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November 2007

November 30, 2007

Incentive Marketing

Interesting article. Pay for things by buying something else. A products arbitrage.

I could see some kind of web service that matches up sellers who are willing to buy products for a consumer in exchange for the consumer purchasing their product. Easiest example is credit card company who could sponsor your purchase of anything on the web. Want something <$30. Buy it and we'll credit your new account for that much. Could be interesting if one of the payment options during check out is:  "Pay by Swap." And if you select that, it pops up a window that shows you all of the companies that are willing to buy that product for you in exchange for your contact information, you signing up for their service, or you purchasing their product for a lesser amount.

This article isn't exactly saying what I'm saying - but gave me this idea... Link: Adotas » Improve the Consumer Experience through Incentive Marketing.

November 28, 2007

Awesome studio

My friend Joseph just turned me on to this:
http://www.adobe.com/products/studio/experience/

Wow - that's cool. Imagine if you could build this kind of thing with no tech expertise, no green screen, and with products for sale in the space...

Virtual World Lexicon

I've been thinking & reading about virtual worlds a lot recently - wrote a chapter about them in my upcoming book - and interviewed mitch kapor - one of the early investors of second life (and a visionary in his own right) - all the research seems to point to the web becoming more like a virtual world environment. Kapor thinks it's inevitable. It sure looks like Google Earth or something of that ilk will become the default search environment.

I've been trying to think of what comes in-between modern day web sites and Second Life. SL is like a giant leap forward. It goes too far. It's too game-like and impractical. It's not a usable environment for most people. Google Earth is a lot more usable - but there's still a download and significant barrier to entry. The addition of Google Street View to Google Maps may be an indicator that the in-between step is a photography-based representation of  reality. But I wonder if that's flexible enough to provide the kinds of benefits that virtual worlds have the potential to offer. It may be - but I think there's another option - another type of in-between that is less game-like than Second Life, less real than Google Earth/Street View, and more immersive than the standard web pages of today.

However, the first problem with describing this concept to people - or talking about building it - is the virtual world lexicon. The terms "virtual world" and "avatar" have too many connotations. Born in Stephenson's Snow Crash, they define a Second Life like experience. So, to begin building this virtual world lite, I think we need new terms.

I have some boring ones: "immersive web" and "person marker" - I'm sure someone can think of something catchier, but I'm using these to start. The "immersive web" indicates that this environment is more than just "rich media" - it's has the sense of a physical place that you can enter - you can, in fact, immerse the digital representation of yourself which I'm calling a "person marker." Again, "avatar"  reminds people of a game-like fantasy figure. I'm using "person marker" in a vein similar to Google's "placemarks." It implies that there is a person in a space. It indicates presence, without implying anything like an avatar in the traditional sense. And it's critical that we have the presence of people in these immersive spaces - it's the missing link between the web pages of today and over the top virtual worlds like Second Life.

November 26, 2007

You don't even need to sell it.

There's a business model for art galleries that don't even sell art. They can earn revenue from sharing an experience. For example, say you have a personal collection of art for your home...and you love it. You would never consider selling any piece of it. You could make an online gallery that leads a visitor through your personal collection - talking about why you love each piece. The visitor enjoys the experience of visiting your personally curated art collection - the gallery (or web site) owner earns revenue through ads and selling related gear along the way...

Massive Chinese Virtual World

Hm - a giant virtual world that connects to real businesses in china (and elsewhere) - sponsored by the government. In checking out the CRD's web site, it seems improbable that this venture is going to fly...unless there is a completely different entity in charge of virtual world design. Looks like technologists are driving the thing - rather than designers - which means that average people are going to be confused - just like in Second Life.

Link: Virtual Worlds News: Exclusive: China's Grand Virtual Worlds Plan - A First Hand Look.

The CRD's goal is to create a virtual economy providing infrastructure and platforms through which any business - not just those based in China - can come in world and sell their real-world products and services.  While a concerted effort will be placed on bringing Chinese businesses and consumers in world, the effort is worldwide and open to businesses and consumers from any country.  The entire project is expected to launch in June 2008.

Rasing money

Inspiring thoughts about raising money for a startup.

Link: Brian Norgard - Startup Chat #1: Grockit.

I think raising funding is great fun. The bottom line is that the money HAS to be spent. VCs are not in the business of holding their General Partners investment in a 5% Security. They HAVE to spend the money on startups. So, either YOUR startup gets the money or someone else’s.

Monster Virtual World

I always wanted to do something like this. Would probably do well if they tied it to a real product like Webkins. Interesting creation of virtual space and virtual stores.

Link: MoshiMonsters.com - Monsters to Adore and Play With - KillerStartups.com™.

"MoshiMonsters are cutely horrendous little creatures which kids and adults (but mostly kids) alike can adopt and care for."

Online UK Shoppers Reject Advertising

Wow. The web is full of apropos articles today. This one about how important friend recommendations are to online shopping - and about compelling uses of video. A website full of video product reviews might not be a bad idea...

Reference:http://www.adotas.com/2007/11/online-uk-shoppers-reject-advertising/

Using Video to Sell Art

Holy moly. It's like the Wall St. Journal is reading my mind. Article today about how an artist is using online video to sell her art.

"The 29-year-old Chicago artist and filmaker regularly posts videos on YouTube, showing how she created a painting and what it means to her - and musing quirkily on a host of matters... The unorthodox formula has brought her a total of 8.2 million views...and a host of buyers. At the end of her clips, Ms. Trevino includes a link to eBay... So far, she has sold every painting she has offered this way - 49 at last count - at prices ranging lately from $500 to $1,000 each." Nov26, 2007. R1 "Lights! Camera! Sales!"

My idea: make this process easier, more intuitive, and available to non-technical artists. Build a system that makes the connections between YouTube and eBay seamless. And let the artist create a more compelling environment - a richer story - than she can on YouTube alone. Ensure that pieces are posted not only to YouTube, but all popular video sharing sites to ensure maximum exposure.

“Want to buy my shoes?” – A new business model for selling products

What if you didn’t have to go to a store to buy a product? Instead, what if your friends were empowered to sell you the products they liked best - the watch from their wrist, sneakers from their feet, and a painting from the artist on their walls? And product makers could then focus on selling to individuals, asking them to resell their products if they’re completely satisfied (for a commission).

This approach does to shopping what Wikipedia did to reference information. Instead of concentrating the ability to sell product among a limited number of resellers, it allows anyone to become a reseller. Consumers become shopkeepers for the things they use and like. And they are better sellers than stores, because they are trusted sources of information to their friends.

If the ability for friends to resell product was widespread enough, makers of non-essential items could avoid distribution costs and keep more of the retail price. Of course, a direct-to-consumer sales model has been one of the primary promises of the internet, but it’s been missing the critical on-the-ground component that physical stores offer. Friends can assume this role. The infrastructure exists. Companies like Amazon.com consist of enormous product databases and delivery systems. With an easy, intuitive, and financially remunerative system for selling products to friends, Amazon can become the infrastructure that supports friend->to->friend selling.

Using mobile phones, friends could sell product on the spot. “You like my shoes? Ok, I’ll take your order right now. Just reply ‘buy’ when I text you this purchase order. I already have your address in my phone book and you’ll get them in the mail in 3 days.”

And they could set up online stores that look nothing like the online stores of today. Unbound by the need to sell as many products as possible, often regardless of quality, online stores of tomorrow might look radically different.  They could consist of just a few hand-picked items – the products that a friend would want sell to a friend with the full confidence of a satisfied user. Individuals could afford to sell just a few products – or none – because it’s not how they make a living.

In fact, they could put products in their store that are not even for sale – but that simply enhance the shopping experience. They could place a sold painting on the virtual wall next to a painting that is for sale – in order to convey the breadth of an artist’s work. With no infrastructure costs or paid staff, these personal shops could sell at leisure – they wouldn't have to maximize sales per visit. And if there were enough of them, a product-maker could thrive outside of the traditional store->to->consumer sales model.