Friday, March 11, 2011

Making Money Off Youtube

On Monday night, I watched my very first, The Final Word host Lawrence O’Donnell.
When O’Donnell laudably tried using to target the audience’s interest onand hopefully final, Charlie Sheen trainwreck interview, courtesy of the tragic undertow that threatens to pull Sheen under for high-quality, I used to be overtaken, not from the pulling around the thread, and then the voracious audience he serves. It did not make me unfortunate, it manufactured me angry.

In relation to celebrities, we are able to be a heartless nation, basking in their misfortunes like nude sunbathers at Schadenfreude Seashore. The impulse is understandable, to some diploma. It could possibly be grating to listen to complaints from many people who love privileges that most of us can not even consider. If you ever cannot muster up some compassion for Charlie Sheen, who would make even more cash for any day’s deliver the results than most of us will make inside a decade’s time, I guess I cannot blame you.



With the fast tempo of events on the internet plus the details revolution sparked through the World wide web, it is particularly painless for your solutions industry to assume it is exclusive: constantly breaking new ground and carrying out things that no one has at any time completed before.

But you will discover other kinds of online business which have by now undergone some of the exact radical shifts, and have just as excellent a stake during the long term.

Consider healthcare, as an example.

We quite often suppose of it as being a enormous, lumbering beast, but in reality, medication has undergone a sequence of revolutions inside the previous 200 many years that happen to be at the very least equal to those we see in technologies and info.

Much less understandable, but still inside of the norms of human nature, would be the impulse to rubberneck, to slow down and have a look at the carnage of Charlie spectacle of Sheen’s unraveling, but of the blithe interviewer Sheen’s lifestyle as we pass it from the right lane of our every day lives. To be straightforward, it can be difficult for consumers to discern the variation involving a run-of-the-mill focus whore, and an honest-to-goodness, circling the drain tragedy-to-be. On its personal merits, a quote like “I Am On a Drug. It’s Known as Charlie Sheen” is sheer genius, and we can not all be anticipated to take the complete measure of someone’s daily life just about every time we listen to a little something amusing.

Extremely fast ahead to 2011 and I'm attempting to look into means of being a little more business-like about my hobbies (typically new music). By the stop of January I had manned up and began to promote my weblogs. I had established many totally different weblogs, which were contributed to by associates and colleagues. I promoted these activities due to Facebook and Twitter.


2nd: the little abomination that the Gang of Five about the Supream Court gave us a 12 months or so in the past (Citizens Inebriated) basically comprises a little bouncing betty of its personal that may particularly nicely go off in the faces of Govs Wanker, Sacitch, Krysty, and J.O. Daniels. Considering that this ruling prolonged the notion of “personhood” to the two companies and unions, to try out to deny them any proper to operate inside of the legal framework that they had been organized beneath deprives these “persons” from the freedoms of speech, association and movement. Which suggests (once once more, quoting law school skilled friends and family) that possibly the courts have to uphold these rights for the unions (as particular person “persons” as guaranteed through the Federal (and most state) constitutions, or they've to declare that these attempts at stripping or limiting union rights ought to use to significant corporations, also.


The Board of Editors of The New York Times is demanding significant cut backs in public sector union contracts, but refuses to recognize the cause of the problem, which is the entire structure of public employee unions:

At a time when public school students are being forced into ever more crowded classrooms, and poor families will lose state medical benefits, New York State is paying 10 times more for state employees’ pensions than it did just a decade ago....
In all, the salaries and benefits of state employees add up to $18.5 billion, or a fifth of New York’s operating budget. Unless those costs are reined in, New York will find itself unable to provide even essential services.



To point out these alarming facts is not to be anti- union, or anti-worker. In recent weeks, Republican politicians in the Midwest have distorted what should be a serious discussion about state employees’ benefits, cynically using it as a pretext to crush unions.
Yet The Times Editors, in the subsequent paragraphs, acknowledge that the public sector unions are not willing to make the necessary changes:

Gov. Andrew Cuomo has pursued a reasonable course, making it clear that he expects public unions to make sacrifices, starting with a salary freeze. He wants to require greater employee contributions to pensions and health benefits, with a goal of saving $450 million.



Negotiations begin this month, but so far union leaders have publicly resisted Mr. Cuomo’s proposals. If they don’t budge, Mr. Cuomo says he will have to lay off up to 9,800 workers. That would damage the state’s struggling economy. Some compromise must be found.
Having secured very sweet contracts for their members through political influence, the public sector unions have no incentive to change.  They know from history that politicians eventually back down or move on, and the consumer of public sector services ends up paying through higher taxes and diminished services.



The current system also pits older union membership, which has vested in all these benefits, against younger members, who will bear the cost of cutbacks and likely never will see such sweet deals for themselves because there simply is not enough money.



The cause of the problem is not just the terms of a particular public sector union contract, it is the system which allows public sector unions to pass costs onto future generations of taxpayers and union members.



Wisconsin Gov. Scott Walker is correct to recognize that collective bargaining for benefits is the cause of the problem, and that it is not enough to treat just the symptoms.



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I'm seeing this sort of pitch a lot lately:


"We are the next such-and-such company" or "we take such-and-such company concept to the next level" or "unlike [insert billion dollar website name here], we have added a killer feature and thing-a-ma-jig that changes the game."


Fill in the blanks with the buzz words of the moment and I'm sure you'll get the idea. Why the sudden urge to jump into certain markets rather than others? Well, call me crazy, but for many an amateur, I believe it might have to do something with dollar signs in the press. (Let's just say $50 billion for the sake of example.)


What disturbs me about this trend is the sheer number of people that are concentrating on web companies built for "investment dollars" or "ad revenue" rather than built for immediate income-generation. Sure, Web start-ups are inexpensive to launch, but I still contend that to stay in business they must earn money. Not every website is going to get an investor onboard or a strategic acquirer interested—not by a long shot—and you have to at least afford Ramen noodles to sustain yourself. 


When I partnered with a fledging start-up to help build a Web 2.0 company back in the early 2000s, I quickly fell victim to a lot of this same hype nonsense. Except at that time, it wasn't "social networking", it was video sharing. YouTube had just started to come about and I wanted in the game. Like every other Web start-up in that space at the time, we too were "revolutionary" and a "game-changer."


Only problem: we had no immediate revenue model, based our financial forecasts totally on sponsor and ad revenue, and could not keep up with the site traffic. Investors wouldn't touch us because we were still too small, yet expenses kept piling up. In the end, the company folded and tons of money was lost (and probably is still being paid off the original founders' credit cards today.)  


I certainly don't want to discourage the brilliant Web engineers out there whose business models are sound; however, I do want to discourage the other people out there (yes, you know who you are) from jumping on the "$900 million bandwagon" simply because you think your idea is better, cooler, or has more features than a site that already exists. In fact, if you have the word revolutionary in your pitch, just go ahead and wipe hard-drive clean right now. 


Think before you code. Just because you can build something, doesn't mean you should. Time is your most valuable asset and you want to make sure that the enterprise you are committing yourself to has a real chance of providing you with sustainable revenue. You must truly understand how your business will make real money before you bank on some unrealistic expectations concerning traffic. If you are making money, the potential to raise investment dollars becomes all the more real. 


Remember, it is never a smart bet to try to build an "acquisition" rather than build a business. After all, if your business cannot survive on it's own you'll need to exit the company way before any exit strategy can even occur—because you'll be bankrupt. 













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