DISQUS

We try and tie it back to traffic source after we have acquired new members and monitor them over a month. We find that with Google we get targeted and committed members and from Facebook we get enthusiastic at first but they return rate falls off faster. To us it is the difference between people window shopping and those that come in the store to really check you out. A new member is really only worth it if they get engaged and it is that challenge to find them and give them what they are really looking for.

As a side note - I really appreciate the quality of your posts - you say the tough things that I sometimes try to forget but need to stay on top of.

Cheers - Eric

Hi Holly,

Thanks for the great write up on PickupPal - one thing to note - in the past we charged a 7% commission but scrapped that commission in July. Now PickupPal is 100% free to use for everyone.

Cheers - Eric

Thanks for the extensive list, (and the mention), it is great to see so many groups coming together to help people double up and cut down on CO2.

Cheers - Eric
Co-founder - www.pickuppal.com

Isn't that crazy! Hackers take it down maybe we really have some seriously upset people.

I agree with @4 Nick - maybe it was really THAT good! Moral of the story - don't mess with Scrabble players!

Cheers - Eric

Does anyone know what Hasbro offered Scrabulous? I read that it was guessed at around 10 mil - (http://www.alleyinsider.com/2008/3/the_scrabulo...) - however that is not a figure that has been confirmed.

I think if they were offered a good deal like that and they balked then you gotta play the cards you were dealt.

As for Hasbro's reputation - uhhh nobody will care about this issue in six months from now. Seriously - it is a free online game based on a game that people play off line all the time. What will the backlash be? Down with Scrabble up with Dominoes?

Yes it sucks for the brothers that made the app but if I was going to be so bold as to copy a game like - I don't know - "Monopulous" and the idea of the game was to roll a dice - and land on different squares going around the perimeter of a square board. Al the time getting money together to buy up properties and then charge rent to others who land on my properties and the dude with the most money in the end wins - then I think someone would see that maybe, just maybe I did not come up with the idea myself. And just maybe the company that owns said game might just think I stole it from them.

Like Kenny Rogers said "You gotta know when to hold em and know when to fold em!"

Cheers - Eric

Say goodbye to apps - there is no viral spread any longer. It is a bit of a "Thanks for coming out!" on the part of FB. They have the user base and not about funwalls and scrabulous - now it is all about friends news feeds. I think it is great for users and the grim reaper for app developers.

Cheers - Eric
blog.pickuppal.com

The platform payment system is not going to make up the delta in valuation. If Bebo went for $850M then Facebook being worth 3B to 4B sounds about right based on the number of users. I think if FB wants more revenue they should work on their ad system and making it less buggy and more streamlined for larger advertisers and that will increase their valuation.

However it is easy to comment from the sidelines - I am sure they are working on it all.

Cheers - Eric
blog.pickuppal.com

Pay to use is tricky - if you charge a penny it is a barrier to entry. This is the "give it to me free" economy and that is what people want and will continue to look for. Facebook could now charge a small premium but that is because they are a massive hub - if there are several options and one of them is free - that is where the traffic will go.

Cheers - Eric
blog.pickuppal.com

Hey Nick - nice post - great interview - great introdcution - Scott sounds like a straight up kind of guy. I dare say very refreshing!

Cheers - Eric

@dave mcclure - that was the sweetest summary I have read in a long time! The most succinct line:

"borrow as much money as you can get, buy as much paid traffic as you can, and ramp the shit out of your organic channels."

Nice comment - Cheers - Eric

It would be interesting to model the critical mass issue as it relates to Craigslist. At first in a new city people try but traction is low - then a few months later they try again. The buzz is strong so communities grow over time.

I know for us - we have spent targeted Ad spend until we get our internal population/member ratio and then traction occurs. You have to spend to get there - but once you get there you can turn down the spend.

It is a fascinating business for sure - Thanks for the post Andrew.

Cheers - Eric

P.S. - Here is a post on our how we get critical mass - http://blog.pickuppal.com/2008/05/02/pups-per-click/

I think when you look at the FB app environment as a whole with FB you can see why it is slowing down:

1) cap on the invites,

2) apps seen as spam and now invites are ignored,


3) existing users are tiring of FB - rush of new people are like people walking into a high school reunion an hour late - they are all keen but those that have been around are looking for their coat.


4) after spending a month on a FB app only to watch it not go viral - the wind in entrepreneurs sails is dissipating quickly.

Time for FB-Connect - the excitement begins but not within FB.

Great post Andrew - thanks a lot for the data as always.

Cheers - Eric

Hi Nick,

Any idea what their valuation was pegged at for this round?

Cheers - Eric

Hey Nick,

I think Facebook is being a bit coy with their AD platform intentionally. They have such rich data and the AD targeting potential is very impressive. I think they are probably looking to bring in MSN AdCenter or something like that and then take things up a notch. I know that we spend quite a bit on Ads on FB and they convert well so if they stepped up their game and built an AD server like Google AdWords - they would be raking in the cash.

Monetizing FB will happen - will they be worth 15 Billion that is another matter. However they are worth a lot and as more and more advertising goes online they are in the right position to capitalize on that.

Cheers - Eric

It definitely had a lot of branding for Twitter - however it also drove me a bit nutty. I can honestly say that I was close to dumping a few people from my Facebook Friends list because of the constant updates. What happens is those that are Twitter addicts dominate your status updates on FB and so you never see your other friends status updates. Old friends from High School - update their status once a day - not 20 times a day.

Twitter is a tough one for me - I want a little bit of status updates on my friends but not a constant stream of broadcast. I think it is really great for people like you Nick who need to be plugged in 24/7 with what the latest scoop is. But someone like me if it is news of any value - TC, Mashable or allFB will report it.

I for one hope that Twitter on FB does not come back and I hope they block FriendFeed as well. Not being a grump - but if I wanted Twitter I would have Twitter - but with Twitter integrated with FB I essentially am getting something I did not ask for or want.

Cheer - Eric

This is really big news - this kind of extension of federated identity and trust models for third party sites. Leveraging a users existing reputation within a known social network has huge benefits.

Thanks for bringing us this news Adam.

Cheers - Eric

Hey Nick,

All very good points - one thing I think is different is with LinkedIn we may be seeing the growth of just exploring connections and making them. However once a connection is made what else do you do on LinkedIn. I have a LinkedIn account and every so often a business colleague links to me - however other than being a big Rolodex - what else does it provide? I am sure that LinkedIn has a lot more value to others but to me it is one step away from and LDAP service.

Also I think if Facebook could get their act together and build a decent Ad server they would be seriously laughing all the way to the bank. Facebook is an awesome opportunity for CPC advertising, (speaking from recent and ongoing experience), all they need now is to hire some Googlers away from the Adwords team and they could make some serious cash.

Good post Nick.

Definitely not an ad for Facebook - great clip - thank Nick.

Cheers - Eric

Hey Nick,

Well I guess you can say it is bullying - however we are not eight years old. I think one has to go back to the schoolyard and remember how to handle oneself in situations like this. Loren points out stuff that you might not have noticed and yes he exaggerates it - the heavy breathing - the owl etc. However if you want to deal with a bully you need to stand up - and standing up is not name calling. Standing up is simply diffusing the situation - don't go on a Twitter rant and don't name call. Like Mike A eluded to - Loren seeks out thin skinned people and pokes fun at them so he can get a reaction out of them.

To be brutally honest I think this is a fairly scripted ruse - When I see video from Robert Scoble filming Loren Feldman editing the interview of Loic making fun of Shel - I just have to think something is up. This seems all too convenient to me - everybody gets coverage and attention and in the end my money is on Loren making up with Shel and then moving on to his next target.

I think we have all fallen into a late April fools joke.

Cheers - Eric

@Craig - I totally agree - test to friendly first adopters and then fix - then roll out to the masses.

I am intrigued to figure out what revenue model they might try to put in with this chat feature. Perhaps sponsored chat windows? Integration with their flyer program? Who knows - should be interesting.

Cheers - Eric

My prediction Nick is that Chat will be a game changer for sure for Facebook. There are third party apps - yes - but direct integration within Facebook will be massive.

This will be huge!

There will be those that try and hide from friends - and some who do not want to be bombarded when online. Conversation awareness will be a big issue - chatting with more that one friend and productivity will take a nosedive. However once that dies down - FB will become a destination and staying logged in and on the site will be commonplace.

This will be cool to see how it all plays out.

Cheers - Eric

I don't think there is anything wrong with making this post Nick. It is very hard to believe that this could happen - however it does and it is really terrible. To suggest or imply that it is Facebook's fault for this horrendous crime would be inappropriate and sensational - (which I do not think you did by the way). It is also dangerous to make any assumption that this action is condoned in any way within Saudi culture. There are those that may be opposed to the use of Facebook but I have never read of anyone suggesting that this was an appropriate reaction.

As a father with two Daughters I cannot imagine how deranged that man must have been to commit such a hideous crime. It is just very sad.

Thank you for shedding a light on this issue.

Eric

Hi Nick,

Sounds like an interesting idea - too bad it is April 1st. - I won't believe anything until tomorrow.

Cheers - Eric

Ahh man Web 3.0 - I thought stuff was going Old Skool - what with all those cats and lolinator - http://lolinator.com/lol/www.socialtimes.com/

Why can't it be an exciting name like Web Fantastico or Web 5000!

As for the site - I can't figure out the long term attraction - I remember when I saw my first webcam stream - it was kinda cool but then it became a lot like watching traffic - you are drawn to it until a bird flies by - ohh look a bird.

I think the next web should be significant.

Cheers - Eric

Ohh I totally agree! I want Facebook to implement a flag that says that the person has read the message. They know when someone loaded the message so they should tell me. Just like my blackberry - I PIN someone and instantly I know that the message has arrived on their device.

Not responding to a message in your inbox is akin to walking away while someone is talking to you. Seriously this is a new world - get with the program and shoot back a quick reply - even if it says - really busy - will try and get back. I can cut some slack if the person you are sending a message to does not know you - or they are known to be busy - like sending Robert Scoble a message - I can let that slide.

Cheers - Eric
www.pickuppal.com