Archive for April, 2010

“The Internet has given us simple means to create businesses out of nothing. But to sustain them, we need solid models. What’s yours”?

This is the ending statement and final question in a post from Chris Brogan’s blog. I appreciate the idea of a simple explanation of the model.

So Chris, here is my attempt to define our business model:

DISTRIBUTION

Modeled after UPS…

Yes, this party game and the coming network of other party games are a Distribution system… Here is how:

Over time some of the people we care about become dispersed to other parts of the country. This dispersion creates a problem for moving items between these individuals in an efficient manner.

UPS recognized this problem and in the early 1900’s began delivering messages and packages to the dispersed businesses in Seattle, Washington. Over time they expanded to cover the world in distributing the important items of families, friends and businesses.

UPS has a business model built on serving the distribution needs of those who find delivering goods in person is not a viable option. They use conveyor belts, airplanes and brown trucks as their tools in building a very successful enterprise. Their service facilitates the movement of things from one spot to another in an efficient way; so UPS is a Model of Distribution.

Our model of distribution is built on the need to have gifts distributed to dispersed family and friends. The gifts that are needed to demonstrate support and love during very important life events. Gifts that would be delivered in person, if it was possible. UPS can deliver the box holding the gift, but they do not distribute the love…

Our tools include UPS, but also add in the services of Facebook, Amazon and PayPal. Our distribution model involves the extra services of connection and interaction which are lost when a gift is not delivered in person. Our distribution service facilitates the fun that can accompany the act of gift giving to someone who is close to our heart, but far from our person.

So Chris… There you have it….
We are in GIFT DISTRIBUTION

What do you think?

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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Nothing sustains a business like real money…

Venture Capitalists can seed and prop-up an enterprise for a while, but someday something needs to be sold in order to sustain a business. The need for selling things has been demonstrated this past week with the announced business model changes for Ning

Audrey Watters of ReadWriteWeb suggested that; “Despite over $120 million in VC funding, Ning has been unable to develop a sustainable business”.

Ning used an all too familiar internet model called Freemium and then caused and uproar when they abruptly cut out the free part of the equation.

Freemium has worked successfully for some start-ups, but those companies that have real influence on the web have found real and sustainable ways to make money. They do this by offering something of value for sale.

Unfortunately, those who can’t find full support using the Freemium model have chosen to chase the advertising budgets of others to pay their bills, rather than finding something real to sell.

Advertising revenue is a legitimate business model, and has been very successful for a few web properties. But there are an finite number of ad dollars and an exploding number of options for advertising placement.

All of the talk about getting eyeballs on the page has created a modern gold rush for site traffic. But site traffic is like fools gold if there is not a sustainable selling of valuable goods or services attached to the business. David Heinemeier Hansson analyzed this issue in his discussion on 37signals; “Ning’s problem is not a lack of eyeballs but its inability to turn them into cash money to pay the bills”.

We continue to suggest that selling something of value has been and always will be the best way to start-up and run a business. Freemium and advertising does work for some, but selling something for at a profit works for almost every model. Finding something of value to sell to millions of consumers has proven to sustain some great enterprises.

Heck, the guys who sold shovels and mining equipment made a fortune during the California and Yukon gold rushes!

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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We appreciate the Ning social network for two reasons.

1. Ning was the social networking platform that our family used to test the gift exchange game for the two years prior to building a commercial version.

2. Ning is now demonstrating that free is not always the best business model.

In 2007 and 2008 our family held the Christensen Family Gift Exchange on the pages of Ning. In 2008 we used the network for 19 days and shared over 800 comments, images and YouTube videos among our 11 family members.

It was the functions of the Ning platform which inspired much of the functionality in the AlbinoPhant online gift exchange party.

Now it has been announced that Ning is closing the free version of their network and moving to a full pay-to-play model. It is sad that so many will be losing employment from the company. Yet, it is still a fact that money fuels the economic engine of enterprise, and nothing sustains better than selling real products or useful services.

This will be a hard pill to swallow for many who have relied on Ning to give them free use of what they built. On the other hand, we are learning that free does not pay the bills. And that a sustainable business model should be a part of all internet properties.

Thank you Ning for how you inspired our family…. And good luck with your business transition!

We thought that you might be interested in how our family used Ning to share gifts and build an online party… Watch the following slide show

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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Google just hired an advocate for game developers. This follows Apple’s opening of a Game Center.

Both companies have witnessed the success of social gaming on Facebook and want to promote game development for their products as well.

The new Google hire, Mark DeLoura, a games industry veteran, suggests that “Clearly there are a number of initiatives going on at Google that can relate to games in some way” (read Android and OpenSocial).

It has been suggested that Apple’s Game Center is an attempt to compete with Facebook’s dominance over the hugely popular and incredibly lucrative area of social gaming.

What we are witnessing is the leading edge of the trend to use gaming to sell or support consumer goods.

Apple and Google know that an engaging or addictive game application can ring a cash register, if applied correctly. Active gamers use hardware to facilitate the fun, so creating games for iPads and Androids will build demand for these products.

But the real winners of this online gaming trend could be e-Retailers…. So Amazon and Ebay should be paying attention to this trend!

Consider the value to Amazon of games that resulted in the sale of a variety of consumer goods….

Do you think Ebay would want to hire a Game Developer Advocate if it meant more sales for their merchants?

Google and Apple are investing in the minds and hearts of game developers and game enthusiasts. Maybe Amazon and Ebay should take a page from this game plan.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

I appreciate the work of AllFacebook. Nick and his team have been a great help to our understanding of the Facebook network and graciously mentioned AlbinoPhant during our soft launch at Christmas time.

This past week the site has been listing some Birthday Party ideas for Facebook users. While there have been some great suggestions, we would like to suggest a real party….

With REAL Gifts! All for the Birthday Girl…

Now, in the author’s defense, we realize that we have not adequately communicated that AlbinoPhant is more than just a Christmas gift party.

So to Clear up the Confusion:
The AlbinoPhant birthday gift exchange is a great online party for family and friends who want to support the Birthday Girl with REAL gifts and have a fun in the process.

Yes, all of the gifts are purchased from a huge selection provided by Amazon, and shipped by UPS…

Here is how it is done….

First: Host a party and invite your friends and family to participate near the Birthday Girl’s big day.

Second: In all of the party invitations that come from Facebook and from your email invitations, let everyone know that this is a Birthday Party for the Birthday Girl

Third: Send along the Birthday Girl’s address and tell them to put her address into the shipping details while they are purchasing the gifts.

Then: When the game is played and the party is over, the AlbinoPhant gift redemption department will order the gifts delivered to the Birthday Girl’s address.

Simple as that!

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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Starting and launching a business is rife with challenges. Especially when founders are new to the industry or find themselves blazing new ground. Fumbles and follies can be very painful, as these pioneers learn new paths and get familiar with new tools.

Mistakes are easy to make, but very hard to hide. Internet missteps can be so embarrassing that we might just decided to fold our tent and go home; tail between legs.

Watch this video before we continue this discussion…

Seth Godin’s blog concerning the ipad launch is helpful for those of us who occasionally feel the discomfort of the “Start-up Rope” between our legs.

Apple launches products like a gold medal skier; a combination of grace and power. They know the ropes and can navigate the terrain better than any novice start-up could ever dream. Most internet launches don’t yield the visible success that Apple has demonstrated with this latest launch.

In fact, most launches cause discomfort to the founders finances and embarrassment to their entrepreneurial ego. Yet, the key to eventual success for any enterprise is spelled out in a couple of Seth’s 10 suggestions:

7. Be willing to fail.
9. Don’t give up so easy.

Wise council for those of us who choose to lace-them-up and march out into unfamiliar territory…

Encouragement for all who grab hold of something new and learn from stupid mistakes…

Sometimes launching causes that wedgie-like embarrassment of the rope between our legs.

Final NOTE: Let’s try to be patient with those who pioneer. The next YouTube folly may be of you!

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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Launching a new business concept is a challenge.

Most people run from this type of struggle, but I am a addicted to the adventure. This pioneering journey is where we discover what we are made of and where ideas move from thought into reality.

In 1995 most auctions were local events where people drove to an auction site to make their bids with several other bidders. Today, thanks to the internet and the forward thinking of eBay, we do much of our bidding from our computers. Auctions are now common virtual experiences, where real items are bid upon and sold to the highest bidder.

In 2010, most of us attend parties down the street or across town. In the future we will have virtual parties, where even the most distant friend can be a part of the fun.

This is the journey that we have chosen for AlbinoPhant and the PartyWeDo online party network.

You can now begin to pass out your gifts using a party on your computer… All because online auctions have shown the way.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists

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Why do we need an online gift distribution system?

There a millions of people on social networks who are connected ether by strong friendships or genealogy. These relationships often result in gift giving opportunities several times during the year. The gifting process works well when using traditional distribution methods.

But this process has been a bit of a problem for social sites like Facebook, so they have attempted to replicate gift giving using virtual gifts. These “Un-Gifts” don’t have the same value as something that is real, so there is not much real support provided with these virtual items.

Families and friends give gifts during birthdays, weddings, baby births, holidays and more as a means of support.

These actual gifts for important life events have traditionally been handled outside of any online social network, so we need new applications developed to pass out the real gifts on Facebook.

Gift distribution is very important all year long…

We are now in the graduation season and Americans will spend an average of $88.01 on gifts for about two students this year. According to the National Retail Federation, total spending on graduation gifts is expected to reach $3.9 billion in 2010.

Distribution of these gifts is usually accomplished through one of three methods:

Personal; where the gift is handed directly to the recipient.

In a Party; where gifts are shared and opened as a group.

Shipped; where the gift is sent through the mail or via UPS.

This slide presentation will explain how one company is preparing to help us pass out the gifts on Facebook, for any occasion.

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PartyWeDo
The AlbinoPhant Creators
Your Party 2.0 Specialists