Archive for the ‘Google’ Category

Using SEO to add millions to your startup’s valuation

Tuesday, March 1st, 2011

Patrick McKenzie (a.k.a. patio11 of Hacker News fame), writing on myGengo about why SEO is so important for customer acquisition for the vast majority of startups:

Most startups do not have product problems.  The product works.  Most startups do not have design problems.  The product looks pretty. Most startups DO have customer acquisition problems: they lack a repeatable way to find a new person, convince them to use the product, and take their money.  Startups which do not have customer acquisition problems have *already won*: there is no longer a question of whether they will survive to exit, the only question is for how much.

Then, later in the post McKenzie writes:

Consider two startups trying to raise a Series A round:
  • Startup A: good product, gigantic market, users like it, 10,000 users
  • Startup B: good product, gigantic market, users like it, 200,000 users
Startup B is likely going to receive a higher valuation from investors because  it can demonstrate more traction and because the perceived risk is lower.  They’ve already removed a key risk factor — can we scale customer acquisition — from their investors.

Great article.

Google’s shot across Apple’s bow: One Pass

Wednesday, February 16th, 2011

Literally one day after Apple announced their new subscription model, leaving many content publishers and application developers howling over Apple’s fee structure, today Google revealed a subscription model of their own: One Pass.  Talk about flawless timing.

Google’s blog post about the service says One Pass is:

“…a service that lets publishers set their own prices and terms for their digital content. With Google One Pass, publishers can maintain direct relationships with their customers and give readers access to digital content across websites and mobile apps.

Importantly, the service helps publishers authenticate existing subscribers so that readers don’t have to re-subscribe in order to access their content on new devices.

With Google One Pass, publishers can customize how and when they charge for content while experimenting with different models to see what works best for them—offering subscriptions, metered access, “freemium” content or even single articles for sale from their websites or mobile apps. The service also lets publishers give existing print subscribers free (or discounted) access to digital content. We take care of the rest, including payments technology handled via Google Checkout.”

Cnet has the scoop on the real detail that has everyone excited, however.  The money part:

“Google’s rival service offers two big differences from Apple’s: content providers will get to keep 90 percent of revenue from One Pass sales and publishers will retain control of consumer data.”

This compares to Apple’s 30% cut from purchases from within the App Store – a significant difference.

When One Pass becomes available in more countries, it will surely become an obvious choice for many developers.