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The Ongoing Ramblings of A Media Startup

August 14, 2005

Paul Graham Nails It

This essay has been linked to a lot, but I got to reading it just this weekend. It's very worth a read if you're into the kinds of forces which are conspiring to make a company like FM viable.

Paul is the author of "Hackers and Painters," among other pursuits. This essay is called "What Business Can Learn from Open Source" but don't let that title scare you off, it's not a rant about OSS. Instead, it's more about new and old models for communication, new and old models of working, and new and old models for media. IN the essay, Graham begins with a look at the words "professional" and "amateur":

There's a name for people who work for the love of it: amateurs. The word now has such bad connotations that we forget its etymology, though it's staring us in the face. "Amateur" was originally rather a complimentary word. But the thing to be in the twentieth century was professional, which amateurs, by definition, are not.

That's why the business world was so surprised by one lesson from open source: that people working for love often surpass those working for money. Users don't switch from Explorer to Firefox because they want to hack the source. They switch because it's a better browser....

....On the Web, the barrier for publishing your ideas is even lower. .... Millions of people are publishing online, and the average level of what they're writing, as you might expect, is not very good. This has led some in the media to conclude that blogs don't present much of a threat-- that blogs are just a fad.

Actually, the fad is the word "blog," at least the way the print media now use it. What they mean by "blogger" is not someone who publishes in a weblog format, but anyone who publishes online. That's going to become a problem as the Web becomes the default medium for publication. So I'd like to suggest an alternative word for someone who publishes online. How about "writer?" (Editorial note: At FM, we call our partners "Authors.")

Those in the print media who dismiss the writing online because of its low average quality are missing an important point: no one reads the average blog. In the old world of channels, it meant something to talk about average quality, because that's what you were getting whether you liked it or not. But now you can read any writer you want. So the average quality of writing online isn't what the print media are competing against. They're competing against the best writing online. And, like Microsoft, they're losing.

Paul then goes off on the concept of the workplace and in particular the 9-5 office.

....The average office is a miserable place to get work done. And a lot of what makes offices bad are the very qualities we associate with professionalism. The sterility of offices is supposed to suggest efficiency. But suggesting efficiency is a different thing from actually being efficient.

....Things are different in a startup. Often as not a startup begins in an apartment. Instead of matching beige cubicles they have an assortment of furniture they bought used. They work odd hours, wearing the most casual of clothing. They look at whatever they want online without worrying whether it's "work safe." The cheery, bland language of the office is replaced by wicked humor. And you know what? The company at this stage is probably the most productive it's ever going to be.

Maybe it's not a coincidence. Maybe some aspects of professionalism are actually a net lose.

To me the most demoralizing aspect of the traditional office is that you're supposed to be there at certain times. There are usually a few people in a company who really have to, but the reason most employees work fixed hours is that the company can't measure their productivity.

I'm proud to say our office is in an in law apartment above a garage. We're looking for new space, but it will not be in a traditional office building, that's for sure. Great bands never made their music in a high rise.

And finally, he goes off on the idea of how the best stuff comes from the bottom up, a key idea at FM - we don't tell authors what to write, we watch the best stuff rise up and then build support around it.

...The third big lesson we can learn from open source and blogging is that ideas can bubble up from the bottom, instead of flowing down from the top. Open source and blogging both work bottom-up: people make what they want, and the best stuff prevails.

Does this sound familiar? It's the principle of a market economy. Ironically, though open source and blogs are done for free, those worlds resemble market economies, while most companies, for all their talk about the value of free markets, are run internally like communist states.

...So these, I think, are the three big lessons open source and blogging have to teach business: (1) that people work harder on stuff they like, (2) that the standard office environment is very unproductive, and (3) that bottom-up often works better than top-down.

August 8, 2005

ComScore: Blogs Readers More Affluent

More soon on this, Nick sent me the report and I have not had time to grok...from the brief:

NEARLY 50 MILLION U.S. INTERNET users visited blogs in the first quarter of this year--a 45 percent increase from the first quarter of 2004, according to a new report by comScore Networks, "Behaviors of the Blogosphere: Understanding the Scale, Composition and Activities of Weblog Audiences." The report--authored by comScore Network's Graham Mudd and DoubleClick's Director of Research Rick Bruner, and sponsored in part by Gawker Media and SixApart--also found that blog readers visit nearly twice as many Web pages as average Internet users, and are more likely to shop online. According to the report, 51 percent of blog visitors made an online purchase, compared to 39 percent of the all Internet users.

Blog visitors are 11 percent more likely than the average online user to have household incomes of at least $75,000, and are also 11 percent more likely than the average Web user to connect via broadband.

August 1, 2005

Looking for A Contract Web Designer

We're looking to work with someone who can help us bring our platform vision to life. We need a web designer who has worked with account-based systems in the past, who groks the whole Web 2.0 thing, and is more into user experience than pretty layouts (though we are not against things looking nice, of course). If you are interested in working with us on a contract basis, please contact John or Andre. Thanks!

My First Dumb Mistake

As some of you know I write a column for Business 2 magazine in which I interview CEOs of interesting companies. I've been doing this a while now, and it's great fun, and an nice excuse to pick smart folks brains. In April I thought it might be fun to interview Mike Homer, the CEO of Kontiki, as he not only had a new product coming out, but also had seen the ups and downs of Web 1.0 over at AOL and Netscape. In any case, I did the interview, edited it, sent it to the magazine, and promptly forgot all about it, moving on to Bob Wright at NBC and then Omid Kordestani at Google.

But a month or so later I was wrapping up funding for Federated Media, and a friend of Mike's mentioned that Mike was an active angel and might be interested. I shot him an email and, at the last minute, he decided to invest - a very small amount, but nevertheless, an investment.

Now, Mike's investment was not directly connected to the column which ran in Business 2.0, coming after it was edited and sent to the magazine, but thanks to the lag time in publication of a monthly magazine, it sure looks bad. I should have realized this, but I didn't, at least not until it was too late for the magazine to note the apparent conflict in the column.

This was a stupid mistake on my part, and I am sorry about it. The magazine is running a clarification in this month's issue, which reads:

In the Titans of Tech column in our June issue ("Reinventing Television"), we ran an interview with Mike Homer, CEO of Kontiki, conducted by contributing writer John Battelle. After the issue was sent to press, Battelle announced a small round of funding for his new business venture, FM Publishing, in which Homer is a minority investor. According to Battelle, Homer's involvement in FM took place well after the interview and editing of the column were done.

As I said when I first posted here: "I intend to be as transparent as I can afford to be about the company and its intentions over the next few months as I struggle to get it up and running. In other words, if you are going to make mistakes, may as well make them in public - they get corrected faster that way."

Mike is an investor in FM, and I'm glad he is, but I should have mentioned this in my column. Mea culpa.


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