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Hollywood-Flavored Brain Juice about Viral Marketing, Venture Capitalism, and Online Networking.


Day or night, it's always flowing, so put on your rain jacket and wait- Did you hear that? It was a crackle of thunder. We're gonna have a brain juice storm.

Another Tid-Bit...

At the healthy age of 24, I have multiple, successful entrepreneurial ventures under my belt. My belt is so large I am forced to use the last notch. You know, the one that extremely weight-challenged people use.


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Archive: Insider

BeBo & AOL: Someone Late To The Party?

As you’ve undoubtedly heard by now, Bebo has been acquired by AOL for $850 million. Come again? Bebo, the #5 social news site for $850 million? Didn’t NewsCorp pay just $580 million for MySpace, the dominant #1 player.

Well yeah, but a lot has happened since that deal went down, and valuations for social networking sites are through the roof. In fact, $850 million is actually a pretty good deal considering the size and growth of Bebo. If anything, it makes Rupert Murdoch’s initial acquisition, MySpace, look exponentially sweeter. However, AOL, like NewsCorp and Microsoft, is getting a valuable partner in the social networking game. Bebo gives AOL (TimeWarner) a valued channel through which to market its content and extends its reach further across the globe. After all, Bebo’s real cult following is abroad, not stateside. For Bebo, the deal is equally sweet - it’s getting loads of cash and a mountain of resources/content to draw from in expanding its own operations.

As such, I can’t help but give this deal my whole-hearted stamp of approval. Boom. Stamped.

What’s The Juice With Yahoo and Microsoft Lately? … For The Layperson, Part I

Throughout the past few days, I’ve heard plenty of people buzzing about what’s going on between MSFT and Yahoo, and it has made me realize what an insulated community I exist in. I take it for granted that everyone around me has the same nuanced understanding. So, I’ve broken down what;s going on - as I see it - for the layperson. Please take a gander.

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Synopsis: Yahoo’s lagging stock price, and hot Internet properties have made them an attractive acquisition candidate for a long time. Unlike Google, Yahoo has long been in the “content” game and as such, has gained a huge - we’re talking mega-ginormous – following in many areas. For example, Yahoo Finance, is and has long been the #1 business website (in terms of traffic) on the Internet and Yahoo Fantasy Leagues have been the #1 destination for sports enthusiasts. Furthermore, Yahoo has made some surprisingly nimble acquisitions such as social bookmarking pioneer, del.icio.us, and the now ubiquitous photo-sharing platform Flickr. However, with so many eyeballs comes a huge sticker price, one that makes Yahoo a hard company to swallow. With Yahoo’s share price dipping below $20 and a large round of layoffs lowering cost concerns, Microsoft decided to crack open its always sizable war chest and bring an offer to the table. This was a chance for Microsoft to not only take out a competitor, but to get good R&D (Research and Development), a whole pipeline of products, and essentially, “buy” there way into a serious online presence that they’ve yet to achieve organically. Additionally, they’d save tons of money in operating costs with their new acquisition due to “synergies in operation” (ie. being able to fire everyone at Yahoo whose job already exists at Microsoft – management included).


With an offer on the table, the Yahoo Board of Directors were forced to consider it, and in doing so, put the company “in play.”


Facebook To Add Instant Messaging Service and Change Privacy Options

Facebook announced a few days ago some news that’s sure to rock the socks of its users worldwide – the number two social networking site will be introducing an instant messaging service, in addition to new privacy options, within the next two weeks.
This announcement comes in the wake of a Facebook backlash, spurred by all the spamming that went along with their recent Beacon advertising model. Facebook is clearly looking for ways to win back their users – and it seems to me like they’re on the right track.

The instant messaging service will be a default application in every user’s account, enabling friends to check which of their friends are online. And of course, friends can chat with each other live, or more aptly, “instantly.” This service will be yet another step forward in Facebook’s effort to make their network more addictive than crack cocaine. New Facebook groups related to the IM service are already springing up, such as: “Facebook Introduces Instant Messaging: I’ll NEVER Be Productive Again!!!”

As for the new privacy options, users will now be able to limit the viewing of their profiles to friends and friends of friends. This is a similar scenario to LinkedIn, where information is only visible only to first degree, or second degree contacts. Essentially, Facebook is empowering users with a great ability to filter who can and who cannot access their information.

Keep up the good work, Facebook. We’ll be watching.

http://www.brianzafron.com/2007/04/18/Facebook-To-Add-Instant-Messaging-Service-and-Change-Privacy-Options

Facebook Founder/CEO Zuckerberg Interviewed at SXSW Festival; Interview Zucks

In a sprawling interview on Sunday at the South by Southwest Interactive Conference and Festival, Facebook founder/CEO Mark Zuckerberg talked about his company’s massive growth and future monetization strategies. The interviewer was a writer for BusinessWeek magazine, Sarah Lacy, and she got completely clowned by the audience for asking rambling, unsubstantial questions. At one point, after asking Zuckerberg whether he burned his notebooks (in which he routinely brainstormed ideas longhand), an audience member shouted, “Talk about something interesting!” Also, after one particularly non-direct, semi-question, Zuckerberg murmured, “You have to ask questions,” and he received wild cheers of agreement from the crowd.

A video of the most juicy moments can be found here.

The interview was filled with only a sprinkling of new, interesting information - like that Facebook is planning to launch in France this Sunday. But what’s the deal with Sarah Lacy? Why was her performance with Zuckerberg so sub-par? Beats me. Maybe she was distracted. Maybe she wanted to poke him.

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Hollywood’s William Morris Agency Throws Coin At New Media

Exciting news out of Hollywood today: the town’s oldest and most prestigious talent agency, William Morris, has joined up with a couple venture capital firms (Accel Partners and Venrock), as well as AT&T, to form a vehicle for investing in Internet-based businesses. For those of you living outside Lala land, William Morris represents a huge portion of your favorite celebrities: everyone from Quentin Tarantino to 50 Cent to Jesus Christ - yeah, even Jesus needs Hollywood representation.

The goal is to discover, fund, and help build these businesses, which include social networking sites, platforms for mobile devices, video services, and advertising applications.

With this dip into new media, William Morris is expressing a particular interest for innovative systems, rather than innovative content creators. This distinction represents a change for the agency that has forged Hollywood’s path into web 2.0 talent – signing youtube stars like blamesociety films and bloggers like stuffwhitepeoplelike. At the same time however, the “innovative systems” are a way to encourage more web 2.0 talent to blossom – providing a stage for the Steve Shmoes of yesterday to morph into Steven Spielbergs of tomorrow. We live in an age when the power to disseminate information and entertainment is more and more democratized, and William Morris’ new endeavor will only speed along this process.

According to the Hollywood trade paper Variety, the fund is rumored to consist of “tens of millions of dollars, with the average investment in startups said to range from $300,000 to $500,000.” Other top Hollywood agencies are also starting to demonstrate an interest in new media. The United Talent Agency (UTA), for example, owns a significant stake in the digital entertainment studio 60Frames.

“It’s something we’ve talked about for a long time as a way of expanding our business,” said Jim Wiatt, chairman-chief exec of WMA. “It’s an opportunity for us to help foster growth, as well as help our traditional clients.”

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Peel-Away Ads Present Loads Of Potential…. And Problems

Don’t you hate unpleasant surprises?

Like the time you discovered that attractive woman was actually your best friend’s girlfriend? Or that fateful day you realized it wasn’t technically “cool” to listen to Phil Collins?

Well, I also hate unpleasant surprises. Thus, I hate these new “peel-away” ads that have cropped all over the glorious world wide web. Basically, these ads look like cute, snuggly bunny ears which, when you mouse over them, “peel away” to reveal an ad. Bunny fetish aside, I find these suckers irresistible to click. So naturally, when I noticed on Monday some peel-aways on ProgrammerMeetDesigner’s website (one of the start-ups in my shared incubator space; mentioned in this article), I found myself ready to click. And herein lies the unpleasant surprise: before even clicking the peel-aways, simply through mousing over them, I noticed they were disabling the site’s login button. I soon notified the PMD peeps about their advertising mishap, and they quickly took the ad down.

Fast forward to yesterday: I’m checking out John Chow and I noticed his peel-away ads, served up by his company, TTZ media. Low and behold, his ads made it impossible for visitors to both a) hit the search button and b) close that annoying yellow, top bar (ad) without scrolling away from the ad unit.

Next, I cruised over to TheTechZone (Chow’s other site) on a hunch he was probably running the TTZ unit there, as well.  Hunch confirmed, I noticed some more bugginess: after mousing over an ad, the links on the page covered by the larger hit area (a 500 x 500 px box) stopped working until I removed the mouse from the area all together - even after the ad had “peeled back.”

To surmise everything I’ve said thus far: peel-aways totally suck. Every peel-away ad I’ve seen is riddled with problems, small and large.

This phenomenon validates several points I’ve always found to be true. First, web 2.0 is always in search of the “next thing” - and we often rush to implement this “next thing” prematurely, without adequate test-runs. It’s like auditioning for a Shakespearian play the day after you overcome a major speech impediment: simply not practical. T-t-t-t-to be nor not to be. Definitely not to be.

Secondly, our tendency to rush into half-baked ideas is commonly driven by monetization goals. Most peeps in the 2.0 sphere – and John Chow is definitely an exception - are so abysmal at monetizing their traffic/users that they’ll jump on any bandwagon ad-scheme that comes their way.  Money, in other words, supercedes care and content- and in the end, poop gets rained over everybody. Dirty, stinking poop. Additionally, at the end of the day, as my friends at PMD confirmed, none of these new schemes monetize with vastly more success than the old ones.

As a corollary to this article, mark my words: the first ad company to make a bug-free peel-away unit is going to make good money. Private jet and house in the Hills money. Even enough money – sorry, John Lennon - to buy love. So, if any of you programmers/wizards out there can fill this need in the www, please contact me. I’ll find you funding tomorrow.

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Made-For-Internet TV Show “Quarterlife” Bombs on Network Television

What goes up must come down.

The expectations for “Quarterlife,” the first web-based series to receive a network broadcast, were monstrous heading into Tuesday night. The NBC show premiered at 10pm EST and received the worst ratings for that slot in at least 20 years, according to Neilsen Media Research.

“Quarterlife” was created for the Internet by Marshall Herskovitz and Edward Zwick. the producers of “My So-Called Life” and “thirtysomething,” The show has circulated around popular video-sharing sites like myspace and youtube for the past three months, packaged in episodes of seven to nine minutes. It details the lives of six twentysomething friends and their angsty struggles with life. By web standards, the show has proved a remarkable success- drawing in tens of thousands and sometimes hundreds of thousands of viewers each week. However, network TV is a different beast with drastically different standards.

Tuesday’s broadcast received an average of 3.1 million viewers and a rating of 1.3 among the audience from 18-49 - the lowest in NBC history since Nielsen started measuring TV viewing by age in 1987. By comparison, the usual Tuesday 10pm show, “Law & Order: Special Victims Unit,” typically brought in 12 million viewers and a 4.5 rating.

NBC’s plan was to take the show’s 36 “webisodes” and turn them into a 6 episode season. But now there are doubts that NBC will even air the second episode. NBC Entertainment co-chairman Ben Silverman said on Wednesday that the series didn’t live up to expectations, but was “so worth the try.” Translation: it was cheaper than a Czech prostitute.

I don’t think that “Quarterlife”’s flop means the death of the Internet to TV crossover, but it certainly will be looming in the minds of network execs for at least the immediate future. At the same time, however, I personally don’t believe the flop was due to inferior production value or any other Internet stigma. Rather, the show just kinda sucks – lukewarm plot, clichéd characters, and abysmal acting. Check it out for yourself here.

More discussion on other Internet series phenomenon next week.

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Hollywood’s Coronation of “No Country For Old Men”: Best Picture, Best Director… Best Word of Mouth Marketing

Last night, Joel and Ethan Coen’s No Country For Old Men took home a shit-load of honors at the 80th Academy Awards, including Best Pic, Best Director, and Best Supporting Actor (Javier Bardem). Although No Country was the odds-on favorite for Best Pic heading into the night, that wasn’t always the case.

Back in November, for example, New Line’s fantasy/adventure The Golden Compass looked primed to ride the coat tails of Lord of The Rings all the way into the winner’s circle. But a few lukewarm reviews and half-empty theaters later, the two-year, star-studded (Nichole Kidman, Daniel Craig, Dakota Fanning…) $180 million dollar production lost momentum and faded into Hollywood oblivion – right next to Pee Wee Herman’s Big Adventure and every film that has featured Shaquille O’Neal.

Then in January, Michael Clayton, starring the melt in your mouth, not in your hand George Clooney, was the irrefutable front-runner. Nikki Finke, the LA Time’s Entertainment editor, commented: “every Oscar voter I talked to at that time kept mentioning they liked [Michael Clayton] best.” But then, within a matter of weeks, No Country ousted Clayton building off Best Pic victories at a variety of contests, including the Screen Actors Guild and Critic’s Choice Awards.

Herein began the No Country word-of-mouth fever: the mainstream media and in turn, the movie-going public, rallied behind the Coen Brothers’ off-beat, episodic Cormac McCarthy adaptation. Next, the Academy members, who vote on all the Oscar nominees (and who hate appearing out of touch with the American public), jumped onto the bandwagon. The buzz was fucking palpable.

At this point, it’s worthy to note that although Academy members vote on all the Oscar nominees, they are not required to watch them. In other words, they often rely on their impression of the given film, which is obviously shaped by associated buzz. And oh, did I mention that the president of the Academy, Sid Ganis, is the producer of such gems as Deuce Bigalow: Male Gigalo, Big Daddy, and Mr. Deeds? The Academy clearly isn’t without its flaws.

I am not trying to convey that No Country wasn’t worthy of Best Pic honors. I’m simply illustrating that the waves of word-of-mouth factored into this end result. And also, if I can leave you with one final word of wisdom, the Academy kinda sucks.

*By the way, the Oscar statuettes are made from 92.5% tin and 7.5% copper, with a gold plating. Gold plating, homies.


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Top Ten Signs Your Start-Up Business Is Actually A Glorified Hobby

Boys and girls, chickity check it.

It seems like every day I meet another shmoe-rag who thinks his crackpot scheme or backdoor shinanagan constitutes what me, you, and Webster - you know, the guy who created that dictionary thing - understand to mean a “business.” In tribute to these shmoe-rags, who secretly hold a dear place in my heart, I present you with a shmoe-rific top 10 list, entitled: Top Ten Signs Your Start-Up Business Is Actually A Glorified Hobby.

Without further ado, the list….

10. Your office phone is shaped like Mickey Mouse.

9. The last “important” fax you received was a picture of your step-brother’s bare ass.

8. The only freelance worker you routinely employ is the Pizza Hut delivery boy.

7. Your office space doubles as your reception area and you parents’ bedroom.

6.  Nobody except you showed up to your office Christmas party, but everybody on the invitation list was there.

5. Your official website is your Facebook profile.

4. The only service you offer is photo-shopping pornographic pictures, but you still describe your business as “the next Microsoft.”

3. Your executive summary consists of only one sentence: “I am awesome.”

2.  Two of your childhood invisible friends sit on your board of directors.

1. Your clients regularly pay you with Monopoly money.

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Freelancers and Clients: You Scratch My Back, And I’ll Scratch Your… Balls

Finding a business partner, temporary or permanent, is like taking home a girl from a bar. Certainly, she might seem attractive from a distance, and perhaps the chemistry is flowing, as well, but what happens when one thing leads to the next and you purchase your non-refundable ticket to Funky Town: what are the chances, you will need to ask yourself, that this girl has an STD?

The majority of my experience with freelancing, apart from my undergraduate journalism days at Northwestern, has come from the client standpoint. In this experience, I have endured a handful of nightmarish relationships that, in hindsight, should have ended at the bar, or certainly in the taxi ride back to my apartment. The following is a favorite/least favorite example.

My old company - which I founded sophomore year and sold shortly after graduation - had begun a project through a large outsourcing site and selected a very active freelancer with verified credentials. We drew up a contract and put all project money into escrow – to alleviate any potential concerns about receiving payment.

Despite our accommodation, the freelancer asked for more money before the project had demonstrated any meaningful headway. A mountain of problems soon amassed - which I won’t delve into because I might summon up dormant rage and end up strangling an adorable and innocent puppy – and even after we placed several additional thousand dollars into escrow, the freelancer refused to finish the project.

At this point, we attempted to backup any completed work - to ensure the freelancer wouldn’t take the money and leave us with nothing but a punch in the balls. But in the end, the punch landed on both our balls and our wallets: we soon discovered that there was a decoy connection script that was pointed at our databases (the MySQL queries were all being pulled from their servers) and that the freelancer created a malicious script with the sole purpose of destroying the rest of the files (executed remotely, of course). We ostensibly threw $8,000 down the drain and on a personal level, I aged about ten years in the span of two months. That’s faster than dog years, my friends.

In today’s world of interconnectivity, outsourcing is only becoming more popular. And naturally, everyone, whether they reside on the client or service end of the spectrum, is bound to run into someone who takes their trust and spreads Vegemite and raccoon poop all over it. However, I firmly believe, and my overarching experience supports, that most people are not seeking selfish, short-term gains. Most people strive to create cathartic working relationships that will transition from one project to the next, picking up a solid reputation and a slew of referrals in the process.

But - and this is a medium to medium/large butt - the risk of encountering the bad apple is very real. And, with this risk constantly looming in the background, it’s important to take whatever precautions possible.

First and foremost, you need to pay careful attention to how the other party responds to initial contractual negotiations. If you give them an inch, and right from the start they try to take a mile, then you’re probably entering into a problematic working relationship. Test the waters very cautiously, in other words, before you take off your clothes and dive into the pool.

Neither freelancers nor clients should tolerate adversarial relationships. Believe me: it’s dangerous to cater to people who neither initiate nor reciprocate efforts to build genuine trust. Along these lines, I ask: isn’t it great when someone, perhaps a friend, perhaps not, performs an unsolicited act of kindness for you? And don’t you, as the recipient, possess an urge to return the favor? If you answered no to either of these questions, then please quietly get up from your seat and exit at the back of the room.

Certainly, sometimes taking a blind chance on another person will pay dividends for current and future projects, but if you remain “blind” for too long, you’re playing with fire. Or, to return to this article’s initial analogy, you’re playing with a girl with some potentially nasty STDs.

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