Freemium

I am trying to blog more this year but I also said that last year as well. What can I say – I try.

I read this on SplatF and mostly agree about not wanting to waste time on social but write more – even if in smaller chunks.

I love twitter though cause it kicks of nice conversations that spurn me to write something. Yesterday was no exception.

Thanks to Chris and Dave for the inspiration.

Here is the string of tweets :: https://twitter.com/myeggnoodles/status/420423888342749186

I think Chris is making a great point and one I have always subscribed to when I considered joining or building a startup. The business goals of such startup should be to generate revenue. Within this framework though I think freemium is an accepted model. Because some startups, Spuul for example, are building in an area where piracy is rampant and the user population in places like India or Pakistan is not accustomed to having to pay. Or maybe they want to or would pay but the payment methods are not there.

I think other business models also run into the same hurdles so offering a free to use product that strives to convert the free user into some sort of paid user is an acceptable model. In our case we are also putting an ad business around the free model so it will also generate revenue.

All that being said. This is hard stuff. A lot of what we launched with has changed. We offer more subscription tiers than originally expected. We had to learn how to upsell. Had to decide over time on which features to make free and which features to make available only to paid users. We had to learn how to not try and attract only free users but users who wanted to kick the tires for purposes of deciding for themselves if they would eventually upgrade. Meaning there is a big difference in marketing to get a free user and marketing to get a user who starts as free but has the propensity to pay.

Lots of work to sort all these flows out and to build a business around freemium but I think in emerging markets and for some business verticals – freemium can work.

The other school of thought says only build something people want to pay for. This for some business verticals might also be doable but it may not always work. Either way I think it takes time to do either of these well and at scale. Generally startups are rushed to sort this out and don’t have the time to experiment to see what sticks.

After all an early stage startup really is just an experiment.

happy building!

Open-Source Angel Investment Templates

Still catching up on my inbox but wanted to get this out there to help spread the word.

Open-Source Angel Investment Templates – brought to you by Dr Bernard Leong and Huifen Zheng. This is great stuff and continues to solidify Singapore as a leading base for startups – globally and within the region.

I won’t try to explain it all since it is all explained here:

http://www.bernardleong.com/2013/11/05/open-source-angel-investment-legal-templates-convertible-loan-shares/

As we continue to see some exits and successes in Singapore there will hopefully be an uptick in local angel activity.

carry on!

Isn’t every startup like a platform?

Great article, looks to be a series I think, about platforms. This is from Ryan – ex twitter exec.

http://sarver.org/2013/09/26/what-is-a-platform/

I guess my angle here is I tend to think of any startup as a platform. It may not be that it fits the exact description for how the tech industry defines a platform but I like to think of the problems I work on as a platform play. It helps me in taking the long view since I think unless you are incredible lucky, like 3 year old instagram, most startups will be at it a while.

As I like to tell people – it’s a marathon, not a sprint.

Most platforms take the view of apps or software stacks that are available for developers to build on and the effect of this creates a network effect to further drive the platform. So iOS, facebook, twitter, microsoft, android and others are listed by Ryan as examples of platforms under the common agreement for how platforms are defined. All good – I won’t argue with that premise.

But when it comes to building your startup, no matter what it is – I think this platform methodology can help you define things to work on and focus on. I like this line:

This created a very powerful network effect that drove growth of both sides of the business (developers and users) where growth of one side directly benefited the other.

I think about how the growth on one side directly benefits some other side of your startup. So if you think of all the sides or facets of your startup – you can think about how work on one side can directly benefit another side – find ways to see if the network effect is at all applicable to your startup.

So when I think of spuul – I think of it as a platform for India video consumption and all the sides of the business are broken down in ways to allow me to see the overall product as a platform and to then focus my efforts on figuring how the sides of the platform can feed off each other.

Product management means many things to many different people – I will talk about my theory on it all later – it more closely resembles chaos theory than anything super organized. I realize that breaks a lot of know product management constructs right out of the gate but the craft, yes it is a craft, of making a digital product is an evolving field with many different ways to skin the cat. If I look at all the ways to skin a problem – looking at my product as a platform helps me to focus my efforts.

Looking forward to more from Ryan on this subject and seeing where I can apply it at work.

Also going to read this :: http://mitpress.mit.edu/sites/default/files/titles/content/9780262050852_Download_the_full_text.pdf

back to work…

Learning to scale

No – not talking about code here since I am far from an expert in scaling systems – that’s why I hire people smarter than me.

Talking about myself actually. I like to think I am fairly organized but I will admit that generally I feel as through I am hurtling through space and time grabbing things as I go and completing them but always feeling like I am on to the next thing quicker than I want to be. So if you can picture that then you will realize that the only logical choice I have is to focus on less things since time is not going to expand and excelling at my craft requires focus. I do believe strongly that running a product team is a craft and I can only get better at with experience and focus.

That being said I think it is important to try and give back where I can. I used to think this meant going to events or trying to stay plugged into the community but the effort to stay plugged in is time consuming and I am not sure there is much gained from it except for specific situations where I have met someone that I later became friends with or worked with. So this is important but I think one can see events as the be all end all when they are not. So choose your events wisely and attend them with the goal of getting the most out of them.

Apart from spuul, my current location for perfecting my craft, I obviously still want to stay in the community but this year I decided I would channel that focus a bit. I am finding that being involved in the jfdi mentor program has been just the ticket. I don’t know how best to do it other than jump in and make myself available. I am not always in town but when I am in town I plan on spending a morning at jfdi and get as many meetings as I can in the calendar with any of the startups that want to meet. Yesterday there were six busy, but largely productive meetings.

I like the one to many method in which I can spend my time but truth be told I am learning as much as I am giving. I think anytime one has to channel their energies into helping others one will get as much from it as they give. This model is allowing me to scale my time in the community better and hopefully keep myself plugged in.

If you are unaware of the latest batch of startups you can check them out here: http://jfdi.asia/portfolio/

I won’t discuss them here but check them out – some of them have even launched their services to the public so try it and support the products. I will admit I am partial to a few – especially the ones that give me shirts. #mentorspoils

October is a special month. Lots going on in the region, spuul will be launching some kick ass stuff and I am taking a holiday to Japan!

Carry on…

YNOT – this if for you JFDI warriors

I had the pleasure of getting to hangout and mentor over at JFDI the other days. Really enjoyed it and appreciate being offered the chance to.

Ray wrote about it here: http://jfdi.asia/2013/09/10/dont-forget-common-sense/

Today I was listening to one of my favorite podcasts :: http://www.wnyc.org/shows/heresthething/2013/sep/02/

This specific episode was from the son of Tony Bennett discussing his father and how they turned his career around together. There was a nice thread about taking chances and even joking about the name Tony meaning ynot? Was a great message so I thought I would share some of feelings after talking to some of the startups that I had. This is me reacting to some of what I was asked during my mentor sessions and rolling up how I might feel about it. Hope this helps.

  • First off to all the companies at JFDI. Don’t be afraid to blow it up. You might have walked in with one idea and suddenly you think it may not be the right idea. That’s okay. Blow it up. You got accepted for who you are and what you are trying to do. The idea is not concrete. You have enough months ahead to do what you think is the best thing. So do it.
  • Be bold. I say this with some amount of joking aside – if you are not transferring money around or transporting someone to the hospital – you should just go for it. You will make mistakes but no worries – no one got hurt. Ship it. Ship often.
  • Don’t try and invent everything. Use as many off the shelf pieces of code or services you can find. Abuse them. Wire them together. If you succeed you can replace components later with things you hand roll but for now it is not how it is done – it is just all in what is done.
  • Have fun with your messaging and just say it. You can say it all better later as you learn.
  • Don’t dwell on metrics and KPIs till you have something running and you know what the metrics worth tracking are. The goal now should be to test your general hypothesis. Then take the answers and sort out whether you are right or wrong. Fix. Do it again. Analyze later.
  • Marketing things won’t be easy. Try to find viral hooks if possible. Get others to invite others for you. Make it worth their while for doing so. Experiment early, experiment often. There is NO magic bullet so have an open mind about trying things to see what might work. Kill what doesn’t. Do more of what does.
  • I am sure I will think of more tips but this stuff was rattling around in my head after listening to Alec Baldwin – so y not share I was thinking?

    Have fun.

    Crazy week in my World!

    First up we have Rakuten buying Viki. http://blog.viki.com/2013/09/letter-from-vikis-ceo.html . This was probably be the biggest tech news for me personally. One I almost went to work there so I follow Viki very closely. I guess you can also say I am in the same space as them but much farther behind in our maturity but what happened to Viki is great for a startup like Spuul in Singapore. It shows the video space is hot, you can build something global from Singapore, exits can happen and that the dream is alive.

    I am very curious to see what happens next to the company, who stays around and what Rakuten does with all these disparate pieces that are supposedly tied back into e-commerce. People say it is like Amazon or Netflix – not sure I see that yet. I can imagine the Amazon comparison but where is the cloud stuff? Either way Rakuten is a force and now Viki has some serious backing and is supposedly somewhat independent. All debating aside – congratulations to the Viki team for an amazing exit.

    Next we have MSFT buying Nokia. This one can and will be debated till the cows come home. It essentially always needed to happen – why now? Is it about Ballmer stepping down and Elop coming home. I don’t know but I think MSFT has a huge uphill battle to make Windows Phone competitive but apart from them – it is all android and iOS, so I do hope MSFT can shake it up a bit cause it will be good for the ecosystem.

    Stoked to be mentoring over at http://jfdi.asia this year. Should be fun and great learning experience for me.

    On the Spuul front – we just launched our biggest TV deal yet :: http://blog.spuul.com/2013/09/star-plus-serials-now-available-on-spuul/ . Lots more coming as well.

    All in all an exciting week locally and globally – now over to Apple for next week!

    The Lime House :: Good Eats

    Meet up with some folks last night at The Lime House :: http://www.limehouse.asia

    Been wanting to try it ever since I clipped this out of the Pink Sheet:

    20130822-124738.jpg

    First thing first was to email them and ask if I needed reservations:

    Hi Michael,

    Thank you for your question.

    I would suggest reservations for dinner as we tend to get pretty busy. May I confirm 3 people for Wednesday? What time would be good for you?

    Just to let you know. We have a special promotion on that night called Wednesday night lime in our Rum Lounge on the 2nd floor. We offer a free flow of rum punch from 630-830pm with every purchase of $20 per person from our bar snack menu.

    Do let me know if you would this or to just have dinner with us.

    Looking forward to hearing from you soon.

    Best regards,
    Lime house team

    Honestly they answered my email in like 15 mins and I was impressed with the reply. Usually I get no reply or something fuzzy, curt or not understandable. This was a nice change of pace.

    I confirmed reservations via email.

    They also sent me their menu in the first email which was a nice touch as well :: http://www.limehouse.asia/LimeHouseMenu.pdf

    We showed up early and had a drink – which BTW they have yummy drinks.

    We also ordered the fish cakes which were good but the portion was a tad small.

    The ambience is chill and the service was good – still the ‘I gotta raise my hand Singapore style’ service from time to time but the staff were friendly and things moved at a good pace but maybe a tad slow on food coming out.

    We ordered and loved all of this:

      Ribs
      Jerk Chicken
      Curry Goat
      Coconut Rice
      Macaroni Pie (2)

    Portions were good and we were all stuffed.

    Typical not cheap Singaporean prices but not over the top either.

    Upstairs is a club like joint with some kicking tunes. I guess they run some nightly specials and parties up there.

    All eaters said we would come back again.

    Enjoy!

    Instigating dialogue with your customers

    New WordPress build, new theme (said bye, bye to the IA theme cause it has not been updated in ages and it is too painful to customize), and a new post.

    I am not sure how to follow a theme or flow for my blog. I am all over the place but I guess this largely reflects my hectic life. I thought for this post I would share more about something we tried at Spuul that I think is working well. There are lots of things at Spuul working well but I can’t talk about everything cause we have too many copycats that are trying to emulate everything from our design, apps and so on that I don’t want to give them too much of a head start.

    As with every company one hopes to build a direct line of communication with their customers. I am getting tired of the term user. Every since we shipped I have been amazed at how much email we get from people complaining, praising, asking for tech support help, requesting movies, requesting more apps, requesting TV apps, offering to send dvd’s that we could upload to our servers and so on and so forth. However we wanted to figure out how to delight our users by sending something out that might elicit some sort or response – either good or bad but hopefully more good than bad. In my mind though I was thinking that any response, even if negative, at least would mean people were reading the emails.

    Before I go any further I want to give credit where credit is due. This idea is not of my doing – first off, maybe we can get a shout out, is to Derek Sivers, now residing in Singapore who lead the way with his work at CD Baby. Derek was known for sending out humorous and engaging order confirmation emails. This idea I had read years ago but was never in a position to act upon it – fortunately my pal, ex yahoo intern and Spuul online marketing guru, Thomas – lover of all things related to Japanese school girl outfits (I won’t link to it but just google Thomas koprol Japanese schoolgirl for reference ) , brought up using the idea for our Spuul welcome emails. This is the email we send to all users when they have signed up for Spuul. The hope was we could delight our customers from the first email communication in hopes that it encouraged them to read subsequent emails and of course remember Spuul.

    Once we decided to do this Thomas took a crack at writing one and I took a crack at editing it. Basically radically altering it. Then we shared it with our founder who is also a playwright, lover of all things cricket and our guiding light at Spuul for the nuances in Bollywood dance scenes and the proper way to wear a polo shirt – collar straight up in case you were wondering.

    He of course laughed at how pathetic our email attempt was and took it upon himself to write one. I should have assigned him the task in asana cause it took many weeks longer than anticipated but the end result was spectacular. I will include the email below – good luck with the Hindi.

    Another part of the Spuul team, our creative guys Eric and Marvin, took a crack at creating artwork for Diva and Pundit which we use for all the emails that include the characters. The idea here was to bring them to life and create a deeper attraction to the theme.

    Welcome email:

    I am The Diva. Shhhh! Don’t tell anyone, but you are our ONLY customer.

    I am not kidding. No mazaaq! Believe me, all the others are just made up numbers to impress the public. Now, first let me compliment you – you have shown great taste and the good sense to come to Spuul . Arrey, you could have easily clicked on to some cheesy, cheapo, crappy pirate site run by God knows who and for God knows what. But nahin! You knew that that would be like watching movies in a cow shed to the sounds of buffalo belching, the smell of gobar gas and in the company of the farmer, not his wife. I can be ruder in my description but I will leave that until we are better friends. Sach bolo toh, I just needed to get into your head with a genuine expression of delight that you made a jabardast choice in becoming a Spuuler. Here your manoranjan, your khushi, your entertainment is of paramount importance and for me to satisfy. I, The Diva, say – nothing else matters except, perhaps, a nice masala chai after.

    I am The Pundit and I am sorry if The Diva has taken you off guard. Every time a client walks in the site, she gets into a Sheila ki Jawani, item girl, frenzy and then there is no holding her back. You can try if you want but it’s like trying to tame an emotional tsunami. Very Bollywood! Let me get things back on track in a seedha, down-to-earth way. You are the customer and Mahatma Gandhi said you are the most important person. So who are we to argue? Ya, I know this is a bit of a downer after The Diva’s seductive, almost lustful, allure but I mean, lets face it, she doesn’t even know if you are a guy or a girl. Not that it really matters these days, but still. Anyway be assured, that if you are, indeed, a lady or even working on becoming one, I have you covered. Yes, I, The Pundit, say – you are now in good hands – mine – and I will continue to fight for great content and for a delightful viewing experience.

    Namaskar. Khuda Hafiz. Until next time!

    The Pundit and The Diva at Spuul.

    Essentially the idea was to introduce some characters we could use for customer dialogue, poke fun at a few things and most of all engage the users. Prior to this email I don’t think anyone ever replied to our welcome emails expect to complain about spam, ask a tech question or request a movie. As soon as we started to use our new welcome email the replies started pouring in. To this day they keep coming.

    We get replies asking for diva’s phone number, where she lives, is she single, does she work at Spuul and many other things I can’t post. We also get phone numbers sent in, photos from male Spuul customers, and emails from women stating they are women but still love the email. People tell me there are threads about the email on Facebook on personal pages – but I haven’t seen them myself.

    We also get huge thank you letters, hate letters, and general letters say that the email was the bets thing they ever read and how it makes them love Spuul even more. We also get letters talking about how much they hate the email, the characters and now Spuul. However the general consensus is we get way more good emails than bad but it seems to never be in the middle. People love it or hate it. I actually think eliciting this response is a cool thing since you can never please everyone but actually eliciting a strong response from the getgo that opens up direct customer dialogue is priceless in my book. So the email has stayed to this day.

    Given how well it was working we decided to extend it to our mailing list to see what we could do there. The thought was if people got used to reading something on the mailing list a part from movie information or new releases, that it might encourage them to stay on the list and open all the emails. This brought us to extending the premise to the Diva and Pundit show that we could tell in textual episodes.

    The Diva says – Please kill me! No! No! No don’t hesitate my dear, just finish me off! Maar dalo mujhe! How to live if the net world conspires to come between you and me? Sachh, lets be honest – am I asking you for you for diamonds? No nah? Or gold? Arrey baba, I am not even asking you to gift me a pair of Prada sunglasses. Nahin, our rishta is toooooo pure for such cheap demands. I confess the truth, my deepest desire is only to be connected to you, to be close to you, really kareeb – so please, I beg you ji, just get a good 3G, 4G or Wi-Fi connection. That’s all I ask. Then we can truly live together happily ever after – the perfect jodi sanctified by a holy band (width). I promise you, kasam se, from my side I am also really pushing Frog Face Pundit (don’t tell him I call him that) to do something clever, some tech jadoo, to make the experience pleasurable but you have also be on top of things. Fair nah? Otherwise as they say in the movies, I will have to suicide myself, because I will not be able to bear our separation. The grief would reduce me to tears and I would definitely need those Prada sunglasses to hide the pain.

    The Pundit says — That Diva woman was always difficult to satisfy!!!! From the beginning she never liked buffering! Or interruptions! Or action without audio! Or worse – audio without action! Actually, there is nothing strange or ajeeb about that unless you are a really kinky lady, right? I mean if you are watching a movie online you want it to be a nice, continuous, smooth rendition until it reaches it’s ultimate climax. Bas, what more can you ask for hah? The Diva and I have had a lot of mara mari about a lot of things but I concede that she is right about connectivity being the key to the whole affair. I tell you her constant kit-kit is paying off because the woman has me working on a special technology that will make “ the experience”, as she calls it, seamless and “pleasurable”. My sincere apologies that I can’t reveal it to you right now otherwise she will say, sala promise bahut karta hai lakin delivery dheela hai! But solid work is being done on that front. Until then, my dear, please help to keep that nag off my back – just make sure you have a good, solid internet connection and I promise your movie Spuuling will be perfect. In return I will buy her the dammed Prada sunglasses she is trying to squeeze out of you!

    Namaskar! Khuda Hafiz! Until next time!

    The Diva and The Pundit

    This purpose of this dialogue was to bring out the characters more and to start talking about issues customers may have with Spuul – in particular the premise that if you don’t have a decent Internet connection it will be hard to enjoy Spuul. We get so many emails with users practically using a high speed line with dial up speeds complaining that nothing works. We can only tell them that a 100kbps connection will never stream video – ever. We wanted to poke some fun at the issue and carry the story on.

    The cool thing was this email, compared to our normal newsletter or movie announcements, had a higher than normal open rate.

    We are already planning episode 2 and are looking at other ways to use the characters as well – maybe as the lead in to our help center and customer service channels to try and make it more human and engaging. There are other ideas planned as well but they get too techy and secret so I can’t address them here. Maybe after we roll them out.

    All in all I think the general idea has worked and it reminds me of how complex product management is at it’s core. It is not just about building things but about how to market them, service them and build a long term conversation with the people who are using your products. I love how running product is such a multi-faceted gig. Makes it all the more fun.

    I also love how I work with a bunch of talented people from a multitude of backgrounds who band together to create something truly creative and engaging. This is not typically what people think online or digital companies do but I think it is stuff like this that will power Spuul over our competitors.

    Discussing lean…

    Since I am working on 2 startups, spuul.com, and the munchkin – I rarely read enough these days. I want to read. I instapaper a mountain of things, I have a stack of books, but generally by the time I have worked, spent time with the family and get through a weekend Financial Times – I am out of time.

    However when I came across this, I have made the time to even read it a few times. There are so many angles and thoughts to cover in it. Not even sure where to start.

    The one thread I am picking up on and sometimes would agree is the discussion about the Lean Startup movement and it’s impact on the world’s startups:

    For an opportunist, it’s all about speed. Get the product out there as fast as possible to start gathering feedback and iterating, then iterate as fast as possible, pivot when you’re not seeing enough traction or when you have a better hypothesis, and give up when you don’t think it can work anymore, or when you run out of money.

    If it doesn’t work out, opportunists are not going to double-down and throw good money (and time) after bad. They are honest enough with themselves to acknowledge check-mate. Or, as our Anonymous Founder put it, when they’ve “run out of moves”. There’s any number of things that may have gone wrong. Self-reflective opportunists learn from these mistakes. Either they misjudged the circumstances, or executed wrong, etc.

    The Anonymous Founder is an Opportunist. I’m not even sure it was a conscious decision. He is the product of the culture of Silicon Valley, a culture that the Lean Startup Movement created.

    The Lean Startup Movement has been the dominant school of thought in Silicon Valley for too long. I am an outspoken critic, because although it has given us a valuable tactical framework, it has removed from the conversation casus belli. For years now, Silicon Valley has talked of nothing but battles, and forgotten about war.

    Now, we have an imbalance in the ecosystem. Visionaries are few and far between. There would be more, if founders followed their instincts, but they get drilled into the dogma of the Lean Startup. Which is fine, if you want to build a Lean Startup. But not if you want to build a big one.

    The Lean Startup has taught us, wisely, not to be too attached to how we do things – to allow more room for qualitative feedback and data-driven experimentation in our development process. But it has also brought with it, unfortunately, a culture that discourages founders from becoming too attached to why we do things.

    Starting a company is like going to war. You are declaring war on the status quo. War is costly and painful. Why would you do it?

    Powerful thinking. It is not really that I am against the lean methods or the Lean Startup but sometimes I think it can become too formulaic and might lead people to lose a little of their passion. Not to say you should work your ass off on a dumb idea or one that bears no fruit but sometimes I think that based on your experiences, your team and your leaders that you might just have to stay focused to see something bear fruit. It might take time, it might be painful and it might not come with everyone patting your back but if you think it is the right thing to do, if your internal stats are showing some progress – then you might be on to something.

    It still might take time. This means that all of your learnings might not be easily or quickly validated or disproved but being on the inside you should see some signs from your stats and customers that you are getting warmer or maybe you are getting colder. Sometimes you might have to make a gut call or a fly by the seat of your pants decision. This is how it works sometimes. This is what makes it fun and exciting.

    For me it is like Lean Startup++ . Somewhat modified so that I take some of the best lean ideas, marry them with my experience and then combine them with the passion from the founders/investors to create something that I think is better but maybe not as easy to diagram.

    Lots to think about. Lean or not. You have to just do it.