WidgetLaboratory

A LAB member asked us the following question today:

I learned that PayPal does not allow transactions for sexually oriented digital goods. What plans does WL and SG have to make it possible that adult social networks on SG will be able to monetize?

This provided us with a little excuse to rant-on about our favorite topic... MONETIZATION. Our answer to him is below:

While PayPal does not allow use of their product to directly sell digital goods, it does not currently prohibit the creation or use of a subscription widget that is universal in nature and allows one to control access to a website. Therefore, for social network subscriptions... PayPal still appears to be a viable option.

Whether PayPal would choose to go after individual sites that contain adult content and who chose to utilize such a subscription widget/tool to control access to their site... well.... this is still a grey area, and their actions to date seem to indicate that they have a "don't ask/don't tell" attitude. Who really knows?

We're at a crossroads in the Internet World between the Puritanical fairy-tale of the old-school overlords such as Google/Ebay and the reality-check of recessionary forces that will bring the necessity of monetizing adult content into the mainstream. As I recall, Prohibition in the US was a failure because everyone figured out how to sell booze illegally and the government finally realized that it was more profitable to tax the hell out of liquor sales than it was to try and prevent or stop it. We're pretty confident that PayPal and Google, et al, will also "wake up" to this reality as well... just give them one or two breakout competitors in this field...

Speaking of which: Don't believe for one minute that PayPal is the only fish in the sea. There are dozens of other payments methods that can (and might) be made available to work on SocialGO as well as in WidgetLaboratory's secret "Project X"...

Besides the well-known adult gateway services such as CCBill, there are also numerous Cell Phone, Home Phone, Pre-paid card, Virtual currency, and other methods for accomplishing the monthly subscription as well as the up-selling of goods and services on a social network (or on "Project X").

All it takes is to be brave, bold, logical and creative.... all the things that are presently GONE from Silicon Valley during what we are calling the "MUSICAL CHAIR GAME OF 2008". This is the moment that all the sheep have looked at each other and realized that they never HAD any business-model, because the Freemium model was always a giant Ponzi scheme. All of them have been hoping to get bought out before they ran out of cash or were discovered to be without a clue on how to run an authentic business based upon economic reality.

Consumers today want what they've always wanted, and will pay a reasonable amount if you give it to them with low or zero friction. You can have a barrier to entry for trolls and scammers, without causing hardship on your true customers. This is the magic formula that has been available for thousands of years to anyone with eyes to "discover" for themselves.

A baker makes a loaf of bread that costs him 10 cents, and he sells it hot from the oven to you for a dollar. You gladly pay for it on the walk back from the train. Why? Because even though you could bake it yourself, it is easier and faster and tastes better to pay the 90 cent markup than it does to go to all the trouble of figuring out how to make bread and your time is worth the savings as well. IF the Baker offered you FREE BREAD with the hope that you would read the AD that he burned into the side of the loaf, you would either think he was insane and poisoning the food, or your would simply ignore the marking on the crust and keep on eating free bread until he went out of business. Either way, FREEMIUM is a FAIL.... but the low barrier and ease of purchasing a quick dollar loaf of bread is completely easy and attractive to both the customer and the baker. The other benefit is that it ALSO keeps the riff-raff out of the bakery... because they can't simply come in and beg for free bread all the time or grab a dozen loafs and go out and try to re-sell it for profit to unsuspecting victims down the street who don't realize that it came from the FREE Bakery.

WidgetLaboratory is very proud of these graphs

Since mid-October, when our contract was announced, WidgetLaboratory and SocialGO have been transforming the notion of a social networking platform.

Even with the explosive growth shown above, the SocialGO team has kept the network online throughout the entire BETA period, and even increased speed and capacity.

With the pending release of the Drag and Drop Layout Manager, 3rd Party Widget Store, 18+ Networking Package, and more....WidgetLaboratory is VERY excited about all that we have planned for you going into 2009.

We're receiving reports now that many adult site owners have been given FTP download instructions that allow them to offload their content from the Ning data store to their own hard drives. Each network creator has been given a unique log-in and password in order to obtain their own site content. We are now testing this process to see how it works, and to see whether there will be a way that we can assist all of you in bringing your content over to SocialGO in an automated way.

Ning has made it clear to 18+ Network Creators that they have until January 1st to remove their content before their networks are shut-down on Ning. They have simulaneously made it clear that January 15th is the deadline to download 18+ network content from the FTP server.

Translation: Your 18+ networks will be inaccessible to the public as of the 1st, but you can still get your content (in the blind) until the 15th.

The details of Ning's announcement are troubling. Here are two questions for Ning:

1) If an 18+ site owner is going to have their site shut down on January 1st, then does it really matter that you can download content through the 15th? Unless the network creator has had ample time to re-establish their network on SocialGO (or elsewhere), then there will be as much as 15 days of "downtime" where no 18+ site will exist or be accessible. Why not just give them until the 15th before you shut down their networks since you only "just" gave a method to extract the data... merely two weeks before shut-down day;

2) Since Ning is offering full access to the content of 18+ networks, doesn't this imply that they are also providing full access to ALL NETWORK CREATORS?  If I were the owner of a non-adult network on Ning, I would certainly feel that I'm entitled to access my content as well. After all, my network is NOT going to be deleted from Ning, and I continue (potentially) to pay a premium fee each month. Don't I "also" deserve the right to backup and have a local copy of my content?

3) We are finding thusfar that Ning is not providing full content to all those who request the same, and even when they provide an index file, they are not providing full meta-data (xml files) that would allow you to link any images or videos to the respective members who uploaded the same. Some people, on the other hand, are being handed full content, full metadata, and all files. Why are some people getting different treatment from Ning than others?

It is our position that EVERY site owner on Ning is entitled to their FULL content, not just 18+ site owners or those who complain the loudest. Access to your content has been Ning's promoted promise since day one. Now that they've demonstrated a viable method for providing access to the data, we encourage all Network Creators on Ning to request (demand?) that they be provided with the same level of privilege and service as that which is being granted to those folks who are being kicked-off the Ning platform.

WidgetLaboratory will be deciding whether to build custom import tools to help you bring over your full Ning content to SocialGO. We are asking all of you to help us determine demand for the same by posting your thoughts and comments here, or emailing us directly to help@widgetlaboratory.com.Please also let us know whether you have had any luck with getting Ning to provide YOU with access to your network content, whatever the subject matter of your site.

We've been doing our best at the LAB to help those of you who are still "stuck" over at Ning. Whether by providing our free migration tools, techincal help, or just moral support... we're there for you.

Unfortunately, many of you have learned that it is usually impossible to get out your content until, or unless, Ning cooperates by temporarily removing your 18+ warning page just long enough for you to run the photo migration tool. Thusfar, all of your requests have been met with a canned response from someone named "Jenny". She promises many things... but Ning has not yet delivered much.

Blue Boulder Male has written a blog post today that outlines his experiences thusfar with Ning and the migration experience. Makes for an interesting read.

Check it out HERE:

GET ON BOARD COMRADES... It's just like "Old Times" at the LAB

The product train is going to be leaving the station any time now, and you don't want to miss it!

The gloves are off, the word is out, and NOW it's going to get interesting!

We've prepared the LAB for battle against the "MYTH" that Social Networks can sustain themselves with Adsense ads and POKE-ME toys. Who would POSSIBLY build a BUSINESS on a platform that toted that as their primary feature and treated their customers like children?

You NEED a BILL OF RIGHTS and Service Agreements to feel SECURE that you are RESPECTED by your host and SUPPORTED in a way that isn't a DAILY SURPRISE that something new has been taken away from you. And you need POWERFUL TOOLS to build your own empire.

We intend to demonstrate definitively that Social Networking provides the perfect vehicle to create a MICRO-ECONOMY from a niche community of friends or associates. WidgetLaboratory and SocialGO have the platform and tools to deliver you financial victory.

WELCOME TO SOCIALGO AND WIDGETLABORATORY

Get a raincoat...because from this day forward, we are going to be unleashing a torrential downpour of information, video, news, releases, how-to articles, and more.

Those of you who are SERIOUS about MONETIZING your Social Network will find the LAB to be your ONE-STOP destination for all the answers, tools, and personal assistance you require, along with the written guarantees that you NEED to set up your permanent home.

Social Networking 2.0 -- ALL ABOUT THE MONEY

How does that old stand-up joke go...? "A funny thing happened on the way to building my network..."

Unfortunately, it just isn't funny today to be the owner or developer of a Ning site with hundreds or thousands of members, months of data, angry customers, and hundreds of hours of time invested. Since we believe that the Internet is a pretty amazing tool for finding EVERY LAST PUBLISHED STATEMENT and PROMISE of a corporate CEO, we have a question that we'd like to ask on behalf of the silenced Network Creators of Ning:

"WHY DID YOU LIE TO US?"

Ok, maybe "LIE" is too strong a word. Let us try something more diplomatic like... "Why did you tell us one thing for two years and then overnight DO exactly the opposite?". Maybe that reads or sounds better?

Unfortunately, we're afraid that no matter how you slice it, this is never going to be answered properly. Why? Because the answer is obvious.

BECAUSE THEY COULD.

Now that their Network Creators Forum has been removed and their Developer Forum has been Neutered so that the ONLY questions allowed involve how to create a Chuck-Norris-Kung-Fu-Poke-Me gadget using Open Social, there is really no way for anyone to question the KING Ning. All one can do is to blindly accept another promise from them that THEY KNOW what's good for you and will eventually get you that pesky data you were whining about.

Back in the good old days of August 2008, they had a sticky problem called "public scrutiny". Those days have been replaced by the magical discovery of the delete key, the IP ban, and the "removal letter".  It is now far easier to provide a public perception that all is well with their captives Network Creators because there is no messy problem of having customers share your dirty laundry with the world.

It is also very "convenient" to abandon more than Two Years of PUBLIC API  (REST) technology literally overnight on the eve of WidgetLaboratory releasing their FREE MIGRATION TOOL. Coincidence? Conspiracy? or just Obvious Motive? Much much easier to seal the borders of the Peaceful Ning Nation than to risk anyone getting out to SocialGO via the LAB with all that valuable data they YOU own...??

We're wondering whether anyone else feels that this 180 degree turn from their promises and the overnight border closure indicate a complete and utter CONTEMPT for YOU, their customers? Seems like any company that is trying to avoid a publicity nightmare might give some consideration as to whether their customers are so "timid" as to not hold them accountable? To think that they could get away with this and not have anyone call them out must take the mind of a "true" Evil Genius.

Mmmmm.... maybe it's time for me to give up the title to someone more deserving?

BREAKING NEWS! ... NING LOVES YOU SO MUCH THAT THEY'VE DECIDED TO KEEP YOU (forever...)

Rumor has it that, as part of this morning's "Surprise" announcement that Ning has completely shut down their (cough cough) "Platform" for customizing and building your own Social Networks, a special purchase has been made for all of you who were hoping to migrate your sites and members elsewhere, such as SocialGO. Guess part of that $100m had to be spent on something to accomodate the 537,000 inmates Network Creators?

(Good news...There's a Basketball court on the top!)

Remember, Ning has been advertising and promoting since way back in 2006 that you "own your own data" and can take it with you any time you want. Perhaps this actually meant "you own your own data so long as you take it from one side of your cell over to the other side"? Or better yet, maybe Marc Canter from Broadband Mechanics had called Ning out correctly on this from the start?

Either way, there is sunshine and kitty cats at the end of the Rainbow for all of you. None of you really thought that LAB was going to leave you hanging did you? What is that saying... "Fool me once, shame on you, fool me twice, shame on me?" Well, suffice it to say that the LAB has a full bag of tricks up our sleeve to ensure that YOU GET what you are entitled to have:

1. WRITTEN BILL OF RIGHTS AND RESPECT FOR YOU AND YOUR BUSINESS OR LIVELIHOOD
2. COMPLETE GUARANTEE OF CONTROL AND TRANSPORTABILITY OF YOUR DATA
3. MONETIZATION AND MICRO-ECONOMICS BUILT IN TO YOUR NETWORK
4. OPEN COMMUNICATION BETWEEN YOURSELVES AS NETWORK CREATORS AND YOUR HOST

We suspect that you will hear more of this from Ning today and elsewhere. Likewise, we feel that some very important news will be coming forward from other sources, including SocialGO, as to how they can ensure that Ning's contempt for you as their customers turn into a happy ending (not that kind).

Stay tuned to this channel for more breaking info...

I read this today and simply had to share it with you. It was written on September 22nd by Ted Dziuba (formerly of Uncov Fame) and published in The Register:

OpenSocial, OpenID, and Google Gears: Three technologies for history's dustbin

A poke is not a revolution

By Ted Dziuba • Get more from this author

Posted in Developer, 22nd September 2008 01:02 GMT