The wallet chase

September 5th, 2009 by ransu

Today morning, I woke up 7am in Friedrichshafen, Germany. Other member of my Eurobike group left a bit earlier to fly back to Finland and my task was to ride my new Fuji Outland full-suspension bike to the Friedrichshafen railway station, about 10km away and take a seven hour train ride back to Chamonix, France via Switzerland. 

I went to purchase my one-way ticket. It was 106€, about same that I paid 21 years a go for one month Interrail ticket. Ticket took ten minutes to figure out, but once I got it, I went to buy a quick takeaway breakfast and jumped to the train with my bike. 

First ride was just one stop to Friedrichshafen harbor to take a boat to Switzerland. I exit the train and rode down to the boat that was just about to leave. I rode into the boat, locked my bike and looked for a wallet to buy a tee or something. The wallet was not there. I never loose it, I thought, so I went over my stuff few times and realized that it was indeed missing. Oh no! Boat crew were about to close the boats gate, so I had to jump on my bike and I just made it back to harbor as the boat started to dock-off. Crew was yelling something like "what the heck are you doing?" 

I hoped that I left it to the cafe where I bought my breakfast, so I decided to ride back to the main station as fast as I can and hope for the best. Never say die. 

As I rolled to the train station, I was thinking that "shit, what a hassle to cancel all my cards as my Visas and Mastercards are from three countries, UK, USA and France…and all the cards where on that wallet. 

Running into the cafe with my bike, I hoped that those nice brunettes have my wallet and they just smile at me and give it back, but no. Wallet was not there. So, I quickly figured that I left it to the train as I helped one girl from Berlin to unload her packs and bike to the harbor. So off to the stations baggage/lost-and-found office. 

There was one one in the office, I rang the bell and yelled "hello", but there was no one there. I looked at the trains in the station and though that train on the dock 3 looked like the train that I took to the harbor and as harbor was the dead end, I decided to leave my bike in to the station office and I took the tunnel to the dock three. Train was about to leave, but I decided to jump in and without knowing if that was the same train. I walked super fast the trains aisle asking passanges about "min geld" (yes, that is a mix of of Swedish and German) and then as the conductor blew the whistle, one guy pointed to window where my wallet was laying. There was about 15 persons looking at me and little brown Quiksilver wallet as I yelled "YES, YES, Oh my God". I quickly grabbed that wallet and thanked everyone for not stealing it. Then, just as the doors where closing, I jumped off from the train. 

I had to sit down and laugh at my luck, knees felt like spaghetti. Unbelievable. Biggest "thank you" goes to station service person, who was not there, as because there was no-one to report a lost wallet, I looked outside and decided to run for the train that looked like local traffic train that I took some 20min. earlier.  

I was one hour late, but happy as a dog. Breakfast tasted fantastic as I was on a sunny harbor waiting for the next boat.  

The challenge of sign-up and engagement on online services

August 27th, 2009 by ransu

Getting Real by 37 Signals – My summary

August 23rd, 2009 by ransu

I just read 37 Signals "Getting Real" this weekend and as I think it has important points for the people who do web stuff, I picked up the most important points to this list: 

1. Do less

• Less features

• Less options/preferences

• Less people and corporate structure

• Less meetings and abstractions

• Less promises

2. Build for yourself

A great way to build software is to start out by solving your own problems. You'll be the target audience and you'll know what's important and what's not. 

3. Outside money is plan B

The first priority of many startups is acquiring funding from investors. But remember, if you turn to outsiders for funding, you'll have to answer to them too. Expectations are raised. Investors want their money back — and quickly. The sad fact is cashing in often begins to trump building a quality product.

These days it doesn't take much to get rolling. Hardware is cheap and plenty of great infrastructure software is open source and free. And passion doesn't come with a price tag.

So do what you can with the cash on hand. Think hard and determine what's really essential and what you can do without. 

4. Scale back

Here's an easy way to launch on time and on budget: keep them fixed. Never throw more time or money at a problem, just scale back the scope.

5. Be Yourself 

Differentiate yourself from bigger companies by being personal and friendly

A lot of small companies make the mistake of trying to act big. It's as if they perceive their size as a weakness that needs to be covered up. Too bad. Being small can actually be a huge advantage, especially when it comes to communication.

6. What's the Big Idea? 

Explicitly define the one-point vision for your app

What does your app stand for? What's it really all about? Before you start designing or coding anything you need to know the purpose of your product — the vision. Think big. Why does it exist? What makes it different than other similar products?

7. Make Opinionated Software

The best software has a vision. The best software takes sides. When someone uses software, they're not just looking for features, they're looking for an approach. They're looking for a vision. Decide what your vision is and run with it.

8. Start With "No" 

The secret to building half a product instead of a half-ass product is saying no.

Make each feature work hard to be implemented. Make each feature prove itself and show that it's a survivor. It's like "Fight Club." You should only consider features if they're willing to stand on the porch for three days waiting to be let in.

For every new feature you need to…

• 1. Say no.

• 2. Force the feature to prove its value.

• 3. If "no" again, end here. If "yes," continue…

• 4. Sketch the screen(s)/ui.

• 5. Design the screen(s)/ui.

• 6. Code it.

• 7-15. Test, tweak, test, tweak, test, tweak, test, tweak…

• 16. Check to see if help text needs to be modified.

• 17. Update the product tour (if necessary).

• 18. Update the marketing copy (if necessary).

• 19. Update the terms of service (if necessary).

• 20. Check to see if any promises were broken.

• 21. Check to see if pricing structure is affected.

• 22. Launch.

• 23. Hold breath.

9. "Done!" 

Decisions are temporary so make the call and move on

Done. Start to think of it as a magical word. When you get to done it means something's been accomplished. A decision has been made and you can move on. Done means you're building momentum.

10. Be An Executioner 

Ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.

Explanation:

• Awful idea = -1

• Weak idea = 1

• So-so idea = 5

• Good idea = 10

• Great idea = 15

• Brilliant idea = 20

• No execution = $1

• Weak execution = $1000

• So-so execution = $10,000

• Good execution = $100,000

• Great execution = $1,000,000

• Brilliant execution = $10,000,000

11. Do it quick

• 1. Decide if it's worth doing, and if so:

• 2. Do it quick — not perfect. just do it.

• 3. Save it. upload it. publish it

• 4. See what people think

Keep breaking down timeframes into smaller chunks. Instead of a 12 week project, think of it as 12 weeklong projects. Instead of guesstimating at tasks that take 30+ hours, break them down into more realistic 6-10 hour chunks.

12. You Can't Fake Enthusiasm

Enthusiasm. It's one attribute you just can't fake. When it comes time to hire, don't think you need a guru or a tech-celebrity. Often, they
're just primadonnas anyway. A happy yet average employee is better than a disgruntled expert.

Find someone who's enthusiastic. Someone you can trust to get things done when left alone. Someone who's suffered at a bigger, slower company and longs for a new environment. Someone who's excited to build what you're building. Someone who hates the same things you hate. Someone who's thrilled to climb aboard your train.

13. Design the interface before you start programming

Too many apps start with a program-first mentality. That's a bad idea. Programming is the heaviest component of building an app, meaning it's the most expensive and hardest to change. Instead, start by designing first.

14. Open Doors

Get data out into the world via RSS, APIs, etc.

Don't try to lock-in your customers. Let them get their information when they want it and how they want it. To do that, you've got to give up the idea of sealing in data. Instead, let it run wild. Give people access to their information via RSS feeds. Offer apis that let third-party developers build on to your tool. 

15. Your product doesn't require a manual

You don't need a manual to use Yahoo or Google or Amazon. So why can't you build a product that doesn't require a manual? Strive to build a tool that requires zero training.

16. Issue a major update 30 days after launch

A quick update shows momentum. It shows you're listening. It shows you've got more tricks up your sleeve. It gives you a second wave of buzz. It reaffirms initial good feelings. It gives you something to talk about and others to blog about.

17. Go With the Flow

Be open to new paths and changes in direction. Part of the beauty of a web app is its fluidity. You don't wrap it up in a box, ship it, and then wait years for the next release. You can tweak and change as you go along. Be open to the fact that your original idea may not be your best one.

Be a surfer. Watch the ocean. Figure out where the big waves are breaking and adjust accordingly.

18. Execution

Everyone can read a book. Everyone can come up with an idea. Everyone has a cousin that's a web designer. Everyone can write a blog. Everyone can hire someone to hack together some code.

The difference between you and everyone else will be how well you execute. Success is all about great execution.

Here is the complete book online for those who want to dig deeper: Getting Real

Where do we go now? (with online advertising)

August 16th, 2009 by ransu

About two and half years a go I founded company called Sportsyndicator, sports advertising network. Sportsyndicator's business model is simple: We sell and syndicate online advertising to participation sports websites, focus on outdoor and extreme sports. For example, we bundle a punch of small outdoor sites together so that backpack or Gore-Tex jacket manufacturer can easily, with our technology and help, place banner campaign to all those site and measure and optimize campaign as needed. Once campaign is done, we invoice the client and share revenues with the websites. 

As business has to be always re-thinked, here are couple observations that I think we need to adopt, in a order to succeed in the future. 

Google Adsense works

Google Adsense makes publishers between $0.50-2.00 CPM (cost per thousand impressions). 

So no publisher should run ad campaigns that make less than what they can make with Google. Google is hassle free, very reliable ad source and this way, probably the best one to give publishers "solid monthly revenues"

So on my opinion, sales teams on our network or any other network, should not sell campaigns that have lower CPM than what Google can make to publishers. By selling and managing campaigns that make less money than Google, we create no value.

Poor performance – poor CPM

Our (and other ad networks) job should really be "bring better CPM's to publishers than Google". In a order to do that and get repeated business from the advertisers, we (and publishers) needs to do everything possible to give advertisers good ROI. Industry average on CTR (click-through-rate) is 0.1%, which means that for every thousand impressions, ad gets clicked once. That is bad and that is why CPM's are now-a-days so low, same way as the ROI. 

Sportsyndicator's average CTR is three times industry average, 0.3%, but still, that is not enough to get tons of high CPM campaigns in, so what can we do?

1. Give advertisers "exclusivity": I was in San Francisco Adtech in April. One of the keynote speakers was Hulu CEO @JasonKilar. He made an excellent point why they run generally just one advertiser at the time as otherwise website easily starts to look like Time Square, where tens (or even hundreds) of messages compete for attention and none of them gets any meaningful results. This bling-bling, too many message and none of them good is a real problem. So why not rethink the website ad placements so that each advertisers gets good space for their campaign. Maybe we shouldn't try to fit all possible advertisers to every single page, but rather have just one or max two on a front page and then other advertisers can "own" the community pages, gear pages, etc. This way we can give advertisers not just exclusive but also integrated campaigns.

2. Integrated campaigns: With integration, I mean that advertising fits to the website well and becomes more attractive and more clickable. Hulu has nailed exclusivity and they are doing good on integration as well. It would be great, if we could do site-takeover /wallpaper type of solutions for the advertisers so that when they are on a site, entire site or certain sections fully supports their branding message. Blog network Gawker is a good example of how they integrate standard banners well to the site by changing top- and side bar colors to match with the banner colors. They integration works: Gawker Media has shown great ad sales results and CPM rates regardless of recession. For example, Audi has reached 0.8-2.0% click-through-rates on Gawker sites because of the exclusivity, integration and audience tailored message.

3. Audience tailored message: Generally vertical ad networks, like Sportsyndicators, strength is that we have very targeted audience. If you are looking for triathletes from UK or skiers from Scandinavia, we have it. So why we too often run very generic campaigns to these audiences, when we know, that little tailoring would make campaign work so much better? We know that car ad with mountain bikes on it works well on mountain bike sites (like we did with Mercedes-Benz Vito), so why we are so reluctant to ask advertisers to do better creatives that our audience would really dig and click?

I know that we need to think beyond display (banner) ads but I think with just these changes above would make a big difference to advertisers result and that way to publishers income. And we would become happier along a way as well :-)

Mountain Bike World Cup on Freecaster

April 30th, 2009 by ransu

Charlie Rose interviewing Reid Hoffman (LinkedIn founder)

March 6th, 2009 by ransu

Cloud computing experiment

March 2nd, 2009 by ransu

My Macbook Air broke (It drank coffee) and it will take some 4-10 days and $800 dollars to get fixed.

However, instead if suicidal thoughts caused by PC that I am borrowing from Colleen, I will use this week to experiment cloud computing.

I have Compac NC6320 laptop and now I will use nothing but Google Chrome, Skype and Tweetdeck as my programs and I will not set any of my data, documents, etc. into this computer, as I will work on a cloud instead…This is actually interesting and gives me a good insight to Chrome that, as I believe, will be important product for Google in the future.

Via Chrome, I will use my email accounts (all Google mail), Salesforce, Facebook, Hulu, Google Documents, Flickr, Google Apps, Zherpa, etc. 

Lets see how this week goes…

Happy Monday!

Great Marc Andreessen interview by Charlie Rose

February 20th, 2009 by ransu

Perez Hilton and his $50K per day

February 20th, 2009 by ransu

OK, so Rihanna had a nasty fight with his boyfriend. Lets compare how one-man-show Perezhilton.com and 100-man show People.com get the best out of that tragedy:

PEOPLE.COM http://www.people.com/people/article/0,,20260311,00.html

PEREZHILTON.COM http://perezhilton.com/2009-02-19-chris-brown-did-this 

People claims how they "decided not to use the photo" and in a same time 99% of the site visitors just go to trusted PerezHilton.com and look for the picture there… 

On Alexa ranking People.com is 370 

Perezhilton.com is 526

People.com was registered as a website 1994 when Perez Hilton was sixteen. Perez only came up with his neat idea of celebrity website on 2004-2005.

Wired.com wrote an nice article about Perez Hilton on 2008 August issue: http://www.wired.com/techbiz/people/magazine/16-09/mf_perez   

I love Perez!

PS. If you read Wired article, it indeed says that he is making up to 50K per day on advertising sales…

Business Models Are Overrated! Twitter Raises Another $35 Million

February 14th, 2009 by ransu

Business Models Are Overrated! Twitter Raises Another $35 Million

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