My customers frequently ask me about the profitability of cost per click (otherwise known as pay per click) campaigns.
Over the years, I put together a spreadsheet that I send them when asked.
Not that I have any interest in running ad campaigns for my customers (or SEO work for that matter), but I have a vested interest in making sure that my customers are happy long term, and that often includes educating them with regards to topics like marketing their business online. Continue reading
I’m been bouncing this idea off people at both companies for the past week, with mixed feedback. I think the idea could work though. I’m interested in hearing feedback.
The two companies are roughly the same size, so this would be a merger of equals.
It provides some temporary bandaid solutions for both companies executive teams and boards (I think there’s enough talent at the top between the two companies to address some of the gaps).
Yahoo! (correct me if I’m wrong) was part of the team that bought Nortel’s patents, so there’s already some kind of mobile intent. And RIM looks like it could use some bolstering.
The real rationale is fairly simple though – the combined company would have a number of options for strategic direction, and would be large enough to stand on its own if it so chose.
If it decided to sell out (hint: Microsoft), the combined patent portfolio (in addition to Y!’s advertising business) would ensure a far more equitable price.
SpaceX's Dragon Capsule - Flickr Creative Commons - Copyright Steve Jurvetson
I freely admit to pumping my fists in the air and yelling out loud when SpaceX has successful launches.
The first truly successful private space venture, what they’re doing is the start, the very beginning of the future of everything.
Now that they have a robust launch platform, and their Dragon capsule is already undergoing the testing regime to become human-rated by NASA, what will they do next?
Elon Musk, SpaceX’s CEO has announced on several occasions that their ambition is to put people on Mars. The following is a three stage plan – with profitability in mind – that just might get them there.
The underlying notion is to build a set of standardized components for each step along the way – much like the way the automobile industry works (vehicles filling various niches, companies to service them, refueling stations, leasing etc). This isn’t a new concept, and all of the players in this industry already understand this strategy well. Continue reading
Once in a while (actually every few weeks, give or take) somebody asks me if I’ll do a project for equity instead of cash.
My immediate response is “what’s your exit plan?”.
Usually this is met with a blank stare, which is when I follow my question up with “what I mean is, how do I sell those shares, and when?”. At this point, in 90% of cases, the other party is already starting to look panicky. I then usually politely excuse myself and leave.
It isn’t that I’m opposed in general to holding equity in a project that I’m working on. Far from it. The lack of an exit plan, however, implies a number of things about the person doing the asking though:
By asking a developer to work – possibly for months, or years even – without cash, the person isn’t paying much attention to how the developer will pay their bills in the interim, and how the developer will ever get paid for the project (i.e. by selling their shares).
What they’re saying is that they want the developer to assume all of the project risk, in exchange – maybe – for some pieces of probably worthless paper. Even worse, if things go completely pear-shaped, the developer might even wind up on the hook for company debts or legal issues. Even with paper, the developer can also still wind up with their equity diluted or out and out taken away – contracts can be tricky things.
Aside from all of the above, they also clearly haven’t thought through what happens when the developer runs out of cash (i.e. they leave, or they become unmotivated).
The converse to this situation is one in which a business has a clearly defined plan, cash on hand to pay contracts or salaries, and wishes to align staff with the overall goal – this is the only time when I would ever want to be holding equity in somebody else’s company.
The news that Google is buying Motorola woke me up prior to my morning coffee. In retrospect it makes sense, but it was big news, and most unexpected.
Assuming that regulators let it go through, some interesting things are likely to play out:
Interesting times…