Archive for June, 2009

Webhosts and the Freemium Model

June 30th, 2009

The Freemium model is a business model that works by offering a basic service for free while charging for a premium service. Examples of this model is Google Apps, PBworks and other cloud computing services. The idea is to increase market share and draw in users buy offering a decent service for free and as soon as a user needs grow big enough, charge for an upgrade to a premium service.

This model is useful for the consumer because it eliminates the barrier of entry for many small businesses and entrepreneurs who can be leveraged by these services. It also works for the supplier because it is great for gaining market share (it’s hard to compete with free), and if the service is good, people will talk about it and recommend it to their peers. It becomes free marketing.

Web hosting companies that have a large client base are starting to use a variant of the freemium model. Dreamhost for example offers generous coupons and a referall system where many users can easily get back most of their cost of hosting, and because low traffic hosting is practically free anyway, it is like a freemium service. Once a websites needs grow as traffic increases, there are premium private hosting packages available for upgrade. Furthermore, their free hosting package is quite generous offering ‘unlimited storage, domain names, and bandwidth’ under the one hosting account. It’s hard to compete with that. Gosh, now I sound like I’m working for them, this is the power of freemium, it gets users talking about you.

This post was inspired by Understanding “Freemium”

Other great freemium services that I’ve used

User Voice – A digg like user recomendation engine.

Wufoo - A user signup and satisfaction survey service

Survey Monkey – Easily set up surveys

Mint dot com – Personal finance management (U.S. only)

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Google wave sandbox account – first impressions

June 29th, 2009

Just got a google wave sandbox account. It’s the developer version but I haven’t had a chance to look at the API yet.

google-wave-preview

There’s debug menu in the upper right corner which look interesting, I’ll be spending some time exploring that while reading the API documentation.

wave_debug

Everything feels a little buggy and the UI occasionally crashes, but that’s expected from a testing account like this. The wave API lets you build ‘robots’ that transforms or perform some action based on the wave. The first thing that I might do is make a pig latin robot!

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thought of the day: If you want to be successful, surround yourself with successful people

June 29th, 2009

If you want to be successful whether you’re working on a project or advancing your career, surround yourself with successful people. The best proof that someone can be successful is if they have been successful.

If you are surrounded by a sea of mediocrity, who is going to be your teacher? If you float to the top of this sea, what incentive is there for you to go higher and fly?

I attended Bar Camp Sydney 5 the other day and one of the presenters was an entrepreneur giving advice about whether you should partner with someone when starting a venture. One of the strongest things that he advocated was that if you’re starting a new venture, it’s always best to have a great co-founder. Not a lousy co-founder, or even a mediocre co-founder, but a great one. One who shares your vision, one who can work and lead independently, not a follower, one who is as dedicated as you are. All these criteria make a great partner. If you can’t find someone with these characteristics, then it’s easier to start your venture on your own.

Many people giving advice at this event were people who have been successful in creating a business. Some have done it many times, with a long history of success and failure. When you fail and then succeed, you learn and become wiser, when you become wise you can teach. What if these people have not gone out and tried? Then they would only be speculating. What if they have only failed and never succeeded in their ventures? Then they can only tell you what not to do. You need to have succeeded to teach how to be successful.

Update: An excellent articles on the same topic from the internet Millionare secrets – Surround yourself with winners. Unsuccessful people are negative, depressed, pessimistic. They bring you down. Successful people are enthusiastic, uplifting, passionate. The way  you behave and make decisions is largely influenced by those around you, so make sure they’re the right kind of people.

Update2: an interesting post that presents the counter argument, Why surrounding yourself with successful people is dumb. The author argues that successful people may not want your company if you have not been successful  yourself, so instead you should surround yourself with people who can potentially be successful, then  you can form mutually beneficial relationships.

http://thinklikemillionaires.wordpress.com/2007/05/06/self-made-millionaire-secrets-13/http://thinklikemillionaires.wordpress.com/2007/05/06/self-made-millionaire-secrets-13/
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Telstra’s unethical telemarketing scam

June 29th, 2009

If you’ve transfered your telephone or internet service away from Telstra (Australia’s telephone monopoly) recently, then you may have received a call from Telstra’s telemarketers asking why you switched.

Mr. telemarketer asked me a few friendly questions

Sir, if you don’t mind me asking, how often do you use your phone? What about internet?

I politely answered honestly before the real marketing questions started.

And how much do you pay for that?

It couldn’t be any more obvious, he wants to make a counter offer to win me back as a customer. Again, I answered honestly, but it was clear that  he couldn’t match the deal I had. In fact, any Australian with the slightest clue about telephone and internet services would know that going just about anywhere but telstra will get you a better price for the same or even better services. Mr. Telemarketer hesitated for a moment and said in desperation:

I can offer you a discount on your internet service if you come back [...]

Notice that he didn’t say we can offer you a better deal, just a discount on telstra’s original overpriced service. Nice try but no thanks Mr. telemarketer. I promtly said that I was under a contract with my current provider and would not be able to break that contract without penalty. Mr. telemarketer resorts to dishonest missinformation.

There is no contract, sir [...]

Notice that he didn’t say that there is no contract with my current provider (how would he know?), and he is implying that there is no contract with telstra if I rejoin, but he is hoping that I won’t notice the difference. Now I’m little offended. Mr. telemarketer thinks I’m stupid, so I decided to convince him that I know exactly what’s going on by explaining my situation with him and that I would be breaking contract if I rejoined (not that I would) Telstra. He replied

You won’t be breaking contract, if you rejoin, we can offer you [a bunch of useless 'deals' that didn't seem very appealing]

Now he’s just flat out lying. At this point I’m annoyed. After bluntly explaining to him that I do not wish to be with Telstra, I hung up.

It’s outrageous that Australia’s biggest internet and telephone provider could sink this low.

Mr. Telemarketer, I’m sorry I couldn’t waste your time further. It would have been my pleasure. Please consider changing careers, you will prevent a lot of suffering to customers who fall for your tricks. Oh and I hate you, you are the scum of the earth.

UPDATE: below is a list of forum topics on the “Whirlpool forums” about Telstras unethical telemarketing, some of which dates back to 2004.

Attack of the telemarketing drones -2004

Dodgy Bigpond telemarketing – 2004

Telstra Dishonest Telemarketing – 2006

Telemarketing scams – 2007

If you have more stories like this, I’d like to hear from you. Please leave a comment.

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Apache website in ~user/public_html directories

June 27th, 2009

One very useful thing to do when hosting a website with apache is to give each user a website in the ~/public_html directory that can be accessed through website.example.com/~username.

The easiest way to do this is to enable a module called mod_userdir in apache. This module is installed by default in most linux repositories with apache2, but it is not enabled.

To enable this module, use thea2enmod command to enable modules in apache:

sudo a2enmod userdir

and restart apache

sudo /etc/init.d/apache2 restart

And in the http.conf file often found in /etc/apache2/ add the line

UserDir public_html

Now every user on that computer can use ~/public_html to host a website.

More information about mod_userdir here

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Business Idea: Fundraising through junk applications

June 27th, 2009

It’s a discomforting fact that iPhone applications like iFart which are completely useless apps that do nothing more than help a few teenagers procrastinate are making more money than more thoughtful applications that actually solve real problems that people have, perhaps because everyone can have a bit of fun with a gag, while applications that solve specific problems like finding the best price on petrol have a smaller market. In the long term, this is toxic for development because the iPhone and any other platform with APIs for application development will be saturated with junk from people trying to make a quick buck, while useful applications are struggling to survive.

Furthermore, gag applications are easy to develop, while useful applications take more time and resources to develop, so a failed gag application incurs very little cost on a developer while a failed attempt at an otherwise good idea for a useful application can put a small business into bankruptcy.

What can we do to overcome this sad reality and actually build more applications that are useful and applications that you can be proud of? Why not raise money through gag applications and build the useful app with the revenue? That way, you’re channeling money from something that is unproductive to something much more productive. Sure you’re still contributing to the pile of junk applications out there, but at least you can feel good about it once you start using the money to develop something useful. It’s a practical compromise.

Gag apps can also be used for viral marketing of more useful apps. If you’re trying to sell a map application that locates your favourite restaurants, why not create some simple applications like “throw food to your friend” (like the super poke application in facebook, oh what a waste of time that was!), give that away for free, and place ads to your map application.

Other than the pride in creating something useful, why else would someone want to create useful apps while the risk is higher? It’s a long term investment. If something is useful, it’s going to be used many times over a long period of time, users will tell their friends about it, and it will help you establish a long term brand. Branding seems superficial, but it’s important because people are more likely to buy something if they have heard of it before. If there are users with problems and need a solution, they will pay for it, even if there is fewer people wanting it, you could be solving something for a niche market and have a monopoly for a while.

This doesn’t only apply to the iPhone(in fact, the iPhone is much more gag free than other app platorms like facebook because applications must be approved by apple before it appears in the app store), it applies to facebook, myspace, android, anything with an app API. If you aren’t prepared to limit the types of apps like apple is doing, getting developers to think about using this model is a good way to limit the amount of junk applications that can pop up …or at least it channels some of the wasted time and money spent making and using these apps into more useful things.

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Email Honey Pot

June 21st, 2009

I’ve always wondered how quickly spam bots pick up an email once it’s out on the interwebs, so this little experiment is going to attempt to find out.

http://cmalabs.com/blog/contact

To be a scientific experiment it’ll have to be put on all sorts of websites with different amounts of traffic, but this is for my curiosity only and it’s not that ambitious ;)

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FbWiFnRg – Microsoft IE8 Competition

June 20th, 2009

Microsoft’s competition to find $10000 burried somewhere on the internet recently released it’s second clue.

FbWiFnRg

Looks like the small letters spell ‘bing‘. Apart from that I’m stumped.

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