Up until now I’ve been preparing a raving review about how much I love the recurring payment service, Recurly.  Previously, at simply a fraction of the price of each payment on the service, it was very simple for any entrepreneur to get set up with the service and have an out-of-the-box solution for recurring payments on any website.  Just today Recurly sent out a note to its beta customers stating they were changing that model, and rather than charging per transaction on either a percentage of revenue or the total number of subscribers (the lesser of the two), they would be switching to a flat-rate pricing model.  The pricing would increase based on the services you used rather than the number of transactions.  As a new entrepreneur, I’m horribly disappointed by this new plan.

Just today, Recurly’s CEO sent out a lengthy e-mail explaining the terms.  In the e-mail, Isaac Hall, CEO of Recurly, blamed the new pricing on their talks with entrepreneurs, claiming what entrepreneurs would “likely be paying”, and implying that for most of those they talked to this new pricing structure was more beneficial.  Unfortunately, I was not one of those he talked to, and evidently, nor was Damon Cortesi, another entrepreneur/developer and founder of UntitledStartup (where I learned about Recurly) who responded when I shared my disappointment on Twitter, “I agree re: the monthly fees. That’s a huge hit.”

“Our pricing is simple–we don’t get paid unless you get paid.” – the old slogan

The old pricing was simple – so simple they bragged, “Our pricing is simple–we don’t get paid until you get paid”.  It offered the option of a tiered pricing level where each tier represented a number of users with accounts on your system.  If you had more accounts, you paid more.  There was also a percentage model, where for each purchase a percentage of the pricing would be charged to the transaction – they claimed they would choose the best pricing model based on your number of transactions.  Unfortunately they must not have been getting paid enough.  The new plan is just 3 tiers – $49, $99, and $199/month.  The lower tier being a basic signup solution with no way to determine when users’ cards were declined and no way to whitelabel or do one-time transactions.  The middle layer adds API support and white-label support.  The final layer adds push notifications (for when cards are declined, subscriptions are canceled, etc), and one-time transaction support.

The old pricing model

For a budding entrepreneur trying to bootstrap his company with no guarantees as to whether that company will make any money at all, even $49/month is an expensive choice.  For someone like me who can’t guarantee the user will actually come back to the site after signing up through Recurly, or can’t guarantee the user’s card will be successful the second or third month in, I need the push notification support.  Currently even Paypal offers this on a per-transaction basis, and they provide one-time transaction support (which we’re using on SocialToo).  White label is also critical for maximum fulfillment (something that was next on my list for SocialToo).

However, at $199/month, I just can’t guarantee my sales will always be enough to cover that, pay for hosting (already near $1k/mo), cover maintenance, design, and other costs of supporting the site.  It’s simply too expensive for a site still in the early stages trying to build enough revenue to make something significant.  Considering most businesses are bootstrapped in this manner and not paid for through VC money, this may be something Recurly wants to reconsider.

So, considering, I am now forced to look back at my options and I will probably be considering implementing my own solution now through a service like Paypal or perhaps something native through Authorize.net or similar just like I’m doing on the one-time payments.  I really hope Recurly reconsiders on this.  Their previous plan made it so easy to set up a recurring payment plan it was the obvious choice.  I am stuck looking for more.

You can read the e-mail from the CEO of Recurly here.

I’m opening the books tonight on my company, SocialToo.  I’ll be presenting tonight at Launchup, an event compared to be a “community barn raising for entrepreneurs”.  The event happens every couple months and has featured such Utah companies as TodaysMama (whom I am an Advisor) and Entice Labs.  The idea is to allow each company a short time to present (I have 7 minutes), expose themselves in as transparent a manner as possible, then let the community ask questions and provide advice and help in helping that business grow.

Tonight I’ll be sharing all the details most businesses won’t share about themselves with SocialToo – yes, it’s a risk, but I am a big believer in transparency. You’ll hear about how many users we have, how much revenue we’re bringing in per month, where I see our weaknesses and strengths to be, etc.  I’ll show you a demo about how you can get set up with a SocialToo account and DM spam filters for Twitter in under 2 minutes with just the click of a button.

This week Launchup will also start bringing these entrepreneur features to the world with Ustream.  You can watch anywhere in the world on Ustream at http://www.ustream.tv/channel/launchup or on the main website at http://www.launchup.org/live.  The event starts at 6pm, and will also feature presentations by MuseBuzz and PageMass (which I got a demo of yesterday – I think bloggers are going to like this one).  Launchup is organized by Jeremy Hanks, CEO and founder of Doba.com, another Guy Kawasaki Advisorship company (as is SocialToo).  Come join and say hi!

You can read a brief Q&A I did for them at http://www.launchup.org/2009/11/09/socialtoo-qa/.

Those like myself that live in Utah know there is a thriving tech startup community here.  From early startups like Omniture, Freeservers, and Wordperfect, to newer ventures like SocialToo, TweetBeep, TodaysMama.com, FusionIO, i.TV (previously number 1 in the iTunes app store), and FamilyLink (the makers of the Facebook App, We’re Related, one of the top 5 apps on Facebook) there’s no shortage of innovation in the Tech community in Utah.  Add to that some very talented investors like Bryce Roberts, co-founder of O’Reilly AlphaTech ventures, Peterson Partners, and the entire Sorenson Capital and vast array of angel investors and private equity options available, there’s no shortage of innovation and capital to support that innovation.  Unfortunately though, money and innovation are only part of the equation.  A company needs eyes.  It is extremely difficult to grow a tech company without the attention of Silicon Valley and the technorati out there.  So why is it that we so rarely see Utah companies in TechCrunch, or Mashable, or Gizmodo, or ReadWriteWeb even?

What amazes me is the vast amount of attention Boulder, Colorado startups get.  I think they know how to generate news, because the main “incubator” for lack of a better term) of those companies is Tech Stars, and Tech Stars has an amazing success rate at cranking out fairly successful companies in relatively short amount of time.  But I really don’t think Utah has any shortage of tech startups in similar timeframes when compared to Boulder.  In fact, our startups in many ways have shaped the internet (University of Utah was one of the first 4 nodes of the internet, after all).  On FriendFeed, I compiled a list of all the tech startups that either started in Utah and are now flourishing, or that are brand new and working to get off the ground that I could think of – this is what I came up with:

• Omniture
• Freeservers.com
• Mozy
• BackCountry.com
• SocialToo.com
• JibberJobber.com
• Doba.com
• FamilyLink.com (creators of the We’re Related app on Facebook)
• Generations Networks (formerly Ancestry.com)
• Wordperfect
• Bungee Labs
• FusionIO (where Steve Wozniak currently works)
• PerfectSearch
• TodaysMama.com
• OurStory.com
• Zagg, Inc. (makers of the Invisible Shield products, also keepers of one of the largest iPhone app directories)
• Kynetx
• Sorenson Media
• SCO
• BlueHost
• i.TV
• Move Networks
• TweetBeep

Of course, that list is just off the top of my head – there are many more that I’m sure will come up in the comments.  I look at this list of companies, and I look at the bustling activity of jam-packed rooms full of people at iPhone dev garages, Social Media developers garages, Tweetups, Social Media Club meetings, Launchups and more, why in the world is Utah having such a hard time getting into the tech Press of Silicon Valley?  Utah has a serious tech PR problem, and I’d like to help fix it if I can.

So why the PR problem?  Well, for one, correct me if I’m totally wrong here, but I’m not aware of many Tech bloggers in the area visible in the Silicon Valley scene, with over 1,000 subscribers that can get the word out easily.  I’m aware of three right now, please correct me if I’ve missed you: Matt Asay, Phil Windley, and myself.  Are there any more?  I think this could change if more people in Utah focused on technology in their blogging.  I’ve noticed a trend in Utah recently of many bloggers completely giving up on that, and it’s depressing, personally.

Secondly, of those 3 bloggers (sorry Matt and Phil – you’re going to hate me after this, I know), we’re not getting pitched by Utah companies.  The majority of my blog audience right now, as you can see, are Silicon Valley, and states outside of Utah.  Chances are that if you’re reading this you’re not even in Utah, and I think that’s sad, personally.  Utah has a huge opportunity to get the bias of their local tech bloggers, which in turn could lead to TechCrunch mentions, TechMeme exposure and more, and they’re not even taking advantage of it.  If you run an Open Source company, you should be pitching Matt Asay to write about you in his Open Road blog on CNet.  Phil Windley is also very interested in that (as am I, occasionally), along with interesting startups and people for his IT Conversations podcast.  If you’re building a social, real-time, or otherwise just plain cool tech startup you should be pitching me to write either here or on LouisGray.com, where I occasionally write.

The darker states represent the higher traffic areas to StayNAlive.com

If you run a tech startup in Utah, money is hard to come by these days.  Exposure is easier than you think though.  If you’re hiring an expensive PR company to do this for you, you’re doing it wrong.  You should start by pitching locally, then if that doesn’t work (sorry, like an investor, bloggers have to turn down pitches as well), get on Twitter, build an audience, and most importantly, start your own blog.  If you ever want any advice in doing that please don’t hesitate to contact me.

There are hundreds, if not thousands of new startups in Utah right now.  I don’t know who you are.  There are hundreds of tech bloggers in the area, I’m sure, which can easily build an audience and help these startups.  I don’t know who you are.  I’m not sharing this to boast of my own subscribers, but rather to offer a call for help.  Utah, let’s work together to let Silicon Valley know we’re out here.  I think if we do it right, we could, and should, very well be considered the next “Boulder” of the MountainWest.  How can I help Silicon Valley know more about you?

If you live in Utah, or run a business in Utah, let’s retweet this around so we can help each other out.  Please be sure to share it with your friends.

Awhile back I was Tweeting to Jeremy Hanks, local business owner and CEO of Doba.com, a direct-ship solution for small businesses, suggesting the idea of doing monthly entrepreneur/bootstrappers breakfasts here in Salt Lake and Surrounding areas. It was an idea I took from some out in San Francisco intended for entrepreneurs to meet and share ideas with each other, and build community and help with each other. Jeremy, who bootstrapped the very successful and profitable Doba.com himself, mentioned he had a better idea, and soon after announced a really neat concept that I think could really encourage the local entrepreneur scene here in Utah to take off.

The concept is called “Launchup“. When I spoke with Jeremy, he compared the idea of Launchup to a “community barn-raising for entrepreneurs.” Jeremy, a very down-home, outdoorsy guy himself, shared the story of how in olden times communities would hold “barn-raising” events where the entire community would get together and help out the one Farmer who needed a barn built. They would often have the entire barn, with the help of every member of the community, built within a day. Those not involved would often be outcast – it was simply a responsibility of everyone in the community to help out that one businessman/farmer. This fits right in line with my “Small Community” concept I often talk about in my presentations.

Jeremy also talked about his inspiration from President Obama, who he quoted, saying in his Inaugural address, “…it has been the risk-takers, the doers, the makers of things…who have carried us up the long, rugged path towards prosperity….a willingness to find meaning in something greater than themselves.” It was from this that Jeremy’s concept, Launchup.org was begun.

The idea of Launchup is simple. Get a whole bunch of entrepreneurs in a room together. Have 2 or 3 entrepreneurs present their companies to the group. Get free feedback, ideas, and suggestions from the other entrepreneurs. Jeremy calls each of the entrepreneur sessions, “Barns”, and he’s really embracing Social Media to try and promote this. All sessions will be broadcast live to the entire world via Doba’s own live broadcasting equipment (I expect this should be good – Jeremy just spent a couple weeks in India while running his company), and all can participate, whether you live in Utah or not. In this case the community raising the barn is not only Utah, but the entire Social Mediasphere itself.

On Twitter, you can chat about it with the hashtag, #launchup. I’ve talked to them about Ustream, and I think we’re working on solutions around that as well as Facebook and other platforms to ensure all can participate and share with friends. As a real-life community event, this is the essence of what Social Media is about.

The next Launchup, Wednesday (today), will be very interesting. There are 2 local startups that will be presenting. TweetBooty will be talking about “a new way to access amazing discounts and giveaways from qualified local retailers.” Entice Labs will be talking about a technology that connects employers with these “passive candidates” by placing relevant and enticing career opportunities directly in front of them. The event will kick off with an “Amp Session” with a quick presentation by Ben Peterson, who founded MingleMatch.com, and sold it in a matter of years to Spark Networks for millions. Each presenter only has 15 minutes to make their case for the audience.

This should be an interesting event for all, and knowing Jeremy (and myself being somewhat involved as well), I fully expect the most interesting startups to all be part of these. If you’re a local, I expect to see you in person there. If you’re a blogger, early adopter, entrepreneur, or just like to see cool new and interesting projects, and want to participate in helping other entrepreneurs do better (Scoble and Louis, we’d love to see you in the chat and live stream!), come join us this evening.

The Launchup event starts at 6pm MST, March 25th. You can come in person to the Doba offices at 1530 N Technology Way, Orem, UT 84097 – Canyon Park Technology Center Building D, or participate online by going to http://doba.acrobat.com/launchup1/. Be sure, especially if you will be there in person, to Tweet “I’m going to #LaunchUp, are you?” in order to RSVP for the event. If there is a Ustream for the event I’ll Tweet that out tomorrow as well. Come join us!

I’m very proud and excited to announce that Louis Gray, my publisher and fellow-author at LouisGray.com, will now be part of my company, SocialToo.com’s, Board of Advisors and helping us to further build out our strategy in the near and long-term future. Louis comes from a strong PR and marketing background, and when not blogging, he works in corporate marketing and public relations for a private Silicon Valley technology infrastructure company, and is an advisor to ReadBurner, Inc. Louis is a UC Berkeley graduate, holding a degree in Political Science and Mass Communications. He’ll serve as a great help in building out strategy for SocialToo, which I believe is a tool for Marketers, to a mass audience.

Louis approached me with several great ideas which I hope we can implement soon, and which we’ll be working to integrate into the already rich set of tools which SocialToo provides. His transparency in what he does I think will serve well in keeping us a responsible participant in building tools that work to meet the needs of all users on social networks our users belong to. Louis himself has quite the following, and has introduced the likes of Robert Scoble and others to FriendFeed – I’m sure you’ll be seeing more from us on that service now with him on board, especially as we branch out to other services beyond Twitter.

Louis was first to recognize and report TweetDeck, the now extremely popular Twitter Client. He was first to cover Social Median, which recently sold for several million dollars under a year. He’s covered many other very successful services and clients, and he’s one that knows a successful company when he sees it. I’m very honored and excited to have him on board, and plan for much, much more thanks to his advice and involvement in SocialToo going forward. Welcome, Louis!

Just a quick update – I’m posting my Ignite presentation below, dubbed with audio this time. It should be a great primer to get you started in Facebook Development. Also, scroll down and you’ll be able to listen to the panel I joined at Global Entrepreneurship Week Utah 2 weeks ago.

Here is the GEWUtah Panel (taken from http://www.utahpulse.com/featured_article/unleashing-ideas-conference-viral-marketing-secret-weapons-a-down-economy-panel-dis):

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

This image is a Gas Station from the times that my parents and grandparents grew up. You’ll notice that there are glass cylinders on top of each of the gas pumps giving a glimpse into what’s inside. Those aren’t lights, nor are they crazy bug zappers. They are a symbol of how honest that gas station is.

My Uncle explained to me his memories of these:

“First a valve would open to fill the glass cylinder (about 5 gallons). That proved they weren’t cheating you. Then another valve would open and the 5 gallons would flow down the hose into our tank. This would be repeated as needed.”

Nowadays, in a world of computers and binary calculations, it’s easy to just let the computer do the work for you. They’re pretty accurate, and hey – nobody shares their statistics any more. You don’t need to share that data. After all, you know you’re being honest. But do your customers know you’re being honest?

Some times it’s easier to keep our honesty secret and trust the computers. However, your customers will be happier if you follow these Gas Stations’ examples. Go transparent, open up the blinds, and be sure your customers have no doubt in their minds that you’re being honest. Wouldn’t the world be a much better place if we all felt pressure to expose our honesty, rather than hide it?

I mentioned earlier I was going to announce a big change this week. I’m “on the move“, as Jeremiah Owyang would put it. Today was my first day working full time at a new Silicon Valley startup with offices here in Utah, where I will be leading their Social Product strategy moving forward. I am phasing off my regular consulting, and moving to this new Entrepreneurial effort in helping them grow.

At the moment, I can’t reveal much more, other than the fact that we’re building the next era in Interactive Entertainment on the iPhone. The company I’m working with right now started out as a client of mine, and I liked their product so much I decided it would be worth helping them out full time. I believe fully that we are going to change much of the way you watch TV today. We will be launching most likely next week, and you can follow the Twitter account @MediaMyWay to catch our launch announcement and follow our updates (I’ll also point you there from my Twitter account when we launch – we’ll announce it there first!). Other Twitter accounts you can follow for updates and “clues” are @JustintheWhitt, @Romay, and our CEO, @BradPelo.

How will this affect the other stuff I do? In reality, not much is changing, other than what I do full time. I have received permission to keep SocialToo.com going part-time, as it has, unless it takes off. Expect some very cool things to come from SocialToo in the near future – we’re working on a completely new design and a really cool new feature that will be released in the next couple weeks.

As far as my blogging and book-writing is concerned, I see nothing changing, and I intend fully to continue blogging regular, unbiased articles that I feel inspire and educate. I will disclose where necessary if I feel my current employment has any influence in what I am writing. I still hope to continue writing in other capacities as well, as long as speak as I’m asked to do (I’m speaking in Dallas next week to the Dallas Chamber of Commerce, in fact – come see me speak!).

So, keep watching the @MediaMyWay Twitter account, and you can also follow this blog and I’ll be sure you’re aware of the latest of our happenings (we’ll have a company blog here shortly, which I’ll let you know about). In the meantime I’ll keep posting regular, educational, and original content as I always have and always will. “Stay” Tuned!

A friend of mine, Ali Akbar (@aliakbar), has made me aware of an interesting development going on with the domain he bought, googleappsengine.com (note the “s”). When he bought it, he approached me asking if I would be a blogger for the site, with intent to blog about Google App Engine news and announcements on the domain. He seemed quite excited about it, and, as a fan of Google App Engine, saw this as the perfect domain to write under since Google didn’t seem to be using it.

On Friday, without even time to set up the blog he was intending to create, Ali received the following very generic letter from Google (which he shared with me), asking him, in a very bullied fashion, without any offer to even make it right, to surrender the domain or face legal consequences:

Dear Sir/Madam:

Google is the owner of the well-known trademark and trade name GOOGLE, as well as the domain name GOOGLE.COM. As you are no doubt aware, GOOGLE is the trademark used to identify our award-winning search engine, located at www.google.com. Since its inception in 1997, the GOOGLE search engine has become one of the most highly recognized and widely used Internet search engines in the world. Google owns numerous trademark registrations and applications for its GOOGLE mark in countries around the world.

Google has used and actively promoted its GOOGLE mark for a number of years, and has invested considerable time and money establishing exclusive proprietary rights in the GOOGLE mark for a wide range of goods and services. As a result of its efforts, the GOOGLE mark has become a famous mark and a property right of incalculable value.

You have registered, without Google’s permission or authorization, the domain name googleappsengine.com (the ‘Domain Name’). The Domain Name is either confusingly similar to or incorporates the famous GOOGLE mark in its entirety, and, by its very composition, suggests Google’s sponsorship or endorsement of your website and correspondingly, your activities.

Your use of the Domain Name constitutes trademark infringement and dilution of Google’s trademark rights and unfair competition. Your use of the Domain Name is diluting use because it weakens the ability of the GOOGLE mark and domain name to identify a single source, namely Google. Further, your registration and use of the Domain Name misleads consumers into believing that some association exists between Google and you, which tarnishes the goodwill and reputation of Google’s services and trademarks. Moreover, your registration and use of the Domain Name is also actionable under the Uniform Dispute Resolution Policy (‘UDRP’). Under similar circumstances, Google has prevailed in numerous UDRP actions. These decisions are located online at www.icann.org/udrp/udrpdec.htm.

In view of your infringement of our rights, we must demand that you provide written assurances within 7 days that you will:

1. Immediately discontinue any and all use of the Domain Name;
2. Take immediate steps to transfer the Domain Name to Google;
3. Identify and agree to transfer to Google any other domain names registered by you that contain GOOGLE or are confusingly similar to the GOOGLE mark;
4. Immediately and permanently refrain from any use of the term GOOGLE or any variation thereof that is likely to cause confusion or dilution.

Sincerely,
The Google Trademark Team

What???!! “You have registered, without Google’s permission or authorization, the domain name googleappsengine.com (the ‘Domain Name’).” So wait – now I have to get Google’s permission before I get any name that even resembles the Google trademark?

I am astounded at the bullyish nature of this letter, and to assume that anyone that buys any name even resembling the Google trademark to be a violation against their trademark name. Google clearly hasn’t been very good at defending this in the past – just searching with their own search engine, I’m finding tons of examples of sites using the Google name in their own domain name (yes, I “Google’d” it):

googlefight.com
googlesystem.blogspot.com
googleguide.com
googlealert.com
googlerankings.com

The list just gets started from there…

Now, let me preface this with the fact that I am not a Lawyer, but I did learn this in Law class in college. The “Uniform Dispute Resolution Policy” which Google references can be found here, and in the document, it states:

c. How to Demonstrate Your Rights to and Legitimate Interests in the Domain Name in Responding to a Complaint. When you receive a complaint, you should refer to Paragraph 5 of the Rules of Procedure in determining how your response should be prepared. Any of the following circumstances, in particular but without limitation, if found by the Panel to be proved based on its evaluation of all evidence presented, shall demonstrate your rights or legitimate interests to the domain name for purposes of Paragraph 4(a)(ii):

  (i) before any notice to you of the dispute, your use of, or demonstrable preparations to use, the domain name or a name corresponding to the domain name in connection with a bona fide offering of goods or services; or

  (ii) you (as an individual, business, or other organization) have been commonly known by the domain name, even if you have acquired no trademark or service mark rights; or

  (iii) you are making a legitimate noncommercial or fair use of the domain name, without intent for commercial gain to misleadingly divert consumers or to tarnish the trademark or service mark at issue.

Based on Ali’s approaches to me, there was no intention for commercial gain, nor to tarnish the trademark or service mark at issue. I also have e-mail to prove his demonstrable preparations to use the domain in connection with a bona fide offering. Let me also add that my intention to blog for him was simply in my own support of the Google App Engine. I personally had nothing huge to gain from it other than possibly a little exposure from what could possibly be a good blog.

Let me also add that Trademark issue is a very different issue than the Copyright issue I mentioned before with the Mormon Church and Wikileaks. That issue was about Wikileaks knowingly stealing the content owned by the Mormon Church and using it for unintended purposes. This issue is simply about using the Google domain to further promote Google and its properties. Ali had intent to do such, and with my limited knowledge he should have every right to do so.

What if Facebook were to go after my other blog, FacebookAdvice, or even the book I co-wrote, “I’m on Facebook — Now What???“? What about my friend Nick O’Neill’s AllFacebook, or my other friend, Justin Smith’s InsideFacebook. What about my other blog, OpensocialNow? Does this mean I’m the next target to be bullied by Google?

Of course, GoogleAppsEngine.com isn’t my domain, and I don’t know what would make Ali feel better, but my suggestion to Google is to apologize to Ali for such a rude and inappropriate letter to what may be one of their biggest fans, and make right with him. How about, instead of threatening to take it away from him, offering him at least some swag and a little money for the domain? Come on Google – let’s not be evil here. I know you’re better than that.

As for Ali, last I heard he is not backing down. It’s a David vs. Goliath battle, but let’s hope Google can be a little better than Goliath in this case and just back down a little.

What do you think? Am I wrong on this issue? Is this just the same as the copyright issue I mentioned earlier? I’m very interested to hear your thoughts – this seems very unfair to me.

Photo courtesy http://mathmath-ecomm.blogspot.com/2007/11/google-is-useful-but-worried.html