The first mixologist, Steven, was a torchbearer. The interactions with him defined the experience for us, the customers. It’s easy to imagine that his enthusiasm for the job rubs off on many of his coworkers (with the possible exception of the bartender that replaced him), and elevates the quality of the entire establishment. Employees like him are by far the most valuable, and must be retained even at high[er] cost. The idea of paying every worker the same is fine if you consider your employees to be commodities, but for a truly differentiated business, this shouldn’t be the case.

If you’re like me, you have almost a dozen Google services — Gmail, Picasa, Voice, Reader, Checkout, Alerts, Analytics, etc. Making sure that everything is set up correctly and not inadvertently exposed to the world is an otherwise painful task that is made easy with Dashboard. By scrolling down and glancing at the summaries of your various services, you can make sure that the pictures of Grandma’s birthday party aren’t visible to the world.

So, despite some other privacy setbacks (really what were they thinking with Buzz?), I think this is a leap forward for a company to expose the data they have about you and give you choices about what they do with it. Imagine the grocery store doing this with your preferred card or your phone company with the data they collect from your wireless bill (and location data they get from your GPS). It’s great when consumers have the choice about how their information is used, and kudos to Google for getting this one right. They still have some work to do given how much info we end up giving them, but definitely a step in the right direction.

Dig a little deeper, however, and you’ll find that it is anything but losing for Google. In fact,

In a talk at Stanford University, Marissa Mayer, Google’s Vice President of Search Products and User Experience, stated that her analysis showed that 50% of the new product launches originated from the 20% time. [wikipedia]

Some of their best products, such as Gmail and Adsense, originated from this revolutionary policy!

So what does an ordinary company get out of encouraging employees to dream up ways to do things better? Perhaps a day a week is a bit much for most enterprises, but this sort of out-of-the-box thinking can do wonders to spur new innovation or improve operations at any company. Traditionally, change follows a top-down approach: managers devise a new product, process or protocol and the employees implement the change according to instructions they receive. The communication is often one-way so feedback doesn’t effectively flow. The result is few sources of innovation and an inefficient system for improvement.

A better way is to “design” all aspects of the company culture so that any employee can have an input on key aspects of the company. Simply telling workers that “the boss’s door is always open” is insufficient, since it still requires a person to put themselves on the line. Mechanisms like encouraging employees to pursue their own ideas, setting up constant feedback and suggestion sessions (online is particularly good, since people may tend to be more honest), idea contests and frequent communication from management work far better and allow employees to feel that managers are listening and valuing their contributions.

Putting power in the hands of employees to suggest and improve their daily routines has several advantages. It allows the people who know the processes and systems the best to have a hand in improving them, instead of relying on higher-ups who may not be as well versed in the day-to-day. Furthermore, it makes employees feel like they have a chance to stand out in their company and contribute more than a 9-5 workday. The entrenched culture of many companies that exist today makes it difficult to establish such a culture, but the ones who do will find themselves amply rewarded.

No doubt, this is great. However, with smaller city newspapers failing across the country and even the venerable Times in trouble, the long-term sustainability of content providers is a serious question. Right now, Google News and YouTube news videos are fueled largely by professional journalism companies that make their money selling advertisements in print and video media. However, as Google steps in and uses the content without providing an adequate revenue stream back to the content creators, the prospects for professional journalism look dim.

Clearly journalism as a money-making endeavor will not go away. What will happen, on the other hand, is that news outlets will find ways to capitalize on what is actually an amazing opportunity to reach a huge audience with dramatically lower costs. As an example, I’ve never paid a dime for a newspaper, yet after getting an Amazon Kindle2 about 2 months ago, I now pay for subscriptions to two newspapers. The key for me was convenience and quality — the ability to have a full news source on my Kindle every morning on the train was well worth the $10-$15/month I pay for my subscription. A content delivery device that didn’t exist 2 years ago is what it took to get a 24-year-old guy to start paying for the paper.

What about the web? How can providers continue to afford to let Google assemble their content into dynamic newspapers and give it away free? The solution is micropayments. Want to read an article on Google Reader? Why not charge a nickel (or a penny!), the bulk of which goes directly back to the content provider? Of course, a few cents doesn’t sound like much, but obviously the key is making it on millions of users. Collect a nickel, and watch what happens to the web. The best content providers — professional and amateur — will now have a way to make money off of their work directly. News outlets will still exist, but there will also be plenty of semi-professional, independent authors and creators who will churn out material that will be just as good.

Undoubtedly, there are many stumbling blocks to charging people for what they’ve become accustomed to getting for free. Dan Ariely, the MIT behavioral economist and author of Predictably Irrational has found that the difference between even 1 cent and free is enormous from a psychological perspective. Things that are free just have a certain allure that even the cheapest alternatives do not. The way to overcome this stumbling block is to disassociate people with the money they’re actually spending. We could do this by allowing (but not necessarily requiring) people to prepay their nickels every month with their internet bill — perhaps include $2 worth of content in a “bank account” with the monthly internet. Alternatively, Google could pay these nickels for you — in this case they would simply be a structural mechanism to allow payment to flow back to the originators.

The internet has irreversibly changed traditional content distribution models, but so far, revenue models have largely stayed the same for content providers. The providers that push for and embrace new models will be the ones that generate incredible profits. Micropayments are the solution that will fix the content-revenue link on the web.

Here are my steps to getting pictures into the “system”. Basically,

1. Save pictures to some folder on the desktop of whatever computer I happen to be using. Remove the obvious “bad” photos.
2. Add the library to my Gallery2 library that’s hosted by Dreamhost. Gallery2 is one of the best online photo-view apps I’ve found, and since it’s hosted on my Dreamhost account, I have unlimited space to put pictures (unlike Picasa Web Albums which caps you out 1GB)
3. However, Dreamhost is by no means a secure backup location (they don’t claim to be, and they recently lost a bunch of user data), so I don’t feel very safe having my photos only stored there. Therefore, after my photos are uploaded to Dreamhost, I rsync the photo directory onto Dropbox. Dropbox is a great online storage and file-syncing utility, so it doesn’t matter which computer I’m using — the Dropbox folder is always the same on all of them. When I rsync to my Dropbox folder, the files are automatically backed up online and synced to the other computers that have Dropbox installed. If you’re curious, here is the rsync command I use:
   
rsync --verbose --progress --stats \
--compress --rsh=/usr/bin/ssh \
--recursive --times --perms --links \
/source/directory ~/Dropbox/Photos/.

   Note: That’s a space between /source/directory [space] ~/Dropbox/Photos

   From here, all of my computers have Picasa installed (since it works on Linux, OSX and Windows), and the Dropbox photo directory is set as a “watched” directory. This means that as new pictures are synced to the Dropbox folders on other computers, Picasa on that computer picks it up and adds it automatically.

4. The final, and probably unnecessary step is rsyncing the files to Amazon S3 via Jungledisk. This doesn’t really offer anything in the way of additional backup security, since Dropbox is S3 based on the backend anyways (so if anything happens to S3, both will go down). The reason I do this is because I look at S3 as my long-term “vault” and Dropbox as a shorter-term, more convenient storage place. The rsync itself is the same command as above, but replace the Dropbox destination directory with your Jungledisk directory.

If you’re on Windows, you can replace the rsync steps with a straight copy — you’ll still get most of the functionality. Rsync works fine on OSX and Linux.

Clearly, it’s an involved process when I add pictures. However, it’s not too bad — a bulk upload onto Dreamhost and then running 2 commands from the command line to get the photos onto Dropbox and Amazon. You can even remove the Amazon step if you want. Last time I checked there was no way to add photos to Gallery2 using a script, but if and when that becomes available, this whole process can be turned into a quick script to run in the background.

Follow these steps, and you’ll have secure, accessible and useful photos on all of your computers.

Five years ago, a bad experience like this would have meant that the company lost a few customers at most — maybe me and a few of my friends. But in the age of Facebook and Twitter, where people are microblogging about everything, a few bad experiences can quickly find an enormous audience. All it takes is a reader to see one or two tweets relating a hiccup with a company for that reader to avoid the company in the future. The margin of error for bad customer service is getting far smaller, since it takes far fewer missteps to destroy a reputation than it used to.

Customer service has always been important, but now days, its make-or-break for a company. When I Google for ‘flowers’, 11 sponsored links show up. The services themselves all basically do the same thing — the call one of a few local florists and have them deliver an arrangement purchased online. Since I imagine conversion for keyword clicks for ‘flowers’ on Google are pretty high, I bet that they pay $5 or more per click for traffic through search engine ads. Given that the cost of acquiring a customer is very high, a company in this type of business must do everything it can to make sure that it keeps the customers it has, since part of the rationale behind a high initial acquisition cost is that customers on average will do business repeatedly. But if a company doesn’t invest the [comparatively far smaller] money in customer service needed to keep existing customers, they will find that they can no longer afford to pay the huge acquisition costs because they simply aren’t capturing enough profit per customer over the entire lifecycle to justify the expense. Since its much easier to keep customers you already have, the competitors that can retain customers will be the ones that win out, hands down. And as the world gets more connected, these companies will have an even easier time rising to the top.

Update: I’m not all pessimism — I just had a great customer service experience with Fidelity. Read about it.

Over the last several weeks, I’ve been working hard to promote the site. I have no formal training in marketing, so my efforts have come mainly from trial and error and also from advice from marketing professionals, both through their blogs and from actually speaking with them. There are other guides on the internet about generating buzz for your website, but most of them are long on generalities (“Know your goals”) and short on details. This guide is an attempt to nail down some of the strategies that have worked for me, and help others that are getting involved in the social marketing landscape.

Disclaimer: this is a work in progress, so I have inevitable missed some key points or approached some things in an unusual way. I welcome your comments below!

Cover Your Bases With the Social News Sites

1. Reddit – catchy, thought-provoking titles are important. The main site gets a huge number of submissions, so posting to a subreddit (a sub-site devoted to a specific topic, like Business or Linux) might increase your chances of making it to the front page.
2. Digg – short titles and good descriptions are important. Be sure to choose accurate categories for your site. You’ll be best off if you’ve been using digg for a while and have built up a base of friends, since they’re more likely to see the story and vote for it.
3. StumbleUpon – tagging your site properly is key, since users see sites based on interests they select.
4. Del.icio.us – tagging is very important, since that forms the basis upon which others find your site.

Get the Word Out On Twitter

It’s important to create a solid presence for your site on Twitter, since it is becoming an increasingly important place for users to share links and thoughts about sites and services. Here are the steps:

1. Create a Twitter identity for your site. For Free Agents, users can follow @freeagentnet.
2. Send out several Tweets relevant to your message to get some good content in your feed so that users have something to see when they first start following you.
3. Advertise your Twitter name on your site — a simple “Follow @freeagentnet on Twitter” will do the trick, and allow users to stay up to date. Also, ask users to add in a hashtag in posts related to the site. For example, if a user Tweets about something unemployment related, they can add #freeagentnet. Hashtags are keywords easily indexed by outside agregators, so you can pull all posts related to your site together on a page.
4. Use Twitter search to find users that are talking about topics related to your site. Start following them. This has 2 purposes: first, it keeps you in touch with what people are saying about the area that you’re in. Secondly, when you follow people, they are likely to follow you if they see that you’ve been Tweeting about the same types of things, so you get a larger Twitterbase.
5. Tweet often about relevant content, new areas on your site, and other information related to your primary goal.

Things to Avoid on Twitter

1. Don’t send out too many tweets each day. Aim for 5 or fewer messages every day, with great, compelling content in them. Never use your “business” account to send out messages like “I’m eating breakfast”, or followers will quickly drop you.
2. Don’t try to follow anyone and everyone. Follow those that you think you’ll learn good information from, and read their tweets. If you’re a follower of the whole world, the information gets diluted
3. Keep your links informational, and not overly promotional. Link to relevant content that you post on your site, but limit the number of links to your top level site, since it only takes a few before people start thinking you’re a spammer.

Create a Facebook Group to Engage Your Friends

Marketing to your friends is a great way to get the word out, especially if its the kind of product that lends itself well to your own demographic (otherwise, why would you build it?). Creating a Facebook group dedicated to your concept and inviting your friends to join is a good way to spread the word on Facebook, since each time someone becomes a member, that information shows up in the feed and others see it.

You can only invite 100 people to a group at a time, so be sure to choose carefully who you add to the invitation. On one hand, you want to pick people close enough to you that will join because you’re their friend and they want to help you out. If you pick people that you barely know, they are less likely to pay attention to the invitation, which means the invite is “wasted” on them. On the other hand, if you choose your 100 best buddies from college, they might all join, but they probably all know each other, and the benefits from your group appearing on the feed are lessened. By choosing some people that you don’t know as well, you lessen the chance that they will join, but if they do, you will likely access a completely separate social circle and your product will hit a more diverse group of users.

Add Meaningful, Relevant Comments to Related Blogs and News Articles

If you run a site devoted to auto repair, you probably are interested in that subject and read related blogs and other sites regularly. If you don’t, you definitely need to, for several reasons. First of all, its important to keep your finger on the pulse of your topic online. If some bloggers break news about Callahan Auto’s new Brake Pad Division, its important to see what everyone is saying about it so that articles on your site can respond appropriately. Secondly, commenting on related blogs is a good way to reach readers that are interested in your subject area.

Commenting on blogs, like other methods of social marketing, walks the fine line between spamming and contributing to a service by adding helpful information and a link. If you run a blog, you probably receive hundreds of spam comments per day, and most are filled with gibberish and a few links. These are obvious garbage, and most get filtered out anyways. However, other posts contribute a brief snippet of commentary, and a big fat link to another site. They often say something along the lines of “great article. check out Zalinsky Auto Parts [url]“. These comments are also garbage, because they don’t contribute anything to the discussion, and are obviously there only to promote another site.

A good rule of thumb is if you can’t contribute something meaningful to the article through your comment, don’t post one. On the other hand, your site may be a great resource to readers of that article. If that’s the case, in the comment box, add a unique point of view, and then somewhere in the comment, mention your site. Most blogs moderate their comment posts to avoid spam, so the more you can contribute to the discussion along with your link, the better the chance that the blog author chooses to keep your comment on the page.

Connect with Popular Bloggers in Your Space

Figure out which bloggers are the most influential in your area. There are a variety of ways to do this — start by Googling for certain keywords associated with your website and see which blogs come up. Add these blogs to your Google Reader (or other RSS aggregator) and start reading them every day. Pay attention to other sites mentioned in articles, and check out their blogrolls.

Once you’ve identified some of the important blogs, contact the author and introduce yourself. Tell them a bit about your site and ask them if they’d be willing to help spread the word. Many blogs are happy to help out, especially if they have the first chance to “go public” with a cool concept. Be sure that you don’t look overly spammy — send polite, personalized messages to each author. I often try to respond to an article the blogger has written to break the ice and let them know that I am a reader and that I find their content valuable.

Engage in Discussions on Other Websites

On some sites, the user community is already large and established. If your product is a great complement to such a site, one great way to promote yourself is to become an active and respected user in the well-known community.

For example, if you have a restaurant reservation service, users on a site like Yelp might be interested in your offerings. One great way to promote your site is to become a very active and trusted member on the “mother site”, and rely upon the fact that your credibility will make people naturally interested in learning more about you and your service. To build this following, you need to contribute content to the existing community that others find worthwhile and valuable, and do so in a way that’s not overly promotional in nature. For Yelp, you might consider posting several restaurant reviews with thoughtful feedback and commentary. You don’t necessarily want to post a link to your site in every review, but definitely have a link in your profile so that when people click on your name to learn more, they see that link and click on it.

You might get fewer impressions by promoting this way (since users will have to see your profile before they see your links), but you’ll get more conversions too, since those who visit your site are people who have already decided that they find you interesting and worthwhile enough to click on your profile. By leveraging your credibility in one arena, you are able to apply it to another to increase the impact you have for each visit.

Overview

Creating online buzz about your product takes time and effort. Simply dumping links all over the internet with very little content around them will simply make you a spammer, and there are mechanisms online that will ensure that your links are quickly relegated to the spam heap. On the other hand, if your product is one that people find valuable, and you promote it with thoughtful contributions to a variety of places online, you will eventually meet success and attract visitors.