Friday, 30 March 2007

At least 5 reasons people say no to your idea

Seth Godin said 2 reasons people say no to your ideas are:

"It's been done before"
"It's never been done before"
“I didn’t think of it first.”
adds:

I think that there is a fourth:

“Good idea (but I don’t think you can do it).”

Prove ‘em wrong!

And I would add:

"You have a chicken and egg problem"

haha, you must think I am obsessed, I am just kidding really. I have never really made a list of reasons people say an idea won't work, probably uncountable.

I have business ideas quite often, I will share any here that seem promising or interesting. Dave Winer gives four here. My favourite and the only one that I think could work is:
2. I'd like to be able to pay a web company like Amazon or Google a one-time flat fee to host my content for perpetuity. I'd deposit my writing with them, on the web, and not worry about whether or not my heirs will keep paying the hosting bills to keep it alive. Today I'm hosting the weblog of my departed uncle (who I miss terribly!), I don't mind doing it, but what will happen when I pass? I'd gladly pay $10,000 to be sure my site and his survive my death. Long-lived institutions like Harvard University or Mount Auburn Cemetary (in Boston), even insurance companies, could get into this business. Think of it as a personal endowment, it would work like the money richer people leave behind as memorials to their own lives, or lives of loved ones. Permalink to this paragraph
The rest of course haven't been done before, done already, have chicken and egg issues and all of them definitly can't be done by you ;-).

Stay Hungry, Stay Foolish

This is a video of Steve Jobs' famous speech and Stanford. I have read it before, but not seen the video (saw it in Guardian viral chart). I am not one to idolise people, but Steve Jobs definitely has my respect and admiration for what he has achieved in his life.

It is a powerful video to motivate you to follow your dreams, I recommend you watch it if you haven't already.

http://www.youtube.com/v/D1R-jKKp3NA

Wednesday, 28 March 2007

Solving the Chicken and Egg problem - Part II, Denial

To a casual observer it may seem that I have at least two chicken and egg problems with revmap (i was avoiding using revmap as an example but oh well), firstly all "review" websites have the problem that until there is a lot of data on them they aren't that useful, secondly until your social network is using the website its not very useful to you. Well this casual observer like all casual observers is very wrong. Wrong, wrong, wrong. I will tell you why they are wrong:

  1. People only care about things that there friends say, so the fact that volume is low doesn't matter.
  2. The network is growing organically, so most people join have a friend on here, if they don't then they can add it.
  3. revmap is not a review website! revmap is about whats popular and so its not about thousands of rubbish reviews on a whole bunch of rubbish places and events, its about the few interesting and exciting places and events that are worth someones effort of putting up.
  4. revmap is not for when you are looking for something specific its just for browsing through your location and seeing what might be happening and interesting. (well you could be looking for something specific later on...)
Phew! Having said all that, of course once the network is bigger and there is more data I can see why it might be a bit more.. useful :-). So my point here is not really denial but you ignore the Chicken and Egg problem and provide value to the website in some other direction.

I have listed the solutions I have so far below, will update if new things come to light.


The purpose of this Chieck and Egg Problem solving is to prove

a) that it's not an unsurmountable problem so people should stop pointing it out all the time.
b) To give some effective strategies to overcoming the obstacle.
c) So I can think out the issue.
d) So other people can suggest further solutions.

Even though I complain about it, the chicken and egg problem is actually quite a good thing to face in a startup. If its a problem for you at the start it means when you get big you are going to have more of a protectable situation. It is this problem that protects ebay's, myspace's... (all social networks) position. In more traditional industry you might say the chicken and egg problem is like reputation, once you have it it's useful until you get it its an annoying barrier.

Solving the Chicken and Egg Problem Index:

Part I, Pick a niche
Part II, Denial
Part III, The chicken chicken strategy
Part IV, Miracle
Part V, False Pretenses

Viral mediums, Viral products, Viral Marketing and Viral=Good

There is a lot of confusion about what is viral, I will try to shed some light on it from my understanding.

Here are my definitions for the different types and uses of the viral (in reference to web/marketing), which seem pretty simple...

(disclaimer: I am literally just coming up with these from my understanding and reading. I am yet to find a good book on it, so correct me if i am wrong or if you have further thoughts).

Viral Medium


I am taking this from this video on Guy Kawaski's blog. This is outside what people normally are talking about when they say viral but it is, to me, the most interesting. Viral mediums are simply ways in which people communicate and come across new things (virally). Originally this was word of mouth, phones, newspapers etc. But this completely changed with the rise of the Internet. People now communicate more often and with more people (including people they don't know).

The main viral mediums across the web that didn't exist before are:

  • Email
  • Instant Messaging
  • Blogs
  • Social Networks
In the video above Max Levchin (slide.com) makes an interesting point that if you can come up with the next power viral medium, or you can find a way of making an existing channel of a viral medium then you would be sorted (can't think of better word)

Viral Products

Best example of this is youtube, the product is just asking to be viral. You want to paste it on your blog, send it to your friends and spread its name. You will champion the product for its content not because you particular care what it is.

Social networks by there very nature are viral products, since you want to add your friends to the website. Anything where you create something lends itself to being a viral product because once you create something you will want to also distribute it (I am talking about blogs, videos, music etc.)

If you are doing a consumer website start-up and can not produce a viral product (or a viral enough product) then you would have a very hard time.

There is a lot more to be said in this category.

Viral Marketing

When most people say viral, they probably mean viral marketing. Wikipedia says it well
Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness, through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can often be word-of-mouth delivered and enhanced online; it can harness the network effect of the Internet and can be very useful in reaching a large number of people rapidly.

This is kind of fun but not really that interesting.. well it is interesting but everyone is already always talking about it. The only thing I would say is that its getting harder and harder to do viral marketing so it may seem easy and cheap but its not.

Viral = Good

I can't remember who I am getting this definition from so I apologise for not crediting them. Some people do just genuinely create something good or see something good and say thats going to "be viral" or thats "so viral". For example if you see a good video you might think its viral or if you see a good game etc, etc. This is very different from viral products, which are viral by there very nature, and the fact that these good things are viral might be because they go across viral mediums that never existed before. But essentially if all they are is good then its not really viral, is it?

The Viral = Good definition might be used to do viral marketing. If it is then I guess you can call it viral, but this is why I like the viral products and viral mediums better because they actually mean something tangible and something you can aim for and harness.



Monday, 26 March 2007

Hilarious Economics

This is really funny (especially if you have ever studied economics).

http://www.youtube.com/v/VVp8UGjECt4

Saw this earlier on John Wilson's Blog: Economics for stupid people.

Solving the Chicken and Egg problem - Part I, Pick a Niche

The Chicken and Egg problem is the bane of most ideas existence. Most ideas you ever come up with the first thing someone will say to you is that you have a "Chicken and Egg" problem, and I have been guilty of saying that myself.

In brief the Chicken and Egg problem (Explained by Seth here) is when you are in a situation where a thing A is not possible without B and B is not possible without A. In Seth's post he limits this to saying people will not use your product until you have a lot of people already using it but I think it can apply to a much broader range of things which are causally related. For examples in some cases investors won't invest in your product until its proven and it's hard to prove a product without investment.

I could discuss this longer and how it links to the network effect but for now I just wanted to give you some conceptual solutions I have come across or come up with (every problem has a solution).

Solution number 1 and the most obvious one (mentioned by Seth) is to pick a niche. If you can split A and B into small enough parts you can easily handle them directly. A concrete example to make that clearer is Facebook's marketing strategy (or part of it).

Facebook has a massive Chicken and Egg problem, you will not use them unless your friends are on it and your friends wont use it unless you are on it. Facebook solved this by picking a niche (naturally fell into this solution), they were only available to Harvard at the start and were able to build up there network organically there.

The niche solution is the easiest and probably the best and is employed in almost all cases I have come across. But you should probably do it in parallel to all other techniques, which I will write up in a bit.

Update:

Solving the Chicken and Egg Problem Index:

Part I, Pick a niche
Part II, Denial
Part III, The chicken chicken strategy
Part IV, Miracle
Part V, False Pretenses

Happiness and the source of self destruction

I read 2 posts recently from entrepreneurs about happiness. One I agree with whole heartedly and one that is a commonly held conception which I completely disagree with (I am not sure why this is interesting to entrepreneurs except that possibly all entrepreneurs are seeking happiness when they start businesses instead of taking the normal course of life):

Happiness and the dangers of belief in the written word :) is an amusing article from Fabrice Grinda, it is in complete contrast to How to stay happy written by the James Hong the founder of hotornot.

First to counter James, although he says it's just for him I will make some points against it anyway because I think its a dangerous belief:

Happiness = Reality - Expectations
Take that to the logical extreme and basically the worse you can make your expectations the happier you are. So if you wake up in the morning thinking you are going to die painfully, its going to be a horrible day and everything you try and do will be a failure you will be an extremely happy person, does anyone actually believe that?

In my opinion Happiness = Expectations, because happiness is just a state of mind, so the happier you think you will be the happier you will end up being. Its completely in your control and outside of Reality.

I will leave you with Fabrice's 11 steps towards happiness, where number 11 prescribes optimism. If you read the post you will see the irony in me quoting him as the prescription :-), its a nice start anyway.
  1. Don’t equate happiness with money.
  2. Don’t commute.
  3. Exercise regularly.
  4. Have lots of sex.
  5. Devote time and effort to close relationships.
  6. Pause for reflection, meditate on the good things in life (in other words be grateful).
  7. Seek work that engages your skills, look to enjoy your job.
  8. Give your body the sleep it needs.
  9. Don’t pursue happiness for its own sake, enjoy the moment.
  10. Take control of your life, set yourself achievable goals (in other words have goals).
  11. Have an optimistic attitude and outlook on life.
Update: Obviously everything here is a bit simplistic and I am generalising, but its fun.

I think therefore I am not

Rene Descartes the philosopher who said "I think, therefore I am" (cogito ergo sum) died an unusual death. It is rumored that when the hostess at a tea party offered him sugar he said "I think not," and then immediately disappeared.

:-)

Update: Sana sent this to me, not sure exactly where it comes from.

Sunday, 25 March 2007

Immad's New World enters the world

I have been told by many people to start up a blog, and given the number of thoughts I have I think this will be a good outlet. Pretty exciting so far, if it ever gets boring I will stop.

I plan to write about my experience with starting revmap.com, being a web entrepreneur in London, any thoughts I have on business, marketing, psychology. Basically anything that I find interesting and learn from and want to share with people.

I will try my hardest to never say anything negative or something one can't learn from (unless I am making a particularly funny joke :-) ), but if I slip up feel free to tell me.