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November 2007

November 29, 2007

Do you ever say, "MySpace is sooo ugly?" This blog's for you...

Look at the stats lately?
I love reading articles like this one and this one because it's fun to see tech people try to understand why MySpace could thrive while being so "ugly." Similarly, in the the big Facebook lovefest over the last few months, I've had many conversations where people are shocked to hear how far MySpace is still far ahead on stats. For example:

The reason why these numbers surprise people is simple: Silicon Valley people aren't MySpace users. I've come to believe that Silicon Valley has a deeply emotional dislike of MySpace, which has nothing to do with the numbers. We (the Silicon Valley "we") don't understand the aesthetics or the use cases around MySpace, which is likely driven by demographics, education level, etc.

Aesthetics and "Googley"-ness
In particular, I'm amused by folks I talk to that insist on every product being "Googley." What I mean by that is:

  • Simple
  • Functional
  • Easy

Sounds good, right?

Well, it's great when you are trying to solve a problem, but what if you are trying to waste time? How do you make a time-wasting experience, in which the process (wasting time) directly translates to the outcome (time wasted)? In that case, you might prefer:

  • Lots of options - perceived as complicated
  • Entertaining - perceived as lacking a point
  • Layers of complexity - perceived as difficult

A couple example of this is to compare a process like checking into a hotel, which is directed and should be simple and easy, versus the design of a mall. In the hotel check-in, you want a polished and fast experience - get me from point A to point B. In a mall, you want to give people a lot of options, like eating or shopping or sitting around talking or whatever. In fact, to make a mall googley is exactly the opposite of what you want to do.

That's partly why social networks tend to be a mishmash of a bunch of random, vaguely related features, rather than a clean flow that gets you from point A to point B.

Should social networks be social utilities?
Let's go back to the aesthetics of MySpace, which is what everyone complains about. Instead of all the blinged-out profiles, which are basically Geocities 2.0, should social networks look like the "social utility" that Facebook bills itself out as? It absolutely looks cleaner and is more googley. In fact, a subtle distinction is that the profiles on Facebook are much more viewer-friendly, versus creator-friendly, whereas MySpace is arguably the opposite.

Interestingly enough, now with all the Facebook apps, you see people pimping out their profiles as much as they can - and I bet you that a very common tech support request at Facebook is "how can i change the color of my background?"

So going back to the aesthetics, I've always enjoyed making offline analogies to online behaviors since technology changes but people stay the same.

To me, MySpace looks like something very familiar - do you know what these are?

Scrapbooking and decoration as consumer behavior
If you're not familiar, this is called scrapbooking and it's basically photo albums++:

... and finally, yes, people really do spend upwards of 40-60 hours per scrapbook making them look like that. It's like offline Geocities... er, MySpace.

The demographic for this skews heavily female, but spans both teenagers to older, and is definitely has a lot of people in Middle America doing it. There are some religious linkages in there as well.

The MySpace and scrapbook aesthetic is very distinctive, and could be summarized as:

  • Mixed media (video/music/pictures/text for MySpace)
  • Disjointed look and feel from page-to-page or section-to-section
  • Flowery decorations including non-ironic use of cheesy imagery
  • Very people-centric (not information centric)
  • etc.

I don't know about you, but this is not really how I use these sites. I tend to use these sites more as communication "tools" and crave functionality. And if you're reading this blog, you're probably like me. But the rest of the world is not like us, and that's the problem.

As I've done research talking to dozens of MySpace users and people who do artistic crafts like the above, I've come to the understanding that this is what users want to do. This is how they want their profiles to look. And it shocks me that for all the "openness"-loving, democratic culture that the Bay Area has, there's clearly a lot of snobbery when it comes down to design and aesthetics.

I'm interested to see how people in the Bay Area think about MySpace over time. In the near-term, I'm going to try to immerse myself in all the things that are popular but derided here, such as:

  • NASCAR
  • UFC
  • Celeb gossip
  • Forums like Something Awful + GenMay
  • Counterstrike
  • Dr. Phil books
  • Oprah books
  • Any personal self-help book
  • Trashy romance novels
  • etc.

:)

November 22, 2007

Why bloggers and press don't matter for user acquisition

How to waste a lot of time on your startup
Marketing and specifically user acquisition is often a dark art by internet entrepreneurs, and for good reason! Given the amount of noise out there in the ecosystem, it's hard to figure out where to start in order to drive traffic to your site. As a result, the most intuitive thing is to think about the ways that YOU hear about new internet sites - and that's probably blogs or press.

If you then do what I did in previous ventures, you'll spend a significant amount of time doing things like:

  • e-mailing bloggers
  • pitching stories to the press
  • e-mailing your friends
  • trying to get a story on top of an aggregator (like Digg or delicious)

Sound familiar?

This tends to be tedious and difficult, though hard-working entrepreneurs will just grit their teeth and do it. I know that I certainly did.

One-time traffic versus sustainable traffic
Problem is, press coverage is great (and feels good!) but tends to be one-time traffic spikes. You get some traffic, some will stick, but you mostly won't hold on to the new users. Furthermore, as time passes, your site will move out of the "news" and you'll see your traffic drop.

Now, the more users arrive the better, and I remember getting slashdotted back in the day (when it mattered), and thinking that it was an unbelievable amount of traffic. Still, the problem holds - if you can't turn that wave of users into a bigger wave, you're going to have sustainability problems.

It doesn't matter how large your base of users is if they don't somehow generate more users.

So ultimately, there can be two major categories of sustainable traffic:

  1. Paid traffic
  2. Free traffic

For paid traffic, you are looking to buy advertising in a sustainable way, and hopefully scale to large enough purchase sizes in order to make it all worthwhiel.

For free traffic, you are looking for viral growth via methods like invitations or even link-building, SEO, and other possibilities.

Paid traffic
Let's first talk about paid traffic. It's definitely possible to get to a fairly large scale of sustainable traffic using paid traffic as long as one rule holds true: Your life-time value for your users (LTV) can support the acquisition cost of paying for them.

If so, you should be able to buy from any number of sources:

  • e-mail
  • search marketing
  • banners
  • etc

As long as you can pay for each user and convert them profitably, things will work out for you.

On the other hand, a problem with this strategy is that it tends not to scale - at any given time, you'll only have a certain number of people interested in buying a particular product, and once you max out, it's hard to know where to go from there. This is the classic problem that's afflicted the lead generation industry, which is interesting to look into more deeply.

Usually only folks with products and services that directly monetize the consumer can do this, because buying ads to drive traffic to a site with more ads usually doesn't arbitrage well.

Another angle to this is to do partnerships with larger players. Maybe you're doing a revshare, or you're providing them a service, but either way, you are forging a long-term relationship. For a site like Photobucket, you can achieve large % traffic increases, and in a sustainable way. This is an example of a highly leveraged process that takes the same skills as pitching a story to a blogger, but pays off in dividends.

Free traffic
And now onto my favorite topic, free traffic. I love anything that's free. In the case of free traffic, you are looking to satisfy the following situation:

More users begets even more users

Question is, how do you do that? Well first, there's viral marketing which I've written at length about. In that model, you have users invite each other, or embed widgets, or any number of other actions that drives the next leg of the viral loop.

Then you have other things, like viral SEO which consists of:

  • Users come in from Google
  • User uses site
  • In doing so, they generate more content
  • This new content is then picked up by Google
  • This in turn drives more incoming users

This is a great strategy, and can lead to great growth. Yelp is a company that is built on this principle. I also love the Digg buttons that find their way all over the internet as a way to promote traffic both from Digg to the end site, but also drives traffic back to Digg.

Conclusion
One of the biggest lessons I've learned on user acquisition is to spend your time wisely, and have an extremely leveraged model. If you find yourself pitching bloggers, or getting excited about press, you are getting excited about one-time traffic.

Remember pro-forma accounting back in the dot com bust, where all the "special situation" costs got removed while all the revenue got counted in? Well, one-time traffic is like that. When people get excited about a link from TechCrunch, that's like thinking a special situation is actually driving real traffic, and when the users take off, then it doesn't feel so great.

The key is to focus on long-term sustainability and grow traffic only in ways that can be recurring - otherwise, it's easy to jump the shark after your first blog article.

November 03, 2007

My top read blogs...

My friend Matt Humphrey recently asked me to give him a list of blogs that I read, and I copied a list of them off Google Reader's nifty Trends feature. The list below is sorted by the % of posts that I read, so the ones at the top I read more comprehensively and more carefully than any others.

Note to self: Wow I read a lot of celebrity gossip blogs...

-> Click on the gray arrow to go DIRECTLY to the blog page:

Happy reading! ;-)

November 02, 2007

Differences between MySpace, Facebook, and others

Stuff like this makes the Compete blog a must-read: OpenSocial – Should Facebook really be worried and what are the next big apps?. Ultimately, this discussion relates to the question of whether or not multiple social networks can co-exist, or is it going to be winner-takes-all. In my opinion, you'll have many social networks that people jump in and out of (like real life!) but obviously some folks think the opposite.

Compete included this great table, outlining some of the site affinities between the different groups.

Here's an example analysis on MySpace users:

While Heavy MySpace users perform many of the same actions as Facebook users, they do so in dramatically different ways.

* Beyond the use of AOL instant messenger (assumed by the high affinity for AIM pages) MySpace users prefer Meebo.com for instant communication.
* This group tends to shop at Youth oriented retailers, being more than 4 times as likely to visit Journeys.com and Hottopic.com as the average internet user.
* The lack of applications forces MySpace users to look outside for some things that Facebook provides within it’s application platform. Projectplaylist projects music, imageshack hosts their images, flirty youth sites allows them to date, and imikimi.com gets their photos to sparkle.
* MySpace users also rely heavily on third party layouts sites to customize their profile pages. There are literally hundreds of layout resources, many of which receive visitor counts in the hundreds of thousands.

ABOUT THIS BLOG

  • Futuristic Play

    My name is Andrew Chen and I'm an entrepreneur living in San Francisco, CA. This blog covers my thoughts on metrics, viral marketing, user experience, game design, and online advertising.

    I don't write often, so sometimes the easiest thing to do is to subscribe to my blog (which you can do below).

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