Guy Kawasaki's start-up Truemors debuted last month to mixed reviews. The site, designed to combine gossip with social networking, was beset by spam, and many doubted whether there was a viable business model.
Now Kawasaki, who came to fame as an "evangelist" for Apple has broken down exactly how much time, effort and money it took to set the site up. As it turns out, he says, for $12,107 and 7.5 weeks of labor, you too can have a Web 2.0 business.
Kawasaki says the point is that new technologies have made it that much easier to start a business. "No entrepreneur can tell me that he needs $1 million, four programmers, and six months to launch this kind of company. With products like WordPress, MySQL, and Salesforce platform, things are a whole lot cheaper and easier these days," he wrote in his blog.
But others say that the site was coasting on Kawasaki's name and that the breakdown doesn't really work for unknown players.
Blog community response:
"What really bugs me is that I'm not sure Guy has created anything at all--at least not anything of value--and therefore the entire thrust of his post is completely undermined. What he should really be saying is 'How I Wasted $12,107 On a Site That Serves No Purpose.'"
"He isn't shy about pointing out his long term pay it forward plan and the stating of the obvious when it comes to his popularity and the advantages it brings. You probably don't have this popularity, so plan on a few bucks to get above the noise and assume Techcrunch is going to ignore you. And because you aren't him, have somewhat of a plan regarding how you're going make some coin on the gig."
--The post Money Value
"There is one lesson that may have come out of all of this. When you spend several decades building up a reputation in an industry, it's perilous to cheapen your brand with unplanned, get rich quick experiments--especially when the core of your business is telling tech business people how not to make the same mistakes we saw over and over again during Web 1.0."