Category: Business

The Big Fat Geek’s thoughts on Business and how business processes can be automated via workflows and technology.

Don’t hire dogs

Prasad Ajinkya6 Comments

Dog’s are a man’s best friend. They are considered as faithful, loyal and will always be there to lift you up. A dog will fetch things for you and do silly tricks such as sit, roll over, etc.

In different companies, there is one such breed of employees. Don’t get me wrong, I am not objectifying people, and this is an analogy, if anything. So this breed of employees … they behave in the exact manner like dogs.

They are generally taken from the street or from the wild, they do not have any formal skill set with them. It’s probably because of this reason that they are extremely loyal to the company. They are willing to go the extra distance and spend more time in the office working unrealistic deadlines and striving to satisfy their masters.

Obviously, who would want to say no to such employees! Right?

Well, wrong!! Change is the requirement of all organizations, especially the small ones and the ones which are growing at a fast pace. The problem now magnifies is because you can’t teach an old dog new tricks (yes, I wanted to work this cliché into this post!!). Any organization that is growing at a fast pace (60% – 100% growth YoY) would require such a huge influx of talent, that the loyal dog would now be forced to question his erstwhile unquestionable value in the company.

This is the risk, and it’s a huge one. Why is it a risk? Because at some point in the founder’s life, this loyal employee has done a favor and worked in ridiculous conditions. Now that the dog is tired and cannot do anything new, it has become a liability for the organization. Not only does it sadden the person, but the organization cannot put this figurative dog to sleep.

So if you are an entrepreneur or about to start your firm, do yourself a favor and do not hire dogs.

Addendum

Arjun Bakshi writes –

This phenomenon is not restricted to start-ups:-) Most “Big” organisations are not very different.
I feel HR / Organisations are lazy and want the easy way out. Have a template of qualifications and experience required to hire, short-list such people thru employee referrals and employment consultants and then hire them.
Why take the risk to hire people outside the template and take efforts on them?
In case you follow sports, the recent example of Jeremy Lin is a very good example of the malaise which also exists in our hiring practices. I am sending just one of the millions of articles on him. I think, Malcolm Gladwell also has a few artcles on a similar theme.

CRM is the new website

Prasad Ajinkya5 Comments

Back in 2000, the dot com market in India was booming. Every company who wanted to have it’s presence online was scrambling to find domain names, hosting, email solutions, etc. Companies such as Net4India sprung up and came up with offerings with ridiculous prices (some of these offerings still exist to date!). Executives bought these websites thinking that somehow building a website would translate into revenues. In fact even today, the average “Indian IT company” continues to dole out development costs of websites propelled by content management systems (CMS) to be around 5-6 lakhs. If you are lucky, then that figure can go as high as 14-15 lakhs :-) !!

What was the mistake then?

The single minded assumption that building a website will translate into revenues.

I still see folks who nurture this piece of ticking bomb waiting to explode and set their businesses to ruins. As a result, all derived-demand business also went bustville. It took a fair amount of years to clear the damage, and come back on track.

So why bring this up Now?

These days, whomsoever that I am talking (and you can include me in this list as well!!), is thinking about having an online enterprise. A sweet setup, where the person can run a business irrespective of where this aforesaid individual is. There are more than a fair share of success stories around, and these people have become heralded role models.

Yes, the online dream can become true. Yes.

Feels good to hear these words, don’t they? These days I am seeing a lot more structured approach, newsletters, opt-in forms, CRM systems, mass emailing systems, affiliate management systems, advertising networks, etc … the systems are all there. People just need to start using them and start churning the proverbial money mill.

But …

Back then it was IT firms, now I am seeing a large growth of Digital Marketing firms. It’s the same plot, just the players are different now. Organizations are again back to setting up websites, now with complex marketing and sales systems. But how are you doing in terms of sales? Is the juice worth the squeeze?

If you do own a website, could you share with me what are the plans that you are thinking of to generate sales? Are you creating value to generate those sales?

Starters guide to SEO

Prasad Ajinkya4 Comments

One part of my role at Pristine is building up the site traffic, be it via Paid Advertising, Referral traffic or via Search Engines.

Anyone who has indulged in Paid Advertising would know how expensive it can turn out to be if you do not know what you are doing. It can be very effective in the short term, however for long term and more sustainable results, relying on non-paid search results is far better. Hence SEO or Search Engine Optimization.

The problem with SEO is that almost everyone who has a website think that they should do SEO, and SEO is playing around with meta tags. Seems simplistic no? In the past month or so, the amount of people whom I have talked to regarding to SEO has shown how less people know about the workings. Add to it the complexity of the ever-changing algorithm of search engines such as Google, Bing, etc.

The idea behind SEO is to target specific keywords for specific pages on your site, so that when your target audience searches for those keywords, your site shows up in the search results.

Here are some tips which I would have appreciated when I started off. Please do keep in mind, that I am no self-professed expert in SEO, just that like all of us around here, even I am learning, and this post is one such humble attempt to share whatever that I have learned, and what I know works to get results. Having said that, I know it would help all of us if you could point out any errors that i have made, or make suggestions and provide additional tips!

  • Read up on your meta tags, some of them are useful. Make a note of the description and author tags, you would be working with description the most.
  • Do not target more than 2-3 keywords per page, since you have to use that keyword in all the different important sections of the page viz., description tag, title tag, h1 tag, main content, etc. you cannot really target 1-2 keywords without damaging the copy of your page.
  • If you are working with a tight budget, then use a free tool such as Traffic Travis, the demo version is free. If you have a decent sized budget, then I would highly recommend Pro SEO MOz, it not only has a very comprehensive SEO tool, but also it has an extensive knowledge base on SEO
  • Search Engine’s maintain the authority of websites, this is generally a factor of how well you write, and how many sites are linking to your content. Google especially is one search engine which rewards regular content creation, in fact the current search algo (don’t know why its called the panda update) also favors freshness of content. So the same page would rank higher if it were regularly updated.
  • Always look at the different search terms via which people are coming to your site. Those are essentially content creation triggers!
  • Many people swear by backlinking, citing different open directories to publish your site links. However, I am skeptical about this approach. The one thing I use this approach for is to check where are my competitors linking, and get my presence their as well. I think if you can create good quality content, then it will automatically fetch the backlinks that you require.
  • Search engines are also influenced by social behavior, so typically the search results shown in Google would be influenced with what your friends are sharing on your social networks. E.g- If I share this post on say Twitter and if you are following me on Twitter, then you would definitely see this as a search result!
  • SEO is a long drawn game, and it requires patience, practice and discipline. Do not expect magic to happen, it’s a slow and gradual process and does not happen over night. To hope for such miracles, either you need to be Larry Page or Steve Ballmer.

The Blue Nothing Digest

Prasad Ajinkya4 Comments

The internet is virtually an infinite source of inspiration, great news, stupidity and entertainment. I thought that I might share some gems which are either relevant to me, or which I think you might find interesting.

  • It’s been a month that I have been a father of two, oh, we are going to name him Malhar!
  • Hilarious sledging of Delhi boys, by a Madrasan (damn, that post has generated 2.3k comments in a week!)
  • My organization got funded last week, by the very firm which funded some awesome products such as Facebook, Bittorrent, etc.
  • The Big K from CrazyEngineers embarks on a Journey of a Lifetime

Oh, in case you are wondering what the heck is Blue Nothing, it’s a term I read in one interesting novel on Social Engineering (and it’s evils). The internet is the Blue Nothing!

Economics of Gold farming in World of Warcraft

Prasad Ajinkya2 Comments

I have been playing World of Warcraft (WoW) for over a year now, and I am thoroughly enjoying the break it provides over the weekends. It’s a great product and has been running for the past six years or so. Blizzard has done a real good job there, especially in capturing the player versus player interactions (PVP). One such place is the auction house (AH), wherein players can buy and sell items offered by other players in the virtual marketplace. In fact, the concept of auction within its games have been so popular that Blizzard has decided to include real currency in it’s beta version of Diablo III.

But, other than the in-game auctions, a surge of enterprises have sprung up around the game, right from WoW based clothes, to power leveling services (which I think are pretty pointless! If you want to play only the end-game content, then you are missing out on a lot of good content and not to mention the lore!!). That brings us to this post’s topic, ever since 2006, people have realized that players will be willing to pay up good money to buy virtual currency. That’s where a horde of enterprising gamers realized that they can make their game-plat profitable, and even into a scalable business enterprise. This is called Gold-farming.

How it works

Whenever you complete a quest in WoW, or sell any item to a Non-Playing Character (NPC), or sell an item on the AH you get paid in the virtual currency which is Gold pieces. The higher your level, the more gold you get. A dedicated player who plays the game for 8-10 hours can easily collect 3000 gold pieces a day (there are players who make higher as well, as high as 3000 per hour!!). You put 3 different people to do the same thing and keep farming and you have a gold generating machine. Currently (in the year 2012), a 1000 gold pieces are selling for USD 2.7 (roughly 120 INR).

I know it’s not much, but consider the fact that you have to pay USD 15 per month per account. Now you make around USD 27 per day per account. That’s approximately INR 35k per month. A gamer who is farming, will get paid around 6k-8k per month, leaving a profit of 10k per account.

Where

Obviously, one major assumption I have taken over here is the gamer remuneration. This salary will only work in places where the cost of labour is low … namely third world countries. In fact in China, one prison was making the prisoners farm gold all day!!

Threats

Now, all was hunky dory at the start, but there is a teensy-weensy problem here. Laws of Economics.

ecoConsider this graph, those are the demand and supply curves. As the quantity available for the same demand increases, the price that people are willing to pay for that good goes down, and vice-versa that as the quantity available for the same demand decreases, the price that people are willing to pay for that good goes up (since its going to be rare!!).

Now apply this to the gold farming business in WoW. Over the years, the number of people playing the game has seen upswings and downswings (in fact with the recent release of Rift, it has reduced quite a bit). Hence, the demand has actually gone down.

Also, the amount available/supplied is ever increasing … what I mean is that since its virtual currency, there is no limit to it. In the real world, the total volume of gold is 300673 cubic feet, but in WoW the virtual gold is infinite. You can farm as much as you like, its not going to be depleted. EVER.

What that means, is that over a period of time, the price of the virtual currency is going to drop. I did some searching, and this is true. The price for 5000 gold pieces in WoW in 2007 … was a maidenhead. Now, its just 600 INR :-).

Not a sustainable business, this gold farming thing no? I wonder what that girl must be feeling now that those very epic mounts are being sold within WoW for 80 Gold a piece.

Well, there’s always the dragon mounts.

Will you advertise with this site?

Prasad Ajinkya3 Comments

I was checking on my list of target keywords on Google for both SEO and SEM, when I chanced upon “CFA Hyderabad” where we are doing good on both the paid rankings as well as the organic rankings. When I was checking the ad, I noticed that one of the ads was by olx (in case you do not know about this site, do not bother to find out!).

They have recently started advertising in a heavy way (even on TV as well).

Buying advertisements so you could sell your advertising platform? Really? Is that how effective your platform is, that you have to pay to get traffic?

Or are you just trying to siphon off traffic from one of the market leaders?

In fact not quite sure whether they are directly in the advertising space, somewhere between Craigslist and e-Bay. I still wonder, why will anyone pay good money to put advertisements on this site?

Valuation of Tanishq Gold Harvest Offer

Prasad Ajinkya4 Comments

If you are in India and watch Television, then you surely must have watched this ad –

 

 

The ad is targeted towards working women who take charge of their lives and planning their future on their terms. The ad which is timed brilliantly is launched in sync with the India International Jewelry Week, talks to the right sentiments, however the product itself is questionable.

Tanishq Gold Harvest Offer is a scheme where one has to make 11 monthly payments and at the end of the year, you get the same value in jewelry. At a first glance, I thought that the financial returns amount to roughly 8% of the investment. Turns out that I had valuated it in the wrong way from the start itself, the formula to be used should have been XIRR, and it gives a 15% return.

Jyothi, our resident content creator then pointed out that it’s a loss making investment. Consider the inflation of gold (or the Indian Rupee for that matter) over the period of one year, and you end up with a loss-making product. Average Indian Consumer, beware of this product!