Silicon Valley’s Obsession with Free

By Mark Evans in Social Media, Venture Capital 2 Comments Tags: , , , , ,

Let’s get the facts straight here: Foursquare doesn’t have to have a business model, it has “only” 1.5 million users in a market that appears to be a more niche than mainstream….but it still manages to raise $20-million in venture capital in a round led by Marc Andreessen and Ben Horowitz.

Call me a skeptic but I don’t get it. It’s hard enough attempting to justify why Twitter has attracted more than $100 million in venture capital but at least it has 125 million users around the world. Nevertheless, there appears to be widespread enthusiasm for the deal.

The reality is none of this really matters to Silicon Valley, which invests in potential and possibilities even when the rest of us are scratching our heads. This is what makes Silicon Valley, Silicon Valley, and probably why the success rates within venture capital are so low.

Foursquare is another example of how start-ups that gain traction with a free service are so difficult for evaluate financially. Even when they are wildly popular, investors need to take a leap of faith in their continued growth and their ability in getting users or advertisers to start paying for the privilege of the service, its users or features.

Sure, there are a variety of potential business models for Foursquare such as local advertising and mobile commerce but it’s just talk until the money starts flowing in.

Silicon Valley, however, loves sexy stories with buzz in emerging markets – even if it is still unclear about the economics of these markets.

Hats off to Foursquare for raising $20-million but the one stark truth is money can’t buy happiness, and as Twitter has discover, it can’t buy a business model that will validate the venture capital being raised.

As much as it might be difficult to avoid the temptation to invest in Foursquare, particularly for anyone who missed out on Twitter, it’s still a risky investment given it is uncertain whether Foursquare is a novelty or business.

How Much is Your Blog Worth?

By Mark Evans in Blog Services, Blogs No Comments Tags: , ,

How much is your blog worth?

I’m not talking about the value of the site but, more important, the value of all the content you’ve diligently written for the past months or years? For many people, it’s like the MasterCard commercials: priceless.

I mean, can you put a value on the hours of work, the amazing amount of creativity and brain cycles that have been invested in pumping out blog posts? Personally, I have close to 10,000 posts from three blogs that are still active. To lose them would be devastating.

So, what’s it worth to back up all of that blog content?

VaultPress suggests that in an ideal world, it’s $15 to $40/month for a one blog. Despite the fact your blog content is invaluable, $15 to $40 seems expensive, especially that we live in a world in which paying nothing is par for the course. The question is how much would people really be willing to pay to back up their blog content. My sense is that maybe $5/month.


Huh, Social Media Without a Strategy?

By Mark Evans in Social Media 1 Comment Tags: , ,

An essential part of social media is having a strategic plans that addresses why a company wants to do social media, the goals and objectives, how success will be defined, who's going to make social media happen, and how it will be integrated into sales and marketing activities.

So is was pretty surprising to see a recent study by Digital Brand Expressions in which 78% of respondents said they are using social media but only 41% have a strategic plan.

At first blush, it seems bizarre that companies could embrace social media without a strategic plan – something that is probably applied to other parts of the business.

Of course, it goes without saying that not having strategic plan is a huge mistake but many companies are jumping into social media armed with enthusiasm but, unfortunately, little else.

It explains why many companies are frustrated and disappointed when their social media efforts fail to make an impact. This often causes them to withdraw from social media, which is another mistake.

Like any business activity, social media needs a strategic plan before for it to be launched. Given its importance and need, companies need to invest the time and effort to go through this process. It may be a necessary evil because a strategic plan takes time to create but it has to happen.

What’s a Social Media Consultant?

By Mark Evans in Social Media 8 Comments Tags: ,

Given how much time I’m spending with clients exploring social media, this LinkedIn discussion caught my attention:

“For the people who are or claim to be Social Media Consultants/Gurus, why would people want to hire you? What differentiates you from others. What have you done to get this title? For those who truly are Social Media Gurus hopefully this will make you stand out. Tired of seeing all these social media consultants pop up.”

It’s an interesting topic because there are so many social media consultants (including myself). The challenge for many companies is figuring out what this means given anyone can hang up a shingle. At the risk of peeing in the pool in which I swim, many “social media consultants” are people armed only with a Twitter account and a blog.

But at this stage in the market’s evolution, they’re more knowledgable than most people so it is easy to establish themselves as professionals even though this knowledge might be an inch deep and a mile wide. This is not to suggest they don’t have good intentions or do solid work but their credentials and training may be limited.

So what should companies be seeking in a social media consultant?

To start, a social media consultant must have an in-depth knowledge of the different services, how to use them effectively, and other tools that make doing social media more productive and efficient.

A social media consultant should also have a solid background in communications given content is such a key part in making social media work well. The reality is services such as Twitter and Facebook are just tools to distribute stories in new and different ways. Without good stories, it’s like trying to drive a car without gas.

Another important consideration is having a good understanding of how businesses operate because social media needs to be integrated into a company’s operations as opposed to being a standalone activity.

The knowledge of how social media fits into the overall strategic landscape makes it easier to create strategic and tactical plans on how it should be used. This is particularly relevant given the growing focus on ROI as companies look to justify their spending on social media.

Finally, social media consultants should be good at sales but honest about what clients should be doing. While social media continues to attract a lot of hype, there are many companies cautious about climbing on the bandwagon, even though it makes sense to do so.

As a result, social media consultants often need to educate companies about the opportunities, and why social media has so much potential. At the same time, they should also be willing to tell clients that adopting a walk before you run approach or not doing social media at all makes sense even if it means a smaller consulting fee.

What kind of skills or attributes do you think a social media consultant should have?

The Recession’s Over; Time to Upgrade!

By Mark Evans in Apple/iPod 2 Comments Tags: , , , ,

A sign that the recession is over or, at least, that many people have decided to move on is the flurry of upgrade activity taking place within the consumer electronics landscape.

Apple, for example, is leading the charge with the launch of the oh-so-wonderous iPad and almost as enticing iPhone4, while the TV industry is enthusiastically pushing sales of 3D models even though many consumers are still thinking about upgrading to large-screen plasma or LCD TVs.

It just goes to show that time waits for no man, and the consumer electronics industry’s need to have people upgrade to the newest, shiniest model waits for no one as well – recession or no recession.

For Apple, the upgrade game is child’s play these days. iPads are flying off the shelves, even though few people really needs one. Sorry, iPad users, there’s no sugar coating this reality.

And sales of the iPhone4 will soar as well because it is a significant upgrade, particularly for iPhone 3 and 3G users who are salivating about the new features. This is particularly in play for 3G owners who want the ability to multi-task.

As for the TV makers, 3D will be a much harder sell. At this point, 3D seems so futuristic compared to the fact that 50″+ models armed with high-definition service are so compelling and affordable. With few 3D shows to watch, it’s very difficult for consumers to get a good handle on why they need or would want a 3D TV.

Then again, consumers and their money are fools. The need to have something new and shiny frequently takes precedent over their needs or budgets, which is why the consumer electronics industry plays this card so often and so well.

The Joys of Analog Retailing

By Mark Evans in Advertising/Marketing, Media 5 Comments Tags: , , ,

The CBC’s Jian Ghomeshi had an interesting “essay” a couple of days ago on his show “Q” in which he talked about how there was a place within the book retailing landscape for independent, big-box and digital stores. His comments were triggered by the closure of a small bookstore, This Ain’t The Rosedale Library, after apparently failed to pay its rent.

Ghomeshi contends – and I agree – that different types of retailers meet different needs. If you’re looking to purchase the best-seller, then by all means use Indigo or Amazon, or visit the big box book store at your local mall. But if you’re looking to really experience the book-buying process and get insight from people who live and breath books, it makes sense to patronage the independent book store.

For all the focus on e-commerce, buying online is an antiseptic experience. You surf, search, place into cart, and pay. There’s nothing romantic or visceral about buying a book online, although it is convenient and relatively hassle-free.

Going to book store, however, means smelling, touching and browsing books. You can enjoy spending time at a book store even if you don’t make a purchase. There’s something pleasurable about immersing yourself within the analog-ness of all that paper. And there’s something exhilarating about walking out of a store with a book as opposed to having to wait a few days for the courier to show up.

Call me old school but book stores, particularly independents, are a key part of our retail and cultural fabric so here’s hoping they don’t disappear anytime soon.

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