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New Business Model, Or Smoke And Mirrors?







New Business Model, Or Smoke And
Mirrors?

New Business Model, Or Smoke And
Mirrors?
04/08/2005 06:26 PM

Jonathan Schwartz of Sun is out giving his talk again about how subscription fees are the way of the future for buying anything. One of his favorite examples (he's used it for quite some time) is that people will buy cars the way they buy mobile phones, where the device/car itself is free or close to fee, but there's a regular subscription fee that's locked in (he also likes to talk about how people will download "horn-tones" for their car, but that's a different story). He goes on to point out that for a car, this fee would be $220 -- noting that the carmakers have already thought about this. Beyond asking the obvious question (um which car are we talking about here -- because I imagine that a BMW is going to cost me more per month than a Hyundai), isn't this already how many people buy cars? It's called a loan or a lease. They buy the car with a little bit of money down, but pay regularly to cover the rest of the cost of the car. In fact, I'm sure, for some people and some cars, the amount is somewhere around $220. So, this isn't particularly amazing. It's not even new. It's just taking an existing business model and changing what you call everything. Who knew it was so easy to be considered a visionary?




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New Business Model, Or Smoke And Mirrors?

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Omnivision: Smoke and Mirrors? 06/29/2004 03:33 PM
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Tiny Projectors: Hologram and Lasers,
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hologram_obi.jpg imageResearchers from Cambridge and Light Blue Optics, Ltd. have developed a prototype pocket-sized, battery-powered video projector -- or at least the technology that should, in the mythical two to five years, lead to one. The trick is a total lack of lenses or light bulbs, but instead to display a two-dimensional hologram on a microdisplay then shine a laser through it, which scatters the light into a larger, projected picture. Projectors are great -- I'm about to pick up a cheap one, myself. If they could slip these into cellphones or PDAs, there would be no need for roll-up screens or dorky mirrorshade HUDs at all. All you'd need is a clean wall and a total blotting out of the star we call our sun.
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The Blogware business model 07/07/2004 02:41 AM

I've been trying to get to know Roland Tanglao and Boris Mann and their company Streamline. Here's an interesting post I found on Roland's blog about Blogware's business model..

Here's Roland......

A must read for prospective Blogware resellers and for bloggers and people who don't understand why Blogware is not being heavily promoted by Tucows. Summary: it's all about the resellers. Resellers made Tucows #2 in domain registration and similarly resellers will make Blogware a big player in the hosted blog space.



From An Open Letter to Blog Sceptic:

QUOTE

5/3/2/1. Ditch the resellers/launch a hosted version/offer to specific verticals/promote it...

Never gonna happen.

Here's why: Internet services providers represent the most powerful distribution channel on the internet. No single company can compete with the marketing muscle of 30,000 ISPs** who sit right in front of end-users and assist them in making critical technology choices and guide them as they dive into the internet - usually for the first time. No other channel can put you in front of individuals and the Fortune 500 simultaneously and no channel can better address the fickle needs of their local markets in a more appropriate fashion.

To get a better sense of this, take a look at our track record with domain names. In 1997, we were (according to the most liberal definitions) #85 in the domain name registration market. Today we are solidly #2 and we've been there for a couple of years. How did we get here? We dealt exclusively with internet services providers to the exclusion of all other market opportunities and we nailed their service requirements. By choosing and sticking to our distribution model very early in the game (some would argue that it chose us) we were able to focus on very specific attributes of our products and processes and build some truly excellent structures around everything. In other words, because we weren't trying to be all things to all customers, we were able to do some very amazing things with some very specific customer segments. And they responded in spades.

Our resellers kick serious a*s in the market place. This because the Tucows way of doing things gives them  the luxury of being able to focus on very specific and important things. Think of every other blogging company out there. They each have to a) be technical experts, b) be sales experts and c) be marketing experts just to one unit to a customer. Now take a look at the symbiotic nature of the relationship between Tucows and its direct customers. Our resellers have to be sales & marketing experts and develop strong customer service skills and Tucows has to focus on maintaining world-class technical services. Who would you bet on, the jack-of-all-trades or the team of specialists?

The downside to this approach is that it lacks the glitz and glam that retail oriented services employ. You will never see a full out PR blitz from Tucows and Blogware will never be a household name.  All wasted money. Remember, we're not the marketing brains in this relationship. We're the technical muscle.

Does that mean that our resellers are idly sitting by doing nothing? Nope. Right now, they are working on developing the right messages to direct at very specific markets - some are doing the institutional angle, some are going after telecommunications firms, others are targetting specific home-user verticals and others still looking to make quick wins at the expense of those with existing market share... And what I've seen so far looks great. Think of this as true "end-to-end marketing" Marketing at the edges. Clue-train compatible distribution. Teamwork. Focus. Whatever you call it, it works.

UNQUOTE



Into the valley of the Business Model -
yee shall go


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yee shall go
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MeetUp is now charging for organizing MeetUps.

$19 a month. I wonder how they came up with that number?

Jason Lefkowitz reports his feelings on this.

One good thing they did - they put their faces next to what they describe as "the bad news". Me - I don't consider it bad news.

There's a time for every social experiment to grow up, smell the mustard and get real. MeetUp has - congreats!


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Plaxo's business model 05/24/2004 01:46 AM

Start-up Plaxo sketches out business plan [CNET News.com - The Net]

OK - so now we know.

Whenever I've received an invitation to join Plaxo or to update my profile info, I've used as an excuse - the nebulous answers that Plaxo has given in the past as to their business model.

Well I guess I'll have to find a different excuse now.

I actually like the business model - charge for more advanced features - but the only feature they mentioned in this article was "better customer support".  That actually sounds like a charge for support" business model.  HHmmm maybe they should talk to Dave Sifry about that.

But then again - they only want $20 a year.  Geesh.  It costs more to look at naked pictures.  I guess they think lots of people will sign-up - but if it's like any other service, they'll only convert 5%.

So what's 5% of 2M?  100k users.  Times $20 a year.  That $2M a year.

Geesh hasn't Plaxo raised like over $20M now - or something like that?

What's wrong with the math here?


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A Business Model For WiFi Aggregation 01/09/2004 09:50 PM
Robert X. Cringely's latest column discusses his idea for a killer WiFi aggregator business model that makes some sense - but could be very difficult from some significant reasons. He correctly points out the problems with current WiFi aggregator business models: they have way too little coverage and way too many players have their hands in the pie. For each dollar spent at a hotspot, a portion needs to go to the hotspot owner, the owner of the network and the aggregator (and potentially others) - and there just isn't that much money being spent at hotspots in the first place. His solution is that we need more hotspots, and the way to get more hotspots is to give away the equipment free. Basically, have a company that will give you free WiFi equipment in exchange for adding your hotspot to their network and giving you free access to the entire network. This way, he believes, an aggregator would quickly get to one million hotspots and pretty much guarantee the necessary level of coverage. The money, then, would come from others who pay the subscription fee to get on the network - and since the coverage is so great, and the aggregator no longer needs to share that revenue with the hotspots, people will be willing to pay up. Maybe. I'm certainly a fan of leveraging "free" in a promotion to build a business model, but not when that "free" is very costly. In order to get this going, the company would need to give away those million access points (and, probably, handle tech support for them) before they start making money. While you can bet they'd get a volume discount (and APs are getting cheaper every day), it's still a pretty big capital chunk to eat. Then, there are two other big problems I see. First, which he brushes off, most internet providers say sharing your connection is a violation of terms of service. Sure, there's the Speakea sy exception, but it's still not too common, and I'm not so convinced (as Cringely is) that they'll just rollover when they find out what's happening. The second problem is much more fundamental. I now have two choices if I want to use this fairly vast network of access points: (1) pay a monthly fee or (2) offer to host my own hotspot - where I get free equipment and free service. Guess what I'm going to do? Is there any reason not to get their free equipment just to get free access everywhere else? Who are the suckers who are actually going to pay for this service instead of just signing up to be a provider?

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AXA challenges Google's business model 04/26/2004 11:03 PM
Sydney Morning Herald Apr 27 2004 3:40AM GMT

IM Interoperability: It's the Business
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IM Interoperability: It's the Business
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VOIP will change the business model of
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VOIP will change the business model of
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11/13/2003 03:08 AM
It may not happen this year or next but VOIP is going to start having a serious impact on the...

LinkedIn finally launches their business
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LinkedIn finally launches their business
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02/01/2005 08:42 PM

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05/10/2004 01:30 PM
As expected, Infinium Labs is using E3 as its coming out party to prove that they do, in fact, have a product. You may recall this is the company that has faced lots of doubt about whether or not its gaming console really existed. The company started to look a bit more respectable by hiring a CEO who helped develop the X-Box, but quickly lost a lot of goodwill by suing one of the sites that questioned the legitimacy of the company. Now, they're making a big push to prove that they exist. Wired News has an article about the company saying that instead of pushing it as competition to gaming consoles, they're targeting "occasional" or "lapsed" gamers and offering the system as a service. That is, if you agree to pay $30/month for two years you get the hardware "free" and access to the basic level of downloadable games they offer. Of course, it's not really free, but the hardware fee is baked into that monthly fee. Of course, it looks like they still don't have any publishers officially signed up. The games they're displaying at E3 are only for display at E3 and might not actually be available when the device/service launches in November. As anyone in the gaming business will tell you, if you don't have good publishers signed up early, the gaming device will fail. Infinium seems to believe they'll be able to sign up enough publishers now that they can demonstrate the device publicly and build some buzz. You'll also notice that the box looks entirely different than it did just a few months back when people were doubting that it really existed. More importantly, you have to wonder about the business model and the target market. They say they don't want hardcore gamers, because they'll already have a console and a PC with all the games they want. However, you have to wonder why the occasional or lapsed gamer wants to pay $30/month if they don't really play games that often. On top of this, the games they'll offer at that basic level of service are older games. As Infinium points out, this may help get publishers on board by offering them a new revenue stream for old games, but that also means that your offering users old games. I guess they're hoping that these lapsed video gamers won't notice that they're playing old games, but it doesn't seem like the most compelling pitch to a lapsed gamer: come back to gaming, but get locked into a two year, $30/month contract, and we'll let you play a few old games that you can probably pick up for a couple dollars in the bargain bin!

Model your business processes using
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07/17/2002 01:55 AM

Suit targets heart of Google business
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Suit targets heart of Google business
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04/25/2004 11:33 PM
Boston Globe Apr 26 2004 4:17AM GMT

Seeing the graphs from the trees - the
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Seeing the graphs from the trees - the
business model of the web is the same as
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03/14/2005 04:33 PM
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Micropayment Company Adjust Business
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Micropayment Company Adjust Business
Model Away From The Internet
06/28/2004 05:22 AM
We've discussed multiple times why micro payments are overhyped for content online. Despite being told repeatedly by companies in the space that this time will be different, it looks like one such company (Peppercoin - which has been one of the loudest defenders of the "age of micropayments") is already discovering they need to adjust their business model. The cool thing about the way Peppercoin works is that it basically aggregates a bunch of purchases and creates a "representative sample" to lower the transaction fee paid to the credit card provider. The problem with using Peppercoin for internet content is the fact that most people don't want to pay for content -- especially when there are other options and the mental transaction costs are high. However, that doesn't change the fact that Peppercoin reduces credit card fees -- which is useful if only applied to a market where people already are willing to pay for things. So, that appears to be where Peppercoin is headed: away from internet transactions (though, they still claim that this will be a big space) and towards real world situations where tiny transactions rule, such as arcades.

YOUR FAILED BUSINESS MODEL IS NOT MY
PROBLEM sticker/tee design


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Returns


eBay's Business Model Patent Mess
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03/17/2005 03:26 AM
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Strong business model key to Dell's
striking evolution


Strong business model key to Dell's
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French lawsuit challenges heart of
Google's business model


French lawsuit challenges heart of
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04/25/2004 01:50 PM
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ASC X12 releases new XML reference
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Standards Today)


ASC X12 releases new XML reference
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Will .jobs Domain Yank The Business
Model Out From Online Job Boards?
04/08/2005 06:26 PM
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ASC X12 releases draft XML reference
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* Yahoo-Kimo plans shift to fee-based
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messages (WebServices.org)


New X12 reference model specifies
structure for semantics in XML business
messages (WebServices.org)
11/04/2002 11:43 AM

Grok Description matches for New Business Model, Or Smoke And Mirrors?
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Steve Jobs to Preview Mac OS X ''Tiger''
at WWDCSteve Jobs to Kick Off Apple's W


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More On Steve Jobs


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Q&A: Steve Jobs


Q&A: Steve Jobs 01/29/2004 12:46 AM
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Biografía de Steve Jobs


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Steve Jobs at Disney?


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A New York Post article about the state of the Disney boardroom speculates that Steve Jobs is being considered for a seat on Disney's board. Citing Hollywood rumor, the article states that "As far as the entertainment industry and Wall Street would be concerned, the most welcome second-in-charge and nominal successor to Eisner could be none other than Steven Paul Jobs - head of Apple Computer and Pixar, and the guy who currently has Disney over one massive barrel." A...

Why Steve Jobs is still important


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Steve Jobs on Longhorn


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Steve Jobs Leads CEO Pack


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The Guardian Profile: Steve Jobs


The Guardian Profile: Steve Jobs 06/18/2004 12:10 AM
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Steve Jobs: Executive of the Year


Steve Jobs: Executive of the Year 12/29/2003 06:51 PM

Steve Jobs: The iPod Carrier


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Steve Jobs back at Apple


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After undergoing successful surgery in July for a rare form of pancreatic cancer, Apple CEO Steve Jobs is now attending some company meetings and plans to return to work full-time later this month...

Other News: Steve Jobs Second Behind
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Other News: Steve Jobs Second Behind
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06/30/2004 09:47 AM
Steve Jobs is just below rapper Eminem in a poll of people with the most influence in the music business.

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Steve Jobs: 'It Feels Good'


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Text of Message From Steve Jobs (AP)


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Steve Jobs: "It Feels Good"


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Steve Jobs - Apple renaissance man


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Steve Jobs: Bay Area's Most Underpaid
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CEO
06/17/2005 04:40 PM
According to a press release issued today, Apple Computer's Steve Jobs was the Bay Area's most underpaid CEO in 2004, a dramatic turnaround from 2003, when he was one of the most overpaid. This...

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Is Disney courting Steve Jobs?


Is Disney courting Steve Jobs? 12/05/2003 03:05 PM

Steve Jobs Demos NeXTSTEP 3.0


Steve Jobs Demos NeXTSTEP 3.0 02/01/2005 09:40 PM

Steve Jobs: Fashion Leader?


Steve Jobs: Fashion Leader? 06/24/2005 04:42 PM

The attention has shifted from Steve Jobs' neck to his feets. His New Balance 991 sneakers, to be precise.


Agenda Setters: Where Are They Now...
Steve Jobs


Agenda Setters: Where Are They Now...
Steve Jobs
09/22/2004 10:43 AM
The Apple juggernaut has continued apace and with a whirlwind of activity behind it, Jobs looks to be vying with Gates to become a stalwart of the Agenda Setters top ten. By Silicon.com (via MyAppleMenu)

Steve Jobs Keynote at MWSF?


Steve Jobs Keynote at MWSF? 12/17/2003 11:58 AM
ThinkSecret reports that Steve Jobs will be giving the keynote speech at MacWorld San Francisco 2004. Astute readers may have noticed that no offic...

Steve Jobs, Apple and Innovation


Steve Jobs, Apple and Innovation 12/23/2003 04:36 PM
FastCompany has posted their most recent magazine article on "Steve Jobs, Apple and the Limits of Innovation". The in-depth article covers Apple's ...

What Would Happen If Steve Jobs Died?


What Would Happen If Steve Jobs Died? 08/02/2004 10:32 AM
By Apple-X.net (via MyAppleMenu)

New Business Model, Or Smoke And Mirrors?

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