Inspiration from an Unlikely Millionaire

If you had an Internet connection at work in 2000 or 2001, one of your colleagues forwarded you a link to HotorNot.com.  You played with it for somewhere between 5 minutes and 8 hours, helplessly clicking on the neverending stream of pictures of people who wanted you to judge how good looking they were.

About 1% of this crowd probably wondered if the founders were making any money, or if they simply launched the site for fun.  Well it turns out they were making GOBS of money.  Giant trucks were backing up and dumping bars of platinum into their backyard.  In a nutshell, it proved that a simple idea, at the right time, with the right people, was infinitely more powerful, satisfying and worthwile than simply attending weekly staff meetings.

Well, if you read techCrunch you probably already wandered over to this blog post from the CEO of HotorNot. If you have ever considered running off and starting your own idea, here are some wise words to help get you moving in that direction.

Supreme Court Ends 96-Year-Old Ban on Price Floors

I haven’t seen too much of this floating around the blogosphere yet, and maybe it’s my paranoia kicking in, but this morning’s Supreme Court ruling piques my curiosity.

From the New York Times: The Supreme Court on Thursday abandoned a 96-year-old ban on manufacturers and retailers setting price floors for products.  In a 5-4 decision, the court said that agreements on minimum prices are legal if they promote competition.  The ruling means that accusations of minimum pricing pacts will be evaluated case by case.  The Supreme Court declared in 1911 that minimum pricing agreements violate federal antitrust law.  Supporters said that allowing minimum price floors would hurt upstart discounters and Internet resellers seeking to offer new, cheaper ways to distribute products.

So, why is this interesting to the Internet and Ecommerce world?

What’s unclear from the article is how far the price floor extends.  Let’s use Harry Potter books as an example.  Even though the franchise sells more books than anything else being published, retailers actually don’t make that much profit on the sales.  Thanks to major chains like Wal-Mart and Amazon selling the book at discount as a way to get people into their stores, the retail price hovers below other books. 

But now it seems that the Harry Potter Publisher could set a minimum price if it wanted, effectively stopping Amazon from pricing below the competition.

This has further reaching effects if you start taking into account all the Amazon Associates and Ebay sellers out there.  These companies have done a great job creating as close to a free market economy as you can get.  Now, the law looks like it’s going to allow the stifling of that free market, putting the power back into the hands of producers, who can now decide the prices before they even reach the market.  And I don’t have any idea how this affects the secondary market for items.

Another example is a widget system like Mpire.com whose whole reason for being is to help consumers find the lowest prices on items being sold on the web.  Well, if this "lowest" price is being set by the manufacturer, how does any small discount retailer make any noise to grab a customer?

Unless I’m reading into this wrong, this appears to be a strike at Internet Ecommerce.  Manufacturers don’t like when there is little surplus in their supply and demand graph, and have now artificially manipulated the system to get that surplus back.  I’m sure there will be more to come on this.

TixMob Launches in UK – New Way to Buy Tickets for Events

An old friend from Manchester sent me news about his company, Tixmob, this morning. Here’s a synopsis:

http://www.tixmob.com/ Is a new concert ticket agent, just like Ticketmaster and Seetickets we work directly with concert promoters and event organizers to sell tickets on their behalf.   Unlike Ticketmaster, Seetickets etc.. A Tixmob ticket is paperless. Upon purchase it is sent to your mobile phone in the form of an sms message with a bar code. When you get to the event the ticket taker will scan the ticket with our scanner to prove it’s valid and it hasn’t already been used. So ticket touting/scalping is more difficult, you’ll probably get in faster since, for a while at least, we’ll usually have our own que.   A big complaint people have about ticket agents like Ticketmaster is all the crazy fees they stick on top of the ticket price. Generally Tixmob will have a booking of 10% of the tickets face value. As some extra incentive for people to try the product, we’ve reduced booking fees on our first few events to as low as 2%.

While it appers to be UK based for now, the US possibilities seem far reaching as well.  I would assume sports teams would love the anti-scalping features.  Anyway, something to keep an eye on.

Lumosity – Something to Play With

I will take the leap and say that a small company called Lumosity falls into the world of Marketing.  For, positioned one way, Lumosity would simply be entry #3.2 billion in the category of "Ways to kill time online when you should be productive."

But instead, starting with the tagline of "Reclaim Your Brain" and extending through the core messaging, Lumosity is much more than a nice looking version of any casual games portal.  According to their literature, I will actually get SMARTER by spending time on their site. The multi-layered exercises and puzzles are designed to actively stimulate regions of my brain that have gone neglected, enriching my overall intellectual capabilities. 

So far, I don’t feel smarter, but it has kicked my paranoia level to an all-time high, as I wonder if I am simply a pawn in someone’s giant marketing copywriting experiment.  But, I have succumbed to sucker status, and the exercises are fun, so we’ll see where this gets me.