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Facebook and Misaligned Goals

Facebook’s goals and your goals (as a Facebook user) are starting to get misaligned. And it’s only going to get worse. I’ll come back to this in a sec.

Alan (former VP at my previous employer) has left Facebook. He brings up a lot of cogent reasons why.

For myself, I am a bit frustrated with Facebook. I receive a pile of “notifications”, “facebook mail” and (increasingly) “sponsored crap” every week, quite a bit of it quite deceptive in its desperate bid for virality (yeah, I know virality isn’t a word). Notes that say “John would like to see what you’re reading”, “Bob wants to know what your stripper name is”, and “Alex has posted some . Click here to view them!”… All of these things lead straight to the “install this app” screen that I’ve visited a hundred times.

We’ve all done it. Responded to these “personal” invites as if they really were personal invites (I have 6 iLike invitations from people who I’m SURE aren’t really that interested in getting me to use iLike), installed the application only to remove it a week later when you realize it doesn’t do a damn thing that actually adds value to your life.

I’d like to find the setting in Facebook where I can check a checkbox that says, “I would like to find what applications I want to install on my own, thank you!” (Can you find that option in the picture below? Am I missing a setting somewhere?)

FB

So back to misaligned goals. One of my problems with free consumer apps is that the goals of the business are virtually NEVER aligned with the goals of the user. In the beginning of a startup (like Facebook), this doesn’t come into play. The business is 100% focused on adding value to the user. The user wants to get stuff done (share ideas, photos, communicate, whatever) and the business is desperately trying to help them reach these goals as effectively as possible.

Unfortunately, pretty soon the business runs out of easy ways to add value for the user. The growth curve slows down, and you start hearing people on the product team saying, “We want the users to…” more than “Our users want…”. And it’s about this time that investors are starting to look at the burn rate and wonder how the business is going to extract value from the user. With free services like Facebook, you have a few options… I’d imagine that they’ve functionally killed their virtual gift business by releasing a public platform like they have. So that leaves advertising or premium services. Unfortunately, I haven’t heard a whisper of premium services from Facebook.

The funny thing is, users really aren’t too keen on advertising, no matter how targeted they are. And with a high use-per-day app like Facebook, they become downright invisible to the users. Quite a few people have noted that FB advertising is pretty painfully ineffective. Which means that the business needs to make ads more plentiful, more invasive, or more expensive… All of which have pretty serious negative ramifications for the user. And because EVENTUALLY there is a drive for constant revenue growth at consumer facing web startups, where else can they turn? Of course, you could argue that Facebook, with their new ad platform, have a better understanding of their users that just about anyone (in terms of demographics and intent)… But between the ad blindness that is a huge problem on utility-style apps (when was the last time you read an ad in Gmail? How about clicked on one?) and because Facebook is built on trust of your NETWORK, I think the “but Facebook advertising can be sooooo targeted!” argument doesn’t hold up.

Take any free consumer site that’s more 5 years old and you see how ugly this slippery slope can get. Interstitial ads, Flash ads that obscure the content of the site, pay-per-click garbage, and more. If Facebook doesn’t start looking in other directions, this is where they’ll be in a year or two– trying to manipulate their users into clicking on (or viewing a lot of) ads.

The SEO marketing factor that no one talks about

Just read a great piece on Small Business Hub about SEO entitled Stopping The Google AdWords Morphine Drip: How We Saved $183 Last Week. These guys echo a sentiment that I’ve been expressing for a long time (and just posted about a few weeks ago)… Investment in SEO is virtually ALWAYS better than investment in Adwords/PPC.

Mike’s article boils it down beautifully. The search phrase that he cares about is “Internet Marketing Software”. Buying a click for this phrase costs about 7 bucks. Having managed to SEO their way to the #6 slot on that page, they got 25 visitors in a week. So, by investing in SEO, they’ve managed to get $700 in PPC value FOR FREE. I’d also imagine that searchers have a bit more inherent trust for organic search results than ads. So, if Mike’s visitors were buyers, I imagine they’d convert a bit better than their PPC brethren.

One of the things that Mike doesn’t talk about in the article (tho we chat a bit about in the comments) is the EFFECTIVENESS of what you’re presenting in the SERP (search engine result page, for you SEO noobs at home).

This isn’t uncommon. Having read a lot of Mike’s articles, I think he’s a rare SEO guy who actually thinks about it from more traditional angles. But most SEO people are very analytical people. They are looking for systems and formulas that allow them to exploit Google better than the next guy. There are degrees of evil here (referred to as “white hat”, “gray hat”, and “black hat” tactics), but they are all variations on a theme– getting Google to perceive your importance as very high in the keyword-spaces that are important to you.

So on to the point of this post– SEOs are so damn focused on getting in front of a ton of eyeballs that they often lose sight of the next critical step– putting something in front of them that inspires action. Pretend you hired an advertising firm to promote your new soft-drink. As you tip back your scotch and soda one evening (that’s what fatcat soft-drink executives drink, right?) you see a commercial on the TV for your product. You look on, horrified, as bizarre images move across the screen. The lighting is bad, the camera work is terrible, and it’s not even clear what product the commercial is about. The next morning, you call up your agency and demand an explanation. Their response: “Yeah, we saved a TON of money on production– but the good news is that we spent the savings on more ad buys! That commercial was seen by millions more people than if we’d blown all that money making a great commercial!”.

The (somewhat meandering point) I’m trying to make here is that you have a few hundred characters to make an impression and inspire action (the click), and you aren’t going to do that by seeding your listings with a jumble of keywords.

So let’s take a look at Mike’s listing.

Search Engine Listing Example (Google SERP)

Not too shabby, but it certainly isn’t inspired marketing copy. A lot of product people feel feel that marketeers are manipulators and that you should just present the facts. The fact is, you can be certain your competition isn’t thinking that way. And surely you’ll agree that you can present the same facts in different ways that result in some pretty different reactions. For example (my favorite– apologies to Robert Heinlein), would you rather have a nice, juicy steak or a muscle tissue sample from a castrated bull? If you’re still not buying it, I suggest you read the studies profiled in the book Made to Stick… You’ll be floored.

The realization that your SERP presentation is so critical is unfortunate. With most user experiences, testing is easy. With SERPs, testing is damn challenging. Changing your title and meta description is easy to do… But Google doesn’t re-index your site THAT often. And a bad change can have very real consequences to your traffic (and your revenue). Testing 5 good ideas could take weeks or months. I would love to hear any ideas on how you can test in the comments.

One idea that I have is creating a faux-Google experience. Create fake Google search pages with fake results that are presented when someone clicks on the search button (with maybe a few pages of results). Then get some test subjects in your target market in and ask them to search for your term and select their vendor based off what they see. Not only would you get to see which of your SERP ideas fly well, but you could also see which of your competition performs well. It’s about as expensive as a usability test, but I think the value would exceed the cost.

Of course, the herculean challenge here is that you don’t have free reign to create copy that sings. You have a tiny title, a little snippet (meta description) and no control over presentation style. And, most importantly, you have to be darn sure that the extra clickability that you create by optimizing your SERP content doesn’t cost you in the rankings game.

Life News – So Long Jobster!

I generally don’t use this blog for life news. I figure if you know me well enough to care about what’s going on in my life, you probably would already know anything I could mention. But, given that this particular tidbit has professional ramifications, I figured I’d throw out a short post.

At day 366 of my tenure at Jobster, I submitted my resignation. For those of you who haven’t been keeping score at home, Brian Fioca and I had sold a small web startup to Jobster about a year ago. Working at Jobster was a pretty amazing learning experience in a lot of ways, but it became clear to me that I am better suited for smaller and more early-stage companies.

My current professional plans are to keep my eyes peeled for the “next big thing”, preferably a very early-stage startup with considerable equity opportunities.

In the meantime, I’m doing a bit of consulting work and working on RescueTime (which has some potential to be the aforementioned big thing). I’ve already taken on two short term consulting gigs (both with startups) that are pretty darn interesting. Given that I was gone from Jobster for all of a week (the week of July 4th at that), I’m pretty comfortable saying that there is a fairly endless supply of consulting work to be had.

Nonetheless, I’m always keeping my eyes peeled for more. So if you bump into an opportunity that seems like it might be a good fit for me, let me know!

RescueTime Blog

Brief note to let my dear readers know that we’ve set up a blog for RescueTime. Right not it’s not that active, but will eventually contain lots of interesting things that we can learn from our anonymous users. By asking them a few questions, we’ll be able to look at how productivity differs by gender, age, industry, and more.

For now, we’ll tide you over with a long-n-wordy case study on our permissions marketing campaign and a link to my appearance on Dave Mason’s syndicated radio show. Good fun!

Mutual Awe

The best teams I’ve ever worked on have had a peculiar vibe of “mutual awe”. When I saw what my colleagues could pull off, I was dazzled. When I pulled off something cool, THEY were dazzled.

At the same time, I think it’s tremendously valuable to be a hobbyist in the areas where your partners are experts. I’ll never be a programmer, but I’ll always dabble– it helps me know what CAN be done. I’ll never be a salesguy (though I’ve been one), but I read books on how to sell. I’ll never be a writer, but I like to read about the art/science of writing good copy.

One of the blog entries that has stuck with me for a while is Guy Kawasaki’s post on workplace assholes (it even comes with a handy self-exam! (Are YOU one? Uh-oh. Am *I* one?!).

The main reason that the post/test stuck with me was one of the characteristics of workplace assholedom is this belief:

“I could do your job better than you’re doing.”

I’ve already sung the praises of small teams, but I’ll add this to the heap. The smaller the team, the greater to potential for mutual respect and/or awe. The larger the team, the greater the likelihood that SOMEONE on the team is thinking (or even saying) that they could make better design/coding/sales/biz decisions than the person who is currently making them.

Ironically, the larger the team, the greater the likelihood that they might be right.

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