Wordless Wednesday: Which startups will rule 2012?

Buying the Cow When You Get the Milk for Free

Who wants to buy the cow when they get the milk for free?

Apparently I do, because I recently upgraded my Evernote account to premium, officially taking my first step into the cow-buying-after-free-milk-getting realm of online startups.

That got me thinking about the whole idea of monetization of online services in an increasingly accessible world. With so many mobile apps and networks out there, companies have to ask themselves more and more if and what to charge for their services.

On one hand, having a free service means there's no risk for people curious to try it out. And the more people you have actually trying the service, the better the chance that they'll adopt it for the long-term. But on the other hand, free services have a harder time making money. Sure, you can sell ad space, but you run the risk of diluting the experience for the user and losing that adoption rate.

I remember seeing a study back in July that showed the percentage of people who would be willing to pay for Twitter should they stop offering the service for free: 0%. I know we're dealing with some complex statistics here, so I'll break those numbers down: Nobody is willing to pay for Twitter.

Sarcasm aside, that study did provide an important lesson for startups. Given the same features and relatively same user experience, users are not willing to start paying for a service they already had access to for free.

That's why I like this emerging trend of the freemium service, where a startup offers a basic version of their service for free but has upgradeable options. There was an article recently about Evernote's freemium business model and how the free note-taking service is now a $10 million dollar business.

For developers and investors, stories like this are great because it shows there is indeed a market for online services, even if they're offered for free. For consumers, it's great because that means we should continue to see innovative services.

The biggest takeaway from all of this is that if people really like the milk, they'll be willing to buy the cow either way.

The Path of Least Resistance

The big social media news today revolves around the launch of Path, a startup formed and funded by a bunch of big name players in the online development community. But what's most interesting about this new addition to the social sphere is how un-social it really is.

On its surface, Path is a photo-sharing service. The catch, however, is that you are limited to sharing with 50 friends...maximum.

Obviously, this is a very different approach than Twitter, Facebook or Flickr, where there's that race to build up followers and friends. This anti-social network isn't necessarily a deterrent, because I'm sure there is a market for a more personal photo sharing service like this.

And while limiting network size is refreshing, there are a couple of potential obstacles in the path that Path has taken.

1. Photo-sharing standards thrown out the window.

• No ability to comment or like any photos on Path.
• No editing ability or filters, a major draw for current popular photo-sharing apps like Instagram.
• Limited tagging allowed. With Path, there are three categories to tag with each picture (People, Place, and Thing), but you can only create one tag for each category.

2.  Doesn't play nice with others.

• No external social media integration, which means you can't share Path photos to Facebook, Twitter, etc.
• Currently only available on iPhone. Sorry Android fans, you'll have to wait a while before trying it out (on your phone at least).

3. Exclusivity is the name of Path's game.

• You can't view someone's Path profile unless you are friends with them.
• You can invite people who aren't on Path to join, but email notification settings can't be adjusting outside of "muting" a friend whose updates you don't want to see.

Path has dubbed itself as "The Personal Network" for your close friends and family. It's good for those of us who share lots of inside jokes or you-should-have-been-there pictures on larger social networks like Facebook and Twitter and are afraid of confusing the rest of our friends/followers with pictures that aren't meant for them.

So yes, Path's limited network can be difficult to wrap your head around, especially if you're used to Twitter and Facebook. But if you're looking for this kind of anti-social network, Path may be worth a look.

However, given the lack of features and integration, I personally won't be taking this particular Path.

Bid & Breakfast

One of the most cliched phrases we hear from hotels and travel sites is the idea of getting 5 star quality at a [insert low number of stars] price. Still, more often than not, people who have to watch their wallets end up staying at the cheapest (and invariably dingiest) motel they can find.

That save-all-you-can attitude combined with a still-recovering economy means that 4 and 5 star luxury resorts at the other end of the hotel spectrum have understandably struggled in recent years. Obviously there are way more luxury resorts than people who can afford or are willing to pay them. And that's why the site Off & Away caught my eye, because it looks to solve that very problem.

Basically, it's an auction site for high-end suites in luxury hotels in select locations, which are currently New York, L.A., San Fransisco, Las Vegas, Hawaii, Mexico, Seattle, San Diego, Chicago, Miami, Washington D.C., and Boston. The offers range from a night at the Waldorf Towers to weekend stays at bed & breakfast resorts.

The way the site works is that you pay for a certain number of bids before auctions and then use them like bidding credits. You can see more of the nuts and bolts of how it works here.

Those who don't win the auction can still use their bids towards a hotel stay in any of the hotels on the site. And if you use your bids on the hotel featured in the auction, you will get an extra 10% off, although that only applies if you book a standard room rather than a suite. The winning hotel bid is only good for about 2 months, which means these auctions are probably best for those already planning a specific vacation.

All in all, this is a pretty clever idea that will hopefully provide a boost for the hospitality industry despite the risky nature of online auctions like this.

SocialSmack Turns Brand Reputation Into A Game

Have you ever used Twitter to vent your frustration or shower praise on a brand or company in 140 characters or less? I know that I've done it myself, and I see brand-related tweets and Facebook posts on a daily basis.

Well, there's a new startup called SocialSmack that capitalizes on our love of brand talk (both positive and negative), looking to gain a foothold in the crowded social gaming market. The idea is that you give "props" or "drops" (basically thumbs up or thumbs down) to different brands. In order to have your prop or drop count, you have to leave a comment on the brand as well. Also, the comments you leave can be voted up or down in Reddit-like fashion.

You earn points for propping and dropping (I don't know if that's the right terminology, but I'm hoping it'll catch on) and, like Foursquare, you can unlock badges as well. But unlike Foursquare, your SocialSmacking (again, not sure on terminology here) isn't location-based because you're commenting on the brand as a whole instead of a particular store or franchise location.

To sum SocialSmack up in one sentence, it takes brand reputation to the social gaming sphere. Having tried it out myself, I'll end with a couple props and drops of my own for SocialSmack:

Props:

• Great concept from a gaming standpoint.
• Easy-to -use interface that's visually well-designed.
• Prop-to-Drop ratio pretty similar to what I've seen outside of the site, which means SocialSmack could be a fairly accurate barometer of brand sentiment.
  

Drops:

• Many of the comments aren't useful or interesting (a lot of one-word comments).
• Because it's not location-based and there's no apparent limit on how frequently you can prop or drop, you could have a situation where people just keep clicking and clicking to earn points and badges without considering what/how they're commenting. This definitely makes the game less fun.
• The big ethical question: is brand reputation something that should even be turned into a game? Or do consumers have the right to a social game like this?

Social Networking Goes Back to School

Remember the "good old days" of Facebook? If you were on Facebook before 2008, you probably have fond memories of the then college-only social network.

Memories like awkwardly changing relationship statuses, throwing virtual livestock at your friends, and the freedom to post embarrassing photos without worrying about parents/potential employers seeing you doing keg stands or tequila shots.

That's why the launch of a new, college-exclusive social network called CollegeOnly caught my eye. Like the name suggests, it is only open to someone with a college email address from one of three schools (Princeton, Yale and Cornell) currently registered. The network itself is a hodgepodge of existing social media features, with everything from your basic status posting and photo uploads to geo-tagging and a Craigslist-style "Missed Connections" feature.

Besides the strict entrance requirements and multitude of features, there is one other interesting thing about the site. Most social networks are "opt-in," where you start with no friends and then add connections, building your network from the ground up. But CollegeOnly is more of an "opt-out" style network, because you are automatically connected with everyone on the network upon signing up and then block users you don't want to be connected with.

Obviously, CollegeOnly will need to expand if they ever want to gain ground in the social media oligarchy. But it sounds like its creators have done their best to try and return social networking to its early days, before you had to worry about your mom or dad looking in on your personal life.

Now if you'll excuse me, I have some Facebook pictures I need to delete...

The Sincerest Form of Flattr-y

Have you come across that really good blog post (like one of the many here on Daily Axioms) and wish you could reward its creator?

That's the idea behind European startup Flattr. Here's how it works: Flattr users deposit a small amount of money into their Flattr account. Then, users can click on Flattr buttons that content creators like bloggers put on their websites. Each month, the money in the user's account is divided by the number of Flattr buttons they've clicked, and the money is then distributed to the creators of that content.

It's essentially a Facebook Like button but with money involved.

Users decide how much money to deposit, and users decide where they want that money to go. According to Flattr, anything can be clicked, including blogs, pictures and videos.

As a blogger, I'm torn on this idea. I do understand the importance of driving original content creation,and money is a great incentive. However, I don't know how viable of an option this is. Here's a short list of what Flattr is up against.

Why Flattr could fail:

• There's a huge dependence on honesty from content creators not to steal content from other people. It wouldn't be too difficult to re-post something and add a Flattr button.
• Lawsuits will always be a looming fear, because if someone is getting paid for another person's work, you can be sure that person will be taken to court.
• The 100-million dollar question: Will users pay for content they already get for free? History isn't on Flattr's side, because several similar startups have folded in the past.
  

Why Flattr could take off:

• Flattr didn't put the cart before the horse, making sure they had a polished website and an active group of beta testers before moving forward.
• The whole concept of third-party website buttons has become increasingly prevalent over the past couple of months. Facebook Like buttons and TweetMeme buttons can be found everywhere these days.
• By having a user-determined monthly fee, Flattr avoids being accused of over charging. Users will be more likely to open up their checkbooks if they have that level of control.

It's hard to say what Flattr's future will be. While there are obvious monetization options for Flattr and financial incentives for content creators, this whole endeavor depends on users being willing to spend the money.

So, say what you want about imitation, this startup hopes to make money the sincerest form of flattery.

The Next Best Thing To A Sarcasm Hashtag

There's been more than a few times that a seemingly-benign text or email I sent was taken the wrong way, leaving me to wonder why the person I sent that "too busy to meet now" email to is glaring at me from across the office because they thought I was blowing them off.

Miscommunications like this have been an issue for many people, as more and more conversations take place through email and texts rather than face-to-face. The problem is that nonverbal communication, which is such a vital part of face-to-face conversations, is lost with email.

This means sarcasm rarely makes sense, jokes tend to be taken the wrong way, and quick responses often come off as terse or rude.

Well, there's a new download called ToneCheck that reviews your emails before you send them, checking specifically for phrases that may be perceived as angry or passive-aggressive.

The free download is still in beta testing, and is currently only available for Microsoft Outlook. I don't know how well it works or if it would be embraced by users, but it does illustrate the growing trend for social media (and yes, I'm including email in this category) management tools.

Think about the rise in programs like Your Twitter Karma, ReFollow, HootSuite, and now ToneCheck. Many of the new products and services we're seeing aren't necessarily new social networks, but new ways of working with and monitoring existing social media outlets.

Obviously, double-checking that email (especially to the coworker you're already on thin ice with) is equally effective. But if ToneCheck takes off, we could see plenty more social management tools hit the market, and ones that are geared towards the more popular text-based social networks like Twitter or Facebook.

Until then, if you have a clever pun or sarcastic comment you just have to get out, it's probably a good idea to make sure that sarcasm is made clear.

Pet-Based Networks Go To The Groomers

There has been one over-arching lesson I've learned from my past studies of marketing, PR, journalism and broadcasting...

Know your niche.

It's a simple, yet powerful idea to keep in mind, and one that many people have accused social media powerhouses like Facebook of forgetting as it's made the highly-monitored changes that it has over the past few months.

Well, changes or no changes, social media is becoming more and more of a numbers game, and there's two smaller social networks that for the past 3 years has boasted the most important number: profit.

The pet-based social networks Dogster and Catster have both been profitable for the past couple of years, without making any major changes to either site.

The reason for their success?

Both networks know their niche and have stuck to it, offering lots of pictures (what pet owner doesn't love looking at pictures of other cats and dogs?) and petcare tips.

However, both sites, which are owned by the same company, have undergone complete overhauls.

And while the reaction to the visual redesign will vary from person to person, there are two keys to this overhaul that should be applauded.

First, Dogster and Catster saw that most visitors were coming to the sites for information and pictures rather than the social aspect, so there has been a greater emphasis placed on content.

Secondly, the sites have made some key partnerships with other sites like Petfinder.com, allowing Dogster and Catster users to search the adoptable animals from Dogster and Catster and share their favorites with other users.

Major website overhauls can be risky (just ask Facebook), but I really like what Dogster and Catster have done with their sites because they utilized strategic partnerships with long-term thinking.

More importantly, all of the changes from content to design were done with their audience in mind because they knew their niche.

Feeding Your App-etite

Foursquare, Gowalla and Yelp are by far the big dogs in the location-based yard, with Foursquare being the obvious alpha male out of the group.

And while all three have been picking up some partnerships with big name clients over the past few months, the business side of location-based marketing is still being tweaked as marketers and programmers jockey for position in this fast-growing network.

A majority of this tweaking has been in the restaurant and food industry, as more and more eateries have been offering promotions and discounts to customers using these services.

But the new Snapfinger app for the iPhone and Android may be a legitimate location-based competitor, mostly because of the niche it has carved out for itself.

While Foursquare and Yelp provide information and reviews for restaurants and fast food joints, Snapfinger allows you to order take out from your phone as well.

The big news though is that the company just recieved $7 million in investments to broaden the number of franchises they work with (which already includes Applebee's, Subway and Outback Steakhouse) to include independent eateries.

So will Snapfinger overtake Foursquare? No, since it's a different type of location-based service with a different purpose. However, this new investment and more partnerships could push Snapfinger towards the forefront of this emerging market.

Helping Frenimies Connect

At the core of social media, the goal has always been to connect. MySpace began as a way for emerging bands to connect with fans, Facebook connected college classmates and Twitter connects, well, everyone.

It was only a matter of time before someone realized that all this connecting might have us too close to those we’d rather not be so close with. Meet the anti-social media platform Avoidr.

It’s exactly what you think it is. According to the site, it utilizes Foursquare to “keep your friends close and your enemies at that bar down the street.” Which raises the question as to why your enemies would be connected with you on Foursquare in the first place, but for those who friend anyone and everyone—you know who you are—this might actually be a useful tool.

So how does it work? Link it up with your Foursquare account and decide exactly who you don’t want to run into. For this test I singled out my coworker, @slopato. Specifically, I called her a phony.

The site should let me know where she checked in so I know to avoid it, but so far the only message I’ve seen is something along the lines of, “All clear! You've got the run of the town.”

Has the site been working for you or is giving you a false sense of security like I’m getting? Or if you haven’t tried it yet, do you think there’s a need for this type of platform? Do you feel the need to connect with your frenimies?

Cell Phone Radiation? There's An App For That

Ever since the very first brick-like cell phone hit market decades ago, consumers and scientists alike have questioned whether or not the radiation from using the devices will lead to serious medical issues.

In fact, this issue had gained so much traction that a massive, 10-year international study of 13,000 participants was done to help answer this conundrum once and for all.

And with the results of the decade-long study being released today, the concerned masses were on the edge of their seats waiting to hear their cell phone fate...only to hear that the results were "inconclusive."

Obviously this means that some people will continue to use their cell phones without a second thought, while others will continue to live in fear of their iPhones or Droids.

But if you're worried about how much Blackberry use is too much: there's an app for that.

The $9.99 Blackberry app from Tawkon measures/predicts when and where your phone is giving off more radiation and gives you warnings accordingly.

The accuracy and necessity of the app is being debated, but both sides have acknowledged that newer operating systems have led to less radiation. And with cell phone technology constantly being advanced, I do question the app's long-term value.

The bottom line is that this app is great for those who have serious concern over radiation, but the $10 price tag will most likely discourage most other Blackberry users from trying it out.