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Category: zettel

scraps of paper

Facebook partners with Amway & Tupperware

Published November 12, 2007 by cgerrish

Tupperware party

This just in, Facebook announces partnerships with Amway and Tupperware. Facebook founder Mark Zuckerberg reportedly said, “What’s old is new again. In order to bring advertising into Facebook we need the expertise of companies with a solid history of getting people to sell stuff to their friends.”

Multi-Level marketing has entered a whole new phase. The online tupperware party and other alternative distribution systems are the future of retailing. Stores are dead. While some have difficulty distinguishing this approach from a Ponzi scheme, Facebook has managed to avoid the pyramid scheme by not sharing any of the revenue with their members. Facebook participants bear the burden of endorsing products and selling into their network of “friends” without any of the benefit. If the thing blows up, Facebook can always put the blame on its users. After all, what kind of sucker would shill for a product without getting a piece of the action?

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Decoding Wall St.’s Analysts: Full of Bull

Published November 10, 2007 by cgerrish

Full of Bull

Attended a book launch party last night for Stephen T. McClellan‘s Full of Bull. The subtitle of the book is: “Do what Wall Street does, not what it says, to make money in the market.” The crowd was an interesting and lively mix of financial industry folks, artists and people connected to the world of opera. (Stephen’s wife is a painter and worked at SF Opera for many years)

I haven’t read the book yet, but what I gather from Stephen’s remarks, and skimming through, is that he hopes to help people decode the language of Wall Street. As in Lewis Carroll’s Alice in Wonderland, it’s important not to take things at face value. A “buy rating” doesn’t mean buy, and a “hold rating” doesn’t mean hold. A lot of the communication on the Street is through signaling, in the margins, or outside of the official channels. Information asymmetry is the primary method by which money is made. Clarity in communications levels the playing field and destroys perceived advantages. Muddy waters are the natural habitat of the players in financial markets.

As the market enters a period of uncertainty after an extended bull run, it’s good to have books like this to turn to. An investor looking for advice would do well to learn how to converse in the language of the Street before acting on the latest hot analyst recommendation spewing out of a cable news station.

I’ll be reading Full of Bull in the next few weeks, and you should too. Let me know what you think of it.

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Aggressive weeds in the garden of your social graph?

Published November 7, 2007 by cgerrish

It’s a cold world out there. In the beginning there was the walled garden. AOL was a safe place, but in the end it couldn’t  compete with the wider network of websites. But once we were out in the cold cruel world, we needed someone to help us find our way around. A personal start page like MyYahoo, or a search engine like Google provided an orientation point for any journey into the network.

Social networking sites like Facebook seem to provide a new entry point that filters the larger network using one’s friends as editors; transparantly journals friend activity; and provides the opportunity to create facets, or nodes of connection, through the assertion of interests (preferred modes of attention) within the social network.

The battle for monetizing the network revolves around which company can provide the best orientation point for entering the network. Facebook puts you into the stream of your friend’s activity. Techmeme puts you into the stream of technology news and opinion. Twitter puts you into an edited collection of small moments, stream of consciousness and conversation. MyYahoo is a personal newspaper. Google is ready to show you whatever you’re interested in. Google Reader puts you in an edited stream of blogs. Del.icio.us puts you into an edited stream of categorized bookmarks and pointers. Mahalo is a variation on Google, it’ll show you whatever you’re interested in, but edits the search result to make it more human readable. Where do you want to enter the network today? Perhaps, I’d like to enter through my teleputer…

Trust is hard to earn and easy to lose. This is the primary lesson for social networking sites, what was so painstakingly created and nutured can be destroyed very easily. The structure of a social network is biological, it’s growth is organic. But it is subject to disease (viruses, the madness of mobs, etc) and environmental factors. For instance, you could introduce social objects (nodes) that aren’t individuals, but representatives of corporate entities. You could ask people within the network to vouch for these new objects. You could have just figured out the best way to monetize the social network as an entry point, or you could have introduced an aggressive weed into your garden. In any case, the ecology of the system is irrevocably altered. Trust is hard to win, easy to lose.

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No matter. Try again. Fail again. Fail Better

Published November 4, 2007 by cgerrish

Samuel Beckett

A link tossed in to the stream by Joe Tennis on Twitter, stirred up thoughts about failure. Joe’s pointer was to a blog posting on the process of creating computer games, and the ideal of setting up an environment where failure can happen faster and isn’t punished. That’s a unique idea in this day and age.

It brought to mind a quote from a late Samuel Beckett novel called “Worstward Ho.”

Ever tried.
Ever failed.
No matter.
Try again.
Fail again.
Fail better.
Samuel Beckett

If you intend to participate in a creative profession, whether it’s writing fiction, making paintings or plays, creating companies, products or software— you’ll need to learn to live in, and with, failure. In a sense, success is the failure that we’ve made an accomodation with. We shoot for perfection, and we always fall short. Dave Winer summed it up in 1995 in his motto for Living VideoText — We make shitty software, with bugs. Software must ship prior to perfection, in that way it’s like life. We must live our lives prior to perfection. If we wait, we’ll miss everything.

Failure is tied to risk. If failure is not an option, risk is not an option. If risk isn’t an option, only a very small kind of success is possible. The principle is the same as an investment portfolio. You can banish risk, but you can’t expect a high level of return. Risk is a requirement of potential high return. The same is true in any creative pursuit, if you want a big success, you’ll need to learn to live with risk and failure.

And not just live with them, but to call them friends. Learning how to fail faster means learning how to succeed faster. Creating a safe environment for failure encourages risk taking and exploration. It gets you there faster. But just as with success, not all failure is equally successful. Failures need to be crafted just as carefully as successes. Just ask Samuel Beckett…

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