The Very Strange Story of the Startup That Says It Made $10m Before Launching

#1

Post by chuck_taylor » Thu, Nov 05, 2009, 10:50 PM UTC

The Very Strange Story of the Startup That Says It Made $10m Before Launching
readwriteweb.com

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#2

Post by dot » Thu, Nov 05, 2009, 11:06 PM UTC

So people are paying to get listed in a search engine before it even launches. What a scam.

Reminds me of online directory listing scams that get gullible small businesses to sign up over the phone.

Also reminds me of the million dollar homepage, for some reason. Probably because it's pretty clever :)

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#3

Post by replicatorblog » Thu, Nov 05, 2009, 11:09 PM UTC

dot wrote: post #2

So people are paying to get listed in a search engine before it even launches. What a scam. Reminds me of online directory listing scams that get gullible small businesses to sign up over the phone. Also reminds me of the million dollar homepage, for some reason. Probably because it's pretty clever :)

yeah seems a bit shady, but a really cool social hack to circumvent typical funding. If people used the power for good it would make an inspiring Startup School talk, ala the 1MM px page.

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#4

Post by JacobAldridge » Thu, Nov 05, 2009, 11:13 PM UTC

dot wrote: post #2

So people are paying to get listed in a search engine before it even launches. What a scam. Reminds me of online directory listing scams that get gullible small businesses to sign up over the phone. Also reminds me of the million dollar homepage, for some reason. Probably because it's pretty clever :)

I don't think they're paying to get listed in the search engine - they're paying for exclusive rights to Keywords for a year, and with first right of refusal next year.

Imagine you had exclusivity to a Google keyword like Viagra, Sales, or Wedding? Crikey that would be worth a lot, so what if, just maybe, Leapfish get it right and compete with Google? Their argument, which I guess current customers have bought, is that surely that's worth taking a punt.

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#5

Post by a-priori » Thu, Nov 05, 2009, 11:15 PM UTC

I have to say: watching that video made me want to grab a broadsword and kill some Orcs or something.

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#6

Post by brk » Thu, Nov 05, 2009, 11:17 PM UTC

This was done in the 90's, but I can't recall the company name. I bought a handful of keywords that related to my market at the time.

I expect this go-around to end equally badly.

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#7

Post by teej » Thu, Nov 05, 2009, 11:30 PM UTC

a-priori wrote: post #5

I have to say: watching that video made me want to grab a broadsword and kill some Orcs or something.

That's because it's pretty "inspired" by Hans Zimmer. Compare their video here (http://www.youtube.com/watch?v=6qcMK1vPWFM#t=35s) with Hans' Pirates of the Caribbean theme (http://www.youtube.com/watch?v=oVmjAM5o1jg)

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#8

Post by CapitalistCartr » Thu, Nov 05, 2009, 11:31 PM UTC

JacobAldridge wrote: post #4

dot wrote: post #2

So people are paying to get listed in a search engine before it even launches. What a scam. Reminds me of online directory listing scams that get gullible small businesses to sign up over the phone. Also reminds me of the million dollar homepage, for some reason. Probably because it's pretty clever :)

I don't think they're paying to get listed in the search engine - they're paying for exclusive rights to Keywords for a year, and with first right of refusal next year. Imagine you had exclusivity to a Google keyword like Viagra, Sales, or Wedding? Crikey that would be worth a lot, so what if, just maybe, Leapfish get it right and compete with Google? Their argument, which I guess current customers have bought, is th…

Leapfish can't both compete with Google,and be dependent on Google, which their current model is. If they get "exclusivity to a Google keyword like Viagra, Sales, or Wedding" Google will change to fix that problem. Competing with Google's ownership of keywords on Google's own search engine ain't a reliable business model. Anything that involves outsmarting Google is a weak proposition.

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#9

Post by lloydarmbrust » Thu, Nov 05, 2009, 11:32 PM UTC

So, their customers are spammers and MLMers then?

Re: The Very Strange Story of the Startup That Says It Made $10m Before Launching

#10

Post by keltex » Thu, Nov 05, 2009, 11:48 PM UTC

dot wrote: post #2

So people are paying to get listed in a search engine before it even launches. What a scam. Reminds me of online directory listing scams that get gullible small businesses to sign up over the phone. Also reminds me of the million dollar homepage, for some reason. Probably because it's pretty clever :)

Similar to the toolbar companies that sold keywords. One company "Portal Response" (google it for lots of complaints about the scam) sold keywords for $1000-$2000 a pop for 1 year exclusives.

Their pitch was that they blocked child porn websites. Another was a myspace search toolbar.