Screen shot 2010-02-11 at 1.05.35 PM

Buzz Kill

By now, if you follow the technology world at all, or if you use Gmail, you’ve probably noticed a new thingy released by Google in the last few days. The thingy is called Google Buzz and it is billed to be a “status update” tool to allow your friends to know what you’re up to?

Sound familiar? Yeah, it’s supposed to be going after Twitter or some nonsense like that.

I enabled Buzz on my Gmail account and then promptly disabled it (you too can disable it, if it’s already turned on for you, by clicking on the “turn off Buzz” link in the footer of your Gmail account).

I’m going on record today to say that Google Buzz is and will continue to be an absolute failure. The reasons why are fourfold…

No one cares about the Google community

This thing is all about tying the Google community together, though they do have support for Twitter and Flickr as well because, well… no one can ignore those massive communities and have legs for the long run. People care about the YouTube community (a Google property). To a lesser extent, people care about the Blogger community (a Google property). No one cares about the Gmail community. It’s email!!! It’s not about community, it’s about utility and communication. Not community. I get spam in my Gmail. I get business conversations in my email. I get a searchable index of messages sent back and forth over the last five years in my Gmail. I don’t get community in my Gmail. The only community feature in Gmail is Google Talk and I don’t use that in Gmail. I use it in an IM client (Adium).

Google is too spread out to worry about community. They have products to meet needs and diversify web experiences, but their forays into community have sucked. Badly. Last time Google’s OpenSocial was a factor in the collaborative, community space was… oh, well, never. That’s dominated by Facebook. Not Google. Last time Picasa was an actual factor in the photography community was… oh that’s right… never. That’s controlled by Flickr.

And the next time Google tries to be a player in the “status update” community will be… oh, that’s right, never. That’s because Twitter dominates. Just ask Identi.ca. Oh, and Facebook.

Friendfeed is still something small and irrelevant

Why do I bring up Friendfeed? Well, my argument against Friendfeed still exists. Even Louis Gray, one of the biggest historical champions of Friendfeed, acknowledges that it remains a small community. It never has and never will go mainstream. So why has Google essentially ripped Friendfeed off and expect different results?

Comment? Like? Sounds familiar…. Oh, Facebook and Friendfeed do that.

Buzz is insecure

It’s well documented at this point that Buzz is actually pretty insecure. Because it operates out of Gmail, it assumes that your most frequently emailed people should automatically be friends. Except that that assumption is inherently insecure because friends are publicly viewable. Take these hypothetical situations for instance:

  • Bill has been corresponding with a major possible client under NDA. For any number of reasons, the communication should not be revealed to the public. Yet, due to the volume of email between Bill and his contact, his contact is automatically made a Buzz contact.
  • Kelly is negotiating an acquisition of a company. If this information were public, the deal could be off.
  • John is trying to take his wife on a big, secret getaway for her 40th birthday. In emailing with a variety of resorts over the period of several weeks, those resort contacts become part of John’s publicly viewable community.

Are we seeing the problem here? This is like Facebook Beacon all over again.

Why add more workflow and more social networks?

The argument has been made in favor of Buzz that Google has a huge Gmail userbase to jump off of. While this is true, this is one more area of workflow for users to utilize. Why do it? We have YouTube and Flickr and Twitter and Facebook? Do we really anticipate Buzz being added to the repertoire? I think not.

Buzz will have the same result as most other social networks: it will die. Very few have legs because very few are innovative and do new things. Twitter was an accidental success because it innovated on the concept of microcontent over SMS… yes, that’s how it started. Buzz is just one more has been and offers nothing new. It will stay in the bowels of early adopter-hood until it is forgotten.

That’s my story and I’m sticking to it.

Update: VentureBeat reports that Google has tweaked their privacy settings.

The Best (Accessible) Photography on the Web

It’s no secret that I have been getting very active with photography. In fact, it’s been nearly an obsession as I’ve begun maintaining a photoblog of all my best work. I’ve even written about going and getting your first Digital SLR camera, mainly because SLR photography is becoming very accessible and web geeks love sharing their photos.

Obviously, when learning about your camera and the various techniques, you’ll find people who shoot in such a way that grabs your attention and tugs your emotions. For me, I’ve had several photographic geniuses who have influenced my own style. I try to learn as much as I can from these people and have been known to ask questions.

Thomas Hawk

Thomas Hawk is one of my favorite photographers ever. His goal is to publish one million photos online before he dies. He published his 20,000th the other day. Thomas has a wide diversity of “types” of photos, however most of his stuff tends to experiment richly with color, motion, low light and patterns. And mostly in San Francisco, where he lives. For more of Thomas’ photography, check out his Flickr and Zooomr.

Danny Hammontree

Danny is a relatively new photographer to me. His style is distinct. Mainly he shoots black and white photography and his niche is protest/social injustice. Therefore, he likes to capture rallies and protests, as well as tell stories of societal failings. Check Dannys Flickr stream for more of his work.

Brian Solis

Brian is one of my good friends and has taken some of my favorite photos of me. That is mainly because Brian excels at capturing people. Typically, people who are socializing and having fun. He tends to shoot a lot of photography at web networking events. For more of Brian’s work, check out his Flickr stream.

Creative Ideas for Capital

stupomitron helmet2.jpgA great side-effect of entrepreneurs’ optimism in tough times is creativity. At our OpenCoffeeDC last week, discussions got lively when talk turned to bootstrapping — not just self-funding, but all sorts of alternatives for producing live-giving capital and conserving what you do have. Time to put on your thinking caps.

Have you gone through the check list of capital sources? Here are several (offroad from the traditional angel and VC route) that popped up in our discussions, plus a few others.

1. Sales! Duh. Number one will always be revenue. It was just February when Wired magazine chief editor Chris Anderson dubbed this the era of ‘Free.’ (Yeah. A lot of good that’s doing us now.) But don’t blame him — he’s just the messenger. Consumer expectations have been set at $0.00 by big dogs like Google, Craigslist, and Yahoo, leaving everyone to figure out creative ways of making money in the new ecosystem. Wired elaborated with a wiki for Making Money Around Free Content that provides some novel notions for doing so. It’s even been suggested (heaven forfend!) that Facebook start charging — something, anyway, for a premium services (the freemium model) of some sort. Careful thought needs to be given to just what it is that paying customers get, above the non-paying. Look into currently working models (Flickr vs. FlickrPro, Mozy free online backups vs. MozyUnlimited and MozyPro, etc.)

2. Corporate Investment Corporate customers and prospective partners can be turned into investors. In pre-Web 2.0 era, it happened all the time — usually to ensure that the product or service would prevail, the corporation made an investment. The terms were often good, with one twist: if the startup were to fail, the corporate investor got rights to IP. So it was interesting to see Martha Stewart Omnimedia lead a $2.85M investment in Evite-clone Pingg. We’ll probably see many more of these in the coming months.

3. Consulting/Contracting Doing work for hire can be extremely morale-robbing for a startup that had its heart set on making a living with a new web application — but many startups have turned pragmatic. The duality approach is simply more conservative . . . but when external funding is in a state of flux (like now), it may be key to survival. What makes it hard is the emotional and cultural schizophrenia (maintaining a solid reputation in contracting, vs. the live-or-die passion for a product and the customers who count on it are two different head sets), but some organizations appear to be making it work (Intridea, SetConsulting), while other have made the full-scale transition from services to products (37 Signals).

4. CIT GAP Fund Not to be overlooked, Virginia’s Center for Innovative Technology (CIT) provides (through its GAP program) loans of up to $100k in the form of an interest-bearing promissory note that converts to preferred stock in a forthcoming round of fundraising. It’s a great, low-pain process that helped mobile-gaming platform Mpowerplayer and a dozen other Virginia-based startups. (Disclosure: I’m a shareholder in Mpowerplayer.)

5. Venture Loans Used to be, firms abounded that provided venture lending — growth capital and equipment financing to startups that had already secured equity investment from top-tier VCs. It was still a But these firms — which were a notch less risk-averse than banks, and usually in solid association with VCs (they only made loans to startups that already boasted top-tier VC investors). But a few entrepreneurs have recently mentioned offers of ‘loans from VCs’ as a recent funding alternative. The exact nature of these isn’t clear — did they mean convertibles, which pop up whenever valuations get shaken up (like now)? But one thing to keep in mind: promissory notes and loans of any kind need to be repaid, even if the business fails. Moreover, they often have covenants that allow them to be called ahead of schedule. And finally, you may be asked to personally guarantee them. (Did you really want to lose your house?). I say, steer clear of them.

6. Bank Financing Banks, wha? Not often on entrepreneurs’ radar, but if you’ve got any stream of revenue underway, financing receivables can be a relatively straightforward process for smoothing cash flow. In fact, whether you have receivables or not, or venture-capital funding or not, banking relationships should be struck up sooner rather than later. Credit lines can buffer slow-paying customers — this economy is certain to increase receivables aging — but everything you’ve heard about credit lines tightening is true. Even established businesses are seeing them dry up.

7. Factoring At one of my service companies, we relied on factoring to keep cash flowing. (Truth be told, we would have missed several payrolls without it.) Factoring firms — which purchase your invoices and collect on them, advance you some portion (up to 90%) of the invoice, depending on the caliber of the customer, and charge a fee (usually 1% – 3%) — can pull revenue that might normally arrive in 30 to 60 days ARO into a week or less. And, unlike banks, the only due diligence is verification of product acceptance; I bet they’re seeing a pick up in activity lately. Of course, you have to be comfortable with you customers knowing that you’re resorting to factoring (not exactly a sign of stability) . . . so better pick only those you have a close relationship with.

8. SBIRs Not too likely a candidate for social-networking startups, but a wide range of technology companies have taken advantage of Small Business Innovation Research (SBIR)and other grants. The Small Business Administration (SBA) Office of Technology administers the SBIR program, as well as the Small Business Technology Transfer (STTR) program. All told, 11 federal departments participate in the SBIR program and five departments participate in the STTR program, together awarding more than $2B annually to small high-tech businesses. Unfortunately, these things take time . . . sometimes more than a year.


Last bits of advice:

- Hoard cash — but don’t tie it up; in other words, even if you’ve raised capital, acquire PCs on credit (don’t lease them, if the lease lines need to be secured). And never secure borrowings with cash.

- Barter when you can — services of any sort.

- Co-habitate — during the last downturn, we opened up our oversized space to another company. If you’re looking for space, post on Craigslist and message boards to co-habitate — you may be surprised at the response.

- Crowdsource design work (logos, literature) you may need. Consider GeniusRocket, or Crowdspring, which Frank Gruber recently used to update his logo. Or do the logo your own damn self, until you can afford a professional.

- Pay with stock/stock options, rather than cash. Or a mix of the two. Worth a shot.

- Negotiate everything.