Category Archives: Business

My Column Is Heading to CNET!

Dear friends, colleagues and supporters,

I’m thrilled to announce that I’m joining CNET and CBS Interactive as a contributing columnist and commentator!

Ever since my departure from Mashable, I’ve posted my personal take on the big technology news of the day on BenParr.com. The response to my work has been overwhelming, and traffic to this blog has skyrocketed. Thank you all for reading, commenting and sharing.

But now I have a chance to make a much bigger impact with my writing. Starting this week, my commentary on technology, social media and startups will appear on CNET several times per week. I will not be doing any straight reporting — CNET has a talented team that already does an amazing job at that. Instead, I will be doing what I’ve been doing here on BenParr.com: breaking down the big issues and players in tech and explaining what it actually means for both the tech industry and society as a whole.

To do that, I will be writing a combination of thought pieces, analysis stories, response pieces and the occasional long-form column. My CNET column is called The Social Analyst, just like my column on Mashable. It’s going to have more bite than my old column, though. I intend to keep tech’s biggest names honest.

I decided to join forces with CNET/CBSi because CBS Interactive CEO Jim Lanzone and CNET General Manager Mark Larkin have an ambitious vision for the future.

CNET is huge: it is one of the 100 most visited websites in the world, but Mark and Jim are not content with resting on their laurels. I believe in their vision and their leadership, and I am thrilled to be working with them.

CNET isn’t my only gig, though. For the last few months, I’ve also been working behind-the-scenes on a startup, which we can’t wait to talk more about! My co-founder and I have a clear vision, as well as a duty to our investors, and we will move heaven and earth (and forgo sleep) to make sure our company succeeds.

My new role at CNET and CBSi is the best of both worlds. I get to reach millions of people with my thoughts on technology, but still retain the flexibility to be an entrepreneur, build amazing products and change the world.

Don’t take your eyes off of CNET. Big things are happening over there, and you won’t want to miss all the action. 2012 is going to be an amazing year.

Cheers,
~ Ben

The Art of the Introduction: A Primer

I make 12-18 introductions per week on average. Some of the intros I make are favors to friends, some of them are to journalists, some are for the startups I advise, and some were because I thought that two people just needed to meet each other.

Most of the time, the introductions I see people make are terse with little context and even less reason for both sides to follow up. The conversion rate for these types of introductions is poor.

This doesn’t have to be the case for your introductions, though.

Introductions are as much an art as they are a science. Making a few changes to your intros will not only dramatically increase their quality, but it will improve your standing with both parties. In other words, you’ll become a far better Connector.


The Anatomy of a Great Introduction


I follow a structure when I make intros — I don’t reinvent the wheel every time. This means I can get a GOOD intro out the door in under two minutes.

Consistency is important — it gives your intros more continuity.

Below are the four key structure points of my introductions. I’m using John Smith of Kleiner Perkins and Jane Doe of Google as examples for this introduction so you get a better idea of my style of intros. Of course, my method may not be for you — definitely adjust your system to match your personality and the personality of the people you’re introducing.

Here are my four key structure points for introductions:

  • The Subject Line: The subject line of any email introduction should be simple and straightforward. It should convey two things: who the people being introduced are and what they do. The person who is receiving the introduction should be first in the subject, while the person being introduced should be second. “John Smith (Kleiner Perkins), Meet Jane Doe (Google)” is a typical subject line for my introduction.
  • First Intro: Make the first introduction and explain, in three sentences or so, who this person is, why you like them and why you’re making this introduction. I also usually say something fun or interesting about the person. In my example, I’m going to address John Smith first and introduce him to Jane Doe.
  • Second Intro: Great introductions actually consists of two separate introductions. I always flip the introduction and explain who the other person is and why I like them. In this case, I’m going to address Jane Doe and introduce him to John Smith. Typically the second intro is shorter because Jane already knows John and, in all likelihood, asked me for the introduction.
  • The Loop out: Unless you need both parties to report back to you, it’s best if you get out of the conversation. Thus a simple “Feel free to loop me out” sentence helps remove unnecessary clutter from your inbox.

Now let’s apply this to an actual introduction. Here’s what an introduction between John and Jane might look like:

SUBJECT: John Smith (Kleiner Perkins), Meet Jane Doe (Google).

John,

I’d like to introduce you to Jane Doe. She’s one of the super-talented product managers over at Google — she’s been kicking some ass over on the Chrome team. She’s also a master scuba diver (I’ve done a bunch of dives with her!) Jane is actually working on a startup, and I knew that the two of you had to connect.

Jane,

John is one the partners at Kleiner Perkins. He’s led some awesome investments in Google, Zaarly, Erly and Flipboard. He’s been my sounding board over the years for my crazy startup ideas.

Feel free to BCC me/loop me out.

Cheers,
~ Ben


Final Thoughts


The more introductions you make, the better you will get at making them. Don’t be afraid to make introductions if you think both sides will gain something out of it. It ends up being a benefit to you, too, as you become a greater connecter and gain credibility on both sides of the table. The positive karma you create by connecting two smart people often comes back in wonderful and unexpected ways.

Don’t make an introduction if you’re uncomfortable, though. If you think someone is not ready, or if you think the intro will do more harm than good, just tell the truth to the person asking for the introduction. Never be afraid to protect your reputation.

I hope this quick primer has been helpful, even if much of it is common sense. Please post in the comments if you have any other tips or thoughts on the art of the introduction!

The Rise of the Smart Assistant

Almost everybody wants to have an assistant, even if people won’t freely admit it. Who doesn’t want an extra set of hands to help out with chores, scheduling, reminders, meetings, reservations, and the myriad of other tasks that we need to complete every single day?

Just a few years ago, the only way you could get yourself an assistant was to pay one a full-time salary. Very few people can afford the luxury having somebody help them with all of the tasks and information in their lives. But that has rapidly changed with new technology that makes it easier to outsource our lives.

This is what I call “Smart Assistant” technology, and I group it into three distinct buckets:

  1. Technological Assistants: The best known of these is Apple’s Siri, but that’s just the tip of the iceberg. Evi, for example, is far better at searching for relevant information on-the-fly.
  2. Virtual Assistants: Virtual assistants have been around for a while, but now they’re far more affordable thanks to services like Zirtual (which I use and love) and FancyHands. Rather than paying somebody $50K a year, you can pay $50 to $200 a month and get almost all the same benefits.
  3. Task Outsourcing: I’m a huge fan of services like Taskrabbit and Zaarly, which lets you outsource chores like food delivery, IKEA furniture assembly, laundry and grocery shopping. The convenience is worth the price.

While each bucket is vastly different, they help accomplish the same things — they help people save time, and they help put people’s minds at ease.

We’re only at the beginning of this phenomenon though. I believe it’s especially true for technological assistants, which are in the best position to deal with (but have yet to solve) one of the biggest problems of the Internet age: cognitive and information overload.

Smart assistants are huge businesses. Five years from now, you’re going to wonder how you lived without them.

Siri image courtesy of Flickr, Kaptain Kobold

The Right Way to Apologize

Hot mobile social networking app Path has been under fire for the last few days for saving users’ address books and contact lists on their servers in order to help them connect with their friends.

Path’s intentions were innocent enough — they wanted to make sure more people discovered their friends on Path — but the result is a privacy fiasco that rightfully blew up.

What do you do when you’re under fire for betraying user trust? Path co-founder Dave Morin’s answer: apologize and make it right.

Morin quickly apologized for what happened, explained what Path was doing with the data, and announced that Ptah has deleted the data and will give users the ability to upload their contacts on an opt-in basis:

“We believe you should have control when it comes to sharing your personal information. We also believe that actions speak louder than words. So, as a clear signal of our commitment to your privacy, we’ve deleted the entire collection of user uploaded contact information from our servers. Your trust matters to us and we want you to feel completely in control of your information on Path.”

This is how you do an apology. Path clearly learned from Airbnb’s mistakes and decided to fire off a straight apology and stop the issue in its tracks.

Path will end up stronger once the dust has settled. Side note: Apple really needs to fix this gaping privacy hole.

Facebook’s Monster IPO: 10 Interesting Stats

Facebook has filed for IPO. It will likely be the largest IPO in Internet history.

Here are some quick things I’m noticing in the company’s SEC filing:

  1. Zynga accounts for 12% of Facebook’s revenue. Facebook needs Zynga just as much as Zynga needs Facebook.
  2. Zuckerberg owns a WHOPPING 533,801,850 shares — that’s 28.2% of the company. And because he controls 30.6% of the voting shares via proxy, he has full control over decisions.
  3. The next biggest shareholders: Accel Partners (11.4%), co-founder Dustin Moskovitz (7.6%), DST (5.4%) and Peter Thiel (2.5%).
  4. Sheryl Sandberg only owns 1.9 million shares. That’s barely a blip on the radar. Peter Thiel owns 22x that amount.
  5. Facebook has 2.7 BILLION likes and comments every single day. That is nearly a trillion interactions per year.
  6. 845 million monthly active users, 483 million of them are daily active users. Those numbers are up 38% and 48% from the year before respectively.
  7. $3.7 billion in revenue last year. In 2009, it was “just” $777 million in revenue.
  8. Facebook has $3.8 billion in cash on hand. That’s a big chunk of change
  9. 83% of Facebook’s revenue came from advertising. In 2010, that number was 90%
  10. Zuckerberg has a salary of $500k, while COO Sheryl Sandberg and CFO David Ebersman take in $300k.

I’ll add more as I find them.

Today Is D-Day for Facebook, and Nobody Can Stop Talking About It

Facebook will reportedly file for IPO later today, and it has the entire tech world buzzing. It will be the only thing people will talk about when Facebook finally files its papers with the SEC.

Don’t believe me? Here’s just a sampling of my Twitter feed from the last 30 minutes:






Clearly people are excited — it’s the first time anybody outside of Zuckerberg’s inner circle has gotten a good, hard look at Facebook’s business. The social network is going to deliver some powerhouse numbers, including its revenue, employee count and current user base. It will also tell you exactly how much of Facebook Mark Zuckerberg currently owns, as well as reveal anybody else that owns more than 5% of the company.

Of course, Facebook may not file for IPO today. It may not even file this week. That will make for a lot of sad techies.

But I’m going to be just like everyone else — I have my SEC notifications turned on. When the IPO paperwork hits, I’m going to pick that thing apart and provide my analysis on one of the most important IPOs in American history.

So stay tuned — it looks like today is Facebook D-Day.

Image courtesy of Flickr, Rishi Bando

Surprise! RIM’s Stock Price Plummets

Ouch.

This is what happens when you delude yourself into thinking things are fine. RIM needs an outsider, not an insider, to fix things.

A Breakdown of the First Battle of the Great Megaupload War of 2012

Shit hit the fan on Thursday; the U.S. government took down Megaupload, one of the largest file-sharing sites in the world. Here’s a quick recap of the key events in this crazy story:

  • Megaupload is one of top 100 most-visited websites on the web for years, mostly because it was an easy and relatively “safe” way to download and transfer pirated content. Yes, people hosted legal stuff there, but the vast majority of it was pirated.
  • On December 9, a bizarre video was released with A-listers seemingly endorsing Megaupload. P Diddy, Will.i.am, Alicia Keys, Snoop Dogg, Kanye West were among the stars featured.
  • Universal and the RIAA were NOT happy with this, so they asked YouTube to take it down due to copyright infringement,. They succeeded, though Megaupload continued to host the video (YouTube eventually brought it back as well). Megaupload essentially gave the music industry the middle finger.
  • Everything exploded yesterday, though. The FBI led a coordinated strike against Megaupload that involved 20 search warrants in eight countries. The result was the shutdown of Megaupload.com and the seizure of more than $50 million in assets.
  • Megaupload’s staff was also arrested and denied bail in New Zealand. This includes founder and majority owner Kim Schmitz — aka Kim Dotcom. Yes, that’s what he goes by.
  • Here are some pictures of the New Zealand government confiscating the Megaupload team’s very fancy cars.
  • Oh, and it was revealed that Swizz Beatz is the company’s acting CEO. Yes, the guy who’s married to Alicia Keys. This was likely an attempt by Kim Dotcom to reduce the heat on himself.
  • GigaOm has a fantastic summary of the indictment itself, if you want to learn more.
  • There was an important part of the Internet that didn’t like how this raid went down though: Anonymous. The shadowy hacker group launched its largest attack ever merely minutes after the raids became public. They attacked “the White House, the FBI, the Department of Justice, multiple record label sites, the MPAA, and RIAA, and the U.S. Copyright Office” all at once. Anonymous considered the destruction of Megaupload an act of war, and they responded with an all-out counterstrike.

If you think today is the worst of the retaliation, then you’re deluding yourself: Anonymous is nowhere near done. The IRC chatrooms where Anonymous plans its attacks are still active. I suspect that it will continue to lash out as more details of the Megaupload takedown come to light.

Questions remain: will Megaupload’s leaders be extradited to the U.S.? Where are pirates going to store files now? What is Anonymous’s next move?

The fireworks are just beginning, so find the nearest bunker, because yesterday was just the first of many battles in the Great Megaupload War of 2012.

Image courtesy of Flickr, Bryan Burke. FYI, nobody was harmed in this photo.

Why It Would Be Wrong for Facebook & Twitter to Go Dark for SOPA (or Any Other Occassion)

Tahrir Square in Egypt during the height of the revolution

Wikipedia, Reddit and thousands of other websites have gone dark in protest of SOPA and PIPA. The controversial laws, as I explained to The Consumerist, open the door to “your favorite websites [getting] penalized, blacklisted or even shut down due to a copyright infringement lawsuit.”

The protests have done their job — the mainstream public now aware of these laws, but some are arguing that it’s not enough. Chris Taylor of Mashable recently argued that Facebook should go dark for the day to protest these laws as well. He’s not the only one, though. Jay Rosen of NYU and Alex Howard of O’Reilly both suggested that Twitter should go dark as well.

Suggesting that two of the world’s major communication platforms should shut down in protest of a law that governs only a minority of its users is not just lunacy, but downright irresponsible.

Right now, thousands of people are using Facebook and Twitter to organize protests against SOPA. But more importantly, Twitter and Facebook are still being used as communication platforms to coordinate revolutions and inspire freedom. Shutting down Facebook and Twitter closes down communication platforms that have become just as important as email and cell phones.

How would you feel if AT&T, Verizon or Google shut down your cell phones and emails for a protest? It would also be an irresponsible move.

This isn’t about economics (though billions would be lost if Facebook and Twitter shut down for the day) — it’s about freedom of communication. Shutting down two of the most vital communication platforms in the world, no matter the reason, is just wrong. Just imagine if they had been shut down during the Tunisian revolution. Hell, Egypt actually did it during the revolution in its country. You’d be doing them a favor.

In his piece, Chris Taylor also argues that shutting down Facebook would make him into an instant Washington power player. But it probably would have unintended consequences as well. People in power tend to push back, and you can bet that Congress wouldn’t sit back and take a middle finger from Zuckerberg.

So stop criticizing Facebook and Twitter for not shutting down. The unintended consequences would be dire. Those two companies are better off using their communication platforms to spread word of the SOPA protests instead.

Image courtesy of Flickr, Drumzo

The Future of Yahoo Without Jerry Yang

Jerry Yang, the co-founder and former CEO of Yahoo, has resigned from the company. And we’re not just talking about his board seat, but all of his positions at Yahoo, Yahoo Japan and Alibaba.

In other words, Jerry Yang will have no involvement in the company. Yahoo will be without either its co-founders for the first time in its 17-year history.

New CEO Scott Thompson is now the company’s leader. Roy Bostock, the company’s chairman, is still around, but I wouldn’t be surprised to see him step aside eventually as well.

So what will Yahoo look like without Jerry Yang? Some might argue that he hasn’t had much influence on the company since he was ousted as CEO in 2007, but that would just be inaccurate. Yang’s influence has been felt all throughout the company, especially after he and Bostock fired Carol Bartz.

But now it’s clear that Scott Thompson is running the show and is being given the leeway to run things as he sees fit, so don’t expect a lot of bluster: Thompson is a good-natured, low-key type of guy. He’ll make sure that everybody’s heads are down, getting things built.

Will Yahoo be better off without Jerry Yang? It’s always tough when you lose a co-founder, but clearly change was needed. This is one case where having the founder take a step away from the business will turn out to be a good thing.

Image courtesy of Flickr, Tim Trueman