Tag: businessmodel

When the buisness model gets in the way, its time to move on?

By now everyones seen the ravings about Twitter changing the developer API and telling developers not to build twitter clients.

In a statement issued today by Twitter on its official developer mailing list, the company informed third-party developers that they should no longer attempt to build conventional Twitter client applications. In a move to increase the “consistency” of the user experience, Twitter wants more control over how its service is presented to users in all contexts.

The announcement is a major blow to the third-party application developers who played a key role in popularizing Twitter’s service. More significantly, it demonstrates the vulnerability of building a business on top of a Web platform that is controlled by a single vendor. The situation highlights the importance of decentralization in building sustainable infrastructure for communication.

This I feel will have a massive chilling effect through out the developer community. Ideally people would move to status.net but I fear even this change isn’t enough to push people over and if the people won’t go the developers are unlikely to change focus to status.net and identi.ca.

I can’t quite link the two but in my mind there along the same lines. Cory Doctorow did a interview about why DRM is no friend of business. A very good interview which hits all the right points but theres something about twitter’s api change which is related. Maybe its about building a business model on shifting ground. If there business model and your business model don’t match or go in the same direction, maybe its time to move on?

The inhert flaw with paying for dating sites

OkCupid has another excellent break down of dating sites, this time its showing how the business models of eHarmony, Match.com and others are conflicting with users finding each other on the site.

If you’ve ever joined a paid for site or even interacted with one in anyway, you will instantly recognise this problem, and this is just the start of the problems.

Pay Sites Want You To Message These Dead Profiles

As you can see from the flow chart, the only way they don’t make money is to show subscribers to other subscribers. It’s the worst thing they can do for their business, because there’s no potential for new profit growth there. Remember: the average account length is just six months, and people join for big blocks of time at once, so getting a new customer on board is better for them than eking another month or two out of a current subscriber. To get sign-ups, they need to pull in new people, and they do this by getting you to message their prospects.

If you’re a subscriber to a pay dating site, you are an important (though unwitting) part of that site’s customer acquisition team. Of course, they don’t want to show you too many ghosts, because you’ll get frustrated and quit, but that doesn’t change the fact that they’re relying on you your messages are their marketing materials to reach out to non-payers and convince them, by way of your charming, heartfelt messages, to pull out their credit cards. If only a tiny fraction of your message gets a response, hey, that’s okay, you’re working for free. Wait a second…you’re paying them.

There is a nasty speed dating service which I used once, which adds its results to a paid for dating service. Luckily everyone who was at the event could message each other if they both gave each other ticks in the speed dating section but you would also get loads of messages from people who were paid for members, so you couldn’t read the actual message. Of course most of the actual messages would be from spammers. Weirdly, I’ve gotten more spam from the paid for services that the free one. Maybe another investigation for OKTrends?