Time to Pay the Twitter

September 23, 2009

That’s crazy to pay for free service.  Yes, I agree.  Call it what you will.  But, everyone *and* your mother is on Twitter.  O K, not everyone.   And, not everyone’s mother.  But, high probability the person in front of you at the supermarket is on Twitter.  Meanwhile, the conversation of Twitter’s “service up-time” or lack thereof, revenue model, and competition is on the rise.

I didn’t always think this way.  If you asked many of many friends and business acquaintances, they will tell you that I was once a strong Twitter opponent.  Yes, just months ago I could be caught saying “it’s just a passing fad”, “no one really cares except those deep inside the echo chamber”.   Now, it seems the whole world’s in *that* chamber.  I’ve gone from “twitter is a waste” to “twitter is somewhat useful” to “having a little fun on twitter” to today — “twitter would be better if I paid for it”.

I’m actually telling Twitter “go ahead and charge me”.  I’m not sure if the Twitter founders and advocates are pumping their fists screaming “yes” or “dear god — you’re missing the point”.

Let’s consider a few facts.

  • 90% of Twitters content is generated by 1-2% of the registrants.   The huge mass of folks that tweet less than 10 times (i.e. sign up and tune out) is staggering.  Just do a search on “Patricia Smith” reveals that after you get through the top 20 contributors, dozens of Patricia Smiths with less than 10 followers and haven’t tweeted in months.
  • Spam and follow-bots are increasingly annoying.  15% of Twitter traffic, according to security expert Alexandru Catalin Cosoi of BitDefender, as quoted in The Globe and Mail.  Seeing a new follower like @girliej6j6 who’s following 20 times more people than are following them.  Weak.
  • The number of times Twitter is inaccessible due to Twitter server overload is majorly frustrating.  Yes, you know.  You’ve even tweeted that Twitter is twimbelling.twitter-addicts1249598011
  • More than 40% of all tweets are “pointless babble.” That’s from a study released this past month by San Antonio-based marketing firm Pear Analytics.  The study, co-authored with research firm TNS, also shows that 30% of users are tweeting to interact with family, 30% connect with celebrities, and 24% interact with other bloggers.  Because there’s no fee “per tweet”, to follow a friend, colleague or industry specialist, the model succumbs to “you should try my awesome spaghetti and meatballs recipe”.
  • Anyone ever tried to contact Twitter support.  ‘Nough said.
  • Twittter search stinks.  A royal piece of crap.   Hence, why you’re using third-party tools.  Wouldn’t it be nice if these services were seamlessly integrated?  True plug-ins.  Not apps.   (Think: native salesforce.com Appxchange.)  It would be so much easier and better experience.
  • Instantaneouness.  Yes, a new word for real-time, and where else can you get speedy answers?  Confirm an earthquake or major emerging world or local event.  Get a referral or recommendation faster on the Twitterer network.  And, hence the value differentiator between Twitter feeds, and Google, which is best for searching archives (things more than 4 hours old).   Yes, an indirect plug for why some enjoy Facebook too.

What I find most strange is that Twitter has a value of $441 million to $589 million, according to a report by an independent research firm co-founded by financial world celebrity Michael Moe.  So, it has about a 10x of $55M invested to date.  And, no revenue model.

It’s certainly against the norm for social networks to charge a fee.   Social networks seem to enjoy leveraging the old radio and TV model.  An annoying, content-based ad network.  But, I like satellite and internet, commercial-free radio and I’m willing to pay for it.   Anyone who has SiriusXM knows what I’m talking about.

Twitter isn’t purely a social network.  Maybe it’s actually useful and worth a small fee to improve the service.  Like any other brand, product or service I believe in, I’d like an easy way to impact and improve it.  You know, really be a customer.  When you get something for free, you’re not really a customer.   You are servants to whatever policies are set.  Businesses with paying customers are fixed to higher standards.   Notice how Twitter and Facebook need to keep issuing “terms of use” statements.

So, you would benefit from this model:

  • Everyone would have a verified account.  Twitter would be accountable.
  • User experience would improve with a single interface that has all your favorite integrated tools and plug-ins.  Furthermore, users would have more control over the views, compatibility, and features.
  • Porn (and other stalking advertising-type followers) would be significantly reduced – as they would have to pay to play.   In fact, Twitter could remove those accounts/users entirely.  If they object, put them in their own “room” so to speak and then if you want to follow and be followed by those types of entities, it’s your choice.  Sure, you can add a block to your account, but you still have to review each request for legitimacy.
  • Search would work.  I know there’s excellent third party products, but I’d much rather a self-contained accessible system.
  • Improvements and application usage would be driven by how customers want to use it and ability to provide innovative feedback.
  • Better mobile apps.

Making the brands pay for Twitter won’t work.  There are far too many folks out there with larger footprints than a lot of brands.  And, what it I RT (re-tweet) what my company posted, are you gonna charge for that?   There’s no way to segment the payment model.   I do agree that brand (corporate accounts) should pay a larger fee than individuals, but still advocating payment from everyone.

Twitter has been far from consistent on this topic. Biz Stone recently reiterated that Twitter would not charge users for existing usage habits; but, the company plans to launch a set of premium services, such as more detailed analytics or deeper CRM services, for which companies using Twitter may be willing to pay. See article Twitter to Remain Ad-Free launch a revenue model.   But, CEO Evan Williams stated a year ago that the largest revenue upside will come with brands being charged for access.   Biz Stone now says “it might be hard to tease out who is using the service professionally and who is using it for personal reasons, and then charge them for it. So the idea is to build a set of features that people are willing to pay for.”   Aha.

So, if Twitter costs money, we will all start migrating to a new free system, and Twitter will die a slow, painful death.  Perhaps.  But, the new system will hit the same roadblocks after awhile, i.e. where’s the revenue model.   And, will they be able to raise $50Million to invest in the infrastructure to run it and build technology relationships?   Meanwhile, Twitter can be working on harnessing their true advocates that see value in the connections.  The conversations.  The news feeds.  The recommendations.   Etc.  Etc.

Competition is coming for Twitter.   I doubt Microsoft will sit on the sidelines forever with MSN Networks and watch someone else get market share.  It wasn’t that long ago that MySpace was dominant and seemed untouchable.  Now, we only seem to talk about Facebook.   It could just as easily happen to Twitter.

Yahoo has launched a microblogging service that emulates Twitter. It’s called Yahoo Meme, and it was launched in English in early September.  Similar versions have been available in Spanish and Portuguese for a few months.  Yahoo Meme allows users to post photos, videos, and other content with short descriptions. Users also follow each other in a fashion similar to Twitter. The company says the goal of Yahoo Meme is to allow people to share content without having to join a specific social networking site. However, users do have to be registered on Yahoo.

All I’m saying is that I’m ready to pay $25 or $30/year for a better experience, reduced threats of spam attacks, and protection of my online persona and connections.  Net net.  Something will have to happen. Charging an annual rate for member usage would create instant, recurring revenue, cut down on the “my meatballs are delicious” tweets, and improves the service immensely.  Note the word “service”.

Alternatively, what if Twitter returned their VC money and made it opensource shareware.  With volunteer donations.  We could develop a diverse, superuser community of top social media influencers, which would manage the direction, and put the passionate developers together on one platform.

OK.  Back to more productive online activities.  Like studying up on changes I need to make to my fantasy football teams.   BTW, fantasy sports is another social network I pay real $ to subscribe (and also littered with banner ads that my eyes have been taught to skim over).


In Obsolete Terms

June 14, 2009

With the kids getting older, I’m now realizing how many things they have access to today that I never did at that age.  It’s amazing to think that whenever they see a computer they assume it’s connected to the internet.  They have email and collaborative internet games like Toon-Town whereby they can play against other connected kids and siblings.   They have hand-held computers they can play in the car that sure beat my car-trip days of finding the A-B-C’s on road signs.

Some technology like compasses and barometers, which have been around for hundreds of years, haven’t been totally replaced.  But, we now use more pleasantly-reliable technology like GPS in-car, mobile phone, etc.   We’ll still use terms like “what direction are we traveling”, so that’s a bit easier to explain.

However, what will be more difficult to explain is how the latest advent of technology replaced something the kids will never know about.  Where terms and phrases will become obsolete.   Here’s a few of my favorites:typewriter

Honey, Where’s the Liquid Paper? - This not only meant for fixing a written word, but also it fixed misspellings on the typewriter (before the advent of IBM Selectric which had an special editing type ribbon to erase misspellings.  Jeez, what an amazing technology that was.  Hours of savings and cleaner, type-written results.  I’m sure if I put a typewriter on the kitchen table (I don’t have one in the house), the kids would scream in unison “what the heck is that?”  Ironically, you can find pictures and the history of typewriters on the internet.

Go adjust the Antenna – Perhaps this is where Ro-Sham-Bo was invited and the loser had to get off the couch and adjust the antenna while everyone shouted out the changes in the reception.  Do you remember get excited about going to Radio Shack and your dad buying a state-of- the-art antenna that you just couldn’t wait to wrap the wires around screws on the back of the TV?   And, then of course the local channels would come in clearer, but you still had to adjust the antenna as soon as you changed the channel — the knob on the front of the TV of course.   When was the last time you saw one of those huge antennas on top of someone’s house?   Maybe only in Des Moines.

I’ll Go Get the Paper – Home delivery of the newspaper has been a staple almost my whole life.  Even in college, I had the Chronicle delivered to my apartment.  Now, I can get the Chronicle on-line and the need to pay for a home delivered paper virtually vanished overnight.  Obviously, no surprise almost every newspaper company is out of business or near bankruptcy as they didn’t adjust their business models fast enough to align with people’s changes in reading habits.

I’ll Bring My Polaroid – Remember about 25 years ago being the life of the party by being able to take instant photos and then passing them around.   Shaking them in your hand to dry after taking a photo and watching the images come to life.  So to speak ’cause no matter what, they’re still fuzzy with mis-matched colors.   Today, of course, it only takes a $20 (or free) mobile phone to take a digital image and send it or post it to anyone in the world.  Polaroid isn’t exactly out of business, but just another vendor in the digital camera market.

rotary phoneCheck Out Our New Rotary Telephone – Do you remember being worried that a number had too many “9’s” in it, or were you excited to whip the entire dial around and watch it spin back.  While we still use the term “I’ll go dial that number”, the word dial has taken on new meaning.  In reality, to dial – means to regulate, select or tune in.   Sure, that’s what we’re doing, but it’s not the result of using a circular device or knob.  I could imagine my kids reaction if we brought a phone like this into the house.

I Got a Deal on These Cassette Tapes – I still remember paying premium dollars to get blank tapes to record my records to play them in the car.  What a pain that is compared to today.  We would spend entire weekends playing albums and writing down the songs on little cards that fit inside the cassette tape boxes.  The iPod changed all that, but so did the ability to cut a CD.  The only thing the kids would associate tape with is an art project or fixing stuff around the house.

As I think of new ones, I’ll add to this post.   What terms or appliances are obsolete in your house?


Bluetooth is Not a Public Restroom Enabler

April 21, 2009

When your driving your car, it’s important to use a Bluetooth or some type of hands-free device.  Not only a law in many states, but miles safer for all those millions of you distracted drivers.  But, sitting in your car, you’re commuting or doing errands, you can chit-chat on the phone to your heart’s content, chuckle out loud, whatever you wanna say.   Traveling in the car is always a great time to catch up with friends, family or urgent business messages in a private setting.  So, much usefulness there.    And, since you’re alone many times in the car, no big deal to gab away as you weave your way thru traffic. 

Bluetooth headsets do appear lame in restaurants and bars.  Do people feel some uber importance by sitting at a bar with phone hanging on your ear?  If you do, seek help.   No one cares.  Furthermore, no one wants to hear your conversation about your spouse’s inadequacies indoors.   If you *must*, take the call outside.  Please!

Pale in comparison though to the one area I really can’t comprehend  –  someone in middle of a conversation or otherwise using the restroom, yip-yappin’ away on their no-cell-phone-signmobile phone or hands-free device.  You know, this is disgusting…I was completely torn on actually writing  a blog about this.  Not only because of the non-PC nature, but I’m still stunned that people actually think this etiquette is rational and acceptable.

Absolutely not.  In the same vein of  ”Shut up and drive” or  “Take your conversation outside”.  Please don’t use mobile phones in public restrooms.  It’s just rude.   While not a safety issue (unless you have a tendency to drop your phone occasionally) and while not in need of any legislation yet, have some courtesy to the person you’re speaking with let alone others using the restroom.   Sure, play games on your phone, listen to music if you have an extended restroom stay (in silent mode or with headphones), but what makes you so damn busy, you can’t take a break from your digital world?   How about a little private SMS – “I’m busy right now.  Call u back”?

If you think public restrooms are an acceptable place for a phone conversation, let’s hear why?  If you agree with me, like to hear from you too!

Either way, perhaps you’ll think twice the next time you need to borrow someone’s phone.


How to Describe This Business

October 11, 2008

When you get to just about any web site, you get a description.  Many sites don’t need a description.  They’re the site you know like eBay, Microsoft, Craigslist, or Amazon.   You know what those folks do.  But, when you start looking at software technology — it can be just about anything.  Tons and tons of software companies.  Public companies, tech start-ups, sole proprietors, and everything in between.  There are so many tech companies across so many sectors across so many continents. It’s just impossible to keep up with all of them.

That’s why I was real suprised when I heard about Versata.  I had actually heard about them, but not in this context.  My good friend Phil had sent a note over to take a look at their company description on the home page.  Here’s what it says:

Versata provides enterprise software solutions that deliver business results,
performance and scalability while dramatically reducing IT spending.
Versata’s patented solutions decrease IT expenditures by reducing hardware
and associated maintenance, leveraging open source technology, and
accelerating value delivery to business customers.

Huh?  Go ahead, read it again. 

Is it possible that it reads worse the second time than the first?   I really can’t describe where exactly it goes South, or maybe more importantly, what were they thinking.   I have no idea what they do.  But, regardless is anything that hard to describe.  Did they think that SEO ranking would be affected by it?  Did a consultant write it?

I’ve met marketers from this company, and believed was that they were good people.  Not sure they were involved in this messaging though.  So, what the heck happened?   Well, the best I can really do, is offer a few replacement suggestions.  Yea, sure these don’t describe the company like the existing piece that describes the company, but I can pretty much guarantee, people will get it or they will enjoy it.  So here goes:

  • We make great IT stuff, call us so we can sell you some
  • Yes, we have competitors, but ours is better
  • Come buy our IT wares, they’re grrreeeaaaaattt!!!!
  • There’s IT software, then there’s IT software
  • We can’t explain it, but trust us people like it
  • Don’t spend another dime until you’ve seen what we can do

Any of which is better than what I’m seeing on this site.  And, no doubt my suggestions are improper too. Perhaps you know the folks or executives at Versata?   Perhaps you know how you’d also like to improve the Versata home page?   At this point, almost anything would be an improvement.  But, I would just start with 1 sentence that explains (i.e. a description) of what you do.  At least people would know instead of scaring them away.


Bill Gates Has Heart Attack While Watching His New TV Commercials

September 15, 2008

There sure was a lot of talk about the new ad campaign featuring Bill Gates and Jerry Seinfeld.  It was supposed to be hilarious.  It wasn’t.  They are complete duds.  There’s not a chance anyone, and certainly not even Bill Gates, would have a heart rate issue watching these ads, ’cause they’re really boring.  Sleep inducing.  About the only thing you might be having trouble with is keeping your hand from scratching your head as you try to reconcile what Bill, Jerry, Microsoft and some ad agency were thinking.  The only good part of these ads for Microsoft is that everyone is talking about how crappy they are, so at least they can attribute the marketing spend to “share of voice”. 

It’s been rumored that Microsoft will spend $300Million on this campaign with a new ad firm Crispin Porter & Bugusky.  And, Seinfeld is getting a cool $10M for his spot.  Now, there’s some heart valve clogging material for you.

In case you’ve been a little out of touch with seeing any good TV ads, Microsoft is seriously losing a branding popularity battle with Apple – even though the Apple ads only refer to “PC”.  It could be Intel, HP, Dell, or Microsoft they’re actually talking about, but everyone knows it’s an on-going jab at Microsoft.  And, Microsoft thought, “let’s just take our top visionary and a ton of money, and we’ll beat those Applewholigans”.

So, enter Jerry Seinfeld.  The head comic, writer & producer of one the most successful TV sitcoms (at least in my generation).   You know we’ll be watching Seinfeld re-runs til eternity, about as long as M*A*S*H and the Brady Brunch.   We know Jerry for his comedy, his writing, his unbelievable wealth.  Why on earth risk your reputation with the fuddy-duddies of Redmond?  It couldn’t have been for the pay-day.  Did Jerry have some sick debt to Gates with no chance of retribution?  And, we’re subject to the aftermath?

It’s completely beyond comprehension why a man of Bill’s stature needs to be involved with such a terrible spot on TV.  Is this his last gasp to inject positive vibes into the Microsoft brand?  Did he really buy off on this?  Please don’t tell me it was actually his idea (read = you better do what Bill says).   You’re talking about a person that’s done hundreds, if not thousands, of appearances.  Mostly all very serious and thought provoking, and I’m sure he’s left a few scripted chuckles along the way.  But, other than having a great, geeky smile, he’s not someone we rely on to hit the funny bone.  Surely, if you were able to play a roaring practical joke on him, it would be outrageously funny, but unlikely anyone would sign up for that.   Love him or hate him, Bill certainly can never be replicated, duplicated, or in any way replaced, but doesn’t mean we need to see him do the robot or shake his booty on TV.

In a web2.0 world, where Ray-Ban, Nike, and Levis are kicking butt with viral videos and ads using a combination of YouTube, print ad, and TV, why is Microsoft simply left in the dust?   Because in the web2.0 world, it’s not about outspending.  It’s about outmaneuvering, creativity, and novelty.  With all the money in the world – literally – it’s truly amazing Microsoft could compile such a horrible attempt. 

Microsoft would have been better off paying a bunch of college grads $2Million to come up with whacked content and rough-cut video, and the result would be better viral branding and positive messaging than the waste they put on TV, and now subject to during national sporting events.