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Posts Tagged ‘real-estate’

For web publishing startups like Scribd and DocStoc, premium content is the viable business model to monetize their platforms. For example. Scribd has signed a number of deals with publishers to sell online books to users on the site. Today, DocStoc is officially opening up its premium content channel, called the DocStore, addressing a lightly different sector, with a focus on selling professional documents to businesses and individuals.

DocStoc’s CEO and founder Jason Nazar says the one of the platform’s fastest growing user base segments are small business owners looking for free and paid documents for entrepreneurs, startups and professionals. Documents range from legal documents to real estate contracts to analysis to forms for business models. The DocStore also features documents in a variety of formats, including Microsoft Word, PowerPoint, and Excel files. The marketplace has been open to select partners since last summer (including TechCrunch), but today will mark its public debut.

On the seller side, the DocStore allows document sellers, such as LegalZoom, Career Press, and BK Publishers, to keep 100 percent of their sales for the first 60 days of a document’s lifetime on DocStoc. After that, DocStoc takes 50 percent of the sale price. DocStoc powers all of the payments (which can be made through credit cards) on the site and returns payments to sellers via check or PayPal. Sellers can sell their documents separately, or bundle them together as packages. For example, a business plan package could include an Excel spreadsheet, a PowerPoint presentation and a Word document. And sellers can monitor their sales, documents through a customized dashboard with reports, conversion rates and analytics. Nazar says that DocStoc vets all sellers and documents to ensure that each document is legitimate.

DocStoc will also be adding the ability for anyone to embed widgets with the for sale documents in blogs to collect affiliate fees, similar to the Amazon model. Affiliate revenue will be deducted from DocStoc’s 50 percent share of the ale, not the Seller’s sale. Lazar says that DocStoc is working to maximize conversion rates for sales, even offering a 1-800 customer service hotline for any potential buyers who have questions about documents for sale. And sellers can choose to turn of ads on pages where they are selling documents.

Additionally, Nazar says DocStoc will be adding more of its own self-curated content to to the platform, which will be available to users who have a paid subscription to the site. Users will soon have immediate access to over 1000 documents, which range from what to do when you get a DUI to marital settlement agreements.

With 3 million registered users, DocStoc is now profitable. Nazar says that the company is seeing 20 million uniques per month and is growing rapidly as a business focused site. It makes sens for DocStoc to cater to the professional community and its marketplace seems like a good bet, especially with the affiliate ecosystem.

When the mobile payment service Square launched in December, VeriFone rushed to get its own version on the market. A couple weeks ago, they accomplished that with the launch of PayWARE Mobile. Now they’re looking to take out their competitor the good old fashioned way: out-spending them.

VeriFone is already heavily advertising its PayWARE Mobile product with huge ads in New York City taxis. As you can see in the picture, VeriFone is paying for big screen real estate on the screens that are in the backseats of all cabs in the city now. The ad shows a large picture of the device (a piece of hardware that you attach to your iPhone) and promises users that not only will they be able to accept payments with the iPhone with it, but that they will “never miss a sale.”

Obviously, this is the same thing Square does, but Square is a startup (co-founded by Twitter creator Jack Dorsey), whereas VeriFone is a large global company already making a ton of money in electronic payments. That said, Square has some money too, thanks to its $10 million round of funding, and $40 million valuation before it even launched. But it seems highly unlikely that Square would use any of its funding to counter these ads.

Instead, Square is going to have to keep touting the fact that their system is built for anyone to use, whereas VeriFone’s requires that you have a merchant account.

[thanks Brian]

We all know that Ashton Kutcher is a fan of Twitter. Last year, Kutcher raced CNN to a million Twitter followers (Kutcher won). Kutcher hosted Saturday Night Live yesterday night, and as a web exclusive, SNL released this bit Kutcher did about Tooter, which Twitter-like network that broadcasts Kutcher’s flatulence emissions, or “gissions.” It’s up to you to decide how funny the sketch is, but it’s certainly an entertaining poke at the celeb’s love for the microblogging network and social media.

I’ve got a feeling something interesting is happening to the way real estate operates online in the UK. Anecqdotal evidence is emerging that social networks like Facebook and less conventional startups are perhaps starting to find the chink in the armour of the traditional property listing market here.

In particular, Facebook Marketplace is starting to be used by niche poperty agencies like Pimlico Flats, more successfully than the usual online suspects like Craigslist and Gumtree. That latter site has had problems with other aspects of its site like, having to dump dating because of spam and scams. The same problems are plaguing Craigslist in the UK, and this is something that Pimlico Flats picks up on in a blog post on the subject. The ability to verify Facebook users turns out to weed out the scammers.

At the same time, although findaproperty and rightmove remain strong, less conventional sites like Globrix, Nestoria, Zoopla (see below) and even niche social networks like Asmallworld are being used.

The problem with most ads is that they suck. Publishers sign up for ad networks and they have to take what they are given, which is usually some weight-loss ad showing way too much belly flab. But what if Website publishers could create their own ads? They know their audience best, right?

That’s the idea behind Bedrock, an ad network created by the founders of GumGum, which is itself an unconventional way to display shopping ads on celebrity photos. The way Bedrock works is that publishers create ads on their site, which could be as simple as a text ad, an image, or a Flash animation. Then they pass a set of keywords associated with that ad to Bedrock through APIs and Bedrock has advertisers bid on those keywords just like they do with search ads. Every time somebody clicks on the publisher-created ad, it goes to a different advertisers based on who is bidding the most for the underlying keywords in a realtime auction.

Let me illustrate this through an example. If you run a gadget site and you have a bunch of forums where people like to talk about Plasma TVs, you could create a generic ad with a graphic that says “Buy a Plasma TV.” You pass Bedrock the keyword “plasma TV” and advertisers who want to buy that keyword bid for your clicks. In particular, though, Bedrock is aimed at non-standard real estate for ads, such as widgets, feeds, chat rooms, desktop clients and so on where standard online ads don’t work so well. For instance, DocStoc has been trying out the ads with its embeddable documents.

Sounds simple. Except I could easily see publishers try to abuse the system by not clearly indicating what is an ad and what is content, or hiding the ad directly in the content. So Bedrock won’t necessarily result in better, more relevant ads. For instance, a publisher could simply hyperlink valuable keywords in an article and make that an ad, or place a line of text under real headlines as an ad, which borders on being an advertorial. Not that there’s anything wrong with that, except that advertorials also suck.

The founders Ophir Tanz and Ari Mir suggest you don’t do that, but rather label the ads clearly as such. They created Bedrock for themselves because they needed to generate ad inventory for GumGum images. They already produce hundreds of millions of impressions a month through GumGum which they monetize in this fashion for themselves, and so Bedrock is a generalized service that came out of that. Investors in GumGum include MySpace COO and Userplane founder Michael Jones, First Round Capital, GRP Ventures, and CrossCut Ventures.

What do you think, can publishers create better, higher-performing ads than advertisers?

Here’s a video explaining what Bedrock does:

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Editor’s note: Guest writer Glenn Kelman is the CEO of Redfin, an online real estate broker that seeks to give consumers the information and tools once limited to real estate agents. Previously, he was a co-founder of Plumtree Software, which had a public offering in 2002 but is now part of Oracle.  Below he shares the best questions from investors during a recent fund raising.

For startups, Christmas comes in November. Partners come back from vacation in September and deals start closing a few months later; since the credit crisis deferred fund-raising for most of the past year, November 2009 will probably end up being especially busy.

Redfin is one of the companies that just closed a round. Already the process has resulted in a huge shift in our mindset: from just surviving to building a juggernaut. That shift is one every startup can try on for size, whether it needs capital or not, by asking itself the same basic questions that VCs asked us.

VCs are good at asking questions. They are unimplicated in your dumb decisions, unmoved by your original sense of mission and far less concerned than you that a blunder could bankrupt you. They re-imagine your business in terms of all the other businesses they’ve seen, pulling the arms off one doll and the head off another to create a perfect money-making Frankenstein. And since the stakes are high, the whole philosophical exercise tends to result in action.

Here are the questions VCs asked Redfin that changed how we think about our business.

1. What’s your deadly sin?
Sequoia’s Roelof Botha said he only invests in companies that let consumers indulge in one of the seven deadly sins. He rattled them off with alarming familiarity. “You don’t want to be the site that people should use,” Roelof said. “You want to be the site they can’t stop using.”

2. Where’s the real money?
Venture capitalists’ focus on the size of our company’s addressable market made us realize that half of our potential revenues lay in the eight markets we’ve already opened. “What’s the rush to open Orlando,” a VC asked us, “when you still haven’t cracked 1% share here in Silicon Valley?”

Good question. A startup with 18 months of cash is like Val Kilmer in the opening stick-up scene of Heat, with only 80 seconds to get the bearer-bonds from an armored car; as a detective on the scene later marvels, “they ignored the loose cash.” That’s the way to be about your addressable market: not just greedy, but disciplined. Time is short.

3. What are your unit economics?
The financial statements we look at every month don’t tell us what a small business will look like when it grows up: sure we need to account for all sorts of fixed costs like how much we spend on engineers or maps, but what really matters is whether we make more money from a customer than it costs us to get and serve that customer. So to see if a business works on a large scale, VCs first want to understand it on the smallest scale.

For us, this meant explaining what Redfin made this summer on a single home purchase, with a per-transaction account of what we spent on marketing to get customers ($27), on local data ($153), on customer service ($2,906) and so on. We also calculated how much annual revenue we got for every monthly unique visitor.

We knew our margin before, but hadn’t broken the numbers down into their most easily handled form. This is important. Numbers are just numbers if they aren’t simple enough to act on; a linebacker with a simple playbook can react rather than think during the game. Knowing that the big number is how much we spend on our customer-service team refocused us on making sure we hired the right team and invested in its happiness.

4. What are the explanatory events?
A money-raising deck mostly consists of graphs with lines going up and to the right, scrunched two to a page to make the lines look steeper. The only reaction we expected to our version of these slides was awe. But Roelof asked us to annotate each graph with what statisticians call an explanatory event. What change in our business had caused revenues to shoot up? We claimed that publishing agent reviews had sent conversion through the roof. But when we dug into the numbers, we found the real explanatory event was a change in our service a month before – unlimited home tours. Making a simple picture of a business trend and then correlating that with a big decision helps you understand what levers really move your business. When there are no explanatory events, you’re just getting lucky.

5. Why can’t you grow faster?
The most important question venture capitalists ask is what prevents your company from growing faster. At first, I thought it was a demand disguised as a rhetorical question, asking Redfin to raise projections beyond what we could deliver. But when I got testy, Greylock’s David Sze said, “We’re not asking you to lie.” He just really wanted to know what the rate-limiting factor was.

We cycled through a few lame answers: “We prioritized margins over growth.” “We wanted to be realistic.” Then Redfin’s Sasha Aickin quietly pointed at the headcount line of our projections and said our rate-limiting factor is probably how quickly we can hire top-notch real estate agents. Everyone nodded. We got back from that meeting and began thinking about scaling agent hiring.

6. What are the accelerating effects?
It’s easy to grow 300% in your first year or two, when you’re starting with nothing, and people first hear about your service. What separates a potential colossus from other businesses is the capacity to keep growing at that rate in years four, five and beyond. When Reid Hoffman looked at Redfin, his primary question was whether there were “accelerating effects,” where growth begets more growth. For Amazon, the product reviews and personalization history it captured from its first users accelerated its second stage of growth. For Facebook and Twitter, the community itself constantly recruits new users. For companies like Zappos and hopefully Redfin, it’s word-of-mouth about our customer service. This line of thinking made Redfin focus on our most sustainable competitive advantages: not the usability of the site itself, but the data we gather from visitors to that site, and the rave reviews we get from those visitors who become clients.

7. What’s your secret sauce?
One of the godfathers of venture capital is, we were told, obsessed with secret sauce; the man apparently hasn’t put mayo on a ham sandwich in 20 years. So in preparing for a meeting with him, we tried to think of technology that only we could build. Previously I’d always thought this challenge was silly. Grinders like me believe in the lunch-meat not the sauce; we just try to focus on the right problems, and run faster than our competitors. In this view even Google, if it stopped coding for a year or two, would be caught. But while Redfin has gotten far by being relentlessly incremental—letting users filter property searches by pools or parking spaces—the pressure on us to do something proprietary helped us prioritize game-changing features that we’d put off in the past. We hope to come up with Something Big in 2010.

8. How do you win?
Thinking constantly about world domination can give you a little vertigo. The way I usually get through my day is by limiting my horizon to serving the next few customers, or increasing revenues in the next few months. Which means that even though the story of how we win should be etched on the inside of my eyelids, it’s more often at the back of my mind, as a nagging doubt that I’m focused on the wrong thing.

But the essential job of a CEO is to tell that story, to everyone who will listen, making it better all the time. If you are raising venture capital, that story is by definition highly improbable, involving such an absurd overthrow of the order of things that it’s almost embarrassing to say out loud. Rehearsing the whole narrative naturally focuses you on the holes in the plot.

Just try, for example, to say with a straight face how Redfin wins: we get the best data, and build the best real estate website (maybe). We hire our own real estate agents and pay them to focus on customer satisfaction, not sales (that’s a little weird but sure, why not?). Customers appreciate the difference, and en masse fire the traditional agent who has been sending them a bottle of wine every Christmas for 10 years, giving us 20% of all high-value real estate transactions (no way!).

Way.

*~*~*~*~*~*~*~*~*

It’s hard to express just how much settling those questions has galvanized Redfin to attack the monsters under our bed. Sure, we were dimly aware of those problems before, but we existed in a state of seething, unacknowledged tentativeness. Weeks of contemplating what it will take for us to win prepared Redfin to swallow the red pill, stuff the TaunTaun, hack the Kobayashi Maru. At very few moments in a company’s history does it makes its way so deliberately. Like the recovered patient who saw while sick everything she had always meant to do, we want to make the most of our new lease on life.

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Short Version : The Deimos is the latest addition to BFG’s new line of computers. Intended as specialist gaming machine, the Deimos is big, beautiful, and very fast. Heat, bulk, and short battery life are to be expected from a gaming laptop, and aside from those it provides an excellent experience

See original here:
Review: BFG Deimos

Online real estate broker Redfin is revamping its website to add recent data and photos of recent home sales as well as links to blog discussions of a listing. The Seattle-based startup, which is profitable, represents buyers and sellers in home real estate transactions for far less than the industry rates that take 5 of the sale price of a home and split it between buy and sell brokers. On the buy side they reimburse 50% of the fee they receive back to the buyer. On the sell side they charge a $5,000 – $7,000 flat fee. The normal broker fees on a million dollar house are up to $60,000, so the savings for the consumer can be significant.

With the addition of 9.6 million photos for 1.4 million recent property sales, the total amount of data and photos stored by Redfin has increased by 340%, empowering consumers with more information about the homes they are considering buying. With the upgrade, Redfin users can access sales information of properties within 15 minutes of the property’s being taken off the market, including the photos used to sell the property, and information about the properties’ amenities. Redfin mashes this info up with public records, giving the prospective home buyer greater insight into the history of a property.

The new version of Redfin’s site now also automatically links web pages about a property to blog posts about that property. For registered users, Redfin shows a link to the blog post with the post’s title and a brief summary; for unregistered users, Redfin shows a link to the blog post but doesn’t display the title or the summary. And Redfin launched a new version of its iPhone application that includes improved search filters on the year a house was built, lot size and days on market as well as the ability to exclude short sales and properties under contract from search results.

The ability to publish recent sales data and to incorporate blog links into the site are the result of a settlement that took place last year between the National Association of Realtors and the Department of Justice, that allows online brokers to publish the same information to the web that a real estate agent can share with his client, which was a huge win for the online real estate industry.

Redfin has been a disruptive technology to the real estate industry and has received backlash from the real estate professionals who are made unnecessary by Redfin’s model. The company’s CEO and founder Glenn Kelman told us recently, they’ve had to deal with “threats, stalkings and other disturbing behavior towards their employees and some customers from, apparently, angry real estate professionals.” And as Redfin adds additional information to its site, that real estate agents used to have a hold over, the platform is invading deeper into traditional brokers’ territory.

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Editor’s note: The following report comes from Don Dodge, who blogs at Don Dodge on The Next Big Thing and is a business development executive for Microsoft. TechStarsis a startup incubator that selects 10 teams and provides funding of $18,000 per team, as well as free office space, operational support, and mentoring from investors, entrepreneurs and business leaders. 

TechStars has now been operating for three years. Three of the original ten companies from 2007 have already been acquired (SocialThing by AOL, Intense Debate by Automattic, and Brightkite by Limbo). Today, TechStars debuted ten new startups from their 2009 class in Boulder, Colorado. The teams presented today to about 150 VCs and Angel investors for the first time. These companies are about three months old and have two or three founder employees. Here are Don’s notes on each of the ten startups to present at TechStars today. (He also did this for us last year).

Next Big Sound – Measures the growth and popularity of music groups across major web properties like MySpace,Twitter, Last.fm, and others. Next Big Sound measures things like number of fans, number of plays, and comments. It’s best understood as a sort of Compete.com for bands. The company hopes to be the de facto standard for understanding band related metrics on the web. They currently track about 500,000 bands. They use the “Freemium model” with free basic accounts, and charge for premium services like more advanced reports, social media impact analyses, and other services. Current customers include Jason Mraz and about 30 other bands.

Everlater - This company enters the crowded but very lucrative online travel space with a site that allows users to richly document their travel experiences. Users can upload stories, experiences, photos, and more directly to Everlater or the site can pull items in from external services such as Flickr. There is also an iPhone app that enables offline recording of travel experiences which can be synchronized and shared later. Each user and trip has a unique URL like this one that can easily be shared with friends and family on Facebook, Twitter, and other social networks.  Everlater also allows users to share their travel experiences offline by generating and sending postcards, printing scrapbooks, and photo albums.

Vanilla Forums - Vanilla is a popular open-source application that already powers over 300,000 discussion forums on the web. It’s been around for many years. Today, the company announced that it has released a greatly enhanced Version 2.0 of Vanilla both as open source and for the first time as a hosted solution . Vanilla has a business model similar to Wordpress. They have vanillaforums.org for open source, free download/use, and vanillaforums.com as a hosted service, but with up-sells for things like domain name mapping, removal of ads, and single sign-on integrations. They should get a good bump in initial sales from the 300,000 installed base of free users, some of whom will be happy to pay for the additional services.

SendGrid - SendGrid is an email service that solves the problems faced by companies sending transactional outbound email (emails delivered by software applications such as sign up confirmations, shipping alerts, friend requests, and notifications). By using SendGrid instead of their current outbound email servers, companies can improve the delivery rates and solve scalability problems. SendGrid also solves many of the common problems faced by companies sending transactional email, such as CAN-SPAM compliance, link tracking, open rate reporting, and more. The company already has nearly 100 paying customers and has delivered over 100 million emails on their behalf.

Take Comics - Provides online digital versions of comic books. The company has relationships with comic book publishers and has technology which converts the print format into pixel-perfect digital formats optimized for desktop and mobile experiences. The comics themselves are visually stunning both on the desktop and on devices such as the iPhone. Comics can be purchased directly through the iTunes style application which also includes a variety of social features and content discovery mechanisms.

Rezora - An email marketing service specifically designed for the real estate market. It’s similar to Constant Contact, Vertical Response and many other similar services but it adds many real estate specific capabilities such as MLS integration and local real estate news feeds. The software is sold to agencies for use by their realtors and can track clicks to help realtors understand what properties, areas, and price ranges their clients are interested in. The company has already signed a major client with 1,100 agents.

Retel Technologies - Provides video surveillance analysis for stores and restaurants. It uses security camera feeds to deliver interesting metrics and analyses such as table cleanliness, service times, and employee activities. Many companies have tried to use sophisticated techniques to process daily video streams from security cameras with varying success. What’s interesting here is that Retel has re-thought the process and delivers human tested results using paid micro-tasks on services like Mechanical Turk. This enables the company to deliver sophisticated reports that include data points such as male vs female ratios, instances of theft by employees, and other actions that only humans can get right. The company charges a flat monthly fee per camera for these services. Retel already has some national chains as early customers and is reporting that $550K of a planned $750K raise is already committed.

TimZon - Pronounced “Team Zone”, this service is billed as “the easiest way to share visual feedback” and is targeted at virtual teams and customer service organizations. The service allows you to record a visual message that can include screen images, audio, video, and white-boarding /annotation., then easily share it as a URL.  Because it requires no software to be installed in advance, this is an easy way for organizations to exchange complex visual feedback. The basic service is free to use, but TimZon provides paid packages for companies that want to systematically collect and organize visual feedback.

Mailana - Helps you share what really matters with the people who really matter. It analyzes your communication patterns from email, Twitter, and social networks to determine your inner circle. It then allows you to share your inner circle with the inner circles of your close connections. The idea here is that existing social graphs are too inclusive to be used to efficiently discover connections and expertise. Mailana aims to simplify this by implicitly generating only your “inner circle” based on actual communication patterns, then exposing that only to your most frequent and trusted connections. In theory this dynamic, current, and accurate social graph will expose the most efficient path to needed, trusted connections. The business model is likely to be something like LinkedIn, meaning advertising, and up-sells for premium services.

Spry - Spry provides insight into software development projects by monitoring all the tools and services used by a project team. Spry analyzes the data in real-time, generates progress reports, and enables clear and consistent communication throughout the team. This helps managers and developers make better decisions throughout the process thereby reducing the likelihood of failure and delay. What Spry is doing is analogous to the activity stream on Facebook, but based on the activity of the development tools and services used on a project. Spry is similar to 6th Sense Analytics which was acquired by Rally Software earlier this year. Spry will use the classic 3 tier (free, pro, enterprise) revenue model, with more features as you move up the scale.

TechStars will also unveil nine additional new companies in Boston (this is the first year for the Boston version of TechStars) coming up on September 10th.

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We’ll go ahead and make it clear, for the sake of those who missed the headline: This post is not something you want to peruse in your cubicle. We’ll try to keep the post itself pretty clean, but clicking through just about any of the links within will lead you to pages packed with boobies, wing-wongs, and hoo-has. And yes, I did just use those words on TechCrunch.

Back in March, adult social network AdultSpace (who, we have reason to believe, spent at least 13 minutes coming up with their name) got a hot cash injection of $1.3 million from various angel investors. At the time, AdultSpace disclosed that one of their primary goals was to get into the mobile space.

Five months later, that goal has been reached — to some extent, at least.