Archive for the ‘Business’ Category

Branding mind tricks

So, I just came back from watching Star Trek, which I believe premiered tonight. I’m by no means a Trekkie, but I think the movie was great — you don’t need to be a die-hard fan, to enjoy the show.

Some friends of mine, had already seen the movie last week, as it was available for friends and family of the screening company. Both @mikefoong and @thechannelc didn’t notice the Nokia phone quite early on in the film.

But they did, this time around. Coincidentally, Nokia did sponsor the screening.

Does the mind play tricks when it comes to branding? I know most of the James Bond films have Sony-Ericsson phones there. I distinctly noticed the Nokia, but then again, maybe I always notice phones.

Business models, new media, and verticals

I’ve been thinking a lot lately about business models and new media with a specific focus on verticals. I’m passionate about the open source movement, and have been involved with free software since the mid-90’s. In fact, I’ve earned my crust, all these years, thanks to open source, so I have no complaints there!

Anyway, lets talk about new media. I’m thinking specifically around podcasts, video podcasts, and even online magazines.

Online magazines

We’ve seen the demise of LinMagAU (regularly hit Slashdot, when it was running), and even the MyOSS Magazine, all labours of love. In this space, I think the most successful magazine that sits online today, is Linux Weekly News (LWN). And they do it, thanks to having a business model – affordable subscriptions (USD$5/month), or group subscriptions.

Podcasts/Video podcasts

I think one of the most successful podcasts, is the now defunct LugRadio. So popular, they even managed to create a conference around it (LugRadio Live!).

That seemed to run on pure love, with sponsors for hosting. I don’t recall any ads, and I think they did it for the fun of it. Now if you search for “Linux” in the iTunes Podcast directory, there are just under 150 related podcasts (and video podcasts, maybe), that have Linux or an open source connotation in them.

Their quality varies. Some aren’t even updated any longer. One of the most successful FLOSS podcasts, that have a business model behind it, seems to be FLOSS Weekly (part of the whole twit.tv army that Leo Laporte has). They have advertising on the TWiT network, and you can support the network via donations (one time contribution, $2/mo, $5/mo, or $10/mo recurring). This stuff works via Paypal, and I can’t imagine the $2/month recurring option makes so much sense (considering Paypal fees that go with it). Plus you can buy some merchandise (something you can do, when you’re established).

Something that has recently caught my eye, is the Ubuntu Podcast. Its a video podcast, they accept Paypal donations. It also seems like a labour of love.

Hosting

Media (audio, and video files aren’t small) hosting and delivery isn’t cheap. The TwIT network makes use of CacheFly, and they’re not cheap, though they seem to have a reliable, global CDN. The Ubuntu Podcast seem to use DreamHost, who must have affordable hosting options, as they host their videos on the site too.

And that’s the other thing – if you’re doing something in the open source vertical, you better have multiple file formats. You want to provide audio files using MP3’s, yes, because people have iPod’s, and they might want to play it in their cars, but for the purists, you need to have OGG files too. That just about doubles your storage space. Think video, and you will start to cringe.

YouTube seems like a good hosting platform, with sensible CDNs, but you’ve got a 10-minute video clip limit (which might be a good thing). Blip.tv wants to help you monetise your video, however, getting video from them in Malaysia is a painful experience, so far. TWIST uses ustream.tv – I haven’t tested them out yet.

Business plans

A lot of labours of love, work for a while, but then die in time. It seems that unless you have a kosher business model, you’re not in it for the long haul. LWN and the TwIT network seem to have got it right – you need to get some kind of income, to defray the cost of doing business.

Advertising

Are most open source people blind to ads? I recently checked my Google Analytics account and found that no Linux users clicked on any of the ads on my blog. The Windows users were kinder than the Mac users, naturally. So Google AdSense might cover things like the cost of hosting, but its not exactly a business model.

Looking for sponsors might make some sense. I don’t know what the TwIT network rates are, but Jason Calacanis has This Week in Startups, and his rate is currently at:

Each commercial is $1,000 and you can purchase them in 10 week run by emailing sponsors@thisweekinstartups.com. All sponsors must be pre-approved and have groovy products like DNAMail and Ustream (our first two products).

This is a new show, and the projections are anywhere between 10,000 – 25,000 viewers in the first six months after it debuts. At a size of nearly 1GB for an 18 minute podcast, I wonder if that’s being kind?

So it comes down to finding sponsors, who believe in what you’re doing. And donations might work (it works for No Agenda with John C. Dvorak and Adam Curry, and it seems to work for the TwIT network of shows).

Subscriptions work, if you have premium content (LWN), that people can sample for free a week later.

So, what are the up front costs?

Quite simply:

  • A good mic [for audio podcasts]
  • A (cheap) video camera (Flipcams seem to work even these days) [for video podcasts]
  • Hosting [this requires a lot of thought - remember that bandwidth isn't as luxurious all around the world]

It looks like there might be some time involved in post-production. The tools are available fairly easily, on most operating systems that you’re on (though I hear, iMovie on the Mac is about the best for video on the cheap).

And yes, I’ve not figured out where to host podcasts or video podcasts yet….

What leads people to success?

This is one of the better three and a half minute videos out there (like a lightning talk), by Richard St. John, at TED, titled The Secrets of success in 8 words, 3 minutes. Watch it. Its summed up as:

  1. passion: do it for love not for money
  2. work: its all hard work. nothing comes easily, but you have fun nonetheless
  3. good: practice, practice, practice, and be damn good at it
  4. focus: focus yourself on one thing
  5. push: push yourself. physically, mentally, just push through shyness and self-doubt
  6. serve: serve others something of value
  7. ideas: listen, observe, be curious, ask questions, problem solve, make connections
  8. persist: persistence is the number one reason for success

Thanks to @blogjunkie for pointing this out.

How I now drive a Hyundai Accent, thanks to a Google ad

About a month ago, I was surfing the Net, reading my mail on GMail, and I spotted a smart ad by Kah Bintang telling me in a short span of words (in the top — sponsored links in GMail – or it might have been a sidebar link) that the new Hyundai Accent 2008 model was a 1.6L car, with a very reasonable price tag.

Normally, I am blind to ads, but the message itself was very captivating, so I bit, and clicked the link. I arrived at the 2008 Accent Home, quickly jumped to its specifications, was impressed by its price tag (compared to the Toyota Vios S that I was driving, this car beats it in many ways), and brought it up in conversation.

Conversation, you ask? Yes, conversation with my parents. I was telling them it might be a nice car to have, it comes with leather seats, etc. Within a month, I hadn’t realised they had ordered it, and the car arrived early last week, and they handed the keys over to me – an early birthday present. Nifty. Thanks!

But that’s not the point. I would have never even heard of this car, had it not been for the Google ad. Someone at Kah Bintang, that’s in charge of marketing/gathering sales/et al, know that your Google ad, definitely works. In fact, I think the ROI is greater – imagine paying a blogger to write a review, versus actually running Google ads?

If you know the person from Kah Bintang responsible for this, don’t hesitate to have them call me, I’d love to interview them about their forward thinking nature. And I wish I took a screenshot of the ad itself — I can’t seem to replicate it now!

The Proton Exora


MIX fm :: lots of proton ads eh?

In other news, today I was listening to mix.fm. I heard them present some fun fact, and then, they tied it in with an advert for the Proton Exora. Smart, I’ve seen them do this with Harvey Norman ads before, but that’s just usually with discounts — the fact that with the Exora, they made some effort to expand my knowledge, then lead me back in, it did seem interesting.

Of course, going to mix.fm’s website, I seem to be a tad disappointed. There has got to be a better way to display ads, no?

Online photo printing comes to Malaysia – why not harness the Flickr API?

Found a cool Malaysian company, eoe. They apparently have physical stores, but what’s cool about them is online printing of photos — something which I believe is totally new in Malaysia.

They’re cheap – RM0.30/4R print. They’re even trying the viral marketing thing – get bloggers to write about them (no, I am not participating) in exchange for free photos.

I might try there services at some stage, but not today. Why? Because I have to upload photos through my browser. Their “Easy Upload” app displays a silly message saying they don’t support Firefox (so I don’t get the fancy pants editing of images, et al.).

<free advice>If they want to be a smarter Malaysian company, they would partner with Flickr, and harness the Flickr API, so that people can make easy prints from Flickr. After all, advertising for Flickr is already done for free, thanks to Maxis (they love advertising Flickr and how easy it is to use on their phone network). Printing images that are already there, rather than re-uploading (with slow, unreliable Streamyx) will make a whole lot more sense. Besides, each photo coming out of my camera, is probably 5MB in size — so I’ll pass.</free advice>

Here’s wishing Eoe much success, and hope they partner with the likes of Flickr, or just harness their darned API, for easy printing.

Starbucks with two free wifi APs

I’ve been noticing that more and more Starbucks outlets are not just having the “timezone” wireless access point any longer, but also having one named “Starbucks”. Timezone is available for free, without registration (except in KLCC’s concourse), however, the Starbucks AP is provided for by MOL AccessPortal.
MOL Access Portal at Starbucks...
They’re quite annoying. They make you watch an ad for 30 seconds, before granting you “free” Wifi (in exchange for some information).

The real problem? I run Flash Block in Firefox, and don’t see the ad playing! In fact, once that ad is done with, and you’re done registering (that seems to be a one-off process), you are shown a five-columned website, in where you see relevant information about Starbucks, however, there are three columns that are also blocked via Flask Block (the ads!).

Maybe I’m not the ads target market. Then again, browsers don’t come built-in with ad blockers, or flash blockers, so this probably doesn’t affect majority of the people showing up at Starbucks. I wonder how effective the 30 second ad actually even is?

For folk going to Starbucks, its a win all the way. Two access points, double the chance of having faster Internet. For those going to Coffee Bean? Sigh, Airzed, you’re losing out… For those in other countries where Starbucks makes you pay for the Internet (I’m looking at you America [t-mobile] and Australia [horrendously expensive Telstra]) – you’ve found another reason to move :-)


On another note, I’ve noticed that from February 1 – April 13 2009, Starbucks is running a loyalty program, that rewards you after buying seven tall cups of any beverage – you get the eight one free. Starbucks isn’t normally into these loyalty goodies, so I’m guessing they want to keep you loyal during the down economy (besides, coffee at the mamak is averaging RM1.50-1.80 now).

Zappos and culture

Loic Le Meur published an interesting video interview with Tony Hsieh, CEO of Zappos.com, an online shoe sales site (that serves the Americas – OK, they have international shipping, but the rates are pretty expensive), that prides itself in excellent customer service (even their tagline is “POWERED by SERVICE™”).

I planned on summarising it, but the folk over at ReadWriteWeb did a good job, so go forth and read: Zappos CEO Talks Culture Fit and the Important of Creating a “Wow” Experience.

Support Management Escalation

Red Hat Management Escalation Contacts

Wow. “Need to raise a concern to Red Hat Support management? Use the contact information.” These are all contact details (work, mobile, and email) of directors, and senior managers from Global Support Services, at Red Hat.

I value this openness. I value good customer service. I wonder how many calls or emails management actually gets, though, from irate customers?

This should be a model for all support organisations, no matter how large or small.


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