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.

Here’s 10 Reasons Why You Should Sponsor The SoEntrepreneurial Blog

See that mountain biker over there to the right?  That could be your business/company image and link for an entire month.  Monthly Sponsorship Investment -$5oo.  A quick payment through paypal will get you highlighted for 30 days straight on this blog.  Why the specific amount you say?  Here’s 10 quick reasons:

Nick needs to make blogging a sustainable practice.  He has been told he is pretty good at it and he enjoys every minute and every interview.  Please think about how you can help him and send this to any founder, entrepreneur, business owner, lawyer, dentist, investor, CFO, CEO, CPA, MBA, MD, student, grad student, mother, father, grandson, brother, sister, and baby you can think of who might be able to keep SoEntrepreneurial adding value to your life each day.

See those twitter, facebook and linkedIn buttons below.  Click em!  Send it.  Let’s do this!

I Am Thinking The Exact Same Thing Right Now

John Battelle is currently embarking on a new book, titled What We Have Wrought.  In it he is attempting to write a narrative of the perspective in 2040, a generation ahead who is looking back on the last 30 years of progress back to today.  As he describes our situation, I stumbled upon this and fully agree with him:

I believe we are in a critical moment in our civilization’s development, one where we will face a number of fateful decisions about how we interact with each other, with business, and with government. The decisions we make during this period will frame the kind of world we’ll leave to future generations. Who will control the data we create? What access will we allow citizens to the machinations of government? What kind of people will we become when every single one of us is deeply connected to a socially aware platform like Facebook? Are we building systems – in healthcare, energy, finance – that are too complicated for any of us to understand, much less control?

In short, can we handle what we are creating? Thirty or so years from now, will we be questioning ourselves – “Lord, what hath we wrought?” Or will we look upon what we hath wrought, and be pleased? I think the answer lies in exploring where we are, right now, and laying out the implications of our actions today.

A longer post from me on these thoughts will follow, but go ahead and ponder those words for a moment.

A Response To ‘Being The United States of Idiocracy’

I recently wrote an article titled Did We Just Become The United States of Idiocracy?, which was published both on this site as well as Business Insider.  It is a poignant piece, treading lightly but on a topic that should be worrisome to Americans- the private investment sector giving more attention and money to trivial products and companies while education and healthcare continue to wither on the vine.  Here is thought provoking comment from a Business Insider reader I felt would be great to share.

Interesting article. I also have marveled at the amount of talent and energy being thrown at really trivial things involving the Internet or mobile phones or other toys. I attribute this to the precarious imbalance between investors and producers. The investors have never held so much power and been so dominant in determining the economy. Yet, that is an unstable position, since it is producers that are the real source of power and activity. For example, young working people are producers – they don’t have money to invest. People on pensions are investors; they don’t produce anything but live off of the production of others. The people in the streets in the Arab countries and Greece are the producers of those countries, and the power they are fighting is the investors.

Investors add value to a capitalist economy by directing productive activity in an efficient manner. The current world imbalance consists of a very large amount of investment capital, which is remarkable already, but even more remarkable for the stupidity of that capital. Capital is managed for the good of society not by a dictator but by the risks of investment. But our Fed in its infinite corruption has decided on a new mandate that no investor should ever lose money, no matter how stupid or inappropriate their investment.

Thus the fools who lent Greece money, which is a purely absurd loan that deserves to lead to poverty for whoever approved that loan, these fools will be bailed out. This makes today’s investor class the stupidest of such that have existed in recent history. There is no possible penalty to risk; the Fed has stated a world-wide policy of Too Big To Fail which seems to include all investors and all investments in its complicated web. Thus the traditional positive contribution of the investor class has flown out the window. Rather than rational distribution of production, they now produce irrational and foolish distribution of production. There is no down-side to risk, all risk is good risk, all investors big enough always win as the Fed bails out the stock market, the sovereign debt, the big corporations that have failed such as GM.

Net result is an entire generation creates silly toys for mobile phones or new Facebook games rather than productive work that could be of benefit to the general public or mankind. The interesting byplay is that the producers of the world are going to war with the bloated investment system, and that is World War III. It is not between countries, but between the controllers and the controlled.

The world of VC and startup is sort of a place where producers are lulled into collaborating with the world’s enemy, or at least their own natural enemy. VC is evil. It isn’t shades of gray. There isn’t a compromise. There isn’t a way you can enjoy being productive and the fruits of your labor and still get along with an investment system gone pyscho. That’s what this generation will need to work out. There is no compromise with evil, one must oppose it.

Here is Why Your Passion is Always A Blessing

This post is built off of Bob Crimmons’ recent post Entrepreneurial Passion: A blessing or a Curse.  In one part I agree with Bob and in another I find disagreement and will offer a slightly varying perspective.  Let’s call it taking a different path to a similar conclusion and in doing so encouraging any entrepreneur that yes, they should pursue their passion to the fullest extent.

I agree with Bob in his general message – you must validate the idea you have become passionate about.  As he eludes, it is natural for an entrepreneur be overcome with the passion for “scratching their own itch”, working long hours to get something out into the market only to launch and then realize their execution is all wrong.  The way around this (and what I believe Bob was encouraging any entrepreneur to do) is to do massive market testing and validation prior to any time invested in production.  How do you do this?

Observe – Go into your target market’s environment and observe them interacting around where your product would fit.

Investigate – Ask them open ended questions regarding their thoughts on X, Y, Z products and features.

Float The Idea – Spend $25 on a google ad promoting your product with the link leading to a landing page, observe the click response.

Test and Research – Do massive business model research prior to launching a product, especially if you are developing a “social app”.

These are just a few actions that fall within due diligence and business validity testing and they should be done prior to any product work.  So yes, I agree with Bob when he cautions entrepreneurs in blindly pursuing their passions.

I should know, I was the guy Bob was talking about the first attempt at my start up, Loyaltize.  I was extremely passionate about building a business which not only was to be a web 2.0 darling but would also rewrite the books for the new social media marketing era.  Our bright idea was to integrate local business marketing and the support of local non-profits, such as youth soccer teams.  Local business created offers and coupons with donations tied into them, so when someone redeemed the offer a donation would go from the local business to the local soccer club.  Everyone wins right!  We were so passionate about this idea we spent more than a year to build our site (remember, I was living a double life so things take double the amount of time you think they should) and finally launched in our test market.

BAM…. fell right on the ground.   We scraped it forward for about six months but basically realized our execution around a few main features was flawed.  Would we have saved the year if we did proper user testing and validation?  I am not sure but we would have learned a few key lessons and we probably would be still growing right now had we validated properly.  I learned you need to do major validation, testing, and “pivoting” around your initial assumptions to get the proper fit.

-I am now going to talk strongly here and although I have never met Bob, I fully respect him-

What struck a cord when I read Bob’s post is I am that guy – incredibly passionate, focused, head down working to build out a new platform to take over the world.  It struck me quite deep because after working so hard on something you start to wonder if you are doing the right thing and really cut out to be an entrepreneur if things aren’t coming together.  It struck me because, as they say, “truth hurts”.

Passion definitely can work against you, and if you are an entrepreneur you are probably nodding your head with me.

But I would caution Bob on cautioning entrepreneurs to be wary of their passions.  It has the potential to send the wrong message to young aspiring entrepreneurs; because it’s not what you say, it’s what they hear.  They will hear messages such as “don’t follow your passion, follow a proven business model” and “Your passions are not valid businesses”.

Following a proven business model does not inspire innovative new ideas, it does not create new markets nor does it spawn new industries.   Encouraging entrepreneurs to follow proven business models creates hundreds of daily deal sites.  We don’t need more competition, we need more innovation.

I would not be writing for you today had I taken Bob’s advice.  There is a high probability that if I went to a mentor such as Bob and they cautioned me on pursuing my passions, I might be on a different path.  Keeping aligned with my passion is what helped me gather enough knowledge and courage to make the leap and put me in the position I am in today.  I am so grateful someone I respected didn’t pull me aside and say “ya know Nick, this Loyaltize thing just does seem like it’s panning out for you.  Are you sure you should pursue this passion?”

I think Bob’s message takes the wrong angle on a good point.  Rather than telling entrepreneurs to be wary of things they are passionate about, I think a better angle on this issue would be to encourage entrepreneurs to harness their passions for everything they have.  Understand you have been tapped by something (someone) and dive deep into the problem area you are looking to bring a solution to.  Indeed entrepreneurs need every ounce of their passion to get where they want to go.

Jack Dorsey was obsessed with how cabs moved and communicated about the city.  He was so passionate about the idea of communication networks he sat on the idea for twitter for something like 6 years.  He couldn’t shake it and decided to build it even though it seemed crazy and didn’t make sense.  We are lucky to have twitter today to help us connect with people around the globe (@jnickhughes if you want to connect with me)

Dennis Crowley was seemingly obsessed with location aware technologies, so he built Dodgeball.  He ended up selling it to Google quite quickly, which some saw as a success, but they subsequently shut it down.  This really bothered him.  Because he was so passionate about this concept he build another application, Foursquare, with the knowledge and validations they learned from Dodgeball.  Foursquare just crossed the 10 million user mark in a little over 2 years and is paving the way in geolocation applications.

I am not being facetious here, I am being totally serious.  I guarantee Jack, Dennis, Steve Jobs, Bill Gates or any other successful entrepreneur followed their passion.  The next “Jack” or “Dennis” is probably reading this right now.  They are gripped by something in the world, so gripped they want to build a product and business around it.  I say follow it.  Build it.  Test it.  Work it.  Rework it.  Test it again.  Stay on it.  Just don’t give up, the right thing will come together.

Call me crazy and laugh to yourself if you want, but I wholeheartedly believe this: The only difference between you and Jack Dorsey is… you just haven’t figured out the combination yet.  That is it.

In fact, I am of the camp we need more entrepreneurs who think bigger.  I agree with Jason Freedman of FlightCaster.

Jason wrote a post recently about a recent trip he took to visit some friends, Henderson and Rebecca who live in Mississippi.  He was shocked at what he felt as he was leaving them:

I’m glad we’ve moved past throwing sheep at each other on Facebook.  I’m glad we’ve moved past acquiring users by downloading someone’s contact list and spamming their friends.  The startup ecosystem is much healthier than it was in 2008.  But still, I’m concerned.  As a fellow geek and early adopter, I’m psyched for one of the photo-sharing concepts to really take off.  I think it’ll be sweet to instantly share pictures with my friends in cool new ways.  But I know it’s not a huge problem for Henderson and Rebecca.  It’s just not an issue that affects them.  I’m concerned about how many of us are working on problems that just don’t matter all that much to the rest of the world.

Look, it requires a lot of passion to change the world.  I mean, to really impact Henderson and Rebecca you are going to need to harness all your passion and give it everything you got.  Just remember to test and validate along the way.

Image courtesy of Flickr user Horia Varlan

Here’s My Call For The Occassional Unplug

Our world has changed quite a bit in the last 10 years; always connected phones, tweets, Facebook status updates, digital maps for when we get lost, free music 24 hours a day streamed through our mobile phone.  Sometimes it takes unplugging and detaching from our devices for a few days to realize how far we have progressed.

I am connected and on from the moment I open my eyes each day until the minute I fall asleep.  Every day I read and write on this laptop.  Every day I listen to music through my “phone” (imagine saying that sentence 10 or 20 years ago).  I also us my phone for messaging friends, browse online and shop and pay for things.  Using technology has become an integral part of my life, as I assume it has in yours.

I recently took a weekend backpacking trip with a few good friends in the mountains of Washington State (about 2 hours east of Seattle).  It was awesome.  Getting out in nature sans any electronics and internet connected device is so rare today I think most don’t even realize how great it is when you get out into the country for a short time.  Nature has now become the exception, not the rule.  This though started to brew this last weekend.  Below are a few thoughts I picked up as we trekked through the mountains.

We use our tech devices for EVERYTHING

Looking for directions, location information, talking, messaging, searching for information, taking pictures, sharing pictures, planning ahead, making a list, reading an article, updating on news, killing time when we are bored, and many more…  Wow, it doesn’t become so obvious until you don’t have your internet connected device on you – we are a constantly connected society that fully depends on the internet to function.  We actually can live and function without them.

Life is more peaceful without constant interruption

In fact, with my phone disconnected and turned off, I did not have distraction or interruption to take me away from the moment.  Think about it for a second, the mere fact that you have an informational device on you capable of so many different things is in itself a distraction.  You can grab it anytime to check and see if someone has text or called you.  You can bring up a little game you have been playing to kill 5 minutes while you wait for someone.

These little mental”recesses” take you away from the moment you are in currently, and I would argue this is one of the reasons more people are stressed out, short fused and possibly feeling like they are going crazy.  The brain has no time to take in the moment, uninterrupted.  Being in the wilderness even for 72 hours helped me get some of this peacefulness back.

Your body needs to be physically challenged

With technology advancing so rapidly, it seems we continue to develop applications that do for us what we used to do physically.  This is not the best situation for us, as a species.   No one will argue we are getting larger as a society, as well as less healthy and more lazy.  Getting out on the trail, putting 40 pounds on your back, hiking up a mountain, burning some calories in the process all help you maintain proper physical fitness.  It felt great.  I will never lose my physical ability to run, hike, swim and play as children do.  I believe that is what life is all about.

Sometimes we need to unplug and bring ourselves back to how life was meant to be experienced – naturally.

I Just Asked My Friend About the Future of The Web, and Here is What They Said

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 I of the series.

Traditional Question & Answer sites are old and antiquated.  You know the drill – go to a specific website, type a question into a search bar and a variety of indexed answers come back to you.  The answers vary in context, quality and relevancy.  This was fine in 2002 when the web was less mature, but the reality is with advancements in web technologies it simply does not work today.  The problem is these sites typically:

  • Don’t know your location

  • Don’t know who are your friends

  • Don’t understand the context of your query

  • Are typically of low quality and relevance

Answers tend to be more relevant and helpful when they include this information.  When the system lacks these inputs, the quality of answers remains very low and you are left with an inadequate solution .  In fact, so low in quality you might as well just pick up your phone and call a friend.

Enter a new category of applications emerging on the web.  Social search applications implicitly take into consideration your social network, your location, your demographics, previous search history and other key data sets to help provide you with the best answer possible at that time.  I will not refer to the Questions and Answers space anymore, since I think asking a question and waiting for an answer is quite limiting and the entire concept is antiquated.  I believe we are on the cusp of a new internet category where users leverage their social/local sphere to quickly find relevant information.  I am calling this space the “Social Search” category.  Note that currently I am not including Facebook – the largest social networking site – in this category.  This is a study of startups who are strictly focused on social searching technologies.

This space is heating up and I am starting to read more about emerging companies working to build out the next social/local search platform.  Traditional Q&A sites are starting to see the writing on the wall, with Answers.com just recently massively laying off employees and replacing their CEO and CTO.  In fact, I wrote about a few local Q&A startups a while back noting this space is a game changer on the web.

When evaluating this new space, Four categories/quadrants emerge to separate the players in social search.  I have diagrammed them based on their relation to the four categories.  (If you don’t see an application that might fit on here, please reach out to me)

Location Relevance

Locating a user when a query is submitted is fundamental to providing the BEST answer possible.  According to Bing, over 50% mobile device originated search queries are about a specific place.  Think about how often you need an answer and how often you quickly use your mobile device to find it.  Exactly.  Mobile search will define the next wave of the web.

LOCQL

LOCQL is a Seattle startup some refer to as “Foursquare Meets Quora”.  These guys smartly put together two basic premises; 1) everybody knows a little bit about something and 2) location specific information always make something more valuable.  Marry those together, involve some game mechanics and you have a living, breathing repository of location relevant information based upon where you currently find yourself.  They are still in beta but anyone can use the LOCQL application.

Others include:

CrowdBeacon

Loqly

Gootip

Hipster

Travellr

LocalUncle

Local Mind

Location Agnostic

Some social search applications do not integrate location technologies into their functionality.  These applications more or less originate around specific topics and knowledge bases, not so much around a specific location.   Although these applications are location agnostic, they still can be relevant to certain users and possibly large search companies.

Aardvark

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.

Others include:

Formspring

StackOverflow

Quora

Yahoo Answers

Long Term Value

It is important to create a  repository of information so users have something to search, and if done correctly this can be a great competitive advantage – the largest collection of information generally provides the best and most accurate information to a user.  Most questions have a narrow answer and this information generally does not change much over time.

Quora

Quora, founded by former Facebook employees, is a continually improving collection of questions and answers created, edited, and organized by everyone who uses it.   They aim to build THE go to application for wisdom and knowledge.  The cool thing about Quora is you can follow well known people as they continue to add their knowledge to the site. Quora seems to be the emerging leader of these newly minted social Q&A sites.  Thus far they have maintained their focus on the relatively smaller web tech community of Silicon Valley.

Others include:

CrowdBeacon

Loqly

Gootip

Hipster

Travellr

LOCQL

LocalUncle

StackOverflow

Yahoo Answers

Real – Time Answers

Instant interaction technology (real time) has transformed the web from a static information repository to a live, interactive medium.  This single change gave birth to what we know today as the social web, including Facebook, Twitter and many other social interactive platforms.  Search technology is catching up as well, and when infused with social interaction things could get very interesting.  Understandably, this category is nascent.

LocalMind

Localmind allows you to send a question to any place in the world, and get an answer from someone at that location in real-time.  They connect you, temporarily and anonymously, to someone at the location you are interested in, allowing you to ask any question you want, and get an answer in real-time. You can find out how crowded it is at a bar, how long the line is at a club, or how many tables are open at the restaurant.

Others include:

Ask Around (Ask.com)

Aardvark

Formspring

Look for my next post as I investigate: what’s the point of Q&A anyway?  Why am I now calling it Social Search?

How to Connect in the Twenty First Century

Connect.  What do you think of when you hear that word?  I think most people think Facebook Friending, Following on Twitter or emailing a contact.  “Hey, let’s connect.”

Our definition of connecting has changed a lot in the last decade.  Think about it for a second; back in the year 2001, we didn’t have Facebook, Twitter, Gmail, or smart phones.  In fact, if I remember correctly I didn’t get my first cell phone until 2002 or 2003.  Before the turn of the century, we actually spoke or even looked at the person we were connecting with.  No so today.

Why is this important?  Understanding how to connect with people is one of the foundations to success – as a person first, and a professional second.  If you cannot connect with another person on a level where trust is established, you will find it hard to make inroads in your life.  I believe trust is found through the eyes (for proof, even looking at those eyes above feels a little crazy).

I have had the fortune to meet a lot of new people recently, and I make it a point to set a time to meet these people in person, shake their hand, sit across the table from them and look them in the eye.  Why?  Because this creates a trust bond.  Even after 30 minutes of talking, once they know you are genuine, a bond has been created and a great things can now happen from that interaction.  Great things like further introduction into a tighter social/professional circle and connections to other like-minded people you otherwise wouldn’t end up meeting.

That is what’s happening to me right now, and it’s great.  I can’t wait to repay all the favors people are doing for me.

Image courtesy of Flickr user Antropsicosociopatologico

Another Lesson Learned: See The Opening

I woke up yesterday to a pretty cool email waiting in my inbox with the words:

“We would like you to come in and interview Giant Thinkwell and Sir Mix-A-Lot today”

This doesn’t just happen to anybody, and it certainly doesn’t happen to someone that waits for opportunities to fall in their lap.  Successful entrepreneurs MAKE things happen.  And to be brutally honest, I pretty much made this happen (acknowledgment: with help from others to connect the dots).  How?  It all started 3 months ago.

  1. I connected with a founder of a recently launched startup about 3 months ago
  2. We stayed in contact via email, sometimes not hearing from him for months at a time
  3. I started writing on this blog
  4. I started shooting out my posts to larger publications around the country
  5. BusinessInsider.com like my writing, published a few posts and offered me to become a contributor
  6. I finally met up with the founder a few weeks ago and chatted about my latest happenings (quitting job, blogging, looking for connections)
  7. He connected me into a local startup communications list last week
  8. Giant Thinkwell, a local startup, announced they were releasing the Mix-n-Match app on the list
  9. They also requested help and asked if people could spread via social networks
  10. I reached out and simply commented “I could do a post on BusinessInsider.com if they wanted”
  11. I recieved the email in the morning and that afternoon I was sitting across the table having a conversation with “Mix”

Successful people jump at opportunities and follow through on them.  You cannot wait around for someone to find you and give you exactly what you have been looking for.  You must go make it happen.  Like a running back in football, when you see an opening, you must go for it.  Sometimes that little opening will make all the difference in your life.

Image courtesy of Flickr user Monicas Dad

An Exclusive Interview with Sir-Mix-A-Lot Baby!

Giant Thinkwell, a social game studio based in Seattle launched a new Facebook game today called Mix-N-Match that features Grammy Award-winning hip hop icon, Sir Mix-A-Lot.  Mix n Match brings you and your friends along side Sir Mix-A-Lot to hang out, learn more about the entertainer, win stuff and have a good time.

I had the opportunity to sit down with Sir Mix-A-Lot and Giant Thinkwell CEO Adam Tratt today for a little chat about the new project as well as the recent changes in the entertainment industry.  When you sit with Mix, you get the feeling this man knows what’s going on.  He is curious, quick witted as well as forward thinking.  You also get the feeling he is not done yet.  Here is an excerpt of our interview.

What attracted you to Giant Thinkwell?

These guys are geniuses.  From my perspective, a guy who came along in an era where you were distant from your fans, not by design, that is just how it was.  It was all systematic.  They produced the record, they distributed the record, they promoted the record, you wait till you get the call.  The way you sell records now is totally different.  These Giant Thinkwell guys are rock stars.  They are the mega pimps of this era, and they understand it really is about connecting with fans.  They get it!

What did you do back then in the day?

It was really the label.  They had a team of people who scripted how you were going to do things.  They did everything.  As an artist you were very removed from it all.  Most guys have just pulled back.  My manager has been talking about this stuff for a long time.  And now today, your fans know everything, like what time you take your dumps in the morning to what kind of underwear you are wearing, ya know?

Adam, is this Giant Thinkwell’s first app?

No, but it is our second.  So our story is the company was born at Start-up weekend.  In the beginning of social games it was the Wild West, and  Zynga was doing whatever they wanted on Facebook.  Now, everyone else is now clamoring for a piece of it.  Zynga already has their customer base of 500 million players.  What we realized is there is very little in the area of Branded Entertainment, and what is out there is really not that good.  So we thought, why don’t we take 2 things people love, social games and entertainment and put them together?

Where do you see this category of apps going?

Adam: What’s happening on the sidelines in entertainment is the whole model is changing, people aren’t buying records much any more.  It’s all changed.  Entertainers and celebrities of all kinds musicians, actors, athletes, will be interacting with their fans on line, in fact they do it already.  Social media right now is about talking AT your fans.  So we think the model is going to change.  The bar is going up. We think the way a guy like Mix announces and releases a new song will change.  And we want to be a part of it.

Mix: from an artist perspective, this is the first time in my career I can shape my brand, my personality.  They used to think “OK, this is a dumb guy who likes Big Butts and asses” (according to Mix only part of that is true) because that is how I was promoted by the record labels.  But now, I come down to meet with the Giant Thinkwell team and they don’t go, “this is what we’re doing”, they say “what should we do?”  Finally I am able to deal with my fans one-on-one on my terms with my personality.  It’s great!  I predicted the demise of the music industry back in 1999.  So today, I’m not like Lady Gaga and the way she is with her fans, but it’s on my own terms.  You are your own marketing firm now.  The gangsta element of record business is gone forever.

Do you think it’s a better time to be a musician?

Good Question.  From an old school cats point of view, no it’s not a better time cause back then we were spoiled.  But a new artist just breaking in, yes it is.  Because Music is more honest now.   You can get your stuff out into people’s hands in so many different ways.  So the cream is going to rise and the good ones will break out naturally.

You’ve seen success, what is the most important characteristic of successful people?

Mindset.  I have never met a successful person who talked about failing.  The glass is always half full.  I don’t even like being around negative talkers.  And secondly, they always figure out a way to monetize something.  You find a hole in the market, find what people don’t have enough of… and you supply it.  There is a big difference between those people who have the entrepreneurial spirit and those who are talented, but scared of themselves.  They are always sitting in the corner, shivering, wondering why they can’t make it.  Successful people jump at opportunity and take advantage of it.

What keeps you going?

Anything new.  I just started new company called True Human Interface, software to help people make music easier.  Right now we are finishing the brains of the software and we’re thinking sometime early next year we’ll have something released.  If you look at a lot of the older artists, the only ones who are still profiting are the ones trying these new things.  Our goal is to come out with a strong, serious product.  I was watching them edit True Grit, and they edited the whole thing with mouse and keyboard.  It was crazy!  We think we can have some good ideas to help make things easier.

What advice to you have for young entrepreneurs?

Make sure that you have  is unique and necessary, make sure your dream is viable.  Second, don’t be afraid to fire someone early if they are not the right fit.  You need to make sure you have the right people in the right places.  Lastly, don’t be afraid of criticism.

Image courtesy of Wikipedia.

Did We Just Become The United States of Idiocracy?

This post was originally published on BusinessInsider.com

Recently quitting my job and diving full time into entrepreneurship has allowed me time to step back and think about what is actually going on in the current tech space. It’s interesting times to say the least, but what I am about to say may not be what you expected.

A concerning trend is starting to bubble from within and I feel it is necessary to bring it to light. Reviewing the web’s latest news we see more companies going public, constant talk of Groupon’s massive growth and community destruction, Facebook tempting us (and current employees) with an inevitable IPO, Twitter’s ubiquity becoming every politicians nightmare and Google’s latest and always awkward attempt at the social web.  Seems like just another month in the frothy web market.

But take a close look at this infographic detailing Q1 investment dollars broken down into categories.  It is from an article a few weeks ago on GigaOm.  Click for a larger view.

So let me get this straight: If this information is correct, most of our capital resources and engineering talent are hard at work figuring out how to help people buy massages for 50% off?

Disclosure: my startup – Loyaltize Inc.- was initially focused on local commerce with our first version and it remains to be seen what we build out next but my mind is buzzing with new perspectives as of late. So I am also talking to myself here.

While trying to figure out what this infographic actually means let me just state the obvious – taken on the surface it tells a lot about what we value as a society.  Or what we don’t value.  Namely Health Care, Education, Security, and “all the others.”  This has massive future implications and should be a cause for worry – that is if you are American.

Social Commerce attracted 22% of all investment dollars so far in 2011. Advertising, sales and marketing took home another 14%. and social apps saw 7% of VC money. That is almost 1/2 of startup investment dollars focused on improving how we socialize and spend money! (note: take away the amount invested in the Groupon bubble and the picture changes a bit, but hyperbole is needed here to provoke some deeper thought.)  The amount of money invested in “all other areas” of technology equaled the amount invested in Groupon and the like-clones.  You have got to be kidding me.

No wonder the United States of Idiocracy America is at record levels of consumer and national debt. An old maxim comes to mind: show me where your money goes and I’ll show you what you value. I will also offer another maxim:  Show me today what you are investing in and your future I will show you.

The sad truth is we value selling products over our children’s future well being and education. We value buying stuff right now over investing in a better future. We value gluttony over governance. With this current trend in investments, these “American” values won’t be changing anytime soon. There is no fighting or arguing this statement. It’s all right there.

This whole Groupon thing has gotten out of control. We are falling farther behind the world in education, yet we seem to excel in creating new ways to spend money quicker and eat cupcakes faster. The biggest and most anticipated IPO this year is going to be a site where mass consumers can purchase things at mass discounts? Sometimes I think I am hallucinating that Groupon is the major story of innovation on the web in 2011.

Is this the best we can do Silicon Valley? Chicago? New York or Seattle? Or is this just what investors think will make them the fastest dollar? That is one part ridiculous and another part sad.

This baffles me: Why are the largest issues of the past 4 years and the focus of the current political landscape – things that are paramount to the future of our country – receiving almost no private investment attention?

What about using some brain power and engineering talent to rework the healthcare system, a system which is in more dire straights than our shopping experiences? How about transforming education so children understand the world is full of information and it’s all right at their finger tips? They just need the access, be taught how to use and deploy it to their advantage all the while learning how to critically think. And if I was sitting across from the table from you and asked what is more important: 1) buying something from your mobile phone or 2) your personal security, I think most of you would admittedly choose the latter.

Hundreds, maybe thousands of companies have determined the best use of their time and intelligence is to copy Groupon and put out another daily deals site. Numerous talented engineers are inventing new ways for us to share pictures from our iPhone and scores of startups have been working on new methods of messaging groups of people.

Although all those ideas are interesting in their own way, it is the equivalent of Barry Bonds stepping up to the plate and bunting. Wha? Yeah, I ask myself the same question every day as I read another $5 million was just invested in a Series A round for another picture sharing/messaging iPhone application.

You guys are the best of the best… remember?

The reason I wrote in-depth about technology cycles was because it became clear to me the web will very quickly infiltrate every part of our life.  I cannot wait till the internet of things starts to power everything we use, from our toothbrushes (transmit data to help us maintain our oral health) to our shoes (real time data about how many steps we have taken, informing us when we need new shoes or the current state of our metabolic systems, etc) to the lamp I am using right now (instantly search and learn the history of this exact product to know if it was created Carbon neutral).  I can’t wait for stuff like that.

I am not here to rant, I am here to inspire better.

Founders: odds are you went to Stanford, have an MBA, or you came from a benefited family – and your company slings mass discount group coupons online? Why are you wasting your talent and intelligence?  I believe you are better than this.

And VC’s: that $5 million could have helped an entrepreneur who has a vision to transform your children’s’ future education?  Or maybe help lower your monthly health care costs?  Doesn’t that sound like a better future?

I honestly think these are valid questions to ask in today’s investment and entrepreneurial communities.

I am not saying I disagree with venture capital and the inherent goal of “invest X and receive a 10X return“, I understand the system has to return something and feed itself. I just hope we don’t grind ourselves into the dumbest, fattest, most uneducated, quickest to buy a 50% off dinner using our mobile device from our couch society. Because the path we are currently heading down is indeed pointing us in that direction. I hope we (investors, entrepreneurs, consumers) can see there are a hell of a lot more important areas of our society that need fixing.

I believe true entrepreneurship is about changing the world, not taking advantage of the world.  We need more entrepreneurs like Dr. Samir Qamar.  Please someone… anyone… answer my call and help turn things around. You will be forever referred to as a hero by me down the road.

Image courtesy of Flickr user Roger Smith.

She Takes it One Step Further

Noreen Seebacher does a great job of picking up the Leadership conversation where I left it the other day.  I stated the performance difference between Apple and Microsoft can be summed up with one word: Leadership.  Noreen goes into further detail here.  From her post:

But what defines a great leader — and what should companies look for in leaders of tomorrow? Apparently, it all comes down to the four Cs: Critical thinking, creativity, collaboration, and communication skills.

It’s a great follow on post.  Go head… check it out.

Are You Being Brutally Honest With Yourself?

Chris Dixon writes in a short piece on Founder/Market fit about not only aligning yourself and your strengths in the proper market but also understanding where you fall short.

Founders need to be brutally honest with themselves. Good entrepreneurs are willing to make long lists of things at which they are have no ability. I have never built a sales team. I don’t manage people well. I have no particular knowledge of what college students today want to do on the internet. I could go on and on about my deficiencies. But hopefully being aware of these things helps me focus on areas where I can make a real contribution and also allows me to recruit people that complement those deficiencies.

Most importantly, founders should realize that a startup is an endeavor that generally lasts many years. You should fit your market not only because you understand it, but because you love it — and will continue to love it as your product and market change over time.

This is so true and applies in my life.  Great entrepreneurs know where they are great and are honest about their weaknesses.  I constantly ask myself:
  • What are my strengths?
  • What is it I do better than anyone else?
  • What are the areas where I am weak?
  • In what areas do I (and my company) need help?
  • Who is strong in those areas?
  • How can I inspire them to join me?