Startup Addict Musings

Why social networking sites are so popular is summarized in two words “targeting” and “verticals”. Social networks offer online networking that rivals real world networking such as trade shows, business meetings, bar scenes etc. This is because like-minded people have aligned interests and attract each other. For example if I love classical music and love web programming then I am a highly sought after target and become a defined vertical for advertisers. Social advertising will continue to be a necessary evil and bloodline for web companies that have a user base but unproven revenue models in subscriptions or transactional income. This is a guaranteed revenue stream from social networks or developers of social networks (Google’s open social). Advertisers will continue to find out as much as legally possible to get the right messages in front of you. Whether it is based contextually, behaviorally, geographically or socially.

As a user of a social networks, a tremendous amount of information is voluntarily disclosed. Although many sites like Facebook and StartupAddict have privacy settings available to users, it is inconsequential to the social network database that acquires this information. The database still acquires the information and serves up information to advertisers. Think of it as advertisers paying for the social services you enjoy. At the end of the day social network users benefit in the real world along with the social network itself making a compelling answer to why social networking sites are so popular. It’s an online extension of our offline social status.

Tags: Social Networking by Startup Addict

Facesoft or Microbook (sorry couldn’t help myself) is about to get a heavy dose of social networking competition from Google according to a great article from TechCrunch.

Facebook’s move to open up the “social network” for application developers was a brilliant move. However, the one niggling and critical complaint from Facebook developers is not having the ability to export or pull data outside of the Facebook platform and into third party applications. Facebook does not want developers to have the ability to pull data outside of Facebook and into third party applications via the APIs.

Another security blanket Facebook has in place currently (as noted in the Zuckerberg – Battelle interview) The Terms of Service put forth by Facebook has a very anti-competitive feel as well. Essentially allowing Facebook to shut down application developers that may cut the head of the beast and compete directly with Facebook.

It has been said in many blog postings Facebook is 98% there. No doubt, but the last 2%, just like the last mile was for broadband is the chink in the FB armor. Google’s plan is a back door approach by taking all the apps and services already in place through iGoogle, Orkut, Gmail, Google Talk and socializing the services. To fuel the fire even more Google is going 100% open with a new set of APIs that will let other social networks like startupaddict.com (if I can ever get version 2.0 launched) interact with google applications. Imagine if the UK site Bebo having the ability to push and pull Bebo/Google data within the Bebo network. My brain actually starts to spin when I think about the privacy and advertising implications of this, but one thing at a time.
TechCrunch has another more specific API article that will shed even more light.

Awesome stuff!…

Tags: Social Networking by Startup Addict

For those of you unfamiliar, a 1031 exchange gives the real estate investor the ability to sell a piece of property and parlay the proceeds into a “like-kind” property. Here is a quick lay example:

Selling 60K parcel of land that you originally purchased for 40K.
Buyer 100K parcel of land.

The 1031 exchange allows you to replace the sale of the 60K parcel toward the purchase of the 100K parcel. You obviously have to come up with the remaining 40K but the beauty of the deal is you pay no tax on the 20K of appreciation. The taxes will be deferred until the sale of the 100K parcel unless you 1031 again. Think of it as leap frogging to wealth.

One unconventional 1031 replacement property option real estate investors do no think of is converting your investment property to personal use. Impossible you say, it is not “like-kind”….ah…you rent the property for two years to satisfy the investment intent. After the rental period is up the property can be used as your residence and for personal use. Live in it for another 2 years and qualify for tax-free $250,000/$500,000 tax exemption. As long as you use the property for personal use 2 of the 5 years.

* As always this information is not a form of tax, legal advice or a recommendation to use 1031 exchanges.

Tags: Real Estate Development by Startup Addict

I have been getting more and more requests to do more postings on real estate development rather than just exclusively cover entrepreneurship, StartupAddict.com and web 2.0 properties and concepts. I decided to satisfy the dual need of web 2.0 and real estate by doing two postings at a time — one dedicated to web related entrepreneurship and one to real estate endeavors. As always I appreciate your feedback as we all anxiously await for StartupAddict.com 2.0 to arrive.

Tags: Splattered Thoughts by Startup Addict

I wanted to send a thank you out to John Cricket for compiling a great list of the Top 100 Business Blogs and am honored to have “SA Musings” make the cut (#95). You can find John and his advice over at Business Opportunities and Ideas.

Hope you enjoy the Top 100 blogs…

1. Business Opportunities Weblog T: 12 A: 16,213
2. Copy Blogger T: 36 A: 7,825
3. Seth Godin T: 47 A: 10,314
4. MicroPersuasion T: 169 A: 33,643
5. How To Change The World T: 180 A: 14,709
6. Duct Tape Marketing T: 215 A: 31,714
7. Freelance Switch T: 312 A: 10,638
8. A VC T: 1,226 A: 27,737
9. Rough Type T: 1,253 A: 69,429
10. Successful Blog T: 1,432 A: 44,935
11. Small Business Canada T: 1,517 A: N/A
12. David Allen, Getting Things Done T: 1,549 A: 53,592
13. Springwise T: 1,913 A: 23,858
14. Small Biz Trends T: 2,155 A: 63,364
15. Fast Company T: 2,310 A: 12,141
16. Instigator Blog T: 2,477 A: 58,816
17. Occam’s Razor T: 2,548 A: 45,541
18. Smart Wealthy Rich T: 2,879 A: 79,415
19. eMoms At Home T: 3,443 A: 27,125
20. Escape from Cubicle Nation T: 3,467 A: 202,751
21. The Marketing Technology Blog T: 3,496 A: 47,038
22. Business Pundit T: 3,724 A: 114,669
23. The Engaging Brand T: 4,404 A: 433,644
24. Influential Marketing Blog T: 4,779 A: 98,886
25. Drew McLellan - The Marketing Minute T: 4,820 A: 129,669
26. The Digerati Life T: 4,873 A: 53,353
27. Success From The Nest T: 4,908 A: 95,008
28. Business Blog Consulting T: 5,186 A:237,901
29. Church Of The Customer T: 5,576 A: 250,201
30. Todd And T: 5,643 A: 161, 019
31. Net Business Blog T: 5,936 A: 36,107
32. Don Dodge on The Next Big Thing T: 6,583 A: 92,784
33. Bootstrapper T: 7,497 A: 50,304
34. About.com Entrepreneurs T: 7,797 A: N/A
35. Blogtrepreneur T: 7,897 A: 53,011
36. Branding & Marketing T: 8,200 A: 710,326
37. Simplenomics T: 10,252 A:288,753
38. Freelance Folder T: 10,543 A: 63,590
39. HELLO, My Name Is Blog T: 11,395 A: 422,218
40. Self Made Minds T: 11,704 A: 39,719
41. Sox First T: 12,894 A: 994,161
42. Young Go Getter T: 14,239 A: 45,373
43. Trust Matters T: 15,462 A: 58,403
44. Small Biz Survival T: A: 18,074 A: 875,069
45. The Personal MBA T: 19,207 A: 142,649
46. The Entrepreneurial Mind T: 21,958, A: 155,166
47. Blog Business World T: 23,025 A: 252,405
48. Working At Home On The Internet T: 23,247 A: 423,900
49. Biz Informer T: 24,631 A: 904,745
50. EmpowerWomenNow T: 25,837 A: 117,085
51. Biz Plan Hacks T: 27,048 A: 1,335,732
52. CreateBusinessGrowth T: 32,949 A:197,290
53. Business Opportunities and Ideas T: 33,205 A: 282,805
54. The KISS Business T: 35,496 A: 621,082
55. Startup Spark T: 35,747 A: 386,949
56. Buzzoodle Buzz Marketing Blog T: 41,092 A: 467,418
57. MindPetals T: 41,714 A: 128,487
58. Marketing Deviant T: 43,764 A: 281,072
59. Go Big Network T: 44,842 A: 25,303
60. Cool Business Ideas T: 49,679 A: 187,126
61. Neville’s Financial Blog T: 52,048 A: 140,296
62. Atlantic Canada’s Small Business Blog :T 52,589 A: 795,253
63. College Startup T: 53,143 A: 184,398
64. Reflections Of A Biz Driven Life T: 79,365 A: 361,398
65. Branding Blog T: 93,462 A: 1,110,518
66. Carnival Of The Capitalists T: 93,462 A: 1,897,375
67. Young Entrepreneur T: 104,933 A: 26,491
68. Marketing Genius T: 132,066 A: 2,222,119
69. Better For Business T: 137,774 A: 590,797
70. The Small Business Blog T: 140,824 A: 577,490
71. Focused Mind T: 162,356 A: 520,971
72. Small Business Tips T: 166,367 A: 74,005
73. Lifes Perspective T: 194,358 A: 179,801
74. Business Opportunities Blog T: 199,700 A: 832,678
75. The Savvy Entrepreneur T: 224,227 A: 391,147
76. Egg Marketing Blog T: 231,062 A: 740,867
77. The Franchise King Blog T: 273,240 A: 520,732
78. Small Business Entrepreneur T: 317,977 A: 883,094
79. The Great Startup Game T: 331,293 A: 421,492
80. Work At Home Start Up Guide T: 345,597 A: 1,190,178
81. Dorm Room Biz T: 360,865 A: 957,072
82. Startup Blog T: 377,609 A: 2,552,189
83. Open Innovators T: 395,824 A: 1,230,257
84. Get Entrepreneurial T: 437,475 A: 446,085
85. Bplans Blog T: 437,475 A: 1,373,525
86. Stuff4Restaurants T: 461,534 A: 298,982
87. Canadian Entrepreneur T: 484,461 A: 237,901
88. Strategize T: 487,964 A: 2,856,731
89. The Marketing Spot T: 587,893 A: 2,550,840
90. The Ravings Of A Mad Entrepreneurial Scientist T: 587,893 A: 566,836
91. More Than We Know T: 871,446 A: 2,964,420
92. Solo Entrepreneur T: 1,212,405 A: 471,491
93. Stuff4Business T: 1,391,575 A: 298,982
94. Consultant Journal T: 4,262,598 A: 667,342
95. Startup Addict Musings T: 4,446,976 A: 1,03390,690
96. Edith Yeung T: 8,911,336 A: 125,290
97. Boostrap Me T: 8,911,336 A: 550,348
98. The Selling Sherpa T: Not Listed A: 772,292
99. BizzBangBuzz T: Not Listed A: 1,484,797
100. The Freestyle Entrepreneur T: Not Listed A: 1,519,518

Tags: Business Blogs by Startup Addict

It’s not “what you know” but “who you know”. The old cliche’ is being modified a bit by Facebook’s social graph concept. The social graph is more about “what people around you know”. I’ve been trying to wrap my arms around the term Mark Zukerberg put forth. What I am able to glean thus far is two components to social networks. The first and most common is the Linked-In concept of being connected directly to people you know and who they might know. This mirrors the six degrees of Kevin Bacon concept. The second social graph concept is a bit more analytical by culling through the 40 million user base and identifying sub-networks and social connections from the registered masses. These connections are based on geography, industry, skill-sets, common interests, goals etc. Much the same way Google can index and make a sitemap of any given website, Facebook is capable of doing a social index and sitemap among its’ 40 million users that are being crawled to define the social graph. A combination of user’s social and private information is made into categories topics and buckets based on any number of analytical social parameters. this allows one to socially interact with like-kind, like-minded and like-proximity people at break-neck speed, essentially doubling and tripling one’s possible network connections. Sounds awesome right? Now comes the fun part…

Targeted Advertising…rather than using contextual based advertising that Google so deftly conquered, Facebook has the ability to serve up highly relevant ads based on categorized or tagged social connections. Imagine a geography of Boston in an industry of musicians that have a tendency for goth and grunge interest. Bingo an advertiser would pay a premium well beyond the normal CPM to have access to a targeted group of users like that. Look at John Battelle’s Federated Media (FM) and how the premium price paid verse other blogs is worth the price of admission for the targeted audience it serves. This is obviously only one of many possibilities when an entity such as Facebook has command of 40 million interacting users. Just think, a 30 second spot on network television during the superbowl runs 1-2 million bucks for a very general untargeted spot aimed at roughly the same number of users (and growing) registered on Facebook. The concept resonates with the early 90s song “things that make you go hmmm”.

I may eat my words of “overvalued at $15 billion” based on the previous thoughts, but the proof will be in the pudding and Facebook needs a better hook to get out of the $200 million a year realm of revenue. But with Microsoft and NY hedgefunds diving in, anything is possible. It will be fun to watch.

Tags: Social Networking by Startup Addict

Microsoft buys Facebook stake for $240 Million which is an incredibly expensive 1.6% interest in the hottest web property on the market. The $240 million price tag is clearly based on a $15 billion dollar valuation that I touched on in a post earlier this month (absurd amount mind you).

Most Facebook deal trackers figured the news would announce yesterday. Especially after watching John Battelle’s interview with Mark Zuckerberg at the Web 2.0 Summit where he shocked Battelle with the opening Q&A. Although Mr. Battelle’s humor is priceless. Check it out below

Facebook now has all the ingredients for the next poster child story of a true web startup gone from seed to orbit.
(1) It started in a college dorm room (either there or a garage).
(2) Experienced critical mass in 6 months to a year.
(3) A 20-something created it.
(4) Refusal of first 10 figured offer from conglomerate.
(5) Next stop IPO.

I scored the story at Yahoo Finance

Tags: Social Networking by Startup Addict

I apologize in advance to my fellow entrepreneurial readers who are subjected to reading my “geeking- out” experience of converting my blog and Startup Addict mysql databases from cpanel to 1&1 dedicated servers. I spoke in an earlier post regarding the difficulty with the first Startup Addict programming team and I reluctantly let the project manager persuade me into hosting with them. Mistake #1 was hiring them and getting nothing for the first investment other than proof of concept (to reprogram) to Mistake#2 hosting with them and dealing with intermittent mysql database connections for both this blog and the SA site. What finally drove me over a cliff was getting a response from their server admin more than 24 hours after I reported a problem.

Okay tirade is over. In my search of exporting mysql databases from cpanel to 1&1 mysql databases on dedicated servers, I found very little. So, hopefully Google’s database of intentions will land a desperate reader here (I think I’ve done enough keyword stuffing) to indulge the search engine. So two hours into my server problem the secret sauce is exporting as a version 4.0 mysql dump and it will by default import correctly into the 1&1 server. Both cpanel and 1and1 use phpmyadmin to export and import so as long as the version is the same, you will skip the esoteric error messages from calling out to random lines of code. Just make sure you export as a .sql file rather than csv or other type files.

Hope that is helpful to the mysql database crowd and my apologies for subjecting my core readers to this rant about cpanel, 1and1 and mysql geek speak.

Tags: Splattered Thoughts by Startup Addict

Social Networking is a blank advertising canvas in 2008 and has the Titans of the Internet (Google, Yahoo and Microsoft) scrambling for control…or dare I say at least a game plan. John Battelle offers some insight as always regarding the relationship between existing online spending (at an all time high) and future advertising preference of social networking to better target for ads and user’s clickstreams (think blueLithium). Google was undoubtedly timely with adwords / adsense during the deluge of online spending. However the landscape is changing (as it always does) and as I stated in an earlier post Microsoft does not want to miss the social networking category…or the Facebook ferry. The wounds from trailing in search to Google are still fresh in the Vista Vikings mind. Controlling 40 million eyeballs on Facebook is any publishers dream which in reality is any advertisers dream….not only does Facebook have enormous advertising attention but the social category itself is starting to swell.

According to article in emarketer by Ari Levy and Dina Bass

“U.S. ad spending on social-networking Web sites will double to $900 million this year, with Facebook and MySpace grabbing three quarters of the total, according to EMarketer Inc., a research firm in New York.”

So with all of this wonderful information what is an entrepreneur to do? I have been told it is difficult to be a trendsetter and I would agree with that. But why not be a trend spotter (as Joe Kraus would say)…lets recap:

1. The big ad money is going social
2. The biggest companies want in on social
3. Facebook and Myspace next moves are consuming all the media’s attention (must be important)
4. It is the new advertising play with millions of social web startups and publishers created.

Yep, the trend is social network evolution monetized by advertising and will continue to grow more than ever…. Let’s hope version 2.0 of StartupAddict.com is done by the middle of November so I can head toward breakeven on the crest of this social wave.

Tags: Social Networking by Startup Addict

CBS isn’t the only network buying up successful web properties, Discovery is plunking down $250 million big one to connect Discovery content into the HowStuffWorks brand. Networks and traditional media companies alike are realizing the fragmentation of media continues at a rapid pace and rather than struggle for user attention why not meet users head-on in multiple mediums. Brand extension from traditional media outlets into new outlets is the only way to maintain a strong brand in a web 2.0 world. Discovery is certainly on the right track and I personally have to say the networks content is only getting better and more original. Can’t beat lobster wars or myth busters.

Blogs I stumbled across reporting the deal are ValleyWag and TechCrunch

Tags: Uncategorized, Web 2.0 and Beyond by Startup Addict