2 Steps Forward, 1 Step Back Is The Crazy Entrepreneurial Path We All Follow

We as entrepreneurs have a jaded view of the world we live in.  It’s a disease actually.  We look out onto the horizon seeing opportunity, wealth, fame, fortune or whatever gets us up each day and disregard the inevitable barriers which lay in our way.  But it’s not always up and the the right, within our journey failure sits awaiting; steps forward and steps backward.  It’s natural and should be expected.

Already for me, this summer has been a microcosm of the entrepreneurial journey.  Courageously leaving a full time job at the beginning of May, quickly learning what I thought was my next gig actually wasn’t, setting out on my own to make ends meet, continually reaching out and connecting with various CEO’s and local entrepreneurs each week, starting to write daily and beginning to reach people like yourself, interviewing everyone from CEO’s like Bryan Trussell of Glympse to entertainers like Sir Mix-A-Lot, being approached to cover topics and startups I never would have imagined a few months ago, being approached by numerous startups with offers to join, and ultimately accepting an offer that is currently forming into my next venture.

Yea, I know… all that in about 90 days.   Words cannot describe this experience, but somewhere in between exhilarating and terrifying would be accurate.

As you can see by my short summer filled with opportunity, the entrepreneurial path is always 2 steps forward, one step back.  The important thing is at the very least you are always moving forward.  If it were one step forward, two steps back – you would be sinking.  Let’s hope you aren’t going that way.

It’s times like these I grab my copy of Founders At Work, a book which has helped me through similar challenging times.  As a collection of startup and early day stories of some of the more well known technology companies from the past 25 years, it is my entrepreneurial medicine.   It gives inside perspectives on the founding of various companies starting with Lotus, Apple all the way to Flickr and Craigslist, almost like you are there with them.  You can feel their pain and experience their triamph all the while secretly wishing/hoping you will one day grace similar pages.  Through reading incredible stories like overcoming insurmountable challenges , founder disagreements, backstabbing, near bankruptcy, exploding revenue, and going public you realize every entrepreneur faces an uphill battle and your situation, although unique, is not impossible.

You will also see that each is a unique story of two steps forward, one step back.  Apple was founded by Steve Jobs and Steve Wozniak in a garage in 1976 and got initial steps forward because of the Homebrew Computer Club.  Paypal, founded by Max Levchin, was a security and cryptography service for transferring money between PDA’s before becoming a web payments company.  Founders like you and me need to understand all these large and successful companies we read about each day all started with a lot of hard work and as just an idea.  Usually that idea wasn’t what you see today and those billoinare founders were a lot like you – scrappy, dissatisfied, hungry and motivated.

Tw0 steps forward, one step back.

Another way to think about it is what Seth Godin calls The Dip. Put bluntly, he visually describes the path people encounter in life, where to be great one has to go through the challenging trough to emerge on a higher level.  It’s a book about avoiding temptation and gravity and becoming the best in the world.

I’m amazed at how quickly people will stand up and defend not just the status quo but the inevitability of it. We’ve been taught since forever that the world needs joiners and followers, not just leaders. We’ve been taught that fitting in is far better than standing out, and that good enough is good enough.

Which might have been fine in a company town, but doesn’t work so well in a winner-take-all world. Now, the benefits that accrue to someone who is the best in the world are orders of magnitude greater than the crumbs they save for the average. No matter how hard working the average may be.

I’ve never met anyone… anyone… who needed to settle for being average. Best is a slot that’s available to everyone, somewhere.

Two steps forward, one step back.

That’s how we roll as entrepreneurs – somehow, someway moving forward.  I believe how you approach the one step back will make all the difference in your life.  Knowing it is a natural step in your evolutionary process as en entrepreneur will help you use it as a stabilizer, not a fall backwards.

These are exciting times, and although constant talk concerning the economic health of our nation is getting louder, I am not going to let it deafen my voice.  Neither should you.  Take the backward step in stride and then look forward as you readily take your next one.

This Is Great Advice For Any Blogger or Writer Today

As most of you know, only recently have I taken to writing.  In fact, it was in mid-May I started this blog as well as had the opportunity to freely post on a world-wide publication like Business Insider.  So when I read something like this statement below from A.J. Kessler, I really identify with it.

In a medium like writing, creating great work means not only producing a lot of work, but doing even more editing.  Honing ideas, stories, scenes, and phrases until they are as good as they can reasonably be.  Even though most of your output may suck, with enough refinement, you can eventually produce something fantastic.

Although writing seems to come to me naturally, it is quite challenging to do it well.  There are times I look back at past posts and think “what was I thinking?”  But, it’s an iterative process and with more writing comes better writing.

If your goal is to produce outstanding work, in any field, recognize that most of what you produce is going to suck.  To get from “suck” to “awesome” takes a huge amount of effort and skill.

That being said, I encourage anyone out there to start writing.  You will be surprised at what will come your way.  It has been the single greatest and most impactful decision I have ever made in my life – hands down.

How Those Of Us Not Named Mark Zuckerberg Can Still Be Successful

A recent post on Business Insider by Rishi Chowdhury titled “Being a Young Entrepreneur” got me thinking about being young, being entrepreneurial and the affect it has on how others view us.

Chowdhury maintains since it is much easier to start companies today, we are seeing many more founders in their late teens and early twenties emerge with significant web products.  This has happened because they 1) come to coding and technology more naturally, 2) have the free time and 3) have less in their life weighing them down.  He notes:

It is also more common place to see teens who have taught themselves code and are able to create innovative web apps due to the freedom they possess. As this generation has grown up along with social networks, they know how to leverage these. What may start out as hobby/after school project can turn into a real business.

That’ s the upside, easily being able to start a company.  He then goes on to illustrate the difficulties in being taken seriously and actually building a company at such a young age.  I fully agree with Rishi and whatever the challenges he sees ahead, based on his writing I believe he has a great future ahead of him.

But what about those of us who aren’t Mark Zuckerberg, who didn’t trip onto a great idea in their late teens and now have more wealth than we ever imagined?  What about the guy in his mid-late twenties, who isn’t seen as the next “wonderkid” but cannot seem to shake the entrepreneurial bug that chases him everywhere he goes?  How about the people out there who don’t know how to code, have never actually created a web app but still dream of building a great business?

I believe sometimes we can be too hard on ourselves.  I think we look at the lucky few and think “geez, that guy is like 5 years younger than I but he is one of the richest people in the world!  How did he get so lucky?”  This is not the right perspective.  Mark Zuckerberg is an exception, and an outlier who has skewed the tech founder perspective

It is still harder than ever to create a breakout business.  Actually, it’s quite a bit harder than it was 10 or 20 years ago.  Why?  Because when it’s extremely easy and cheap to create a new web/mobile app, thousands and thousands of people do.  And when so many more people get involved, the market gets overcrowded.  When the market gets too crowded it becomes incredibly difficult to stand out and be discovered by enough people to achieve a critical mass of users.  Today, you must be very good at what you do to make it big.  Quality now matters more than ever – quality in product as well as quality in person.

So how does one go from a non-technical industry to becoming a tech executive?  Or put another way by Rishi: “A big consideration when starting your company while still very young, is how are you supposed to be taken seriously as a young entrepreneur?”

Well, my advice to Rishi as well as all other entrepreneurs: Be an exceptional person.

1) Build yourself as you build your company

From this day forward and for the rest of your life, you will be interacting with older, more educated and much wealthier individuals.  Sorry to tell you, but they usually will decide if they want to work with you within 5 minutes.  The trick is to quickly impress on them your strengths and abilities, usually within the time it takes to finish your elevator pitch.

This can be the biggest obstacle of all – your personal presentation – especially if you don’t have the luxury of saying “oh, and I’m a Harvard (or Stanford) grad.”  How much time you devote to development of your wisdom, knowledge, wit, personality and social skills will be obvious to businessmen, CEO’s and investors the moment they meet you.   I am a firm believer you can really move forward in life by polishing yourself each day.  No one should ever leave the student mentality.

A few ideas:

  •  Audio learning whenever possible- I listen to Stanford ecorner podcasts each week and it’s like I am in the class.  I also listen to ITconversations when I am driving.
  • Read books like it’s going out of style – business, tech, personal development, fiction, etc…
  • Get uncomfortable and reach out to people whenever possible; learn from each interaction

2) Build your network as you build your company

I cannot tell you how valuable “the network” is, and I am referring to the professional networks like LinkedIn.  Whatever you choose to go with, reaching out and connecting with well established people validates you as a professional.  Once you get connected (via email, phone call, mutual friend into, etc…) immediately book an in-person meeting.  Overlooking a personal meeting is the biggest mistake most young (or less connected) people make today.  Put bluntly: virtual connection does nothing but link you with someone else.  To leverage the connection, you must sit eye-to-eye, open yourself up and let the other person get to know you so they actually understand how to best help you.  This can only happen through in-person meetings.

A few ideas:

  • Reach out to your local tech network and introduce yourself to others in the community
  • Ask to have coffee and meet them in person.  Interview them and write about it!
  • Build out your LinkedIn connections, more people validate you with it than you might think

3) Build your vision as you build your company

There is something magical about hearing someone describe a vision of how they intend to change the world, especially if they are younger in age.  Doing this separates you from the crowd so when you do connect with others they will remember you and your unique vision.  Who wants to listen to someone says “oh, we’re the guys doing daily deals for X industry”?   They most likely won’t remember you or what you are doing with a vision so undifferentiated.  Get passionate, creative, and innovative around something new and start talking about it.

A few ideas:

  • Look at industries which haven’t been fully transformed by the web and search for pain points
  • Take the long view and have courage to paint a unique vision, tell the people you meet about it
  • Use “the network” to find others who share your vision, they might just turn out to be future partners

I understand it’s difficult to be taken seriously as a younger founder because it’s the same as a (relative) newbie to the tech scene, and I’m just barely out of my twenties myself.  We are not Mark Zuckerbergs, who seemed destined to create the next big thing.  But it also doesn’t mean you are any less qualified to lead a great organization.  It just means you have some extra work ahead of you.  And as an entrepreneur, that shouldn’t come as a surprise.

First Ever: Seattle vs NYC DJ Battle And Dance Party on Turntable.fm This Thursday Night

This is AWESOME!  A first of its kind and history in the making.

Seattle DJ ‘s will do battle against NYC DJ ‘s for turntable.fm supremacy, with an accompanying Dance Party physically and virtually both in Seattle and NYC.  The fun begins at 8pm and will go to 1am the next morning in their own respective timezones.  They will time shift the battle, so NYC will start at 9PM EDT and go ahead and Seattle will begin at 9PM PDT. After the event the winners will be posted on the Turntable Battle leader board.

Anyone not in Seattle or NYC can go to turntablebattle.com on July 28th to join in and listen to the two battle rooms .

Here are some event details:

  • 10 DJs on turntable.fm
  • 5 DJs on-stage at each location
  • 2 Physical Rooms (One in Seattle another in NYC)
  • 2 Virtual Room both in turntable.fm
  • House, Techno, Electo House and Dubstep – with some surprises thrown in there.
  • Battle Starts at 9:00 PM PDT

Tickets for the Seattle event are on sale here.

Tickets for the New York event are on sale here.

DJs who will be involved in NYC are posted here:

DJs who will be involved in Seattle are posted here:

What is Turntable Battle?

Turntable Battle (TTB) is a site that focuses on bridging the physical and virtual worlds of DJ Battles and dance parties using turntable.fm.  They host multi-city events across the world that pull music enthusiasts together both in dance clubs and virtual dance rooms. TTB wants to elevate and extend the user experience by letting people know which DJs are on-top of the leader-boards, providing interactivity between two different venues during an event as well as highlight fresh, innovative music from up incoming music producers and DJs.

Founder Ali Daniali has a vision of using Turntable.fm to transform the current DJ industry.  “I envision TTB just getting better every time we put on an event that moves attendees and engages them in a way they haven’t before. We feel that if we can put on events that people can’t get anywhere else, they will come back for more!

Talk about innovation being the mother of necessity.  “TTB came out a need I had when I wanted to attend a NYC dance party and the flight was around $800. So I said to myself I’ll just have my own dance party!  Then I had the next epiphany, to pit us against NYC in a DJ Battle.

During the event attendees within the virtual world on turntable.fm have the opportunity to AWESOME the DJ, giving them a point. You can only vote once for each DJ playing.  TTB will tally the points for each room and announce the winning city on the turntablebattle.com website.  Winning DJs get exclusive prizes from TTB.

The Seattle event will have one DJ selected from a DJ Battle which happened exclusively on turntable.fm this past week.  The tournament had 5 rounds, with the first four events pre-qualifying DJs for Round 5. The winner of Round 5 will move on to perform either on-stage or virtually at the main event on the 28th.  Information about the on-going DJ Battle can be found here.

Daniali is excited at the prospect of Turntable Battle and looks forward to putting on others around the nation.  “My focus now is to build a meaningful company that produces events at very high quality level that bring people together and makes them happy.”

He is thinking about doing some of these battles next – LA vs. Vegas or Denver vs. Dallas or Atlanta vs. Miami.  You can vote on these soon on turntablebattle.com.

You Know What’s Sexy? This Profitable Startup

Ya know, the web is an interesting place where anything seems possible and innovative new applications recreate the very world we live in.  Each day, entrepreneurs flock to it in hopes to create wealth akin to the 19th century American gold rush.  Understandably, it’s tempting to want to reach for the stars and invent a sexy, new, innovative web application.  Yet for every thousand or so businesses created, usually only one actually turns a profit.

It just so happens one of them is ResourceWebs, and anyone wanting to actually make money on the web might want to sit up in their chair and pay attention.  Class is now in session.

ResourceWebs is a network of targeted niche websites, each offering an education resource for its users – hence the name ResourceWebs.  As unique consumer properties they focus on a specific topic and are filled with a variety of high quality content, tools, and resources.  Some of their fastest growing and most popular properties include: railroad.net, solcomhouse.com, famousbirthdays.com, moonphases.info and mpgfacts.com.

Evan Britton, company President and a 12 year internet marketing veteran whom has worked within several successful entrepreneurial endeavors (and a Business Insider contributor as well), says focus and quality are the keys to a successful web content business. 

“On the web today many web properties spread themselves thin by focusing on everything.  We learned it’s about quality not quantity, as the properties which we invested and nurtured the most have become the most successful, while the smaller and more automated properties have slowly died off.

The world of content sites has flipped recently as Google Panda came out with 23 questions for webmasters to consider.  Google says that it looks for articles written by enthusiasts, that it wants articles related to the interests of the site’s visitors and that it more values websites which are a recognized authority on the topic.  Basically, it’s trying to clean up the web.

“This has been our vision all along, to focus on niches that we felt we could truly make an impact on, and not spread ourselves thin by trying to cover topics not directly related to our niche verticals.” 

Monetizing these sites has put ResourceWebs in an elite class – profitable web companies.  Putting to use highly targeted contextual ads ResourceWebs is able to generate significant monthly income organically from the more than 3 million visits and 10 million page views.  Britton wasn’t specific on revenue but did mention ResourceWebs monthly revenue is in the five figures with a goal to hit the low six figures soon.

Starting Small and Staying Lean

Contrast Britton’s approach with one of the latest web bombs – Color.  Color built a photo sharing app for a mobile device, raised $41m before even launching a product, was valued at over $100m pre-launch and created mass hysteria prior to any market traction.  All that unnecessary crap ultimately led to Color falling flat on its face.  Considering all the hysteria, Color never generated much traction or any revenue nor was it even clear how it would ever be a profitable company.   Maybe I shouldn’t be too harsh, they were valuable for at least one thing – teaching us how not to launch a company.

“Our goal with ResourceWebs has been to keep the business profitable throughout each stage of the company.  Doing this may have taken us longer to grow – but it assured that we were growing an endeavor which would indeed be profitable.” Britton maintains this might not be as sexy as other startups but is by far more dependable and sustainable.

I say dependability, sustainability and profitability are damn sexy!

Britton is keeping his options open but seems quite satisfied where they are as a business.  “Seeking outside funding is always an option, but right now we aren’t looking for any further acquisitions and we are able to invest in our properties each month as the business has low overhead and very solid monthly income.”

Know Where Your Startup Could Fail

Britton’s approach to ResourceWebs should be an example to all of us web entrepreneurs.  Below is a chart displaying the top 20 reasons startups fail from an article describing in detail the top reasons for startup failure found in post-mortem studies.   Whether Britton knows it or not, he took care of the top six right out of the gate.  Successful companies generally don’t pop up overnight, must focus on a finding and fitting a market need, listen and cater to their customers, find some sort of ability to generate revenue early on and should be grown and marketed organically so they can achieve a sustainable and profitable status.  Besides understanding green is the color of money, the guys at Color don’t seem to have a clue.  Maybe they should study this image.

Located in Santa Monica, CA, ResourceWebs is a small operation tightly ran by Evan.  The gatekeeper for each of the properties, Dr. Robert Amodeo, is the IT Manager who holds a doctorate in engineering from UCLA.  Prior to joining ResourceWebs, Robert worked as a programmer and IT manager in the UCLA math department.  North of that they have a team of writers who cover specific properties in which they have the most passion, something Britton notes to be a winning formula.  “All in all, we learned that you can find success through tackling a niche if you have passion, maintain focus, and create value.”

So my question is if ResourceWebs is attracting millions of visitors each month, minting millions of dollars each year, highly profitable and growing steadily, why are investors still flushing money down the drain on nebulous startups who can’t figure out what they are doing or how to generate any revenue?

ResourceWebs may not be as sexy as some of the new startups out there, but you know what is sexy?  That’s right, a profitable company.

Social + Location + Real time + These 2 Startups = The Future of Search

Social Search Series: This summer I am embarking on a journey through on the emerging web of Social Search.  Traditionally known as the Questions & Answers industry, this category is currently being transformed by social and mobile technologies.  No more asking a site questions and finding old answers.  I believe the future of the web is ingrained in the dynamic interdependence of social and informational networks.  This is part III of the series.  For background, check out Part I and part II.

Social, although hot right now, is not the only technology transforming the web today.  Location-based social search applications are bridging the gap between our online and offline worlds – and in doing so creating a whole new way for people to find and use information.

This post dives into the new territory of Location Relevant Social Search.

We first determined the traditional question and answer model is now insufficient, since the system doesn’t know your exact location, who your friends are or have any contextual understanding of your query.   The resulting answers are typically of low quality and relevance proving a broken model.

Additionally, search technology needs renovating and although Google is currently King of the Search Land they still have a lot to do if they want to hold onto their throne.  Basically, the amount of information on the web is growing so quickly that even the major search engines are bringing back mostly meaningless results.

I am postulating the next generation of search will reside within your network of contacts, and I call it Social Search.  In my first article a graph was used to illustrate four quadrants separating the field of emerging social search startups.  The first quadrant revolves around Location Relevance and it looks as if a few associated startups are positioned well to change the very way we interact and search online.

First, a few tenets we can stand on when talking about Location based social search applications:

  • Most of the worlds information is generated, organized and stored by human beings
  • People generating information are always at a specific location found with exact coordinates
  • So naturally, generated information always has specific geographical data attached to it
  • Combining those data sets: Search + Social + Location + Context = Maximum Relevance

In a related post, Evan Britton noted “the goal of real time search engines is to inform the public of what is going on right now.  By adding location data, internet users can be specifically informed as to the happenings in a city.”  Indeed, real time search results are incomplete without geographical data included in the context.  Location relevance completes the equation to help provide users with the best possible results when searching for specific information.

Location based technologies are changing our lives in every way imaginable.  Take the emerging location tracking application Glympse for example.  Watching someone drive along a map on their way to meet you, being found when lost on a mountain side or viewing thousands of people moving throughout your city in real-time are just a few ways Glympse will change our lives.

Or think about a similar application Geoloqi, a service using persistent location tracking to trigger notifications tied to real-world places.  Maybe it’s a note you or a family member left for you at the grocery store or maybe it’s part of a set of geolocated data that you opt-into subscribing to as a layer because it was of interest to you.  Some use the app to let their co-workers know how quickly they are getting through traffic to arrive at work.  Make no mistake, location aware applications are already changing the way we interact on the web.

Quadrant: Location Relevance

So what happens when you combine social, searching and location?   Annotating results with specific geolocation data when a query is submitted is fundamental to providing users with the BEST answer possible.  According to Bing, over 50% of mobile device originated search queries are about a specific place.  Think how often you quickly grab your mobile device to search for something.  Exactly.  The search world needs to catch up to the intricacies of how we are using the web today.

You can find the entire list of emerging social search startups here, but I am highlighting two emerging startups innovating location-based search and are poised to be big players in the search space.

LOCQL

LOCQL, Seattle startup some would refer to as “Foursquare Meets Quora”, has smartly put together two basic premises; 1) everybody knows a little bit about something and 2) location specific information always make things more valuable.  Marry those together, involve some game mechanics and you have a living, breathing repository of location relevant information based on where you currently find yourself. Using social power, LOCQL finds the missing links between the user’s queries and the places in the local landscape for which they are searching. They are still in beta but anyone can use the application.

LOCQL Co-founder Robert Mao can see the future of search lies within humans; “The idea for LOCQL came from our life experiences, as International travelers we traveled to many different places, relocated our home’s several times in different countries. There are so many ‘best kept secrets’ only local people know about, those who’ve been there just know it. Unfortunately, without a service like LOCQL, you won’t be able to find it from the web, nor can you find it through search engines.”

A major problem with current search engines is the “objective vs subjective” issue, and the qualitative differences found between their results.  Through quantitative analysis, Mao found up to 60 percent of location intended searches are subjective, meaning relevance can vary a lot between two different users searching on the same subject. “Social search is basically harnessing collective intelligence by crowdsourcing the answer from real people, so by nature it better solves the queries which are subjective.”

With LOCQL, users search or submit on topics and questions – typically in relation to a specific location – and receive highly relevant, useful answers.  “Who has the best burger joint in Seattle?” searched on LOCQL would give you one or two specific answers left by other LOCQL users who actually know the answer.  The same searching on Google will send back hundreds of useless links, most gamed by SEO keywords.  Plus one for LOCQL.

LocalMind

Where LOCQL is building a repository of location based information, Localmind, co-founded by Lenny Rachitsky and Beau Haugh, is centered around a real-time social search platform.  It can be thought of as the power of omniscience at your fingertips — the ability to know what’s happening anywhere in the world, right now.

According to CEO Lenny Rachitsky, they are working on a somewhat obvious concept. “We’re living in the 21st century for god sakes; we have data on people’s locations, we have always-on devices in our pockets, we have all kinds of sensors in our devices and in our world. We know more about what’s happening across the country than we do at the restaurant we’re thinking about going to. We are putting all those pieces together and solving that problem.”

Localmind allows you to send questions to users checked-in anywhere around the world to help solve your basic needs and inquires –  like how crowded is the bar, how many girls at the club, how good is the food at the restaurant, how long is the line at the airport.  More interesting uses include people sending questions to Japan after the tsunami asking if there’s anything they can do to help, or people getting free concert tickets when asking about a concert venue, or saving a family a few hours of travel by finding out a certain hotel was closed.

It has been found that subjective queries can be monetized at 5x – 10x higher than objective queries.  It doesn’t take a rocket scientist to see where all this is going.  Google and Microsoft, I hope you are listening.  The problem incumbents face is these types of platforms are so different they are usually built from the ground up using a whole new infrastructure, not tacked onto an existing search tool.

Lenny noted there are 4 core things they focus on: 1) Your preferences, 2) your friends preferences, 3) your current location, and 4) your exact date and time.  Combining those gives users much more relevant and useful information.  Interestingly, Google would have no clue how to answer those above searches and probably just shrugs its big shoulders if you try.  Alas, plus one for Localmind.

The much accomplished team of three launched Localmind at SXSW in March and have already shipped four major updates to the iPhone app.  Their Android app is in it’s final beta release and will be entering the marketplace in a few weeks, and they also have an open API (www.localmind.com/api) that allows anyone to built on top of their platform.  Amazingly, Rachitsky says 70% of searches are answered in 5 minutes and they just reached 20,000 users, both numbers are satisfactory to Rachitsky at this point.

With a newly raised angel round of funding and relocation plans to San Fransisco, Localmind looks like they are warming up to play some hardball.  And LOCQL, a relatively quiet startup still in their beta release, is very strong technically and has a promising future a head of them.  Indeed, it seems both are ready to play David to Google’s Goliath.  Now, where is that rock again?

Next time, I will determine if Location Agnostic applications are changing the way we are searching on the web.  Yes, I’m looking at you Quora.

Branding – Most Important But Usually Overlooked

Branding is one of the most important aspects of building a company (or persona) but it is so often overlooked.  Consider what Larry Popelka recently wrote:

Most consumers no longer shop for products. They shop for a company. With a plethora of product choices, it has become far too difficult and time-consuming to attempt to evaluate each offering. It is much easier to determine if the company you’re buying from shares your values and is likely to provide a good experience.

As a consumer, I most definitely agree with Larry.  How can you take the time to evaluate each product choice to determine the best quality, best price and most environmentally friendly?  You can’t, it’s impossible.   This is why Branding has become so important, it’s basically a short cut and a time saver to help us make buying decisions.

I touched on this in an earlier post positioning Apple vs Microsoft.  I focused mostly on how the leadership differences between Steve Jobs and Steve Ballmer is determining the direction of each company.  Yet, included in that equation is the respective brands they have built.

Apple – sleek, stylish, different, consumer friendly, trendy.

Microsoft – Techy, corporate, windows, software, stiff.

Although both are great (and hugely profitable) companies, the brands could not be any more different.  In the previous post I go to great lengths and in detail as to who is the better bet for the future.  It’s all about the Brand.

This can also apply when building a personal brand.  There are millions and millions of people in the work force, and quite frankly, they are all your competition.   When 100 people apply for a position or a board of directors is evaluating 5 executives looking for one to become the new CEO, personal branding and what each person is known for will be a huge influence and make the difference between receiving an offer or not.  This is one of the main reasons I have started to write and reach out to so many different people in the technology and startup communities.  I understand I must work just as hard to build my personal brand – what other people believe I am to be – as I am working to build a company brand.  I know it will be a difference maker sometime in the near future.

Lessons for founders and entrepreneurs:

  • Define your Brand; determine what you are and what you stand for as an executive and as a company
  • Describe it in detail but simplify the meaning for people so they will remember you
  • Align your Brand and your market positioning to connect with your target market
  • Connect your Brand with a deeper consumer purpose

Image courtesy of Flickr user NiallKennedy.

The 3 Entrepreneurial Lessons My Father (and his wedding) Have Taught Me

This is a special day in my life as my father is getting (re)married.  In fact I am extremely honored to stand by his side as his best man to celebrate and witness this great commitment.   Recently I have had the opportunity to think a little deeper about what my father, Jim Hughes, has taught me.  Many things graced my thoughts, but 3 things stick out and continue to be huge influences in my life each day.

If you are an entrepreneur maybe they will help you as well.

Devotion- Live What You Love

As long as I can remember my father has lived his passion and his work has been his life.  Amazingly, his faith is part of his work as well – he is the the Director of Stewardship & Development for the Roman Catholic Diocese of Boise, ID.   He lives, breathes and speaks faith.  He does not try to convert one who may not be aligned with his way of seeing the world, but anyone who meets him can sense the calmness his faith brings to his life.  He is the most dedicated and devoted person I have ever met.  His faith is his life and his work is his faith.  You will not meet anyone doubting my father’s devotion and commitment to his cause.

Basically my father raises money to support the expansion of the Diocese just as a CEO would raise money to extend the life of his company.  Say what you want about religion, faith or “believers”, this post is not a sermon; it is a lesson on how to fully devote yourself to a cause or purpose.  If my father was not fully devoted, it would be unlikely people would feel empowered to give money towards an important cause.  When spotted, an entrepreneur needs to take note of someone who is fully devoted because they are rare in this world but the best of examples.  How are investors supposed to put their faith and money in you when you aren’t fully devoted you your cause?  Show me a devoted person and I will show you someone who is making things happen.  Life just does not work any other way.

Appreciation – Life is a Gift

If you have met my father you would know exactly what I am talking about here, his appreciation for life and people is like a potent fragrance that can fill an entire room.  You know it when you shake his hand and look him in the eyes.  It’s piercing.  You sense a respect that falls like a warm blanket on the connection between the two of you.  He appreciates you for just being… you.  When you talk with him he looks right at you, transfixed on experiencing all of you and the conversation at the moment.  It is this endearing respect for all people I intuitively picked up on as a young boy watching his father, and I cannot thank him enough for the unspoken lesson which has helped me navigate through life possibly lighter than others.

As an entrepreneur I think the principles of appreciation is often overlooked, which can be a big mistake.  It’s easy to get wrapped up in our own situation and look out for number 1 first and foremost.  But here a few thoughts to ponder:  When you meet people, what do you think you look like – from their point of view?  Do you look them straight in the eyes?  Do you give them all your attention?  Do you let them know – without saying anything – they are the most important person in the room at that given moment?  I guarantee you will attract better talent with this approach.  Even if you are talking to your newest hire or old janitor, not understanding this principle will be an Achilles heel in your life as people will come to learn deep down you might not think so highly of them.  Success can only be found in respect and appreciation for others.

Patience – Good Things Come in Time

After my parents were divorced my father remained single for roughly 25 years and we all were wondering if it would ever happen again!  He took his (sweet) time to find the woman he felt he could commit to for the rest of his life.  But I never doubted he would end up happily ever after with another person.  As everyone started asking him what he was thinking, who would he end up with and when it would happen.. he quietly understood the principles of patience.  Patience (knowing the right thing will eventually present itself) is what brought him to today – the right time, the right person and the right perspective.

All too often we rush into something too quickly, forcing our will onto the situation thinking that if we just force the square peg in the round hole, it will fit.  Ironically this is the exact trait for which makes for an entrepreneur – sheer will.  The will of an entrepreneur can at times be a positive force, working to help us overcome challenges and move forward.  Yet many times sheer will clashes horns with a silent, but stronger patience.  Sometimes it just isn’t the right time for your vision to come together and you must pull back a bit and take a different route.  Indeed this is tough.  But smart entrepreneurs understand heeding patience and know good things always come with time.

These principles my father taught me have been life changing, I hope they may have the same impact on you.

FYI – LinkedIn Is Using Your Photo and Your Actions In Social Advertising

I discovered this little secret today and want to make sure you are aware of it.

LinkedIn is automatically opting you into their social advertising, using your image and actions with social advertising on their site.  Yes, this is shocking.  It is a warning because as LinkedIn gets larger they might start to extend their ad network out onto other properties and I want to make sure I am not involved (unless I have consented to it).  Probably good to check into this now.

Here is where to go and what you will read (Image below)

Settings > Account > Manage Social Advertising >

Message:

LinkedIn may sometimes pair an advertiser’s message with social content from LinkedIn’s network in order to make the ad more relevant. When LinkedIn members recommend people and services, follow companies, or take other actions, their name/photo may show up in related ads shown to you. Conversely, when you take these actions on LinkedIn, your name/photo may show up in related ads shown to LinkedIn members. By providing social context, we make it easy for our members to learn about products and services that the LinkedIn network is interacting with.

(Checked Box) – LinkedIn may use my name, photo in social advertising.

The box was auto-checked for me.  Obviously, I wouldn’t have gone into my account and chosen for my image and actions to be used in their advertising.  I have unchecked it.

Have I been under a rock or did I miss this announcement?  Shouldn’t we have a say in this type of activity before they default it checked? Anyone else know of this?

Pass this onto others so they can take precautions to preserve their privacy.

Pinger Bets Europeans Are As Cheap As Americans, Goes International Today

Announcement:

As of today Pinger, the #1 free texting provider in the U.S. is going international.

The company who has quietly become the 7th largest mobile carrier in the U.S. will begin their European rollout in Germany with its new Pinger SMS Free app for iOS and Android.  Pinger SMS Free operates within the current mobile eco-system—users receive a local German Pinger number and can text for free with any German mobile phone.

The ambitious six year old startup has set its sites on one of the worlds largest markets and will attempt to lead the way toward enabling free worldwide mobile communications. “The worldwide mobile business is a $1 trillion dollar industry with 5.5 billion subscribers, and all those billions of subscribers have one thing in common: they think they pay too much for their phone service.”

Pinger exploded onto the mobile scene by providing users in the U.S. with a real phone numbers and free mobile communications.  Their revolutionary Textfree products have been downloaded by tens of millions of iPhone, iPod Touch, iPad, Android, and Web users.

In an interview, Pinger CEO and Co-founder Greg Woock explained to me how Pinger sits on top of and disintermediates the carrier to enable a whole different class of devices to freely communicate, essentially becoming phones.  By doing so they open up an entirely new approach to mobile communications.

The obvious question is how can they provide free text and voice in the EU?  Their solution: Gamification.

We Have Cracked The code of European Mobile Economics

Pinger developed a patent-pending technology to allow anyone to exchange text messages for free in Europe.  This new technology ensures that no end user sends more texts than he or she receives.  “We created a governor, a meter which matches the inbound and the outbound flow of data between carriers.  And then we and gamified the experience.”

By keeping texting volume symmetric, overhead costs are eliminated for Pinger, allowing the company to provide this free service to anyone. “The meter is dead center on the UI and it keeps track of points – when someone sends something, it goes down and when someone receives something it goes up.  It’s a dead simple solution.” 

This symmetry model also works for voice calls, which Pinger plans to bring to Europe later this year.

Pinger’s growth, profitability and economics are staggering. They have over 15 million Textfree users and 11 million phone numbers have been given out in the U.S alone.  The traffic between those devices is incremental, meaning they add additional revenue to mobile operators.   Woock estimates more than $25 million dollars are being generated for the carriers by Pinger because extra devices like iPods and iPads are now becoming ‘phones’.

The number of texts Pinger serves per month will reach 1.7 billion soon and they have become the largest mobile advertiser in the world showing well over 2 billion ad impressions per month.  Most amazingly, they are now considered the number 7 carrier in the US and this international play only shows their goal is to be a major player in global communications.

“The expansion will start in Germany with every possible operator, and we’ll focus on text first in order to make sure the symmetrical trading actually works” says Greg.  “We will be neutralizing costs through symmetry and then roll out across Europe later this year”

The Future of Mobile Communications is Blown Wide Open

GigaOm recently noted mobile is now 2% of GDP.  They also touched on how overall revenue is on the rise for mobile data, but in general the price for voice minutes and everything else is on the decline. Meanwhile demand for data is rising by four to six times per year as more people get smart phones and add more mobile devices such as tablets.  More and more data is being created every day, but at lower and lower prices per unit.

So what happens when a new company slides in and offers text and voice communications for free?  Most likely, data margins approach zero as illustrated in the image below.

“Carriers will still be important but they are going to have to evolve” says Woock.   AT&T, Verizon and others are going to need to shift and set their sites on making the most of what they have.  Incidentally, it looks as if they won’t have much data revenue in the future.  They should think about being a smart pipe (versus a dumb pipe) and understand they always have something of value flowing through their pipes.  Monetizing those channels involves having vision and foresight into becoming more network centric to take advantage of peripheral markets, such as payments.

Pinger Perfectly Positioned

Pinger is positioning themselves perfectly to ride the coming mobile wave.  Mobile devices recently exceed traditional computers in unit sales and revenue.  Mobile data traffic is increasing at an exponential rate and will be 95% of global mobile traffic by 2015.   Pinger understands all these devices will be wifi and web connected and is positioned to enable mobile communications at unprecedented levels.  Indeed, we will see more changes in the next 10 years than in the previous 100.

When asked about the future of mobile communications, Woock simply said, “Big changes are coming…  it will be a massive musical chairs and I don’t expect the same people to be sitting when the music stops.” 

AT&T and Verizon, can you hear me now?

———

Press Release:

PINGER TRANSFORMS MOBILE COMMUNICATION WITH NEW GAMIFICATION MODEL
Brings Free Talking and Texting to Europe; Cracks the Code on European Economics

San Jose, CA – July 13, 2011 – Pinger, the company disrupting the mobile space by making texting and talking to real phone numbers free, today introduced its patent-pending symmetry technology to bring the free mobile economy to Europe, where high mobile costs have prevented others from offering free talking and texting.

Pinger is uniquely poised to restructure the end-user cost for mobile communication due to the company’s massive scale, unique local phone number model and new gamification technology that works within the context of the highly-regulated European mobile market.

The company’s European expansion will begin next month in Germany with its new Pinger SMS Free app for iOS and Android. Pinger SMS Free operates within the current mobile eco-system—users receive a local German Pinger number and can text for free with any German mobile phone.

“The consumer price of mobile communications in Europe is too high, and for years various companies have been trying to figure out how to make phone number-based mobile communication free,” said Greg Woock, CEO and Co-Founder of Pinger. “Pinger has changed the game by bringing completely free mobile calling and texting to Europe in a totally unique way. We simply neutralize the high costs for consumers while the carriers still make money.”

The Symmetry Model – Pinger’s New European Gamification Technology

Pinger has developed a patent-pending technology to allow anyone to exchange text messages for free in Europe. This new technology ensures that no end user sends more texts than he or she receives. By keeping texting volume symmetric, overhead costs are eliminated for Pinger, allowing the company to provide this free service to anyone.  This symmetry model also works for voice calls, which Pinger plans to bring to Europe later this year.

“The worldwide mobile business is a $1 trillion dollar industry with 5.5 billion subscribers, and all those billions of subscribers have one thing in common:  they think they pay too much for their phone service,” said Joe Sipher, Chief Product and Marketing Officer and Co-Founder for Pinger. “We can now spread free mobile communication to a wide audience with this simple, yet brilliant twist that combines a symmetry-driven gamification system with an existing mobile infrastructure using real local phone numbers.”

How Pinger’s symmetry model works:

  • The user downloads the Pinger SMS Free app from the iOS App Store or Android Market and chooses a local Pinger phone number
  • Pinger credits the user with 100 Pinger points, worth 10 texts
  • Each text received increases the point total by 10, and each text sent reduces the point total by 10
  • The user thus continues texting absolutely free as long as texts sent are about equal to texts received
  • If the user approaches 0 points, she can opt to use Facebook or email to ask friends to send her a text
  • Pinger refuses to charge for texting; the app is completely free, as Pinger’s revenue comes from advertising

About Pinger’s U.S. Growth

By providing its users in the U.S. with a real phone number and free texting and talk time, Pinger has quickly become 7th largest U.S. mobile carrier and recently surpassed 50 million downloads across its platforms:

  • Pinger has over 15 million users on Textfree alone in the U.S.
  • Pinger users send 1.6 billion text messages per month
  • Pinger users have exchanged over 15 billion text messages in the U.S. since Textfree’s launch in 2009
  • Pinger is the #1 free texting provider in the U.S.
  • In just a year, Pinger has given out 11 million unique, local phone numbers to its users
  • Since adding voice calling in December 2010, Pinger users are already talking for 45 million minutes per month
  • Pinger shows over 2 billion ads per month

“We’ve received tremendous industry support, because our Pinger communications apps generate approximately $25 million in revenue per month for other carriers,” said Woock.  “We give people who weren’t formerly using text messaging real phone numbers and the ability to text with anyone, including friends and family on other carriers, who are paying for messages.”

Pinger Textfree also enables free unlimited text and picture messaging from the U.S. to over 18 countries, and Pinger Textfree with Voice supports free calling within the U.S. on iPhone and iPod touch.

Pinger SMS Free will be available in Germany via the iTunes App Store and the Android Market later this summer.

Learn more about Pinger’s Textfree products at: www.pinger.com


About Pinger

Pinger makes texting and talking free. Our market-leading communications products have been downloaded by millions of iPhone, iPod touch, iPad and Android users around the world. Pinger is loaded with inventive people who enjoy creating consumer products and services that make a difference in people’s lives. www.pinger.com

If SkyGlue is the CIA, HasOffers is the Godfather

It was recently reported that SkyGlue was the CIA for your website.  Well if that’s true, then HasOffers must be the Godfather of the internet.  Just as the Godfather protected his family and corrected others as needed, HasOffers aims to bring better accountability to their family – the web.

“I’m gonna make him an offer he can’t refuse.” – Don Corleone

HasOffers helps online businesses track and manage their own affiliate programs.  The software allows anyone to create an offer, invite affiliates to promote it, and then keep track of which new customers came from each affiliate and how much to compensate those affiliates.  “We want to bring transparency to affiliate marketing industry so it can continue to grow as an industry” says Peter Hamilton, HasOffers CMO.

HasOffers was co-founded in Feburary 2009 by Lucas and Lee Brown (twin 26 yr olds) who spent years in online advertising trying to find the most effective and efficient way to track their performance advertising campaigns.  Their first software license cost  $10,000 to get set up, thousands per month to operate, and locked them into lengthy contracts.

“I got a business to run.  Sometimes I gotta kick asses to make it run right” –  Moe Greene

Finding the existing technology to be unreliable, they spent three years developing their own tracking technology to support their business model.  In the Fall of 2009, the brothers realized that they were not the only ones running into this problem.  According to Forrester Research Group, thousands of companies are paying more than $8 billion a year for referrals (affiliate sales) in the United States alone, and they are running on old technology that is slow and unreliable.  So that spring HasOffers was released as a SaaS product, and it caught on like wild fire.  In less than two years the bootstrapped Seattle startup has grown to 27 employees, more than 7,500 clients and tracking more than $300 million in payouts per year.

“You think I’m skimmin off the top?” – Moe Greene

Affiliate marketing is one of those vapor-like, man-behind-the-curtain kind of  industries where many different players are doing many different things.  It’s hard to even form an adequate category definition let alone set any kind of industry standards.   Proper tracking  is extremely difficult and money is being wasted left and right.  More often than not, companies become unreliable, unaccountable and possibly devious.  I can only imagine the amount of money being flushed throughout the web using old and outdated ad tracking models.

This is a big problem since Affiliate Programs are critical to the growth of online giants like Amazon, Netflix, and Groupon, yet the technology for tracking and supporting these programs was (and to some extent still is) expensive and outdated.  HasOffers flipped the landscape of performance advertising by providing reliable, scalable, and flexible technology at a fraction of the cost of legacy systems.  Go here to check them out.

“There are many things my father taught me: keep your friends close, but your enemies closer.” – Michael Corleone

Being the only Affiliate service in the cloud, HasOffers pricing model completely disrupts the status quo.  According the Hamilton, “because of our modern approach to tracking technology, we were able to provide our service at a fraction of the cost of competitors.  One of these defining approaches is our use of all four Amazon Web Services locations around the world to host our ad servers (tracking technology) on the cloud.”  This globally balanced approach allows them to support incredible loads from around the world.

Another fundamental difference is the self-service philosophy which empowers anyone to get started immediately and dig into the thorough documentation to create the perfect solution for their business.  You won’t find any other affiliate tracking solution with a completely documented 2-way API for every function in the application. Hamilton adds, “we provide the tools for our customers to do great things.”

“Never tell anyone outside the Family what you are thinking” – Don Corleone

One of the biggest draws to HasOffers is their tenacious attitude toward innovation.  “We know that the industry must and will evolve, and we are certainly looking ahead to see what performance advertising needs to grow into a more mature adulthood.”  They are now listening closer than ever, they closed over 7,000 tickets for their current application that came directly from customer feedback.

In fact, they are currently in development of a new platform called Adtribution.com that targets the need for more reliable, more transparent tracking technology to support advertisers, networks, and publishers in a quickly changing Internet landscape.  Also on deck is a mobile-focused tracking platform to allow mobile app owners/developers to track referring traffic for mobile application installs.  Hamilton shied away from giving too many details right now, but it looks as if they are tackling the problem of last click “Rotten Apples” in a pretty unique way.

I like HasOffer’s vision for the future of Affiliate Marketing.  And as The Don would say: “It would be a shame if a few rotten apples spoiled the whole barrel.”

What Do Houdini, Copperfield and Angel Know About Tech?

It’s all about the ‘magic‘ in your app.

In talking with a founder recently about their product a thought quickly came out – “there has to be a certain magic to your app, a function that flat out wow’s the person if you want them to use it all the time and tell their friends about it.”

If your app or product does not generate that instant WOW of amazement, a shot of excitement and glitter of astonishment, you’ve pretty much lost  the user at hello.   There are literally millions of apps and websites out there and most of them are pretty much forgettable.  Nothing about them makes you jump up and say “WOW, how did they do that?”.  And that is why most of them suck.  Here’s three ways to WOW:

Be a Magician (Apple)

  • Appear to do something people have not seen before.
  • Focus on presentation and make it look simple and easy.
  • Hide as much as you can from the user, they don’t need to know how you do it.

Create an Addict (Twitter)

  • Like a drug, instant use of your app should illicit the undeniable urge to use again
  • Understand behavioral addiction and how to interweave your app into the consumer psyche.
  • Think how many times a day you slide your phone open to look for new texts or check Twitter to find the latest information?  That’s an Addict.

Pull on Emotions (Facebook)

  • Humans deepest motivations as are driven by emotions.
  • Tie your purpose to an emotional state (Why check Facebook?  Because we don’t want be left out!)
  • Joy, Sadness, Trust, Distrust, Fear, Anger, Surprise, Anticipation… all illicit responses.

Image courtesy of Flickr user Bohman.

Are You Protecting The Past or Creating The Future?

It’s a simple question but has huge ramifications.

Protecting the past means you are holding onto the past, looking backward worrying about how to preserve what you have.  The is reactive and will not give you the edge needed to be successful.

  • Newspapers are protecting their old antiquated ways to distribute information
  • The music labels are protecting their rights to music distribution, sinking the industry
  • Traditional book stores tried to preserve their old ways of distributing books, and lost to Amazon

Creating the future means you are always forward thinking; searching and thinking for new ways to compete and produce in your industry.  This is proactive and will lead to breakthroughs.

  • Information networks like Twitter looked forward and figured out how to serve people real-time news and information
  • Apple understood people wanted to purchase on track at a time and integrate the entire experience into itunes
  • Amazon looked ahead to find out people want a more simple reading experience, and created the Kindle.

The direction your neck is pointed will determine your direction in life.  Choose wisely.

Is TechCrunch Too Big? Or Is Quipster Too Small?

It’s tough to be a startup today.  It’s even more difficult to be a youngster looking to run with the giants.  I admire young startups like Quipster, who is dodging the giants right now.

Looking at Twitter, Facebook, Foursquare and Google we think they are indestructible.  It’s understandable.  It’s easy to be armchair critics, Monday morning quarterbacks or Negative Nancy’s when it comes to seeing a new startup attempting to play on their turf.  But the reality is a King’s reign does not last forever, and it’s usually replaced by the one we never expected.

Quipster recently launched to mild criticism, especially from one of the media Giants in the startup industry, TechCrunch.  I respect TC and their reporting, but not exactly their take on Chiding the Child.

“Do we really need another mobile check-in app? Newly launched startup Quipster seems to think so.”  They go on the provide a brief overview of how Quipster is really no different than all other checkin apps.

Is TechCrunch too big for Quipster?  My guess is yes, so big they didn’t even care to give the startup a fair shake.

The three paragraph post – which probably took 1o minutes to complete – does little justice in finding the pearl within the oyster that is Quipster.   If they would have looked a little closer they would have discovered Quipster came from three Thai engineers in Palo Alto led by CEO Krating Poonpol, who has always dreamed of being an entrepreneur and fought for seven months to gain an H1B visa just for the opportunity to build a company here in the US.   Krating – a former engineer at Google who became a bestselling author in Thailand for penning a book on his experiences at Google –  also won two medals in international mathematics competitions, taking home the gold for Thailand in physics.

Needless to say, these aren’t 3 frat dudes sitting around looking to get rich by riding the bubble of copycats. Even ReadWriteWeb does a better job reporting both the positives and the negatives of Quipster as well as questioning the tactics of TechCrunch.

By taking more time, TechCrunch would have also been able to share how Krating started Quipster to simplify and unify social check-ins, an category fragmented and ripe for simplification and a problem worth solving.  His goal: to be the driving force behind the next wave of geolocation.

According to Krating “Geolocation is not really about the check-in, it’s about sharing a context of what you’re doing as well as where you are with a single click and no typing.  He continues …we are creating a fun and fast way to share what your doing and what you like about certain places.”

The ” too many checkin apps ” reaction misses the point about Quipster.  Although check-ins apps are abundant, most lack any context.  Receiving a Foursquare update that reads “John Smith just checked in at Joe’s Bar” really doesn’t tell me anything, and leaves a lot to be desired.  Others are taking notice of the problem.

Krating, like any good innovator, is seeing an area where improvement is needed.  “we are seeing at least 5 or 6 responses resulting from each quip, giving a basis of interaction between users which goes farther than just a “here I am”.  This lowers the barrier of interaction among friends and strangers within a city and also gives users a chance to see what is hot in the city.”

I see apps like Quipster emerging with visions going way past the basic checkin feature and on towards making our everyday life easier and more enjoyable.  And for a possible business model, Krating did not to go into details, but he did say “Like Google – building out the interest graph, adding location and targeting meaningful marketing” seems like a good place to be.”

Am I saying Foursquare or Twitter won’t continue to reign in this space?  Not exactly, they are powerful horses for sure.  Do I think Quipster is the new Foursqare at this point?  No, I think they have a few obstacles to overcome.  But I am impressed with early startups looking to move the needle forward.

An Unfriendly Startup Trend

While I was doing my research to cover Quipster, I started to take notice of a new trend in tech media.  Coverage of young and emerging startups is falling behind at a frightening pace.  I am not the only one to notice.  Recent research found Ten companies now account for 30% of TechCrunch coverage.  The image below illustrates the heavily weighted coverage of late seed or large companies, increasing each year.  It is understandable why major outlets cover Apple, Facebok and Google more often, indeed they drive many more pageviews. But it begs the question: Is this raw startup journalism or have Techcrunch (and the like) really become the “New” Old Media?  Has it become all about more page views?

I am a long time Business Insider and TechCrunch reader, but these trends are cause for worry if you are an early stage founder.  Below are a few observations, straight from Guest contributor Mark Goldenson:

1.  Companies funded by a prominent investors get covered twice as much

2. TechCrunch writers do play favorites

3. TechCrunch’s long tail is now 14 times longer but the fat head is 24 times bigger

Guide The Child

My view of the purpose of media is to be a guiding light in helping emerging technologies and companies acheive top of mind with the general public.   Covering young startups with facetious mocking does not do those numbers any justice or help pull startups forward.  Media outlets such as TechCrunch (as well as this one, Business Insider) influence the general public more than they know, and covering a new company with a 3 paragraph Chide probably does more harm than good for an early stage startup.

TechCrunch, Business Insider and the entire startup community – pay attention to small startups like Quipster and remember Twttr was once is the same position.

Here’s A Glympse Into The Future, Circa 2016

July 6th, 2016

I sit nervously at the corner table waiting for her to arrive.  It is 6:15pm on a rainy Tuesday evening in Seattle, WA

“Oh man, what if she bails on me?”  What would I tell the guys?”

I am nervous because this is an extremely exciting night –  it’s my first date with Sarah, a beautiful young woman I met a few weeks ago.

This is my big chance.

If she is late, what does that mean?”  My mind is racing.  “Should I text her to find out where she is?  Or would that just be annoying”

So many thoughts are running through my head it’s about ready to burst.  Then I remember hearing traffic is horrible so I figure it might be a while before she gets here.

“… but wait, I don’t think she’s driving on any major freeways… Nick, pull it together.  You have more nervous energy than Secretariat did at the gate before winning the Belmont Stakes and the Triple Crown in 1973.”

Buzz.  Up pops a message on my phone.  “Sarah says: On my way. I may be late, traffic…  Click for a Glympse of my location”.   Relieved, I now see she is indeed on the 520 bridge crossing Lake Washington, currently traveling at 10 mph and her estimated time of arrival is 6:35pm.  I am then able to watch her as she approaches the restaurant.  She actually arrives around 6:30pm and as a matter of fact we have a great dinner.

 “The ‘hey, where are you?’ question happens quite often each day.  And that’s where we saw the real opportunity.  If we can make it easier to share location, more rich, more dynamic, make it simple without privacy concerns… almost a reflex in peoples lives, that’s where we want to be.” –  Bryan Trussel, Glympse CEO. (Full interview here)

Earlier that afternoon I decided to go hiking up at Snow Lake, a cherished Seattle day hike in the North Cascades.  This is a nice 3 mile jaunt up and over a large crest and then down into the most extraordinary scenery you could find within one hour of a metropolitan city.  Turquoise blue water, evergreen trees, snowy patches on the high cresting rocks and blue skies all around make this one of my favorite getaways.

I have been up there many times before but today an eerie feeling fell over me as I was hiking around.  Luckily I turned Glympse on before I left my car and sent it out to a few hikers around the area as a safety precaution so I didn’t get lost, or worse.  As fate would have it, the former got the best of me and I found myself lost in the wilderness.  Frantically, I looked around – all 360 degrees seemed unfamiliar – and I started to wonder if this was really the end.

“Great, now what am I going to do?” 

I quickly sent out an SOS from my Glympse application, which goes out to all who are currently tracking my whereabouts.  Like a smoke signal of an earlier era the SOS message is a high level alert that I am currently in trouble.  With a view of my Glympse, a pair of hikers located me, gave me some water and together we walked down the mountain to our cars.  Saved by Glympse.

“The ‘i’m late for the meeting, here’s my location’ case might be the entry point, but then people will start using Glympse more and more deeply in their life.”  –  Bryan Trussel, Glympse CEO. (Full interview here)

You think that’s crazy?  Here is an even wilder situation that happened earlier in the morning.  I was walking to a meeting downtown when I decided to take a Glympse of the city of Seattle at 8:05 am.  I pulled out my iPhone 10 and with one finger swipe I was able to see thousands of little dots moving about the city.  Those dots were actual people, moving in real-time all around me.  Double tapping the map zoomed me in on one city block, illumining people choosing to reveal their exact location and identity to me and other Glympse users.

I juxtaposed all the people on the highlighted block with my networks and found out three close colleagues and one old high school friend were within 300 yards from me.

Dude, this is cool.

Viewing this block using Glympse helped me more effectively navigate my next 10 minutes.  I shook hands with one colleague, booked a much needed follow-up meeting with another and surprised an old friend with a friendly “long time, no see”.  Ah yes, technology.  What a day.

“In terms of privacy, we do several things, A) you never share your location until you say go, B) you set the timeline so it stops when you want it to, automatically, C) we put ‘stop broadcasting’ very prominently in the UI, and you can delete any Glympse at any time, it disappears from your phone as well as off our servers.” –  Bryan Trussel, Glympse CEO.  (Full interview here)

Present Day

For the record, the above scenario will indeed be normal behavior by the year 2016.  Just you watch.

Much has been documented about the location tracking mobile application Glympse.  It allows you to purposely share your location and lets people see and track your whereabouts at any moment.  And it’s as simple as sending a text (Robert Scoble does a great overview here).

“Uh, why would I do that?” is the normal response from anyone I talk to about Glympse.  They also said that about putting their credit cards on the internet 15 years ago and I think we all know how that turned out.

I think people will ease into it, just like e-commerce.  Remember back in 1996, no one wanted to place their credit card online. over time eBay, Amazon and others developed a positive reputation for security.  And people warmed up to putting their card online.  We want to be this brand, “this is a Glympse enabled app” so people will trust it. –  Bryan Trussel, Glympse CEO. (Full interview here)

To be honest, I too was initially skeptical but after a rather interesting conversation recently with Glympse CEO Bryan Trussel I am now convinced otherwise.  Once you get past the “I would never share my location” gut reaction, you start to grasp the idea and realize this is the future showing itself to you.  The image to the right is a Glympse Bryan sent as he traveled to our meeting.  I have to say it was pretty amazing watching him get closer and closer to me and then see him walk in the door right on time.

By no exception Bryan is a visionary:

Take from the beginning of time, from the caveman going out and slaughtering the mammoth (family members wondering where they are), from the ship going out on the horizon and people on the shore wondering “where’s the ship”  to the pony express riding the horse, to the telegraph, to now a telephone, now everything is real-time… so if you fast forward accounting for advances in technology… you see a pattern of something people have done since the beginning of time – wondering about someone’s location and whereabouts.  And we will have this need 50 years in the future, If you can take that and make it easier, more rich and simple… we think it’s a good place to be. –  Bryan Trussel, Glympse CEO. (Full interview here)

Available on many different mobile devices, eclipsing one million users and recently closing a $7.5 million Series B round of financing, The Redmond based Glympse seems to have positioned itself at the forefront of the next major trend in mobile space – location sharing applications.

What makes Glympse so intriguing is the practical/utility application as opposed to a game mechanic approach.  It’s tough to argue which is better, but the power of Glympse is quite obvious.  Those three uses I described in the year 2016 help illustrate why the need to locate is a human desire and why sharing our location with people will be a second nature behavior.  It’s not scary, it’s useful.  I believe we could be doing those things now, we just need more people using Glympse.   So go and get it.  It might just save your life.

Do we really have to wait 5 years for such a great day?

Interview With Glympse Visionary CEO Bryan Trussel

Much has been documented on the features of Glympse, so I wanted to chat a bit deeper with Bryan Trussel, Co-founder and CEO, and talk some about where we are going in terms of location technologies.  It was an very interesting conversation and below is a full transcript of the interview.

Location is not a game, it’s a utility.  Elaborate on that statement…

You speak in terms of forward thinking, it is interesting… the elements in our initial meetings and slide decks were hilarious, it was stuff like ‘we think smart phones were going to become more prevalent, we think social networks up and coming’… if you look at the time when we were doing that, there weren’t many smartphones out in the market… people questioned our assumptions.

The thing is people have been sharing location – 90’s and today – just not digitally..  analog.  People share text or phone call.  That happens 10’s of millions of times a day.  Now with location today, you use location in games and searches, etc… but the “hey, where are you?” question happens quite often each day.  And that’s where we saw the real opportunity.  Hey If we can make it easier to share location, more rich, more dynamic, make it simple without privacy concerns… almost a reflex in peoples lives, that’s where we want to be. we are 10% there but happy with where we are today.

We make the claim, like meeting with you today,  I could text or call a few times to let you know where I am currently… or I could just share a Glympse at the beginning and then not worry about and you can see for yourself.  We will be really happy when people everywhere are sending Glympses everyday like a normal action, like a text.

Why is location important?

Take from the beginning of time, from the caveman going out and slaughtering the mammoth (family members wondering where they are), from the ship going out on the horizon and people on the shore wondering “where’s the ship”  to the pony express riding the horse, to the telegraph, to now a telephone, now everything is real-time… so if you fast forward accounting for advances in technology… you see a pattern of something people have done since the beginning of time – wondering about someone’s location and whereabouts.  And we will have this need 50 years in the future, If you can take that and make it easier, more rich and simple… we think it’s a good place to be.

Now that’s not to say there aren’t going to be a lot of other ways to use location in lives, but there was this thought around that there was only one or two player in location space, no… hundreds and thousands of ways with many different things associated with it.

So you would view it as a splintering of the category?

Yes, just like the Internet.  What’s the power of the Internet,  There’s thousands of categories… ecommerce, social, information.  When the Internet came along, borders were broken down the big thing was connecting someone here with someone in Belarus.  Location was irrelevant.  But I think when we were doing that we forgot, it’s more relevant right here.  Your daily life is in the real world.  The people you shake hands with, the kids you come home to… now we can take all the things where location matters.

Now we are seeing the emergence of local, hyper local… The power now seems to be “on this block”

Yeah, it’s like the opposite as before.  take search as an example…. when the Internet was in it’s infancy.  I can search movies in Tokyo, but is that really relevant to me?  But now, geez, there is so much information.. now things like twitter, flash mobs, social networks, coupons, things I can touch right now.   That’s just starting to take off.

Where do you see this space going?  There is an open path for sure.

So it’s kind of foggy.  But here’s where i think it’s going… I make the analogy to the .com era… it was new and nascent, but now the Internet is part of every company, everyone has a .com… it’s just part of the company.  So will location, it will be infused in everything.  Now where you look up a movie theater app, restaurant reviews, coupon, interact with people.. they all have it,  it will transcend most things.  You will have this class of things location will just sit on top of.

Do you think there will be one major player providing location?

Stuff will move up the stack.. two years ago you could have had a company could have had cool GPS chips, then you had companies build up location databases, then you had an API for developers to find location information, now you have companies providing automatic geofencing, you now have I think we’ll just have innovation higher and higher… it’s so easy to do now.  If I can get that, what service can I lay on top of that.  The innovation will just be higher and higher up the stack.

Outside of the “I’m late for the meeting” scenario, walk me through your dream use case.

That might be peoples entry point, then they start to use it more and more deeply in their life.  Probably one of the most common scenarios has gone from “I’m late” to I’m on my way”.  We just put out a new releases where you can put a little icon on your home screen, you can make one like “going home” and you just touch it and then go.  That replaces the annoying questions such as “have you left yet? Have you left yet?  Yes I almost have, no I am stuck in traffic”   People use it when they caravan the kids to soccer.  Where we see it going, where we will be happy, is where people use it in all the scenarios where they could use it.

Take a look at text messaging.  Go back to your text messages, probably 10% involve your location… We see it going from “i’m late to “I’m on my way” so people just do it for fun, I’m going on a run, going out shopping.  Some guy sent one out last week where he was moving out over a field, then he goes over a river, then he starts running in circles… turns out he was hang gliding!  He sent a Glympse out for people to watch his hang gliding.

If we can succeed in our vision, where people use it all the time, making  if you fast forward a few years this premise of people being confused with where people are goes out the window.

Privacy, where do you sit on that issue?

It kind of goes in waves. 80% of the people just want to know that they are in control.  We do several things, A) you never share your location until you say go, B) you set the timeline so it stops when you want it to, automatically, C) we put ‘stop broadcasting’ very prominently in the UI, and you can delete any Glympse at any time, it disappears from your phone as well as off our servers.

In fact, we have a policy to delete any from our servers after 48 hours anyway.  So, I think people will ease into it, just like e-commerce.  Remember back in 1996, no one wanted to place their credit cards online.. over time eBay, Amazon and others developed a positive reputation for security.  And people warmed up to putting their card online.  We want to be this brand, “this is a Glympse enabled app” so people will trust it.

You can share as broadly or as narrow as you want.. to Facebook, twitter, or just one person.

In terms of privacy, we believe in baking it into the product, very obvious and user controlled. Rather than making people read 50 page privacy statements.  It’s all right there.

We built an much more complex location platform initially, it was too complicated, so we actually threw the majority of that away and focused on the utility of it.  The simple action of sharing your location with someone.

So do people have to have the app to receive a Glympse

Nope, people can view any Glympse through a mobile web interface.  What we really want is someone sending a Glympse to anyone in the world, that someone receiving it, “oh, that’s cool” and then they look further.. and put it on their phone and then start using it.  We don’t have a marketing budget… it’s how we have accrued million users through that viral technique.  It’s worked pretty well for us.

16 Years at Microsoft, describe your journey and what pulled you away?

I was at Microsoft in the mid 90’s, it was very fun, challenging, great time to grow up in the software business.  I started in the windows department, then went into games and X-box for a while.  But I always wanted to go and try my own thing and I was really interested in the consumer side.  Even then, I always had the “itch”… it’s one thing to succeed at Microsoft, it’s another to be successful on your own, without millions of dollars and the big name behind you.  I called up some friends in the same situation, we were excited about mobile, about location, and we determined to go do something in the consumer space.

It’s a shame, everybody can’t jump into the entrepreneurial world even for a year or two..  Even if you fail, you will learn so much more.. I am more effective, more driven.  You can’t study from the sidelines..

Do you feel some just don’t have the itch

Yes, i do…. everybody likes and wants a challenge, the adrenaline rush… even in a big company… with that said, you have to put everything into it to succeed and some might not want to do that in their life.  If you are not driven to go make it happen, you are probably not an entrepreneur…

What is the most important characteristic of a successful CEO

THE?  Probably the ability to rally people around a vision.  Which means, A) you have a vision, B) you believe in it, C) it has to be a vision a bit off kilter, because if 5,000 others have the same vision you will get beat.  So it has to be enough off mainstream that you have an advantage, one that makes sense… high risk, high reward.

What advice would you give young entrepreneurs out there who are just starting out.

If you can jump in to the entrepreneurial space early in life, do it.  If you can surround yourself with the people who have done it,  do it.  I can’t image a scenario where even if you don’t succeed, whatever it is you do, that experience will be beneficial.  I wish I would have done it earlier.

Internally, the Microsoft experience was an advantage since we knew how to build and roll out a software.  But externally, when talking to investors, it was a liability would look and say “oh, how long were you at Microsoft?”  They would question if we really were entrepreneurs.

Initially, we had to bootstrap our company, prototype our product and show we could get traction.  Then we were able to show that we could built what we say we can build.  Then we took that to some angels, got some money, then took the product to VC’s.  It was a lot easier once we got something in the market.

So you plan on expanding the team?

Yes, that is the main reason for the latest funding round, we will be expanding the development team.  We got a lot of opportunities in front of us.. That is the cool thing about this area, Seattle, there is a lot of smart, entrepreneurial minded technical people here.  It’s a great place for us to draw upon for talent.

The Future of Search: Why Humanoids Will Rein Over Androids

Social Search Series: This summer I am embarking on a journey through on the emerging web of Social Search.  Traditionally known as the Questions & Answers industry, this category is currently being transformed by social and mobile technologies.  No more asking a site questions and finding old answers.  I believe the future of the web is ingrained in the dynamic interdependence of social and informational networks.  This is part II of the series, you can find part I here.

In my last post I briefly covered how the nature of the web is rapidly shifting toward social.  I also noted the future of search does not look bright for Google, who seems to constantly struggle connecting social dots.  I call this new category (formerly known as Q&A) Social Search and here’s why I think it is emerging as the future of the web.

Semil Shah, in a recent post suggested Google is Asking the Wrong Question With Social.  He seems to agree with my stance:

Before the Internet, most “search” was conducted through offline directories and by the time-honored evolutionary tradition of asking questions. “Where would you recommend I stay on my trip to Hawaii?” “What dish did you order at that new restaurant in the hotel?” “Where can I get the best deal on that hotel?” Google has elegantly stripped down these queries and trained us to, instead, enter the following text in a search box: “Hawaii + hotel deal” or “Hawaii + restaurant + popular dish.”

Now, that might be how some geeks actually ask questions in real life, but this is not how we are wired to search. We are most accustomed to asking questions as an extension of our own curiosities.  And while Google keyword search is incredibly efficient, the content it points us to is unfortunately declining in quality. The bottom line is that although it’s never been easier to search online, it’s getting harder and harder to find exactly what we’re looking for because there are perverse incentives to not only create, but also promote, keyword-optimized content.

Eloquently put: traditional online search goes against our biological inclination of gathering information – asking questions.  Naturally, humans tend to search for information through asking other people questions because we intuitively know everyone is an expert at something.  And as hard as Google tries it cannot create an algorithm as intelligent as a human being, let alone harness the quality of knowledge curated from many different people and perspectives.

So what’s the point of social Q&A and why is it merging into the next form of search?

I would postulate the original point of asking questions – even dating back to prehistoric times – was actually search.  It was how humans searched for information before Google, PageRank and keywords were available.  Cavemen conducted searches when they asked others where they made their last killing for the same reason we, in the 21st century, type “pizza” into a Google search bar; to find out where to have dinner.  Because most humans are now constantly connected, it feels more natural to use social tools to find information.  Notice how often we send out messages on Facebook or twitter asking our friends  this or that, if they have eaten at a certain Pizzeria or seen the latest Transformers movie.  It is not a coincidence social questions are increasing at a rapid rate.

As I was talking to a CEO the other day he made an interesting analogy I think fits well in this discussion.  During the first internet wave (mid 90’s), it was fascinating how you could sit in a coffee shop in Seattle and somehow find information, communicate and do business with another person in a place like Tokyo.  Borders became irrelevant as the web layered on a communication system that spanned the globe.  Never before in human history had we experienced this phenomenon and it certainly was socially and economically transformational.  But today, do we really care about what is available to us in Tokyo?  More than what’s available in Seattle?  Do we want 1,000 different options displayed on 100 pages to requiring time and attention to sift through?  No, the pendulum seems to be swinging back the other way.  We care about what is going on down the street, in our social circle and in our immediate local surroundings.  We want to be shown what is MOST relevant to us at the moment (and not have to see the rest).

It seems the cycle in Search has followed the same trajectory.  Google broke through because it discovered the very best way to 1) index and organize the web and 2) bring us information matching specific keywords when we searched.  But it’s a different web now.  The problem is there’s just too much information on the web today.  Like, waaaaaaaaay too much.  The major player(s) are struggling to instantly sift out 99.999% of the information in the world so they can provide us the most relevant and useful .001% – our answer.  What they lack is intuition.

For example I live in Seattle and right now I am hungry for pizza, in fact New York Style Pizza, so I choose to do a quick search on Google “New York Style Pizza” to find an viable option.  Observing the image above, it is clear Google is lacking in the contextual department.  Lil’ Frankies and Big Al’s are both pizza joints in New York City!  Amazingly, nothing on the page has anything to do with pizza here in Seattle.  This is not good.  I’m pretty sure my friends on Facebook or even growing local social search platforms such as CrowdBeacon or LOCQL would provide me a New York style pizza option closer than 2,400 miles.  I am aware Google has made strides in localization, but it is not apparent when I quickly use their main search tool.  This simple query illustrates how broken search is at the moment.

It is becoming clear to me, as more  and more information gets created each day, how important our network of social contacts are in bringing us information. More specifically, those two phenomenons are inversely related – as the amount of information grows, the tighter and more important my social contacts become. Why? Because as the amount of information increases we need context and location to help determine relevance. Context can help determine if I am searching for a pizza place in New York or if I am looking for New York style pizza. Location helps define if I am indeed looking for a New York style pizza joint here in Seattle.

Another noteworthy contextual observation is the innate difference between certain search decisions, for instance searching for a clothing retailer versus searching for a restaurant. I would be fine buying a shirt from a distant retailer in New York City. Ordering pizza…? Not so much. Google’s Android DNA doesn’t seem to understand humanoid nuances at all. I guarantee a social search application (powered by my friends) would intuitively understand the contextual and location nuances within my searches.

Understandably, this is freaking Google out and forcing them to push socially awkward applications onto their users at an increasing pace. Unfortunately this is not how social works, you simply cannot rush things on the first date or you will never have the opportunity for a second one. Google+ looks to be their best social offering as of yet, but only time will tell if they have finally aligned the social dots.

It is now clear why Google purchased Aardvark, one of the social search companies I highlighted in my last post. Just read this brief overview and think of how it could help us search:

Aardvark is a way to get quick, quality answers to questions from your extended social network. You can ask questions via an instant message buddy or email. The questions are then farmed out to your contacts (and their contacts) based on what they say they have knowledge of. If you ask taste related questions about music, books, movies, restaurants, etc., they’ll ask people who tend to show similar tastes as you in their profile.

It will be interesting to see how (and if) Google integrates Aardvark to help navigate this new search territory. Regardless of the outcome, I do not think Google will loose its shirt anytime soon. They have a stranglehold on the overall search market and most realize there are many different channels in search. I agree with Semil,”This type of search, or social discovery, will become important, but it won’t dominate search—it’s just one channel, and different social networks exist for different parts of our lives.” 

This is just the beginning of an incredible change in how we will find and use information and I cannot wait to see what emerges. In five years (2016)  we will not be looking at a white screen with blinking cursor begging us to type a few short words into the search vault so it can pull thousand’s of links for us to plow through.

In my next post I will go in-depth on the first of the four quadrants of social search, an area I believe has yet to fully experience this massive technological revolution.

$99,970,000,000 is The Difference Between These 3 Decisions

If MySpace would have just copied Facebook, it would have been FacebookSean Parker

That was Sean Parker’s answer to the question “what happened to MySpace?”  in a recent interview with Jimmy Fallon.  This got me thinking and was the needle prick I needed to start on a topic I have wanted to write about for some time.

If you can remember at one time MySpace was the social networking behemoth, holding the crown as the largest site on the web.  “Do you have a MySpace?” was the proverbial question between twenty-somethings.   They had over a hundred  million users worldwide, were driving revenue in the hundreds of millions of dollars and it looked as though we had an MTV 2.0 on our hands.  They made headlines with the acceptance of a $580 million acquisition from News Corp, validating Social Networking as a ligament startup business venture.   Little did we know they would turn out to be a joke, an afterthought on the web and a huge lesson to any young founder looking to build the next big company.

At right is a snapshot of the MySpace.com monthly unique users from earlier this year (courtesy of Techcrunch). As you can see (and probably already knew) usage has continued to plummet.  MySpace is literally a ghost town at the same time Facebook has grown to the largest site in the world, officially eclipsing 700 million users on their way to an inevitable 1 billion users and will soon IPO with a valuation of more than $100 billion!  This begs the question: What happened?

My take from Parker’s statement is MySpace had such a massive lead in users, media coverage as well as total mindshare in the social networking space it was their race to loose.  Quickly incorporating the features they saw Facebook releasing could have helped them stay atop the game.  Imagine what MySpace would be worth now if all they did was manage to keep it all together and ride out this new wave of social/mobile web.  Definitely more than the rumored $30 million News Corp is looking for to get them off their books.  What a sad ending to once dominant company.  To take Parker’s statement a bit further, I argue the biggest mistake MySpace made was sell out to the suits for a mere $580 million.  Here are three key differences that add up to a $99,970,000,000 difference between Facebook and MySpace.

Lack of vision and Leadership

The biggest difference between Facebook and MySpace is an intangible I have written about it extensively before.  Just as the difference between Apple and Microsoft was found in Leadership, so too was the difference between the social networking companies Facebook and MySpace.   (Get used to me writing about vision and leadership because I believe it is the number one reason companies succeed or fail.)  MySpace was early out of the gate and sprinted the first mile but did not foresee what could possible be on the horizon.  All they knew was people wanted a page to customize as their own and maybe a place find and connect with others.  But who was leading MySpace?  To put it bluntly, MySpace had no clue what they were doing and no clue who to look towards for leadership.  MySpace was not created by a visionary such as Mark Zuckerberg, who saw something in the web most did not.  They were driving solely on dollars and revenue, and the lack of vision and focus devastated MySpace’s growth in the end.

If Facebook was only a profile page where you can connect to your friends, MySpace would have won the race.  Facebook bet (and won) on a vision of the personalized web, integrating our friends in almost everything we do in the digital world.  Zuckerberg saw not only a web of information, but a web of people and set out to connect all those people into the web.  Execution on this vision required laser focus from a passionate founder.  MySpace ran the first mile faster but lost its way.  Facebook knew the course and won the marathon.

Message to entrepreneurs:  Have the intelligence to place a visionary leader at the heart of your company and let them guide the way.

Technically Inept

Myspace proved they were technically inept, lacking any engineering vision of how the web should work.  According to a recent Bloomberg Businessweek tell-all article, the company was constantly at odds with leadership on how/what/where to innovate.  “They were having to do all technical innovations to address the various panics that are happening. Basically their development cycle turned into one of crisis management, not one of innovation.”  Bottom line, MySpace lacked the vision as well as the technical edge necessary for a web company to maintain their dominant position.

More importantly, MySpace was not created as an innovative new platform built by forward thinking engineers. They were a company who decided to copy Friendster using sub-par technology but grew because they understood how to market their brand to the general public.  Choice quote from the article: “Using .NET is like Fred Flintstone building a database,” says David Siminoff, whose company owns the dating website JDate, which struggled with a similar platform issue. “The flexibility is minimal. It is hated by the developer community.”  Why did they choose to do this?  Driven by revenue pressures they chose to skimp on technical details and focus on more ads.

On the contrary, Facebook was intended from the beginning to be a socially transformational technology built by smart engineers.  Zuck made it a point that their engineers would determine the road ahead.  They aimed to redefine the web and understood this would require major investment.   As a non-technical executive, it was still obvious to me who was stronger in  engineering talent between the two companies.  Remember how refreshingly clean a Facebook profile felt vs the craziness that was a MySpace profile.  MySpace chose to skimp on the engine and polish the chrome.  Bad mistake.

In an interesting note, most close to Zuckerberg would admit the best decision he has ever made was to bring in a much senior and more businesslike Sheryl Sandberg as the Chief Operating Officer of Facebook.  It is said she is in more direct managerial oversight than Zuck, and who would want that?  Sandberg has been credited with building out Google’s ad business, helping create a multi-billion dollar search ad business.  I credit Mark for submitting his ego and filling holes with the right people, Facebook is better off for it.  Looking at MySpace and their recent history I cannot say the same.  Holes were not filled and egos were not subdued.

Message to entrepreneurs:  Know where you are good, understand where you need to be great, and find the right people to fill the gaps.

Poor Culture Fit with News Corp

“I think any time a startup is acquired, there’s always a certain amount of culture clash.” – Chris Dewolfe, MySpace Co-founder and one time CEO.

The worst decision for the future of MySpace was to sell the company to News Corp.  (Okay, the founders and initial investors made out fine, but the future of the company pretty much was set in stone.)  Time and time again I observe or read about another startup being acquired by a larger company and I think to myself  “well, there it goes…

The blazing, crazy, edgy, partying, sometimes innovative culture of MySpace was suffocated by the bureaucracy of corporate New Corp.  Do yourself a favor and think about your startup culture currently, and then think about the culture in a Microsoft, Google, Aol, or any other large corporation.  Ask Dennis Crowley.  Ask Evan Williams.  Ask Caterina Fake.   It usually doesn’t end well when you sell your booming startup to a large corporation.  Facebook fought off takeover bid after take over bid until everyone knew they just weren’t ever going to be for sale.  That’s ballsy, but its also what has to happen if you want to see your vision come together.

Message for entrepreneurs:  If you have a long term vision for your company, don’t sell – ever!  If you want to make some quick money, sell at the top of your hype – and walk away as early as you can.  The post-acquisition company will be nothing like the pre-acquisition company.

I am tired of seeing innovative startups being gobbled up by larger corporations only to disappear off the face of the earth – this is not how innovation changes the world.  It is actually how innovation is hindered.  I understand, as a founder you are double minded building your company.  You want to make a chunk of cheddar, and  there’s nothing wrong with that.  Isn’t that what going into business is all about?  I understand… and I would want to do the same thing in your position.

But before you sign those papers I would step back and determine what you really want and if it’s the best option.  If you really need to sell, truth is you did not build the company correctly.  If you want to cash in, great.  But understand, odds are the world will no longer be changed by your innovation.  If you really feel selling is the best option, think deep and hard about the culture inside your company as well as inside the potential acquirer because the marriage is going to be tough.  And if you feel deep down in your heart your company has a great future, don’t sell out.  Just think about how News Corp and the original MySpace founders feel about this outcome right now.

Image courtesy of Flickr user UltraRob.

This post was originally published on BusinessInsider.com.