Tuesday, January 4, 2011

Making Money Internet


I’ve often wondered if the early Web pioneers had it all to do over again if Web companies would have put less of an emphasis on free.


People have been conditioned against paying for services or content on the Web, and the Web elite only have each other to blame. For all the talk of Web companies getting users first and “figuring out” how to make money later, the only two jaw-droppingly, multi-billion-dollar, innovative new ways to advertise online have been Google’s paid search ads and Groupon’s solution to unlocking local ad dollars on a mass scale. Those who win big–like Google– just perpetuate the cult of free content and services as a way of spoiling would be competitors. Witness a big disconnect between popularity and money. Exhibit A: Yahoo.


As a result, Netflix and Match.com are two of the only companies to have figured out ways to build large, lucrative subscription businesses online. Meanwhile, LinkedIn is one of the only Web 2.0 companies that has created a huge business with a freemium business model.


But on the mobile Web it’s a do-over, and it’s a totally different playbook from FREE! People are conditioned to pay for stuff over phones in a way they aren’t online, and they’re not flinching. According to Citibank’s US Internet Stock 2011 Playbook released today, Apple will generated as much as $2 billion in gross app revenue in 2011. For perspective, that’s about the same size as Citibank’s estimate for the entire online video advertising market next year, nevermind way more people watch YouTube than have an iPhone and it’s been in the cultural zeitgeist longer.


The report also cites Gartner’s estimates that the total app market was around $4 billion in 2010 and should grow to a whopping $27 billion by 2013. The biggest driver is smart phone penetration, the impact of which Citibank compares to the spread of broadband on the computer-based Internet in the early 2000s. Globally, smart phone unit sales grew 53% in 2010, and Citibank expects it to grow 29% in 2011 and stay in the mid-20% growth range through 2013.


Several years ago, it was controversial to say that a fledgling product called Android — not the hyped up purchase of YouTube– would be Google’s best bet at another hit on the scale of paid search. Android is already making $1 billion in revenues with an indirect monetization strategy, and Citibank expects that could double next year– not only eclipsing YouTube but the entire online video category. Now calling Android Google’s future is almost a cliche. Good thing Google hedged its bets.



Values, Value and Valuation — The money is all relative


Oh how timing sometimes works out to be funny. I was driving home tonight and started thinking about the value of products, the valuation of companies and how the values that a company portrays can change the rest. No sooner had I sat down to write this piece than the news of Goldman Sachs investing $500 million into Facebook broke and refreshed the entire thing in my mind. So let’s look at these three things, and try to see if one manages to sway the rest.


Values


Do you, like me, find yourself more inclined to use or purchase something that comes from a company that you can believe in? The ethos of a company can — for me at least — completely break me away from the product. That very fact, because I feel that I’m likely not alone in my actions (or lack thereof) can have a serious impact on the bottom line of a company.


Look at Facebook, for instance. When the Social Graph was announced and the new privacy changes went into effect, many people threw up their hands in disgust. But many others continued with life as usual, even if a bit annoyed. Why? Because Facebook has this outward appearance of a company that’s simply trying to do cool things, and it needs information in order to do them. The company’s values seem, for the most part, to be in line with the things that we Internet users want. As such, there was a lot more wagging and a lot less barking from the angry dogs crowd.


You’re starting a company? There’s likely something to be said for developing an ethos ahead of time, making it known and then sticking to it. Would Google be where it is today if not for the “don’t be evil” tag line? Even if you don’t fully believe that the company runs that way, you still remember it. Point made.


Value


When value exceeds cost, even by a single cent, the purchase will be made – Grant Cardone


That quote is one that has stuck with me for some time now. A few years ago I was making my living selling cars and it is sometimes exceedingly difficult to overcome the objection of price. In the technology world, we’re constantly being offered products for “free”. The only cost? A bit of information, a slice of our privacy or somethings similar. But then, after using those “free” products, we start to build our own value for them.


Don’t believe me? Just look at some of the things that you likely use every day. Gmail? You’d pay for that. Twitter? You don’t want to admit it, but it’s likely become a valuable asset to your daily Internet life. The same can be said for so many things and yet we get them for “free”. But there’s a down side to this issue as well — it becomes very difficult for a maker to charge for a product when there are free alternatives. Don’t believe that? When was the last time that a box office movie didn’t get a torrent version?


And yet, even as companies try to build value in their products, still others think that the economy allows for them to set their own values and tell us what something is worth. TV networks are probably the most well-known perpetrators of this heresy. Apple TV launched, ABC and Fox decided to jump on board and see what would happen. Some of the rest? They decided that $.99 was devaluing the product and yet as the provider of the product, there is no one entity that is more unqualified to name the value.


Consider it a lesson in business, I suppose. The potential buyer will determine the value of your product. Always.


Valuation


Now here’s a sticky one. Valuation is one of those strange things because it means so many different things to different people. To the potential investors, it’s a measure of how much money can be made. To the business owner it’s a gauge of how well the business has done. To the end user? It’s…honestly not much.


As a case in point, around TNW we love Twitter. We want to see it succeed and we are sure that it will. The valuation continues to climb prior to any IPO and yet, as users of the service, it really doesn’t matter much to us. Sure, it would matter if the site closed its doors, but beyond that there simply isn’t anything about the valuation number that matters.


And so, as an entrepreneur you have to ask yourself where the balance lies. Do your company values allow you to build value in your product? If so, then the chances are that your valuation will end up right where it needs to be. There’s a fair amount of truth in the thought that, if you handle the small stuff, the big stuff will fall into place.


So with that, I offer you a thought going into the new year — start with your values. The rest will fall into place.




robert shumake detroit

<b>News</b> Corp. Online Gaming Head Sean Ryan to Head Facebook&#39;s Social <b>...</b>

Sean Ryan, who arrived at News Corp. mid-year to set up a new online gaming unit, is moving to Facebook to head partnerships at its key gaming platform, according to sources. Currently, Facebook does not create social games, ...

CNN&#39;s John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite

CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...

Small Business <b>News</b>: Starting Your New Business In A New Year

Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.


robert shumake

<b>News</b> Corp. Online Gaming Head Sean Ryan to Head Facebook&#39;s Social <b>...</b>

Sean Ryan, who arrived at News Corp. mid-year to set up a new online gaming unit, is moving to Facebook to head partnerships at its key gaming platform, according to sources. Currently, Facebook does not create social games, ...

CNN&#39;s John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite

CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...

Small Business <b>News</b>: Starting Your New Business In A New Year

Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.


robert shumake

I’ve often wondered if the early Web pioneers had it all to do over again if Web companies would have put less of an emphasis on free.


People have been conditioned against paying for services or content on the Web, and the Web elite only have each other to blame. For all the talk of Web companies getting users first and “figuring out” how to make money later, the only two jaw-droppingly, multi-billion-dollar, innovative new ways to advertise online have been Google’s paid search ads and Groupon’s solution to unlocking local ad dollars on a mass scale. Those who win big–like Google– just perpetuate the cult of free content and services as a way of spoiling would be competitors. Witness a big disconnect between popularity and money. Exhibit A: Yahoo.


As a result, Netflix and Match.com are two of the only companies to have figured out ways to build large, lucrative subscription businesses online. Meanwhile, LinkedIn is one of the only Web 2.0 companies that has created a huge business with a freemium business model.


But on the mobile Web it’s a do-over, and it’s a totally different playbook from FREE! People are conditioned to pay for stuff over phones in a way they aren’t online, and they’re not flinching. According to Citibank’s US Internet Stock 2011 Playbook released today, Apple will generated as much as $2 billion in gross app revenue in 2011. For perspective, that’s about the same size as Citibank’s estimate for the entire online video advertising market next year, nevermind way more people watch YouTube than have an iPhone and it’s been in the cultural zeitgeist longer.


The report also cites Gartner’s estimates that the total app market was around $4 billion in 2010 and should grow to a whopping $27 billion by 2013. The biggest driver is smart phone penetration, the impact of which Citibank compares to the spread of broadband on the computer-based Internet in the early 2000s. Globally, smart phone unit sales grew 53% in 2010, and Citibank expects it to grow 29% in 2011 and stay in the mid-20% growth range through 2013.


Several years ago, it was controversial to say that a fledgling product called Android — not the hyped up purchase of YouTube– would be Google’s best bet at another hit on the scale of paid search. Android is already making $1 billion in revenues with an indirect monetization strategy, and Citibank expects that could double next year– not only eclipsing YouTube but the entire online video category. Now calling Android Google’s future is almost a cliche. Good thing Google hedged its bets.



Values, Value and Valuation — The money is all relative


Oh how timing sometimes works out to be funny. I was driving home tonight and started thinking about the value of products, the valuation of companies and how the values that a company portrays can change the rest. No sooner had I sat down to write this piece than the news of Goldman Sachs investing $500 million into Facebook broke and refreshed the entire thing in my mind. So let’s look at these three things, and try to see if one manages to sway the rest.


Values


Do you, like me, find yourself more inclined to use or purchase something that comes from a company that you can believe in? The ethos of a company can — for me at least — completely break me away from the product. That very fact, because I feel that I’m likely not alone in my actions (or lack thereof) can have a serious impact on the bottom line of a company.


Look at Facebook, for instance. When the Social Graph was announced and the new privacy changes went into effect, many people threw up their hands in disgust. But many others continued with life as usual, even if a bit annoyed. Why? Because Facebook has this outward appearance of a company that’s simply trying to do cool things, and it needs information in order to do them. The company’s values seem, for the most part, to be in line with the things that we Internet users want. As such, there was a lot more wagging and a lot less barking from the angry dogs crowd.


You’re starting a company? There’s likely something to be said for developing an ethos ahead of time, making it known and then sticking to it. Would Google be where it is today if not for the “don’t be evil” tag line? Even if you don’t fully believe that the company runs that way, you still remember it. Point made.


Value


When value exceeds cost, even by a single cent, the purchase will be made – Grant Cardone


That quote is one that has stuck with me for some time now. A few years ago I was making my living selling cars and it is sometimes exceedingly difficult to overcome the objection of price. In the technology world, we’re constantly being offered products for “free”. The only cost? A bit of information, a slice of our privacy or somethings similar. But then, after using those “free” products, we start to build our own value for them.


Don’t believe me? Just look at some of the things that you likely use every day. Gmail? You’d pay for that. Twitter? You don’t want to admit it, but it’s likely become a valuable asset to your daily Internet life. The same can be said for so many things and yet we get them for “free”. But there’s a down side to this issue as well — it becomes very difficult for a maker to charge for a product when there are free alternatives. Don’t believe that? When was the last time that a box office movie didn’t get a torrent version?


And yet, even as companies try to build value in their products, still others think that the economy allows for them to set their own values and tell us what something is worth. TV networks are probably the most well-known perpetrators of this heresy. Apple TV launched, ABC and Fox decided to jump on board and see what would happen. Some of the rest? They decided that $.99 was devaluing the product and yet as the provider of the product, there is no one entity that is more unqualified to name the value.


Consider it a lesson in business, I suppose. The potential buyer will determine the value of your product. Always.


Valuation


Now here’s a sticky one. Valuation is one of those strange things because it means so many different things to different people. To the potential investors, it’s a measure of how much money can be made. To the business owner it’s a gauge of how well the business has done. To the end user? It’s…honestly not much.


As a case in point, around TNW we love Twitter. We want to see it succeed and we are sure that it will. The valuation continues to climb prior to any IPO and yet, as users of the service, it really doesn’t matter much to us. Sure, it would matter if the site closed its doors, but beyond that there simply isn’t anything about the valuation number that matters.


And so, as an entrepreneur you have to ask yourself where the balance lies. Do your company values allow you to build value in your product? If so, then the chances are that your valuation will end up right where it needs to be. There’s a fair amount of truth in the thought that, if you handle the small stuff, the big stuff will fall into place.


So with that, I offer you a thought going into the new year — start with your values. The rest will fall into place.




robert shumake

soluconline450 by juffan


robert shumake

<b>News</b> Corp. Online Gaming Head Sean Ryan to Head Facebook&#39;s Social <b>...</b>

Sean Ryan, who arrived at News Corp. mid-year to set up a new online gaming unit, is moving to Facebook to head partnerships at its key gaming platform, according to sources. Currently, Facebook does not create social games, ...

CNN&#39;s John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite

CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...

Small Business <b>News</b>: Starting Your New Business In A New Year

Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.


robert shumake

<b>News</b> Corp. Online Gaming Head Sean Ryan to Head Facebook&#39;s Social <b>...</b>

Sean Ryan, who arrived at News Corp. mid-year to set up a new online gaming unit, is moving to Facebook to head partnerships at its key gaming platform, according to sources. Currently, Facebook does not create social games, ...

CNN&#39;s John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite

CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...

Small Business <b>News</b>: Starting Your New Business In A New Year

Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.


robert shumake

Break it Down

To help with both the actual writing and to help improve the overall article, I recommend you first make sure you have a great title. Using the keyword or topic that you're targeting, come up with a witty, short title that describes what your article will be about.

After coming up with the title and the general idea of the article, put in some subheads. Depending on how many words you're shooting for, you'll want to use at least two subheads and most probably more. Come up with a good way to further break down the topic of your main article and make these the subheads.

Once you have the subheads in place, you can begin to fill in the "blanks" underneath the subheads with one or more paragraphs of text relating to the subhead. This makes it a lot easier to stick on topic and not end up with one of those articles that read like you're going in circles.

If you don't want to end up with an article that reads like you're going in circles, stick with the tips above!

Bullets are Good

If you're close to your target word count and you still need a little more, throwing in some useful bullet points is rarely a bad idea. Note, though, that I said useful bullet points. Take some time to break down a complex idea into five or more bullet points composed of small phrases or even single words.

Practice Makes Perfect

To become good at writing for the web, you're going to have to practice - a lot. You should already have a blog, but if you don't, start one up and post to it every day. And don't just throw up garbage. Give yourself a goal (say, 500 words) and craft one good story on one good topic. Doing this day after day helps you perfect your craft.

Online Content Marketplace

If you think you're good enough, you can try to sell your content writing services online. There are quite a few different online communities that cater to this type of service provider. There are also other options like Associated Content, which lets you publish your work to a community to see how well it ranks.

Short Term vs Long Term

There's a phrase that says you shouldn't put all your eggs in one basket. This is great advice when applied to many things, even writing content for the web.

If you need cash quickly in the short term, you can sell your already written articles or write articles to order. The rates for this vary greatly online. It's a way to make sure you have some money coming in, though.

While that money is coming in, you can also invest in the long term with your content. Whether it's creating an informational site full of articles about a particular niche or topic or investing in a blog, putting content online can bring you money over time via advertising.

The over time, it should be noted, usually means a very little bit in the beginning then more as the page matures ... if it's a popular page. That's the gamble you take with writing content for yourself, though.

Tip of the Iceberg

These are just some basic thoughts on writing online content for sale and for publishing. One of the great things about the Internet is that not only can you publish to it, or use it to find writing work, you can also use it to learn. If these tips have whet your appetite about making money online with content, go forth and learn more.


robert shumake detroit

<b>News</b> Corp. Online Gaming Head Sean Ryan to Head Facebook&#39;s Social <b>...</b>

Sean Ryan, who arrived at News Corp. mid-year to set up a new online gaming unit, is moving to Facebook to head partnerships at its key gaming platform, according to sources. Currently, Facebook does not create social games, ...

CNN&#39;s John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite

CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...

Small Business <b>News</b>: Starting Your New Business In A New Year

Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.


robert shumake detroit

soluconline450 by juffan


robert shumake

I’ve often wondered if the early Web pioneers had it all to do over again if Web companies would have put less of an emphasis on free.


People have been conditioned against paying for services or content on the Web, and the Web elite only have each other to blame. For all the talk of Web companies getting users first and “figuring out” how to make money later, the only two jaw-droppingly, multi-billion-dollar, innovative new ways to advertise online have been Google’s paid search ads and Groupon’s solution to unlocking local ad dollars on a mass scale. Those who win big–like Google– just perpetuate the cult of free content and services as a way of spoiling would be competitors. Witness a big disconnect between popularity and money. Exhibit A: Yahoo.


As a result, Netflix and Match.com are two of the only companies to have figured out ways to build large, lucrative subscription businesses online. Meanwhile, LinkedIn is one of the only Web 2.0 companies that has created a huge business with a freemium business model.


But on the mobile Web it’s a do-over, and it’s a totally different playbook from FREE! People are conditioned to pay for stuff over phones in a way they aren’t online, and they’re not flinching. According to Citibank’s US Internet Stock 2011 Playbook released today, Apple will generated as much as $2 billion in gross app revenue in 2011. For perspective, that’s about the same size as Citibank’s estimate for the entire online video advertising market next year, nevermind way more people watch YouTube than have an iPhone and it’s been in the cultural zeitgeist longer.


The report also cites Gartner’s estimates that the total app market was around $4 billion in 2010 and should grow to a whopping $27 billion by 2013. The biggest driver is smart phone penetration, the impact of which Citibank compares to the spread of broadband on the computer-based Internet in the early 2000s. Globally, smart phone unit sales grew 53% in 2010, and Citibank expects it to grow 29% in 2011 and stay in the mid-20% growth range through 2013.


Several years ago, it was controversial to say that a fledgling product called Android — not the hyped up purchase of YouTube– would be Google’s best bet at another hit on the scale of paid search. Android is already making $1 billion in revenues with an indirect monetization strategy, and Citibank expects that could double next year– not only eclipsing YouTube but the entire online video category. Now calling Android Google’s future is almost a cliche. Good thing Google hedged its bets.



Values, Value and Valuation — The money is all relative


Oh how timing sometimes works out to be funny. I was driving home tonight and started thinking about the value of products, the valuation of companies and how the values that a company portrays can change the rest. No sooner had I sat down to write this piece than the news of Goldman Sachs investing $500 million into Facebook broke and refreshed the entire thing in my mind. So let’s look at these three things, and try to see if one manages to sway the rest.


Values


Do you, like me, find yourself more inclined to use or purchase something that comes from a company that you can believe in? The ethos of a company can — for me at least — completely break me away from the product. That very fact, because I feel that I’m likely not alone in my actions (or lack thereof) can have a serious impact on the bottom line of a company.


Look at Facebook, for instance. When the Social Graph was announced and the new privacy changes went into effect, many people threw up their hands in disgust. But many others continued with life as usual, even if a bit annoyed. Why? Because Facebook has this outward appearance of a company that’s simply trying to do cool things, and it needs information in order to do them. The company’s values seem, for the most part, to be in line with the things that we Internet users want. As such, there was a lot more wagging and a lot less barking from the angry dogs crowd.


You’re starting a company? There’s likely something to be said for developing an ethos ahead of time, making it known and then sticking to it. Would Google be where it is today if not for the “don’t be evil” tag line? Even if you don’t fully believe that the company runs that way, you still remember it. Point made.


Value


When value exceeds cost, even by a single cent, the purchase will be made – Grant Cardone


That quote is one that has stuck with me for some time now. A few years ago I was making my living selling cars and it is sometimes exceedingly difficult to overcome the objection of price. In the technology world, we’re constantly being offered products for “free”. The only cost? A bit of information, a slice of our privacy or somethings similar. But then, after using those “free” products, we start to build our own value for them.


Don’t believe me? Just look at some of the things that you likely use every day. Gmail? You’d pay for that. Twitter? You don’t want to admit it, but it’s likely become a valuable asset to your daily Internet life. The same can be said for so many things and yet we get them for “free”. But there’s a down side to this issue as well — it becomes very difficult for a maker to charge for a product when there are free alternatives. Don’t believe that? When was the last time that a box office movie didn’t get a torrent version?


And yet, even as companies try to build value in their products, still others think that the economy allows for them to set their own values and tell us what something is worth. TV networks are probably the most well-known perpetrators of this heresy. Apple TV launched, ABC and Fox decided to jump on board and see what would happen. Some of the rest? They decided that $.99 was devaluing the product and yet as the provider of the product, there is no one entity that is more unqualified to name the value.


Consider it a lesson in business, I suppose. The potential buyer will determine the value of your product. Always.


Valuation


Now here’s a sticky one. Valuation is one of those strange things because it means so many different things to different people. To the potential investors, it’s a measure of how much money can be made. To the business owner it’s a gauge of how well the business has done. To the end user? It’s…honestly not much.


As a case in point, around TNW we love Twitter. We want to see it succeed and we are sure that it will. The valuation continues to climb prior to any IPO and yet, as users of the service, it really doesn’t matter much to us. Sure, it would matter if the site closed its doors, but beyond that there simply isn’t anything about the valuation number that matters.


And so, as an entrepreneur you have to ask yourself where the balance lies. Do your company values allow you to build value in your product? If so, then the chances are that your valuation will end up right where it needs to be. There’s a fair amount of truth in the thought that, if you handle the small stuff, the big stuff will fall into place.


So with that, I offer you a thought going into the new year — start with your values. The rest will fall into place.




robert shumake detroit

<b>News</b> Corp. Online Gaming Head Sean Ryan to Head Facebook&#39;s Social <b>...</b>

Sean Ryan, who arrived at News Corp. mid-year to set up a new online gaming unit, is moving to Facebook to head partnerships at its key gaming platform, according to sources. Currently, Facebook does not create social games, ...

CNN&#39;s John Roberts Joining Fox <b>News</b> | John Roberts | Mediaite

CNN's John Roberts is expected to join FOX News Channel as a senior national correspondent based in Atlanta and will be reporting on major domestic and international stories for the network. Roberts came up the ranks of CBS News, ...

Small Business <b>News</b>: Starting Your New Business In A New Year

Whether your starting a new business or rethinking an existing one, 2011 offers fresh possibilities and a new start. If you're launching a new business, there.


robert shumake

soluconline450 by juffan


robert shumake detroit










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