ll see that this approach still won’t work. Social networks like Facebook and Twitter work because they evolved based on how users were naturally using them. Google+ is trying to make the users evolve to fit into the network they created. It’s unnatural.

Unnatural is perhaps a bit of a stretch, but there’s definitely something to this.  I remember looking back at the social landscape and reflecting on how twitter and Facebook felt to use in the early days.  I was a bit late to both, joining Facebook in 2007 and Twitter in 2008, but I distinctly remember feeling a bit of a buzz from finding these new tools to get in touch with long lost or newfound friends.  Twitter grew slowly, Facebook even more so.  With Google+, it really seems that they’re trying to rush their users in the door to make up for lost time, in a way forcing the network to happen much more quickly than you’d expect.  The experience of 5 years of Facebook has given me the background on how a social network should work, now Google is trying to recreate that in 6 months.

It’s forced, it’s in your face, it’s in your search and it doesn’t feel great.  They’re really throwing gasoline on the fire, but I do wonder if + will make it, long term.

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Quote of the day

When one blogger cries, a cash register rings.

Horace Dediu, on the Critical Path with Dan Benjamin.

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Flash in the cam

That pretty much sums it up.

Chatroulette: Spontaneity, Chat… and Dicks
chatroulette_logo_dec10.jpgFlash in the pan? Maybe. Launched in late 2009 (too late and too obscure for the “Best of” lists for that year), Chatroulette took off in early 2010, and at the peak of its popularity this year, Chatrouletteboasted a million-plus users. Chatroulette connects you randomly with another person via your webcam, so you can chat via text, audio, and video with a stranger. If you don’t like the conversation, the “Next” button places you with someone else. A post on Techcrunch surmised that the site was “89% male, 47% American, and 13% perverts,” the latter figure seeming a tad low based on my experience. Despite – or maybe because of – the dicks, the site gained a lot of buzz, spawning a number of memes as well being a topic on South Park - high honors. Chatroulette also spawned a number of clones as the idea of random, spontaneous encounters became popular.

Via the ReadWriteWeb list of best startups, 2010 edition.

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Get GPS coordinates from Google maps

Back in the day it was tricky finding GPS coordinates, and oddly google maps didn’t make it any easier. Previously I used a weird javascript command (go to maps.google.com, fire up location map, click URL bar, enter command, pop up appears with GPS coordinates), which was frankly unintuitive and frustrating (add command to clipboard, copy/paste coordinates to text file, add command to clipboard again..).

It turns out that Google has updated maps to allow for GPS coordinates to be retrieved quite easily, simply by right-clicking on the location, and selecting the “what’s here” menu item. The GPS coordinates then appear in the search box, which you can select and use as you see fit.

I’d say it’s a much more elegant solution, and a very welcome addition to the google maps tool kit.

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Didn’t see that coming

So, it turns out Apple sold more iOS devices last year, than the total number of Macs they’ve sold in 28 years of business.

20120217-111616.jpg

Truly stunning.

Image by Asymco, see “Apple sold more iOS devices in 2011 than all the Macs sold it in 28 years” for the full story.

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An engineered blindspot

“Never attribute to malice what can be adequately explained by stupidity” is closer, if you replace stupidity with blind spot. As an engineer, you look at a problem and think of the easiest way to solve it, and even if the privacy implications occur to you—or they’re pointed out to you—you object that your code isn’t actually doing anything bad with the data because, well, you’re not a shady dipshit, and the feature you’re coding gets a significant performance gain this way. I’ve had variants of this discussion with coworkers before. The problem is that “am I a shady dipshit” is not the right question. “How would this look to a customer who has no reason to trust me” is the right question.

Watts Martin, over at coyote tracks

This really becomes problematic when the marketing spiel behind a product differs greatly from the engineered efforts put in to bring the product to market.  On one hand the marketing material tells you this is the one app you can really trust, really love.  On the other, the back-end engineer who wants to create the most seamless, effortless app chooses one solution that undermines this very aim.

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The hypocritical path

Lately I’ve been mulling over a nasty, dark thought about this whole Path fiasco.  I’ll share this with you in just a moment, but first we should take a glance back over the last year — as captured by various parts of the tech blogging press community;

But it should have been pretty clear from the get-go that their trajectories would be far different. Path was a service that went out of its way to dampen the viral effects that bring in massive amounts of users.

They were trying to do something different. Perhaps stubbornly so.

MG Siegler (Nov 2011)

…Path limits your connections to just 150 of your closest friends — people who wouldn’t make snap judgements about you. The result, says Morin, is a less edited version of your digital self, and a more authentic experience with your closest friends and family members.

“Our goal is to create an experience that’s trustworthy, warm and loving,” Morin says.

Mike Isaac (Nov 2011)

So what is Path? In short, it’s a private photo sharing network — think Instagram, but without the filters and with a privacy model that takes away any anxiety associated with sharing photos with people you don’t know. It’s based around email addresses and phone numbers, rather than a public database of users.

Jason Kincaid (Nov 2011)

So what’s my niggling dark little thought?  It revolves around two small things.

#1 Trust

Firstly I’m honestly surprised by the sheer hypocrisy that’s been brought into light by the revelation that Path had been securely sending, then saving indefinitely, the contents of a users’ address book without even asking for permission to do so.  I can’t emphasise just how much airtime on the app has been given over to trust and privacy.

A user should always trust the network, let’s do away with anxiety over judgement, let’s make the most personal app experience… and on it goes.  The Path ‘About us’ page even goes so far as to say;

Path should be private by default. Forever. You should always be in control of your information and experience.

In control?  The nerve.

#2 Freemium

There are some pretty serious implications of the Path freemium business model. MG Siegler posed this question over a year ago when Path v1 was initially released;

This concept also sort of reminds me of the private Twitter account idea. It definitely appeals to some. But does that scale? And what on Earth is the business model behind that? I have to assume paid accounts, but Path is currently free.

We’ve seen this model before.  This time, Path has been silently collecting private user data from their users for over a year, without permission and without acknowledgement, via a freemium app that has no perceivable short term business model for financial growth, and with a company founder coming from a company well known for leveraging user data for ad-based revenue.

Now, perhaps it’s unfair to imply that Path had the intention of using this private address book data as a key component in a future revenue stream — and from all accounts the issue was an innocent act with no malevolence — but I don’t think it’s unreasonable to question the gap between perception and reality.

When the focus of an app is all about trust, personal experience, control over data — you’d better make sure you don’t break that trust.

Furthermore, why choose the freemium model over normal business model, you know, one where you make something and people pay you for it?  It puts you in a very weird position where your end users are not your customers, and that can’t be a good result for either of you.

If you truly want to connect, to build personal relationships, to establish trust — what better way than to deliver a great service for a reasonable fee?  One where I have no qualms about what you’ll do with my data, or where I feel like a commodity in your revenue stream.

“Our goal is to create an experience that’s trustworthy, warm and loving,” Morin says.

Sure you do.

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