<![CDATA[Valleywag: Bad ideas]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: Bad ideas]]> http://valleywag.com/tag/bad ideas http://valleywag.com/tag/bad ideas <![CDATA[ 3 reasons why Google's bookstore will be a disaster ]]> The lovingly jumbled piles of books at Shakespeare & Co., the famous Paris bookstore, must madden Googlers. All that information, unorganized! In the wake of its $125 million settlement of a lawsuit filed by book publishers, Google is now thinking about turning its money-burning Book Search product into an online store. This will end badly.

Remember the Google Video Marketplace? Exactly. Launched months before Google bought YouTube, the video store required cumbersome copyright protections and was a nonstarter with consumers. Google closed the store last year, enraging the dozen or so people who'd actually bothered to buy videos.

And Google's Book Search operations are a disaster, overseen by Ramsey Allington, an unqualified IPO lottery winner who joined Google at the right time to get valuable stock options and social connections. He has made a mess of his department, driving out qualified female employees by being a sexist boor. Publishers would do well to steer clear of Google until he's gone.

Even if Google Book Search is placed under competent management, I doubt it will succeed. Google lacks a merchant's sensibility, trusting algorithms over salesmanship. But most people do not walk into a bookstore knowing what they are looking for. They seek serendipity — a quality that Googlers, with their overplanned vision of the world, hope to eliminate. There is beauty in an untidy stack of books. But a Stanford MBA's spreadsheets will never capture that.

(Photo via Paris Parfait)

]]>
Fri, 31 Oct 2008 14:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5070556&view=rss&microfeed=true
<![CDATA[ Esther Dyson fails to factcheck her startups ]]> The Valley's pundits believe that partisan bias is damage, and that the Internet can route around it. That's the conclusion I arrived at after hearing about Ameritocracy.com, a new startup aiming to have Internet users factcheck soundbites for free. Esther Dyson, the writer and startup investor, has joined it as an advisor, just in time for the vice-presidential debate Thursday night. "It bothers me to see people's random statements spread around the world with no quality control — and I like Ameritocracy's decentralized approach to providing that quality control," Dyson says in a press release. So that's what's plaguing politics — a lack of quality control! Dyson, who also invested in Flickr, is deluded to think crowdsourcing will work with opinions as well as it does with photographs. Anyone who's spent time on Wikipedia knows that a decentralized approach doesn't lead to the elimination of bias — it just guarantees that whoever has the most time to waste wins.

]]>
Wed, 01 Oct 2008 17:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5057633&view=rss&microfeed=true
<![CDATA[ Twittad lets you sell Twitter pages no one looks at ]]> There is now an online ad network for Twitter backgrounds. Launched last week, ad startup Twittad allows Twitter users to sell their background image as ad space and charge advertisers based on how many followers they have. Back in June, Ian Schafer, the CEO of interactive agency Deep Focus, sold his Twitter background as advertising space for $1,082.01. Ridiculous, we thought — since the background only appears when Twitter users visit the company's website to look at another user's profile, or read a specific message on the website. Twitter's website accounts for about 5 percent of the service's usage, and users mostly read pages with streams of all their friends' messages, on which individual backgrounds don't appear.

Never mind that! When Schafer sold his Twitter background, Commenter Gregnog told us to quiet down and "just nod, smile and take the check." Well, Gregnog, wherever you are, now's your chance. Using Twittad, Rishi Lakhani, who has 305 Twitter followers, just sold the rights to choose his background image for the next 7 days for $30.00. Even if all 305 of those followers visited Rishil's page over the next seven days — and trust us, they won't — that's a fantastically high, unlikely to be repeated $100 CPM, or cost per thousand impressions. Most social networks are lucky to get a single-digit CPM.

]]>
Tue, 02 Sep 2008 12:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5044439&view=rss&microfeed=true
<![CDATA[ 5 social networks Yahoo couldn't befriend ]]> The soon-to-be-shuttered Yahoo Mash is not Yahoo's first failed social network. It's also not its second, third, or fourth. It took one whole hand for us to count Big Purple's failed attempts to get social, either through mergers or in-house development, below.

Born on March 16, 2005 as "an innovative and engaging way for people to share their lives, leverage their community and get the most out of their online experience," according to Yahoo's then-COO Dan Rosensweig, Yahoo 360 isn't technically dead yet. But it's proved unpopular enough for Yahoo to try to replace it at least four times with the social networks listed below.

Yahoo tried to replace 360 by offering $1 billion for Facebook in the summer of 2006. Mark Zuckerberg almost took the deal — but then Yahoo CEO Terry Semel scotched the deal by cutting the price. That's when Mark's sister Randi sang "Fuck you, Yahoo, they're going IPO!"

Yahoo began talks with also-ran social network Bebo, reportedly offering to buy it for $1 billion in May 2007. The deal never happened. AOL bought Bebo for $850 million earlier this year.

Less than a year ago came Yahoo Mash, a social network that allowed a user's friends to "mess" with each other's pages like they were Wikipedia entries. Eventually, Yahoo's Terrell Karlsten told Wired in October 2007, "it will become a feature inside other services. For example, it's possible that you'll log into Yahoo Mail and see your profile along with all of your friends' profiles in your contact list."

In November 2007, Yahoo launched a LInkedIn-like site for recent college graduates called Kickstart. But by January 2008, site lead Scott Gatz had already left the company and management began to cut Kickstart's marketing budget because no one was signing up.

]]>
Fri, 29 Aug 2008 13:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5043576&view=rss&microfeed=true
<![CDATA[ Google nixes Steve Chen's YouTube live video plan ]]> In a moment of what now seems like irrational exuberance, YouTube cofounder Steve Chen declared that the popular online video site would add live video streaming this year. Not so fast, says Google. YouTube is already struggling with the concept of profitability, and according to an anonymous source cited by Silicon Alley Insider's Michael Learmonth, Chen's idea is a financial black hole:

YouTube execs estimated that if just 10 percent of the service's users took advantage of live streaming, the company would have to add 20 to 25 percent to its huge server and bandwidth infrastructure to support it.

Sounds like another sign that YouTube's popularity, while giving it a great position in the market, has become something of an Achilles' heel — every video played, every user added cost the company money, and neither creators or consumers are paying. Advertisers are only interested in a small percentage of videos on the site, and YouTube can't even sell all of that inventory. So adding new features such as live streams or improving quality would only serve to dig Google's $1.65 billion money pit even deeper. The episode is enlightening in one regard, though. It demonstrates how much influence YouTube's founders have at the company — little to none.

(Photo by Ben Cooper

]]>
Wed, 13 Aug 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5036701&view=rss&microfeed=true
<![CDATA[ The bubble in personal-finance websites ]]> AOL has launched Walletpop, a personal-finance site; IAC and Dow Jones have FiLife; and TheStreet.com has MainStreet.com. All hope to attract a younger audience to personal-finance news than the conventional stock talk and online portfolios offered by the staid likes of Yahoo Finance and CNNMoney. The bets are wrong both in their timing and their premise. Stockbrokers and mortgage lenders, reliable advertisers during good times, are both ducking for cover and pulling back their budgets. Froth might have sustained these sites a couple of years ago, but not now. No matter when they launched, though, their proponents should have remembered this maxim: Financial advice, like youth itself, is wasted on the young.

Unsurprisingly, there's already signs of trouble. MainStreet has lost its launch editor, Caroline Waxler, amid a change of editorial direction. FiLife has ratcheted back its once-lofty ambitions. And WalletPop? One of a bevy of websites launched by AOL, which is desperate to find readers who are not turned off by that once-magical, now-deadly three-letter brand. With few prospects for attracting an audience or advertisers, will they not soon need financial advice of their own?

]]>
Wed, 16 Jul 2008 08:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5025609&view=rss&microfeed=true
<![CDATA[ Why LinkedIn's getting into the insider-trading business ]]> You'd think LinkedIn management, which has made no secret of its plans to take its automated schmoozefest public, would be trying to avoid trouble with the Securities and Exchange Commission. Not so. They're aggressively marketing the company's latest moneymaking scheme, LinkedIn Research, to hedge fund managers. The premise: Traders can use LinkedIn to find "experts" with "unique input" on public companies in their portfolio. What LinkedIn marketers delicately phrase as "input," SEC investigators might well call "inside information." And the only thing actionable about the whole affair might be the insider-trading charges that result.

Regulators frown on free communications between knowledgeable company executives and information-hungry investors. LinkedIn offers "compliance" tools, but those tools amount to letting the fox electronically monitor the henhouse. Hedgies surely realize this, and will see LinkedIn's lax policies as a selling point. (Other firms which connect investors with company insiders have, at some expense, created systems which allow the experts' employers, not just the investment firms, to monitor contacts.)

If it gets in trouble, LinkedIn will likely plea that it didn't know how its networking site was being used — the standard we're-just-a-platform dodge. But it will be hard to claim that for two reasons. First, LinkedIn is touting the account managers it's providing who will actively help traders use the service. Second, CEO Dan Nye previously worked at Advent Software, a company which provides portfolio-management software to Wall Street firms. It's not like he's unfamiliar with the SEC's disclosure and monitoring requirements. Rather, one has to think he knows just how expensive complying with those rules are, and that rejiggering LinkedIn's software to obey them will make LinkedIn Research a nonstarter.

It's not a stretch to imagine how an ambitious government prosecutor could make a case for LinkedIn aiding and abetting insider trading. The law doesn't even require that money change hands; exchanging inside information for a thumbs-up reference on LinkedIn could very well qualify as a breach of the rules.

But that assumes anyone in Washington or New York is paying attention. Unlikely, given the mortgage mess. LinkedIn will likely go public on the basis of its hedge fund-juiced revenues long before an overtaxed SEC gets around to looking at how, exactly, the avaricious traders of Greenwich are getting their information.

]]>
Mon, 30 Jun 2008 13:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5020826&view=rss&microfeed=true
<![CDATA[ TechCrunch's Erick Schonfeld to unleash world's worst startup pitches on the rest of us ]]> When we worked together at Business 2.0, I always thought my then-colleague Erick Schonfeld was a bit of an evil genius. Now an editor at TechCrunch, Schonfeld hasn't proven me wrong. He's taking all of the boring startup spiels — "elevator pitches" — he gets from wantrepreneurs trooping through his office and turning them into content. All he has to do is sit back and hit "Record"; he doesn't actually have to do the critical thinking required to evaluate whether the ideas hold any promise, or even make sense. How boring is this idea? Look at David Carr from the New York Times, sitting two seats over from Schonfeld, who's fallen asleep just from listening to the idea. But I have no doubt this is the crowdsourced, video-enabled future of innovation journalism, folks.

]]>
Wed, 04 Jun 2008 15:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5013205&view=rss&microfeed=true
<![CDATA[ Robotic voices to express HP's disgust with customers ]]> Its pretexting heyday may be over, but HP is apparently still not adverse to a little telephone trickery, as its pending patent for Text-to-Speech Conversion with Associated Mood Tag shows. In it, HP touts the use of VoiceXML to have a fake 18-year-old salesgirl register her disgust with customers who don't respond to offers.

]]>
Wed, 14 May 2008 14:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=390418&view=rss&microfeed=true
<![CDATA[ Facebook app spreads social disease to your friends ]]> Beware MorphMonkey's invitations to morph you and a friend into love children on Facebook. The American Social Health Association has infected the MorphMonkey app with chlamydia, transmitted each time you make spawn with it. ASHA's video tutorial doesn't explain why Facebook condoms can't protect you from Facebook VD, or how the kids used to deal with virtual infections back in the days of AOL chatrooms and fingering each other's Unix .plan files, but it is sort of sexy in an afterschool special way:

]]>
Fri, 02 May 2008 16:40:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=386619&view=rss&microfeed=true
<![CDATA[ Perez Hilton stars on "viral" hottie rating site to promote HIV awareness ]]> PosOrNot.com, conceived as a public education campaign about HIV/AIDS, apes HotOrNot, asks visitors to the site to guess the HIV status of those pictured, based on photos and social network-style profile excerpts. Look, even professional hater Perez Hilton donated his image to the viral antiviral effort! Then again, encouraging testing using a faux dating site is probably wiser than a campaign to get Web-cruising users to disclose their status on a real hookup site, where everyone is allegedly very good looking.

]]>
Thu, 01 May 2008 17:20:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=386237&view=rss&microfeed=true
<![CDATA[ Cause of female entrepreneurs set back decades by website with terrible name ]]> Ladies Who ... no, we just can't say itWhen we were notified of the existence of Ladies Who Launch, a website for women with startups, we suppressed the gag reflex triggered by the name. We then consulted one of our favorite entrepreneuses on exactly how horrified we should be. "Yep, we've talked about a profile," she told us. "But bitcheswhobusiness.com, that would be my website." To be clear, we have nothing against anyone offering women like our IM correspondent "resources, opportunity, community," or, for that matter, publicity. We just can't get past the site's unfortunate moniker.

]]>
Thu, 17 Apr 2008 13:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=381106&view=rss&microfeed=true
<![CDATA[ Page Six's full scoop on Julia Allison's "IT Girls" reality show ]]>
Valleywag commenters hate the idea, but the New York Post's Page Six loves IT Girls, the proposed reality TV show with New York umtrepreneurs Julia Allison, Meghan Asha and Mary Rambin.

These three are more career-driven and have more to say than their L.A. counterparts, which should only lead to more drama. Even when they're not hitting Waverly Inn for dinner or flying cross-country for exclusive Silicon Alley [sic] events, this clique is never boring. They get Restylane injections for fun, own pocket-size dogs, and never go anywhere without blogging about it. What's not to love?
In the full-spread pic below, the Post speculates, and we can confirm, the show will air on Bravo, if the pilot's picked up. (One correction: Meghan Asha, née Parikh, is the heir to her father's Silicon Valley fortune, but it didn't come from Sun Microsystems.) Set your DVR now.

PageSix.jpg

]]>
Mon, 24 Mar 2008 16:40:25 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=371630&view=rss&microfeed=true
<![CDATA[ Japanese video search engine proves impossible to locate ]]> Fooooo's goldDumb money on display: A publicly traded Japanese company, CyberAgent, has put $1 million of its shareholders' money on a video search engine called Fooooo, or as its radio ads will surely call it, "that's 'ef' followed by five 'ohs' — 'ef oh oh oh oh oh dot com'!" Sure enough, when I tried to type it in the first time, I botched it. Foooo? Foooooo? Fooey. Next time, dear friends from across the Pacific, spend six figures on acquiring an easily typed domain name. That seems easier.

]]>
Mon, 24 Mar 2008 10:03:25 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=371437&view=rss&microfeed=true
<![CDATA[ AOL brass frankly embarrassed by Bebo buy ]]> FalcoAndGrant.jpgWhy were AOL CEO Randy Falco and COO Ron Grant so secretive about buying Bebo? Because they knew much of AOL management hated the deal, Silicon Alley Insider reports. Executives from AOL subsidiaries Advertising.com, Platform A and Userplane would all have worked to kibosh the $850 million deal if they'd known more about it, so Falco and Grant kept them out of the loop. Supposedly, Grant and Falco pushed ahead with the deal because they think Bebo makes AOL a more attractive acquisition target. One source called the buy "Grant's last stand." Below, SAI's account of precisely what's to hate about Bebo, according to AOL execs.

  • An inability for AOL to monetize more social-networking inventory. According to our sources, AOL's Advertising.com already cannot monetize all the MySpace (NWS) and Facebook inventory it has available.
  • Flattening traffic growth at Bebo, which contributes to a sense that AOL is buying it at the peak.
  • A 3X difference between the revenue assumptions used to justify the deal to Time Warner's corporate team and the revenue assumptions some AOL senior managers thought were reasonable.
  • Belief that the Bebo founders would bolt the moment the check cleared.
]]>
Thu, 20 Mar 2008 13:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=370247&view=rss&microfeed=true
<![CDATA[ Mashable introduces video commenting, terrifying new reality ]]> Embedding videos into Valleywag comments is as easy as dragging and dropping a YouTube URL into the comments field. One advantage this method holds over Mashable's video comments: Embedding a YouTube video of yourself takes at least one extra step. Trust us: No one wants to hear you talk. Especially me. I get paid by the pageview.

]]>
Wed, 19 Mar 2008 17:20:01 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=369965&view=rss&microfeed=true
<![CDATA[ Megan McCarthy unhired by Wired ]]>  - ValleywagFormer Valleywag party girl Megan McCarthy's all-too-brief career at Wired: admired, hired, inspired, fired. (Photo by Scott Beale/Laughing Squid)

]]>
Fri, 14 Mar 2008 22:55:47 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=368284&view=rss&microfeed=true
<![CDATA[ Time Warner shareholders, blame LonelyGirl15 for the $850 million Bebo buy ]]> If not in traffic or revenues, where has Bebo leapt ahead of MySpace and Facebook? In turning its social network into a TV channel, says NewTeeVee's Liz Gannes. She credits Bebo president Joanna Shields with figuring out the LonelyGirl15 phenomenon in 2007 and hiring the show's creators. Thus was born KateModern, which has been seen some 30 million times, earning exactly $405,000. Expect more of that, the pro-Bebo argument goes, now that the company is tied up with media giant Time Warner. With 2,099 more hits like that, and the deal might pay off.

]]>
Thu, 13 Mar 2008 15:20:20 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=367697&view=rss&microfeed=true
<![CDATA[ Sequoia clones unsuccessful search engine -- maybe Google will buy it anyway ]]> Searchmevideothumb.jpgSequoia partner Mark Kvamme just plunked down $31 million on a company he also chairs, called Searchme. It's an image-based search engine. Search is a crowded field but Searchme CEO Randy Adams thinks there's room for innovation. "Search," he told BoomTown, "is still largely a text and list experience." True, but Snap CEO Tom McGovern told me almost the exact same thing in May 2006. Didn't work out for him. Now Snap is a site for bloggers. Below, a video demonstration of Searchme's "innovation" and another video showing two-year-old Snap doing pretty much the same things.

Searchme may remind some of Apple's iTunes Cover Flow feature, but if it's more likely to succeed than Snap that's not why. Snap was search-ad innovator Bill Gross's brainchild. Good genes. But Searchme's Sequioa roots are better. Sequioa funded Google, which is known to return the favor from time to time.

]]>
Tue, 11 Mar 2008 11:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=366502&view=rss&microfeed=true
<![CDATA[ Yahoo gives up on improving search results ]]> When all else fails, declare yourself "open." Netscape first pulled this maneuver in the late 1990s; the Netscape browser is now extinct. Yahoo has declared its search results open to improvement. Website publishers are encouraged to submit ideas for prettying up Yahoo search — presumably to include prominent links to their sites. How this is supposed to make Yahoo search results better, it's not clear; won't it just fill them with promotional spam? We'll leave you with this wisdom from a guy with a blog:

When I hear a big company use the term "open," I almost immediately assume they mean "to fucking me."
]]>
Fri, 07 Mar 2008 12:40:01 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=365294&view=rss&microfeed=true
<![CDATA[ JuicyCampus founder wants to take it all back ]]> JuicyCampus founder Matt Ivester created a site that allows college students to anonymously post gossip and rumors about each other. With threads like "Who is the sluttiest girl??????," it's been popular with the kids. The lawyers, too. Now Ivester wants users to know "hate isn't juicy":

Some of the things that have been posted have been mean-spirited, and we have received emails from people claiming to have been defamed on the site. Our hope for the site has always been that JuicyCampus would be a place for fun, lighthearted gossip, rather than a place to tear down people or groups.
]]>
Wed, 05 Mar 2008 15:00:14 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=364326&view=rss&microfeed=true
<![CDATA[ Spielberg's next opus: a social network for tinfoil-wearing nutjobs? ]]> believeSteven Spielberg, who allegedly believes in ghosts, is launching a social network for other tinfoil-wearing crazies. Thank god they'll all be corralled in one place; fear that they might find a leader and organize.

]]>
Wed, 05 Mar 2008 13:00:10 PST Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=364245&view=rss&microfeed=true
<![CDATA[ Eric Schmidt impersonates Mike Long at healthcare conference ]]>
Google's onto its new thing, Google Health, and CEO Eric Schmidt is off on the road to promote the product. Stiffly. Too bad he's above taking lessons from the recent past. Back in the 1990s, Silicon Graphics and Netscape founder Jim Clark planned to put his third company, Healtheon, at the center of the health care industry. Didn't happen. But if investors ever believed it would, it's because Healtheon CEO Mike Long sold them during talks across the globe. In the book The New New Thing, author Michael Lewis called it Long's "road show." If anything will doom Google Health, it's that Schmidt lacks Long's flare for salesmanship. Here's a clip from his stop at the Healthcare Information and Management Systems Society Annual Conference in Orlando.

]]>
Mon, 03 Mar 2008 10:40:31 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=362977&view=rss&microfeed=true
<![CDATA[ Microsoft makes Vista cheaper -- as if that's why people weren't buying ]]> Microsoft has cut the price of the U.S. consumer versions of Windows Vista. The Ultimate Edition fell from $399 to $319 and the Home Premium Edition went from $159 to $129. The Register nails it: "It's hard to believe that millions of Windows XP users were just waiting for Vista to get a little cheaper before committing themselves." Why don't they just put XP back on the shelves? That seems easier. (Photo by mkeefe)

]]>
Fri, 29 Feb 2008 11:40:16 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=362456&view=rss&microfeed=true
<![CDATA[ "Free!" issue of Wired not actually free ]]> We heard through the grapevine that copies of this month's Wired were being taken off newsstands without payment — because unsuspecting readers thought the giant "Free!" on the cover meant the magazine was available no charge. Wired editor-in-chief Greg Anderson tells Valleywag:

The mag was indeed free (but not at newsstands). There have been some scattered reports of people walking out with them without paying. After the alarms went off, we hope they were advised about the web offer ;-)
]]>
Thu, 28 Feb 2008 15:00:23 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=362064&view=rss&microfeed=true
<![CDATA[ We were kidding about the Julia Allison cover, Wired ]]> Allison_Wired.jpgWe weren't actually serious about Julia Allison following up her Time Out New York cover with an appearance on the front of Wired. And yet, here's a photo from Julia Allison and Meghan Asha's brunch meeting with an unnamed Wired "marketing manager." Our hope is expired.

]]>
Fri, 22 Feb 2008 16:20:48 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=359748&view=rss&microfeed=true
<![CDATA[ Like this T-shirt? Then you might also want: ... ]]> Your_mom_VC.jpgLike this T-shirt? Then you might also want:
  • Just 1% of the Market? ORLY?
  • My Ham Sandwich Has A Better Shot at Marketshare
  • You Had Me at NanoTech
Each shirt costs just $100. Or, you can buy the whole company for $100,000. [Venture Capital Wear]

]]>
Wed, 20 Feb 2008 11:30:11 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=358562&view=rss&microfeed=true
<![CDATA[ Cordawrongs: How not to viral-market a product ]]> When a presidential candidate puts her daughter on the hustings, they call it "pimping." But when a company sends a girl out looking for dates, we're supposed to call it a community service? That makes Cordarounds the pimp this Valentine's Day. In a viral marketing project titled "Karen the 13th," the horizontal-corduroy pantsmaker subjected winsomely hapless Karen Palmer — and us — to a drawn-out search for the man of her dreams.

Over the span of one day, Cordarounds flooded the internet with clips of Palmer giving confusing instructions to a caricature artist on drawing the man of her dreams. "I want him to be smart and sporty. Maybe you could draw him with a book in his hand or a graduation cap? And on a surf board maybe? And he should be funny, so definitely with a smile," Palmer tells the artist.

After posting video and pics on the Cordarounds blog and Facebook page, Palmer's gang continued the barrage of internet assault by continually posting "GOT ANY ROMANTIC ADVICE FOR KAREN? WE WANT TO KNOW" and "THRILLIING UPDATE!!!!! KAREN HAS SECURED HER FIRST MEETUP. YOU'LL BE ABLE TO SEE IT SOON AFTER IT HAPPENS." Much like those Porntube posters touting their own vids. Cordarounds' cloyingness had users pranking the Cordaround blog and Facebook wall with gems such as these:
viralmarketcord.jpg
The ad campaign ended with a useless "We will see what happens." Pics or it didn't happen, more like it. The viral marketing for Cordarounds ended up being as annoying as corduroys themselves.

]]>
Thu, 14 Feb 2008 13:00:28 PST Dianne de Guzman http://valleywag.com/index.php?op=postcommentfeed&postId=356614&view=rss&microfeed=true
<![CDATA[ Voce, a wireless service for hipsters with ... ]]> bilde.jpegVoce, a wireless service for hipsters with scraggly beards and ducktails who could nonetheless afford to buy Prada handsets and spend $118/mo. on service fees, has gone under. The company's COO learned of the shutdown when his Voce phone stopped working. [RCR Wireless News]

]]>
Wed, 06 Feb 2008 16:20:07 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=353555&view=rss&microfeed=true
<![CDATA[ $1.1 million paid for world's stupidest domain name ]]> Cruise.co.what.the.f.uk?As the real world's real-estate bubble pops, a virtual one continues to inflate. Cruise.co.uk, a British travel agent, has paid $1.1 million for the domain name cruises.co.uk. An exorbitant sum to let pasty Englishmen know they are able to purchase more than one cruise at a time. The second domain is to be used for a "social network," Cruise.co.uk's PR agency claims.

]]>
Mon, 04 Feb 2008 12:18:58 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=352426&view=rss&microfeed=true
<![CDATA[ The search for an intelligent business model ]]> Chirp, chirpChirp, a so-called "social screensaver," has launched to the usual barrage of press. How could a company stocked with such brilliant founders — CEO Eve Phillips has a masters degree from MIT and an MBA from Stanford — have come up with such a brain-dead business model? Screensavers have been technologically outmoded for a decade or more, and they waste electricity. As more computer users switch to laptops, and close up the lid when the computer's not in use, do they have much of a future?

Even worse is the content Chirp displays on its screensaver: Updates from your social networks. Eric Eldon writes at VentureBeat:

It reminds me of the SETI screensaver — you know, the one that uses your computer to analyze radio telescope data collected by researchers, trying to find signs of intelligent, extraterrestrial communication. The difference is, Chirp is a screensaver that helps you see intelligent communication from your friends.
Right. Have Chirp's founders actually used any social networks? Intelligent communication is the last thing one should expect from them.

]]>
Thu, 24 Jan 2008 14:40:29 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=348665&view=rss&microfeed=true
<![CDATA[ Xerox finds a new logo on the playground ]]> blech!Xerox is synonymous with copiers. But it urgently wants you to forget all that — and, as well, its brief, pointless stint as a "document management company." It has now joined hundreds of young, hip Internet companies with 3D glassy ball logos. Xerox hired Interbrand to spend 18 months conducting 5,000 interviews to rationalize the new logo: "friendlier" lowercase letters, a slick new typeface, and the obligatory ball, which is supposed to "suggest forward movement and 'a holistic company.'" I just think: kid's toy.

Interbrand also designed the logo to be animated, but we probably won't see the animations until Xerox's multimillion-dollar rebranding campaign is fully underway later this year. In keeping with Xerox's long-forgotten glory days, we suggest a new twist on an old idea: A children's singalong with the logo hopping from word to word. Everyone, follow the bouncing ball!

]]>
Tue, 08 Jan 2008 11:01:18 PST Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=342275&view=rss&microfeed=true
<![CDATA[ Why Robert Scoble got banned from Facebook ]]> Scoble gets the Hilton treatmentIllustrious egoblogger Robert Scoble, the Paris Hilton of Silicon Valley, has committed the geek equivalent of a DUI. He has, by his own admission, violated Facebook's terms of service, and had his account suspended — 5,000 friends and all. Scoble's sin? He used a script to export his Facebook address-book information to Plaxo, which runs a competing social network. Running such scripts has long been forbidden, though Scoble argues Facebook should open up its information. Unlikely, given Facebook's history.

What Scoble forgets is that when Facebook was just a college project of Zuckerberg's, long before he raised any venture capital, he fought a running battle with the founders of ConnectU. While they sued him for allegedly ripping off their code, Zuckerberg's Facebook sued them over their attempts to grab data from Facebook. To this day, Facebook encodes email addresses as a graphic image, annoying users who'd like to copy and paste the information — but also frustrating automated scripts which, like ConnectU, would attempt to steal away Facebook's users.

Plaxo is one of many companies which believe that social-network data should be open and portable. Facebook — informed by the ConnectU experience — disagrees. What's true is that companies like Plaxo are envious of Facebook's success, and in arguing for openness, aren't pursuing high-minded ideals — they're seeking commercial advantage. "Open" is just another word for "gimme."

And Scoble? In acting the martyr, he's playing right into their hands. Sad to say, his massive list of "friends" isn't coming in handy. Only 284 people have joined a group petitioning for Scoble's reinstatement.

(Photo of Robert Scoble by scriptingnews; photomontage licensed under Creative Commons)

]]>
Thu, 03 Jan 2008 11:13:30 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=340150&view=rss&microfeed=true
<![CDATA[ Is Calacanis underpaying Mahalo workers -- or overpaying them? ]]> Human, at your serviceJason Calacanis's Mahalo has a problem: its business model is a Catch-22. Mahalo differentiates itself from Web search engines by using the paid services of humans, which Calacanis argues is a cheaper strategy than buying servers. And yet Mahalo seems to have trouble paying the rates it set for its human laborers. A blogger who works for Mahalo as a "mentor" — a fancy title for someone who basically works as a QA tester, reviewing pages of search results created by others, is complaining that Mahalo is refusing to pay the full amount he is owed.

Mahalo's mentor program normally pays $10 per page reviewed. Earning this sum involves reviewing a search result's formatting and links and seeing if any top links from a Google search are missing. Not a difficult job — and one that could well be performed by a computer running a script, from the sound of it. Search IMDB for "Alvin and the Chipmunks", check link, search Rotten Tomatoes for "Alvin and the Chipmunks", etc. The complaining Web surfer was able to review 470 pages in a month, a rate Mahalo scoffed at. No wonder: At that rate, he'd be pulling down $56,400 a year for not much work. The actual labor involved is simply not worth it, even for a company that has just raised $20 million in venture capital.

And therein lies the problem: Computers never ask for a raise. Computers never try to game pay systems. And the cost of computers goes down every year, while the cost of labor rises. Mahalo has clearly miscalculated what it should pay testers. It could no doubt farm the work offshore and save some money. But wages in India have been rising, too. "We've already established what you are, ma'am; now we're just haggling over the price," goes the quote attributed to George Bernard Shaw. But no amount of pimping by Calacanis will save Mahalo's business model.

(Photo by Peter Kaminski)

]]>
Fri, 28 Dec 2007 15:30:25 PST Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=338629&view=rss&microfeed=true
<![CDATA[ Netscape cofounder fails at real estate ]]> Jim Clark is finding real estate a tougher game than the new new things he started at Silicon Graphics, Netscape and Healtheon. The New York Times reports that five years into a Miami real estate venture, Clark and partner Tom Jermoluk might not be able to repay a $110 million construction loan.

The pair also face a potential lawsuit from residents upset at never getting the spa, restaurant and lounge Clark and Jermoluk promised for the building. "When we closed on the unit and walked through the lobby, we were like 'O.K., this looks kind of bland,'" one resident told the Times. "There's nothing for me to do but try and sell it." The buyer might have tried checking out the pair's full business records — something even the Times didn't bother to do. While he made a mint with Netscape, Clark's Healtheon struggled before merging with rival WebMD. SGI is on life support, a shadow of its former self. And Jermoluk is best known among Valley insiders for steering Excite@Home towards bankruptcy amid persistent rumors of a nose-candy problem.

]]>
Wed, 26 Dec 2007 12:20:19 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=337727&view=rss&microfeed=true
<![CDATA[ See this bus coming? Be afraid ]]> Cartoonist Hugh Macleod's Blue Monster — the beast urging Microsofties to "change the world or go home" — will get its own bus for the Consumer Electronic Show in Las Vegas on January 5. The blue guy with the big teeth is more cute than frightening, but there's another reason to run for safety if you see this sucker turn the corner. Guess who's driving it? Hint: the answer is NSFH — not safe for highways.

]]>
Fri, 21 Dec 2007 11:00:34 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=336699&view=rss&microfeed=true
<![CDATA[ Own a piece of this video for just 15 cents ]]>
Yesterday, we told you about striking TV and film writers hitting up Silicon Valley VCs for cash. The plan is to copy WIll Ferrell's success with FunnyOrDie.com. But there is a reason Ferrell's "The Landlord" just passed 50 million views. It's funny. This clip, "THE G! True Tinseltown Tale: Dude, Where's My Car?", is not. But that's not stopping its creators from asking investors for money.

According to an SEC filing, Writers Group Film is offering 10,000,000 shares of common stock at a price of $0.15 per share in an attempt to raise $1,500,000. Not gonna happen. The video's only been viewed 1,100 times on YouTube and 300 times on FunnyOrDie, according to the filings. Unlike this video, that's pretty funny.

]]>
Tue, 18 Dec 2007 11:40:24 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=335236&view=rss&microfeed=true
<![CDATA[ "Open Marketers for Open Source" -- just as terrible as it sounds ]]>
"Open source products are often high on innovation but low on user experience," self-proclaimed "Web strategist" Jeremiah Owyang notes on his blog. "They come across as geeky, not user friendly, and sometimes, just ugly." The solution? These guys! Who are so just the opposite. Oh the teeth, oh the hair, oh the neck beard and chin strap, too.

]]>
Fri, 14 Dec 2007 13:40:23 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=334198&view=rss&microfeed=true
<![CDATA[ Google introduces Knol, which may not actually exist ]]> Google introduced Knol to the public yesterday. It's a sort-of About.com meets Wikipedia, and could smash all of Jason Calacanis's Mahalo dreams. Or at least, the sort-of introduced Knol could. If we ever hear about it again.

"Google stressed to me that what's shown in the screenshots it provided might change and that the service might not launch at all," Danny Sullivan writes on Search Engine Land. So breathe easier, Jason. Google should soon discover that Mahalo clones are just as bad an idea as the original.

]]>
Fri, 14 Dec 2007 09:15:22 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=334037&view=rss&microfeed=true
<![CDATA[ Heidi Roizen's slimtastic new venture ]]> HeidiRoizenSkinnySongs.pngWe wondered in April about venture capitalist Heidi Roizen's plans after her firm Moibus Venture finished closing up shop, and now it's been revealed. After topping her bathroom scale in May, Roizen turned her attention towards the music scales. This week, she launched SkinnySongs, a startup focused on creating upbeat, catchy music with the most thinspirational lyrics this side of a pro-ana LiveJournal ring. (Sample lyrics: "Thin! — not telling you lies. Thin! — I want smaller thighs.") Roizen is both the founder and "chief lyricist" for the startup. You can hold her fully responsible for such ditties as "I'm a Hottie Now," "Incredible Shrinking Woman," and the bizarrely titled "Blowing You Off at Eight."

]]>
Wed, 12 Dec 2007 16:17:36 PST Megan McCarthy http://valleywag.com/index.php?op=postcommentfeed&postId=333246&view=rss&microfeed=true