Friday, January 28, 2011

Making Fast Money


Facebook DataMine: Sell your browsing data, make some cash.


There’s a new Chrome Extension that is allowing Facebook users to opt out of the Facebook data-mining. The extension is called Facebook DataMine, developed by Jim Haas, a Game Maker at MegaEpic.  Facbook DataMine allows my data to be mined (great pun with the name Jim).


If you need a refresher on what data-mining means, here the definition from the Facebook Data Mining Page;


Data mining, a branch of computer science and artificial intelligence, is the process of extracting patterns from data. Data mining is seen as an increasingly important tool by modern business to transform data into business intelligence giving an informational advantage. It is currently used in a wide range of profiling practices, such as marketing, surveillance, fraud detection, and scientific discovery.


In the less complicated words of Jim Haas;


Every time you use Facebook or one of the thousands of web pages using Facebook Connect your personal information is being collected and then sold to marketers and mysterious 3rd parties without your consent. Facebook gets rich and you don’t make a dime.


This extension blocks Facebook from tracking your movements on the web, which sounds great. The extension will block all data going to Facebook until it reaches 100,000 downloads. After 100,000 downloads this is where it gets strange. Facebook DataMine will then sell your information to third party websites and share the profits with you. This may excite you or in-my-case scare you. Users are able to opt out at any stage. My initial reaction was sweet, extra money, this extension is going to hit 100,000 installs fast. Then I pressed the install button and this popped up:



It made me think twice, “This extension can access: Your data on all websites…” I can’t just hand-over all that data to someone else. Then I thought some more, Facebook DataMine will let me own my data for a set time and then they will own it. Yes I will be reimbursed for selling my data. However if my data is to be sold by anyone, it should be Facebook. After all isn’t this another example of someone monetizing off the back of Facebook and leaving them out?


I trust Facebook. You’re all laughing at me right? But I do. It’s like the old saying, “better the devil you know”. Facebook launched in Feb 2004 and it took the site 5 years to become profitable. A part of me believes that Facebook should be making money for the amazing service that it is providing.


However if you want to make your data into money and have no issues with your data being sold, give Facebook DataMine a try.






Union Square Ventures is putting together a new fund to help it participate in later rounds of funding for growing companies. The VC says the new Opportunity Fund, first hinted at a couple of weeks ago, will allow it to continue to invest in social media and networking start-ups like its existing portfolio companies Twitter, Foursquare and Tumbler as they grow beyond the early stages that the firm has traditionally focused on.


The new fund, which Techcrunch said is $165 million, will complement USV’s core funds said managing director Fred Wilson in a post on the Union Square blog, and will include most of the existing investors from those funds. The new vehicle gives USV the ability to invest from “$250,000 or $25 million,” and participate in later rounds (as an example, the VC firm didn’t participate in the latest $200 million round for Twitter, which was led by Kleiner Perkins). Wilson said investing in social media and networks has become a much bigger opportunity, with some companies getting valued at $50 billion. As the opportunity and competition evolves, it requires USV to think bigger, he said.


“In 2004 the entire market capitalization of the social media sector was probably less than $100M. Today a single company in that sector is valued at over $50B. The amount of venture capital focused on the sector has exploded. Networks that did not exist in 2004 now consume a huge chunk of users’ time and attention, making the launch of new networks more challenging. The opportunity to invest in networks has changed, and once again we are changing with it,” Wilson wrote. “The availability of this additional investment vehicle will allow us to 1) continue to invest in our most established and successful companies, 2) invest in more established networks that have been funded initially by others, 3) invest in special situations like the spin out of a network of scale, and 4) respond to attractive opportunities as the broader market continues to evolve.”


This comes at a time when there’s increasing competition in early stage funding and deals are growing fast and getting done quickly, something Wilson noted last year. While Wilson warned about the activity, the new fund will allow USV to be more stage agnostic and will arm it with the money to get in on deals as they grow. The firm has signed on John Buttrick, a longtime advisor to USV, as a partner in the Opportunity Fund. USV won’t push to put all the money to work, Wilson said, and will only charge fees on the capital invested.


Related GigaOM Pro content (sub req’d):



  • Why Google Should Fear the Social Web

  • Lessons From Twitter: How to Play Nice With Ecosystem Partners

  • What We Can Learn From the Guardian’s Open Platform




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Wednesday, January 26, 2011

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Monday, January 24, 2011

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web site promotion internet marketing

SEO in the niche of web hosting and domain name registration


In this article we`ll try to generalize our practices in promotion of companies that provide web hosting and domain registration services.


We will talk about such questions:



  • Analysis of hosting / domain name registration market and finding potentially advantageous promotion directions;

  • Features of keywords selection in the conditions of SEO-pressure

  • Definition of promotion strategy

  • Methods of getting links

  • Features of different queries groups conversion depending on geography

  • Typical problems that interfere sites conversion and ways of their solution


Market analysis and competitive researches. Finding potentially advantageous promotion directions


First of all, it is necessary to note that a large traffic in the niche of web hosting is deceptive. If you look at Google AdWords Keyword Tool data you will find out the following picture:



In fact, there are about 400-500 visits from the 8th– 9th place for a query “hosting” per month. It`s necessary to consider this and other points while planning hosting project promotion, because information about a large amount of queries in the Google AdWords Keyword Tool is “stuffed” with endless positions checks. As the market of hosting projects and domain name registrars is extremely competitive, you have a great chance to invest money, work and time in promotion of such queries that are stuffed and do not bring traffic and sales, and after all you can incur losses and even remain disappointed in the search promotion at all. The same can be said about domain name registration.



In fact, there are about 500-600 visits from the 5th – 6th place for a query “domain” per month.


That`s why, in our opinion, it`s better to begin promotion of hosting project or domain name registrar with finding active competitors in the search marketing niche and define their strategies.  For this purpose we can recommend a wonderful tool – SemRush.


So, we need to find competitor sites in our niche, which are actively engaged in the Internet marketing. We just type highly competitive query corresponding to the topic in SemRush and find sites that are ranked well for it:



Now we need to make cleaning, i.e., remove irrelevant sites from the list. In this case, obviously, Wikipedia must be removed from the list. After checking a few queries important for you in the same way, we will receive a “crossed” list of sites. Sites from this list have good rankings for many queries in this subject, so they should be examined primarily.


Lets take a site hostgator.com as an example:



The example shows that, firstly, the number of search queries for which the site “hostgator” is shown has an explicit trend to growth. It reflects the efforts made by the owners of this project to increase its visibility in search engines.



After selection of queries that bring maximum traffic to the project according to SemRush, we get an approximate keywords list which can be used to start promotion.


Making the list of necessary keywords, let’s see whether it is a good idea for us to «meddle into a fight» for these keywords. You should consider such factor, as SEO-pressure, for this purpose.


Features of keywords selection in the conditions of SEO-pressure


You can use different tools to estimate a competition for the selected query. A plug-in for FireFox called SeoQuake is one of convenient free instruments.


Let’s type a relevant query interesting for us, e.g., business hosting:



You can see that some strong sites are present in SERP, and some of them have got from several hundreds thousand to millions of backlinks and even more. The competition in SERPs is about to be really strong, so I would like to repeat: you should select a semantic core very carefully. Moreover, there are sometimes artifacts in SERPs, and learning them is possible only from experience. Let’s take the query “ecommerce hosting”. This query is high frequency in subtopic «hosting for ecommerce sites», it has about 12 thousand searches per month in exact match worldwide:



We can see that the trends of search don’t show any sudden jumps or drops.



The target audience for these queries is in the U.S. and UK – the most creditworthy regions in general. However, traffic for such query from the American Google Top5 – Top6 is about 1-3 persons a day, with natural drops on weekends; it gives us about 40 people a month. A conversion rate for these queries is extremely low. Of course, promotion for this queries is acceptable only with the purposes of improving positioning and brand awareness, but as for sales it isn`t effective.


Let`s take a query “reseller web hosting” which has next data from Google KeyWord Tool worldwide, for comparison:




The query brings twice more traffic from the 4th-5th places having twice smaller amount of searches in exact match according to Google KeyWord Tool! Conversion rate of this query is also quite high. At that, Google Insights give the following data:



At the same time the great part of traffic and transactions comes from the U.S. and UK users despite of the fact that the site holds comparable positions also in Google.co.in.


All of these patterns are also true for domain name registrars.


It’s impossible to know this information without experience in promoting a site for such queries or without trying PPC advertising in exact match. There are a lot of keywords like these, so you should constantly monitor all queries in the aggregate estimating of the effectiveness of each one.


You can also “pull out” perspective keywords making the analysis of the backlinks text anchor to sites of competitors who are actively engaged in search marketing. You can use special tools, for example, CS Yazzle or SEO SpyGlass by LinkAssistant, either manually using Yahoo! Site Explorer.



To estimate a real traffic on a query you may also try PPC in exact match.


The following method can be used to estimate keywords efficiency. The initial necessary data is:



  • Position for a keyword;

  • Traffic on it;

  • Estimated number of searches from Google Keyword Tool in the exact and phrase match for the world and top regions;

  • Quantity of page views;

  • Time spent on a site;

  • Bounce rate;

  • Conversion rate.


Microsoft Excel counts a parity of all these factors with the help of formulas and allows realizing efficiency/inefficiency of each keyword visually.



Perspective traffic, quantity of searches per month (data of Google AdwordsKeywordTool) and conversion data for each query are marked with green color. Indicators exceeded the average indicators for the site to the worse are marked with red (bounce rate, number of pages reviews).The percent of conversion which vastly differs to better from the average indicator for the site is marked with yellow color in the last column (Conversion rate).


Using this technique allows tracking the most convertible requests and receiving greater outcome from a client’s site.


Selection of promotion strategy


Based on our experience in promotion of projects in the niche of hosting and domain names registration we can say that the most high-frequency, convertible and competitive queries are in these topics exactly.


Shared vs VPS vs Dedicated


If to compare an earning power of dedicated servers sale (VPS) and earning power of shared hosting sale you will come to the conclusion that in general virtual (Shared) hosting sale is more profitable: one dedicated server sale brings around 200$ of income, at the same time sale of the same server “cutted” on virtual (Shared) hosting allows to earn much more (~100×5$), even with the consideration of the increasing load on a support.


However, traffic in Shared hosting subtopic is much less than in dedicated server subtopic. People interested in such things, according to our observations, come by queries like “cheap hosting”, “cheap web hosting”, and the quantity of such searches is very small because Godaddy and Hostgator take away the lion’s share of these customers, mainly due to type-in traffic.


In this case, it seems to be a good decision to perform promotion in the VPS and Dedicated sector.


Many companies, apparently, have come to the same conclusion: promotion for queries of “shared” group is much easier, than for queries related to dedicated servers.


Specialized kinds of hosting


As we have noted above, low-frequency traffic brings rather small part in general traffic and conversion; therefore, in our opinion, it`s better to begin promotion for high-frequency keywords with addition low – and mid-frequency keywords, which give a great bulk of sales and target traffic on a site. However, if your hosting site sells “exotic ” types of hosting, such as hosting with support of Zen Cart or Django, then such low-frequency, long-tail keywords can justify themself at the initial stages of promotion.


A cost of their promotion to the Top-10 is small, and similar “exotic hosting” is usually searched by people who understand the subject well and thus type long queries in search bars.


Eventually, when the site starts to rank well for competitive queries, it makes sense to “collect” low-frequency “long tail” of queries in subjects, not to miss this small piece of the market.


Also I would like to notice that promotion for keywords like “hosting” and “web hosting” is extremely difficult process due to high competition (though these keywords begin to “sell” beginning from top-20!)


Methods of getting links


The basis of search optimization are at the moment:



  • keyword research;

  • texts and meta tags optimization according to the keywords;

  • adding backlinks with correct “anchors” (with right reference texts).


As we have already noted, hosting sites have a large number of backlinks. How do they receive so many backlinks? This is obvious, that reviews and comments at forums will never help to collect tens thousands of links. Four main methods used in this theme should be picked out. Some of them are typical for other niches and some of them have unusual “boom” exactly in hosting and domain subjects.



  • Link exchange (the proper way)


  • Links buying (the smart way)

  • Getting links through its own affiliate program.


Conversion of search traffic


Let’s look at the comparative analysis of search traffic conversion in various regions (sample of more than 90.000 sales for “domain names” and more than 2000 sales for the “hosting” market):



When I went into marketing/communications in the 80’s, things were simpler. I spoke 5 languages, which pushed me into this field. What else could I do, be a translator? Not on your life. Not when I could be creative, come up with quantitative studies and research why / how people buy.


It seemed simple, right? You have a product and you have to figure out a way to sell said product. You had magazine ad space, TV commercials, newspapers… every day, everywhere you looked, you’d see some form of advertisement. Eventually, we became desensitized to print and TV marketing – the traditional ways.


The Internet wasn’t used as it is today (although it still had some traction). The World Wide Web was the Wild Wild West. It was a “small” little marketplace, with a minor audience for client product promotion.


And Then Internet Entered the Scene… Fast Forward in Time


Advertising is more sophisticated now… but then, so are consumers. Way back when, we could survey the consumer, create charts, crunch numbers… it was all about data. Anymore, however, you have to understand consumer psychology.


Marketing has gone holistic. Yes, quantitative and qualitative data is still important, but we’re not looking at real numbers anymore. We’re looking at the consumers themselves.


What makes buyers buy? Is it the way a site looks? Does having the sidebar on the left gain a greater response than having the sidebar on the right? Are blue links more “clickable” then, say, green ones? Is “buy” more active than “act”?


What Are the Click Triggers?


With all the Google changes lately, you really have to pay more attention to your site. Of course, if you’re a regular reader, you know I push site attention anyway, no matter what Google’s doing. However, with all the vertical marketing possibilities, you want to make sure you get all the bang for your buck you can from any top listing you get.


So you study the click triggers – those beautiful little differences that cause people to click through: through to your website, through to your buy page, through to your “thank you”. It’s a step-by-step process, and you have to guide them every step of the way.


Ask yourself:



  • Is my content sticky? Does it have good information worth reading?

  • Are my headlines well written? Do they grab readers’ attentions?

  • Do I let others (those who will tell me the truth) read my content before I put it up? Do they like it? Do I listen when they offer suggestions?

  • Is it easy to navigate through my site? Does my site create a pleasant user experience?


Are You Ignoring the Individual?


This is the most serious question, and you need to really give it some thought. If your content completely targets consumers (i.e. all product/service focused) rather than having helpful bits of information, you could be losing out.


You can’t appeal to everyone; not everyone is your target market. You don’t want to get so busy trying to reach everyone that you miss those who might convert. Build your site, images, writing, etc within the context of your specific target, and then experiment.


Experiment….?


Yes, experiment. Human behavior and relevance is a beautiful thing. Being able to associate one with the other will have half your online battle won. However, you can’t just pull knowledge out of the air. You have to be willing to experiment – to test. Plenty of tools are readily available for just this purpose, such as…


Google Website Optimizer


A/B testing is in; guessing is out. If you think you might know why a page isn’t converting, that’s all well and good. However, there’s a difference between thinking you know, and really knowing. With a little A/B testing, you can find out what areas really are the problem and fix them.


Usabilla


Take a screen shot of your page and put it up on Usabilla. Let people know what questions you want them to answer and then send out the link. This little goodie can give you some very valuable insights in terms of layout and design.


4QSurvey


Very nice, very short survey. You can find out why people came to your site, whether they found what they wanted (giving you visitor satisfaction ratings) and get suggestions from them, all in the same program. Again, this is a very useful goodie.


The three above are just a few. There are, literally, tons of usability testing tools out there. Many are free; some cost, but are worth it.


You’re not going to get through today’s marketing world by guessing. You’re not going to make it with traditional marketing tools. You have to be willing to use everything at your disposal; you have to be willing to expand.


What changes have you made to keep up with online marketing and technology?


Post image via BDoughertyAmSchool




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DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

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DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

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DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

The dust has barely settled on Keith Olbermann's empty chair at MSNBC, but a few serious rumors are already swirling about the anchor's next move.

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DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

The dust has barely settled on Keith Olbermann's empty chair at MSNBC, but a few serious rumors are already swirling about the anchor's next move.

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DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

The dust has barely settled on Keith Olbermann's empty chair at MSNBC, but a few serious rumors are already swirling about the anchor's next move.

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DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

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4 Detroit Police Officers Shot; Gunman Dead - Detroit Local <b>News</b> <b>...</b>

DETROIT -- Four Detroit police officers, including a commander, were shot Sunday afternoon inside a station in the department's Northwest District. Monday, January 24, 2011.

Keith Olbermann: Possibly trading <b>news</b> for scripted TV gig with <b>...</b>

The dust has barely settled on Keith Olbermann's empty chair at MSNBC, but a few serious rumors are already swirling about the anchor's next move.

Last Night&#39;s Party: Club Monaco Courts Cool Kids With the Help of <b>...</b>

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Tuesday, January 18, 2011

About Making Money


Goldman Sachs Says Facebook Offer Barred From US Investors, Blames NYT's For Making Plans Public

from the and-so-it-goes dept

We've already talked a bit about the Goldman Sachs/Facebook situation -- and the fact that much of it seems to involve skirting around existing regulations to try to get people to invest in Facebook without actually going public. The latest shift in this is that Goldman Sachs has announced that the offering is no longer available to US investors, and somehow it's all the NY Times' fault.



The reality is a little more nuanced. The thing is, the SEC heavily regulates the IPO process, because (officially) it doesn't want companies to abuse the process, lie to investors, trick them into buying shares in something they don't understand or that's really much riskier, etc. We've discussed in the past, and years back, VentureBeat had a great article that noted many startups appeared to violate the basics of SEC regulations even in just saying they were raising money from private investors, because just talking about it publicly can be seen as a form of a "public offering." It seems that Goldman was becoming worried that all of the public scrutiny on this deal was suddenly getting mighty close to being a "public offering" type of situation, in which the SEC could conceivably step in and claim that it needs to follow all of the standard IPO rules -- which it had not been doing. Goldman has apparently hoped to keep everything a lot more quiet, but the NY Times broke the story, and then everyone else piled on.



The whole thing remains a little silly. This whole thing has been an effort to route around the regulations from the beginning, so this is just the latest piece of that, though it may serve to annoy a lot of American Goldman clients. In the end, it wouldn't surprise me to find out that many of them figure out offshore vehicles for getting in on this deal anyway.



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Friday, January 14, 2011

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A new year often means lofty resolutions, especially when it comes to planning and maintaining a travel budget.



Though there are many personal-finance sites and software out there, this year I'm resolving to use Mint.com's free online tool. You can create plans for saving toward retirement and buying a house, but I'll be primarily using the site for its Travel Goals, which help you set -- and stick to -- realistic travel budgets.



And though the tool obviously doesn't do the hardest part (you still have to save the money), it does track how far or close you are to achieving your Travel Goal.



For example, say you want to go to Hawaii for a week this summer. Once you create a budget by filling in the estimates for airfare, hotel, meals, and other expenses, you can then specify how much you will contribute to that Travel Goal each month.



If you underestimate how much you'd need to save per month, the online tool points out: "Oh no! You aren't saving enough each month to reach your goal on time." The tool then offers you two ways to fix your Travel Goal: increase your monthly contribution in order to reach your desired travel date or postpone your planned date to fit your monthly contribution.



If you stay on track with saving the specified amount each month, Mint.com's budgeting tool highlights (and adjusts) the projected date of when you can afford to take the trip. Save more, and you could afford to take your trip a month or two earlier.



But if you slack on your monthly savings, the date will be pushed back -- a reality check and an instant motivator. Once you mentally equate an unnecessary clothing purchase or an impulse buy to the consequence of delaying your trip by a month, saving becomes a little more real.



Granted, most people will buy plane tickets and reserve hotels with a credit card several months before actually taking the trip; the tool helps track if you'll be able to easily pay it all off after your trip. After all, nothing ruins a vacation more than coming home to bills that you're not financially prepared to handle.



To fund my travels this year, I've linked my Mint.com account to an ING Savings Account labeled Travel Fund.



How do you stay on track with saving up for a vacation?



[flickr image via epSoS.de]



The theory is simple: "If you don't have the money, don't charge it. Try to leave your credit card at home and only use it to pay bills," advises April Lewis, director of education for Consolidated Credit Counseling Services. Then immediately pay off your credit-card balance. As for old credit-card debt, sit down and commit to paper a plan for paying them off. Go for a quick hit, like paying off the smallest balance first, or decide to take on the highest rate card first. Get the job done.

Here's a second tip: Be proactive about managing your credit. Call up your lender and ask it to lower your interest rate. Usually, lenders will lower callers' rates by 2% to 3%, says Scott Gamm, founder of HelpSaveMyDollars.com. Also check your credit report. You can check your credit for free at annualcreditreport.com, for example. If you see mistakes, contact the credit agencies and get those mistakes corrected. If errors are dragging down your score, eliminating them can boost it to where it belongs and make you eligible for better rates.

2. Think automation

Free online banking tools can make it easier to manage your finances with less work. To help grow your savings, for example, you can schedule regular transfers from your checking account. Manisha Thakor, author of Get Financially Naked: How to Talk Money With Your Honey, suggests setting up the transfer of a set amount of money into your savings account every pay day.

Also automate recurring bill payments so you never miss a due date or pay a late fee, which sends money down the drain. Even without late fees, timely payments are key: 35% of your credit score is based on your ability to make payments on time. If you sign up for automatic payments, however, make sure to check your monthly bills for errors. One other caveat: "Make sure you have enough cushion in your checking account to avoid any overdrafts" before setting up auto-payments, money coach Lora Sasiela says.
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Two announcements this week. Two big bummers. Two good things gone.

Visualize This: Where the public gets its <b>news</b>

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Breaking <b>news</b>: EPA vetoes Spruce Mine permit « Coal Tattoo

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Last night just before 12 a.m., Twitter began exploding with the news: Facebook had raised $500 million — from Goldman Sachs. Bolstered by a $50-million stake from Russia’s Digital Sky Technologies, a previous FB investor, the Wall Street behemoth had slapped down $450 million to snag the Internet behemoth — now valued at a cool $50 billion. As if on cue, the internet noted that yes, that was cooler than a million dollars.


Notes the NYT’s Dealbook, which broke the scoop: this makes Facebook “worth more than companies like eBay, Yahoo and Time Warner.” It also doubles Mark Zuckerberg’s multi-billion-dollar worth. It also makes Goldman Sachs the gatekeeper to who now gets to invest in the super-hot Facebook, and to the inevitable Facebook IPO. According to Dealbook’s Andrew Ross Sorkin and Evelyn Rusli, Goldman is “planning to create a ’special purpose vehicle’ to allow its high-net worth clients to invest in Facebook, which would allow for max investment while circumventing disclosure rules for companies with 500 or more investors. Clever, that.


So: This is a big deal. Everyone’s already saying that this is putting Google even more on the ropes (seeing as now Facebook is the most visited website in the land) and that Goldman couldn’t be sitting prettier. Here are a few other things it means:


(1) Facebook hiring spree! To paraphrase Antoine Dodson, hide your startups, hide your engineers — Facebook’s a-comin’. Snapping up Hot Potato and Drop.io? Poaching Foursquare’s Nathan Folkman? That’s nothing compared to what Facebook’s got coming. Rumor has it they’re about to close on purchasing the Sun Microsystems campus in Menlo Park from Oracle. That’s probably not just for the scenery. They want to stock up, preferably with talent – and, importantly, companies – that will help it integrate across every platform possible. (I’m guessing one of the new buzzy photo apps will be snapped up.) If you think people are complaining about a developer shortage now, just wait.


(2) China! Mark Zuckerberg recently returned from a trip to China. Innocent pleasure jaunt for the Mandarin-speaking Facebook founder or connection-making relationship-building fact-finding mission to the land of 450 million potential users? China is certainly not an easy place to do business — they just kicked out Skype — but in a globalized, connected world, it’s certainly tough to ignore. Approximately 33% of its massive population is online and as we all know from the rest of the world, that is growing. It’s an insane market to ignore and smart, Mandarin-speaking audacious visionary CEOs probably aren’t going to shy away from trying. Facebook China. It’s gonna happen.


(3) Goldman’s PR Whitewash The Vampire Squid just attached itself to the buzziest, growing-est, Oscar-nominated-est, Person Of The Year-iest tech company around. Who will remember their year of scandal and record bonuses and how everyone hated Goldman Sachs (sample Gawker headline: “Who do you hate more, BP or Goldman Sachs?“). Goldman’s not there for you to like them, people, they’re there to make money — lots of it. But they did have a bruising year and being attached to the shining future-makers at Facebook (never mind the gatekeeper to the Facebook IPO) will certainly help. This lets them offer something shiny to their clients, and bask in that reflected glow. (And guaranteed cashola.) That doesn’t fool the people who know — I like Howard Lindzon’s take:


For Goldman Sachs, this is a no lose situation. If it works, they get the IPO and make some money. That is their job. They got off so easy with the government that this is like Vegas money they probably thought would be the taxpayer’s at some point a year back…The only thing I DO know is that Goldman could give a rat’s ass about the social web and sharing. If they are the top in social web, it’s small potatoes. The war in bonds, currencies and commodities is where the real money is at. This is play money. I hate that Facebook is letting them in.


This is not a coup for Goldman Sachs, this is a shame for the social web.


Okay I lied. I love Howard Lindzon’s take. So, maybe Goldman’s got an uphill PR sell. But — they’ve also got Facebook. Watch the narrative change.


(4) Bigger Players, Bigger Bets When Lindzon points out that this is small potatoes for Goldman, he’s not kidding. But now the bigger fish are sniffing around and what started as mutterings about a bubble somewhere in the late fall now seems to be turning into a gold rush. (Doesn’t Google and their adorable $6 billion offer for Groupon seem so quaint right now? Never mind Twitter’s recent $3.7 billion valuation.) These are billion-dollar figures, and they are actually now starting to sound…eensy. As Ray Kurzweil points out, when technology advances it does so exponentially — so it makes sense that the explosion of tech startups would chicken-egg in conjunction with an explosion of investor dollars — not just the usual (and educated!) suspects, but people on the sidelines reading about Facebook in their Time magazines and deciding that maybe the Internet’s not a fad, after all. (Yes. These people do exist, and many of them have a LOT of money.) High valuations, big deals, young companies getting scooped up — it’s gonna be a dizzying year.


(5) Sympathy For The Google. It’s official: Facebook has gone from underdog challenger of the mighty Google to the top social-tech dog. So watch for everyone to start rooting for Google again. After a wave of backlash (see here and here), the pendulum will swing back around to rooting for the loveable search giant with the cuddly name. Google can take your pity – its market valuation is almost four times Facebook’s at $190 billion, and its current year revenue is about $22 billion to Facebook’s $2 billion. Back to Lindzon: “I think that Google has to buy Twitter and that will start to be a meme soon. It’s a chess game and nuclear war now in the social space.” That sound you hear is the sound of the tech press collectively wetting itself. Ew. But still — everyone likes to root for an exciting matchup. Expect to see some bold moves from Google, soon — if they’re smart. Big “if” (RIP Google Buzz). But isn’t that how underdogs like it?


(6) New Facebook Ad Models. All that said…Facebook has made a big point about how it hasn’t really focused on the silliness of “making money” yet, despite that $2 billion annual rev and nearly 1 trillion display ads per year. I believe them — can they really not do better than targeted ads for Jewish singles in your area? You bet they can: They also make a point about knowing every little bit of information about you for the ultimate in micro-targeting. The online ad industry is evolving and innovating right along with the rest of the web (see AdKeeper) and the key to dominating going forward will be data — using it wisely to convert your users into dollars for advertisers. This is where smart technology will take user data and figure out how to map it on top of shopping data, so that purchasing intent can best be harvested. The stigma about buying online has now pretty much disappeared. With more people using the web, and mobile devices, more often do run more of their lives, there are big bucks at stake. And I’m not even TALKING about how Facebook is looking to horn in on search.


(7) New Facebook Business Models. They have all these users. All this data. They’d be crazy just to stick with what they’ve got. Hell, now they’ve got fun money just to fling up into the air and see where it goes. They’re poaching the best and brightest who all gush on and on about how “exciting” and “creative” and “free” it is. Clearly these people are getting to work on some fun stuff. So far Facebook has shown itself as adept at replicating the innovations of its competitors (see: Foursquare –> Facebook Places). But with all the resources at their disposal and innovations happening across every industry on every platform, they’d be nuts not to at least test the waters. Hey, that car’s not gonna drive itself. Oh, wait.


(8) People Generally Freaking Out This has already started to happen. First Groupon (“What? But they AREN’T EVEN A TECH COMPANY!!!”) and now Super-Sized Facebook. Entrepreneurs and founders and people with fledgling ideas that are half-built that they’ve been slaving over at night are obsessing about all day are suddenly freaking out that they have to get to market NOW before the bubble pops and the money dries up. Chill out, dude. (And, ladies!) If you’re making something of value, it’ll take. Just focus on it, be smart, and don’t let Twitter and TechCrunch freak you out. (Here, take some advice from these people.) Just a moment of Zen amidst the craziness. All right, now – onward! It’s 2011 and YOU’D BETTER NOT SCREW THIS UP. Haa, just kidding. Mostly.


Well: It should be interesting. Happy New Year, everybody!


Related:

Goldman’s Facebook Coup [Felix Salmon - Reuters]

The Social Web Index … All-Time Highs in Pressure and Price and Shame on Facebook [Howard Lindzon]

Was Goldman wise to invest $500m in Facebook at a $50B valuation? [Quora]

Goldman Sachs Just Bought The Facebook IPO [Business Insider]


Follow Rachel Sklar on Twitter here.


Illustration of Mark Zuckerberg as Avatar-ized Time Person of the Year from Sandbox World (via Boing Boing) (hat tip: Bnter).

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&#39;The Daily&#39; iPad <b>News</b> Publication to Debut January 19th - Mac Rumors

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&#39;The Daily&#39; iPad <b>News</b> Publication to Debut January 19th - Mac Rumors

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&#39;The Daily&#39; iPad <b>News</b> Publication to Debut January 19th - Mac Rumors

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