iLike was propped up by its nepotistic relationship with Facebook -- Ali and Hadi's relationships with Sandberg are well known. She used her influence to make them a "Great App" and what happens to them? They get bought by MySpace. Now MySpace owns Facebook's Great App.
structuring a company for flipping (as is typically the unsaid case of those businesses who lack an obvious revenue channel) dooms it to failure if it does not create a direct threat for those businesses that do have such a channel.
First question that any investor should ask: What is your business model? Second question: What is your exit strategy? Unless both have practical answers that are easy to understand...hey, I've got this great thing you should get in on!
@prsiii: iLike's business pitch to the investors must have been, "Hey, we're're just like Last.fm. Except lamer. And with less than half the number of registered users. Please invest in us, we are the future."
A lot of the exact same mentality as in 1999. People who don't know jack about either the web or basic consumer behavior predicting wild successes from business models that don't really exist, the companies being espoused getting caught up in all that praise themselves, but neither consumers nor revenue ever really developing. And in hindsight, it's always obvious. "Who the hell would even think you could make money off a Facebook widget??"
It still amazes me that so many people look at companies like this, see that they are trying to do something that's popular in real life somewhere on the internet and therefore think they've got it made. Hey, lots of people eat too, so maybe I'll be the Facebook Farmer. I'll have a farm and put it on Facebook. I should be a billionaire, right? It's automatic!
@badasscat: I agree with you on most your statement. However, there has to be a link between User-populated content and advertising dollars. The first designer that can bridge that gap in a social network type of forum wins the game.
I was just saying earlier to a few of our Gizmodo guys, "Hey remember when Facebook widgets and apps were the shit? What ever happened to those things?"
I guess the answer was nothing, back to my twitter follow me if you'd like @blakeley LOLZ!
@blakeley: What happened to them was they were way to effective and they were put on page two of your Facebook profile. Now the only ones that really are scaling are casual games from Zynga.... how long before Facebook buys that company--or launches their own games--is anyone's guess.
There is only one platform you should trust your business on: the interwebs. Building a business on Facebook or the iPhone is a recipe for disaster.
@ADismalScience: Except as a web application, MobileMe is garbage. The webmail interface itself is completely useless, and unacceptable as a paid service.
As much as I hate twitter, if it helps Apple invest in even mainline web apps, it might be worthwhile. However, the $700MM price tag is 1998-style nutso.
Isn't this an obvious mobileme integration point? Twitter will never make money unless it's tied to some other subscription service, right? Mobileme's lack of buzz could change in a heartbeat with a twitter acquisition.
I don't believe that Apple would buy Twitters developers for 700 million cash. I'm not saying that they are not making an offer to Twitter but it's not for the reasons that you are stating. Why dump that much money into something that won't be profitable? Giving that much money would make these web developers rich and probably would have less inclination to work with Apple especially if they just got a huge paycheck. It would be much easier to just offer them insane salaries to come work for Apple instead of buying the company. Also, Apple is only making 30% off those Twitter iPhone apps, not as much money as you think. There is way more to this than we think, I have a feeling Twitter will become integrated with MobileMe and become something completely different.
09/29/09
08/20/09
08/18/09
First question that any investor should ask: What is your business model? Second question: What is your exit strategy? Unless both have practical answers that are easy to understand...hey, I've got this great thing you should get in on!
08/18/09
08/18/09
08/18/09
A lot of the exact same mentality as in 1999. People who don't know jack about either the web or basic consumer behavior predicting wild successes from business models that don't really exist, the companies being espoused getting caught up in all that praise themselves, but neither consumers nor revenue ever really developing. And in hindsight, it's always obvious. "Who the hell would even think you could make money off a Facebook widget??"
It still amazes me that so many people look at companies like this, see that they are trying to do something that's popular in real life somewhere on the internet and therefore think they've got it made. Hey, lots of people eat too, so maybe I'll be the Facebook Farmer. I'll have a farm and put it on Facebook. I should be a billionaire, right? It's automatic!
08/18/09
08/18/09
I guess the answer was nothing, back to my twitter follow me if you'd like @blakeley LOLZ!
08/18/09
There is only one platform you should trust your business on: the interwebs. Building a business on Facebook or the iPhone is a recipe for disaster.
08/18/09
08/18/09
08/18/09
08/18/09
05/05/09
As much as I hate twitter, if it helps Apple invest in even mainline web apps, it might be worthwhile. However, the $700MM price tag is 1998-style nutso.
05/05/09
05/05/09
05/05/09
05/05/09
05/05/09