Google Shoots Local Business – Lost Their Head?

Getting a haircut the other day at my neighborhood barber, I nearly fell off the chair when she said a man from Google had stopped by and photographed her small shop – inside and out.  Actually she said something like, “You’re on the Internet; see this company that came by and said people wanted to see photos of my shop on the web.”  This proprietor doesn’t have an e-mail, doesn’t realize her business listing already existed on Google, didn’t reach out to become a client, doesn’t have a Google advertising account, and was impressed they were doing this for free.  No strings attached.  Whoa – if I were the Yellow Pages, I might as well close down my business now.

Online yellow pages charge businesses $57-$199 per MONTH for listings, but Google’s traffic swamps them all – and it’s growing.   So the stakes are huge.

We’re all familiar with Google Maps and Street View – you can check out who parked in front of your home or what your neighbor’s backyard looks like.  Until recently, there was not much monetization in that business.  It was a huge logistical effort to drive down nearly every street in major cities and display the resulting database.  Free to users.

What’s happening now is the next logical step – going INSIDE businesses and shops to create an even more rich experience.

Given that there are 40,000+ barber shops in the US, how many does Google intend to photograph for free?  Even if a photographer could shoot 16 shops per day, that’s 2,500 man-days or about 10 man-years of effort, probably a $1m expense.  That works out to about $25 per shop.

Now, I am all for a company providing a free service – if the terms are clear and transparent.  But I am suspicious when a company doesn’t present any economic model that makes sense.

I could understand Google contacting my barber if their statistics system identified a large volume of users searching for barbers in my zip code.  But quite frankly, knowing the clientele of my barber, where I am one of the youngest clients, there ain’t a lot of online searches going on here.  Given that my barber did not reach out to Google, and the traffic volume has to be light, why spend the resources to approach this shop and shoot it for free? When she didn’t even ask for it?

What intrigued me was the two pages the Google photographer left behind.  You’d think Google would ask for a signed release, or at least leave behind a specific offer or price list.  Apparently not.

How will Google use these photos?  How can the owner get them removed?  What prevents these photos being used against the owner?  What if they show up promoting another shop?  None of this is explained.  Check out a scan of the pages here:

My favorite line is “Here’s what we [Google] think you should know about the shoot.”

If that isn’t a sign of an omniscient power with paternalistic tendencies, then I don’t know what is…

We are in an incredible age, where even people and companies “off the grid” are being mapped and cataloged.  As an Internet advertising fan, I have no doubt that Google will make sure my barber pays up – when a significant amount of her customers begin to contact her through a Google Voice system, or an e-mail, or electronic coupon.  I am impressed and humbled by the resources Google is willing to spend.  A truly long-term goal, indeed.  Who needs the Yellow Pages?

www.answers.com/topic/barber-shops

A couple online Yellow Pages companies:

www.supermedia.com/packaged-solutions/business-profile-packages
$99 to $199 per MONTH for a guaranteed 25 clicks per month.
Superpages.com and Verizon printed yellow pages.

http://listings.yellowpages.com/Services/ServiceTieredProducts.aspx
$57-$172 per MONTH for a detailed online profile.

Posted in Internet | 2 Comments

Run a Startup on Google Apps?

In my quest to become less dependent on PC-based programs (that’s you, Microsoft Office and Outlook) and to become more web and “cloud” centric, I have experimented with running a couple startups on the Google Apps platform. It is both impressive, and scary, at the same time.

Google Apps is a single log-in for a set of functions necessary to any company or organization: e-mail using a shared domain (e.g. @kbhayes.com), group and individual calendars, shared and individual document repository and a wiki to keep track of all the details. Of course, any individual can use Gmail, but that introduces a host of logistical and lack-of-company-control issues. Apps integrates all these functions.

The amazing part is, the cost to a small company (say, under 50 e-mail addresses) is zero. To get guaranteed up-time and access to more advanced features, like Google Video and Blackberry Enterprise Support, the cost is $50 per user per year. In contrast, my Yahoo Business Mail account for one person is $96 per year.

Gmail and calendar are great functions, but the Apps module which sold me is the wiki, known as Google Sites. As I am now running a number of micro-startups under multiple domains, I am faced with detail overload – how to track dozens of partners and the dialog with each, dozens of log-in credentials to different services, constantly changing documents like price lists, to-do action lists, links of competitors, etc. And my collaborators are located on the other side of the world – so anything I work on has to be accessible to them constantly. Like most wikis, Sites maintains an audit trail of changes and e-mails me whenever my partners update any part of the wiki – which helps me stay on top of changes without drowning in e-mails which get buried in my inbox.

Those who read my blog know I’m no blind fan of Google (see my predictions of Google as a monopoly), but I checked out a number of alternatives – ZoHo, Zimbra, Yahoo, Outlook/Exchange hosting, ACT, etc. Some of them are better at individual functions than Google Apps, but none can beat the pricing and overall integration of Google.

The downside is almost complete dependency on Google, which is the scary bit. Google’s infamous non-transparency as to how it applies its own rules, and the inability to reach an actual customer-service person, create frustrating situations. For example, a few days ago I had to send the same e-mail one-by-one to about 70 clients, with minor text variations. Lo and behold, Google’s rule of “sending a max 500 e-mails per day” suddenly kicked in and I received the dreaded bounce-backs with a message “Delivery to the following recipient failed permanently” and a link to a Google Help page explaining why they now think I am sending SPAM.

Of course, this happened after just 70 e-mails, and the ban was lifted without notice about four hours later. But I had no clear explanation of why the limit kicked in so quickly. Nor is there any way to appeal such a decision.

Am I being dangerously tempted by Google’s Siren Song? Is my business venture, which is pure “white-hat” legitimate work, at risk of being squashed by Google? Am I really just trading one monopoly in the Windows platform for another monopoly in the cloud? Is Microsoft actually the underdog on their home turf? Stay tuned…

Google Apps: www.google.com/apps/

Posted in Internet | 4 Comments

Rather be a Shark or an Angel?

Amused that ABC thought there was any entertainment value in showing the entrepreneur-investor fund-raising process (yawn!), I checked out the first few episodes of Shark Tank. Actually, it’s pretty entertaining, and my kids and I are now sitting in front of the tube yelling “Take the offer you idiot!” or “Walk away – they’re greedy bastards!” or “What the heck were you thinking?”

Shark Tank’s five investors – themselves successful entrepreneurs – see pitches from hopeful and sometimes desperate entrepreneurs. Thanks to Mark Burnett (Survivor, Apprentice, Contender, etc), I now know what it’s like to have your profession turned into a reality show. It’s very stylized and quick-to-judge and loud. Most of the time, investors accept no less than 50% of the company. That’s pretty harsh by typical Angel terms.

I’m not sure if a show like this sets back the Angel trend or enhances it. The reality (at least here in L.A.) is not nearly as sexy as it is on TV. Angels are more cooperative with entrepreneurs rather than confrontational. Deals are never evaluated nor negotiated so quickly between commercial breaks. There is always a ton of due diligence required from both sides to become comfortable with each other. All that is ignored in the show.

I would love to see some audience interaction – like the entrepreneur can poll the audience whether to accept a deal, or the entrepreneur can call a lifeline expert for advice.

One lesson becomes painfully visible on the show, and it has also become clearer and clearer to me during my career:  The hardest decision an entrepreneur makes is letting others “in” on their company stock, whether they be investors or employees.

Does an entrepreneur give away a big stake in their company in order to increase the chance of success, or do they hold on to everything and risk never making it? In other words, can they accept a smaller piece of a bigger pie or keep a bigger slice of a much smaller pie. There is no right answer – only that investors and entrepreneurs must have shared expectations and a way to part cleanly when those expectations diverge.

But hey, if a show like Shark Tank raises awareness and brings in more deals and better terms for Angels – and these sharks are pretty good at beating down their entrepreneurs – then ultimately I may have to thank Mr. Burnett. But like the guys selling pick-axes and jeans to gold miners, he’ll be too busy laughing all the way to the bank.

Shark Tank on ABC Sundays at 9pm.  Official show website:
http://beta.abc.go.com/shows/shark-tank

Unofficial blog with summaries and commentary about the show:
InTheSharkTank.com

Posted in Angels | 3 Comments

Back in the (Blog) Saddle Again

Should I be embarrassed not to have posted a blog entry since February 2008?

Maybe not so much, according to a recent article I read in the NY Times, “Blogs Falling in an Empty Forest.” It’s certainly not uncommon, apparently, according to these excerpts:

“…many people start blogs with lofty aspirations — to build an audience and leave their day job, to land a book deal, or simply to share their genius with the world. Getting started is easy, since all it takes to maintain a blog is a little time and inspiration. So why do blogs have a higher failure rate than restaurants?

According to a 2008 survey by Technorati, which runs a search engine for blogs, only 7.4 million out of the 133 million blogs the company tracks had been updated in the past 120 days. That translates to 95 percent of blogs being essentially abandoned, left to lie fallow on the Web, where they become public remnants of a dream — or at least an ambition — unfulfilled.”

…Richard Jalichandra, chief executive of Technorati, said that at any given time there are 7 million to 10 million active blogs on the Internet, but ‘it’s probably [only] between 50,000 and 100,000 blogs that are generating most of the page views.‘ He added, ‘There’s a joke within the blogging community that most blogs have an audience of one.’”

So why was I gone so long?

First, out of loyalty to my former employer, Nami Media. I mean, should I really post articles like “Google: Monopolist in the Making?” when Nami actually partners with companies I might mention? I’d really rather see Nami succeed, and while I was President, I didn’t think it was a good idea.

Second, I’ve been frustrated with my blog host, Yahoo Small Business.  Why do they keep their WordPress stuck on version 2.02 from, like, 2007? My blog got hacked into, because Yahoo won’t keep the platform up-to-date. Yet it’s such a hassle to switch – any suggestions?

Finally, with all my focus on Nami, I found that inspiration and activities with my typical subjects, namely lead-gen, Internet security and angel investing, had not really been there. But no more. The energy is back.

Here’s to re-starting my blog. Look, I’m happy just moving my blog audience audience from ZERO back to ONE!

Posted in Internet, Personal | Leave a comment

Nami Media Entrepreneurship Award and Interview on socalTECH

A few days ago, we learned that Nami Media had been selected as a Finalist for the PricewaterhouseCoopers Entretech Entrepreneursip Award 2008. Only three finalists made our category of emerging companies with annual revenues of $1-$8 million, and after attending the presentations, I can say that Nami is definitely the company which has come the farthest with the least external funding. We’ll learn if we won our category at a dinner on March 6….

PricewaterhouseCoopers and Entretech Announce Finalists for 5th Annual Entrepreneurship Awards 2008

Also, SoCalTech published an interview where Gary Mittman, CEO / Co-founder of Nami Media, and I offered our views on Nami Media’s progress, direction and benefits of being funded by the Pasadena Angels. This exposure is critical for Nami to gain in the LA area, not so much to win more business, but to hire more and better people — we’re growing a great team, and it’s key that people see they’re joining a winner.

Interview with Ken Hayes and Gary Mittman, Nami Media February 8, 2008

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