Web 2.0 Wiki Content for Startupping.com - Marketing ...

mexicanmorningData Management

Dec 16, 2012 (5 years and 7 months ago)




a) Funding

Funding a Web 2.0 is very similar to funding a conventional start
up business. Funding can come
from your own money, private funding from family, friends,
bank loans,
other individual investors
(e.g. angel investors), or venture capi

you plan to finance a start
up with your
own funds, these funds can come from a wide
range of
options such as
savings accounts,
401K plans,
credit cards, home equity and more. Financing
can also be a combination of these options, also known as “b
ootstrapping.” The benefit from
bootstrapping is that you don’t give up any ownership or control
of your business
to other
The disadvantage is that

you carry all the risk.

Drawing on
personal relationships to raise capital is typically done whe
n the business or business
idea is not

enough to get funding elsewhere.
This option is very common, but carries the
most risk
. I
f the business fails and the loans cannot be paid back, it can place your personal
relationships in jeopardy.
To protect b
oth parties, it’s

wise to have legal documents in place that
outline how the loan will be repaid and when it will be repaid.
The legal document
is usually

in the
form of a promissory


There are several different options for bank loans depending on you
r situation. They fall within
two categories: secured loans and unsecured loans.
Secured loans

are loans that are secured by
collateral. The lender will take a security interest in your property. If you do not pay the loan back
the lender has the right to

seize your collateral. Short
term and long
term commercial loans fall
into this category. A short
term commercial loan is usually no more than three years and the loan
will require fixed payments of principal and interest. They are excellent for seed mone
y or working
capital. Long
term loans are almost exclusively used for equipment and other asset purchases.
Lenders will not lend your businesses money for longer than three years unless the loan is for a
specific asset purchase or for the refinancing of an

exisitng asset. These loans are secured by
the assets being acquired and will generally have various loan covenants such as interest rate
changes and prepayment penalties associated with them.
Unsecured loans
, are loans that are
not secured by any collate
ral. These are typically in the form of a line of credit and have a set
amount that can be borrowed.
When it comes to bank loans, you're required to have a good
credit history, submit a personal financial statement, and sometimes make an equity investment
in your business.

Venture capital can be secured if your business has the potential for above average future profits.
Sources of venture capital include angel investors

wealthy individual investors,
managed investment funds
, investment b
anks, or
venture capital funds. Venture capital is
somewhat more difficult for a small business to obtain than other sources of financing. To obtain
venture capital, you need to have a solid business plan to demonstrate that your business is
viable and pro
fitable. Venture capital organizations will go through a due diligence process where
they evaluate the business to ensure they’ll get their return on investment (ROI).
After this
process, the investor will provide the business with a term sheet, a non
ding agreement that
outlines the size and conditions of the investment.
Typically more phases of financing, or follow
on investments, are involved after the initial investment to see the business through its growth
stages. A mezzanine level round of financ
ing takes place immediately preceding an Initial Public
Offering. In return for taking an investment risk, venture capitalists are usually rewarded with
some combination

of p
such as preferred s

, and capital appreciation of
common sha

Pointers to the wiki pages detailing legal docs (see The Law)

B) Business Models

There are several different business models for
Web 2.0 companies

and the revenue stream
ideas are expanding each day.
Revenue generators range from advertis
ing and affiliate
sponsorships to
selling subscriptions/memberships to enter the site.
Some up
coming revenue ideas include selling e
books, eCourses and eSeminars. Many Wiki
sites, such as Wikipedia, earn revenue from donations from users.

Here are several
examples of advertising programs:

Google Adsense

Google’s Adsense
one of the most popular


attract on



and generate advertising revenue. The free program matches relevant content on

with advertising content. Whenever a visitor clicks on the ad,
the advertiser


a fee based on cost
click (CPC) or
impressions (CPM), and
site owner


a portion of that fee.
The source of the ads is from Google’s Adw
program in which

advertisers create ads using keywords

words that people are most likely
to use in a Google search to find a relevant item
, service

or subject to what the advertising is

The ads are relatively unobtrusive
, and mostly in the
form of

, as opposed
to flashing banner ads

found on some sites
The downside to using Google Adsense is that
you don’t
have complete
control the ads that are plac
ed on your
. However,
Google as
provided some
filters that allow you to block c
ompetitive or inappropriate

ads, as well as

reviews and the ability to
select default ads.

In addition, the better the site is optimized for
search, the more relevant the ads will be and the more revenue the site will generate.

Amazon Affiliates

zon Affiliates is an affiliate program in which an ‘
” (website owner) receives a
referral fee every time their site visitors click on a qualifying link to
and makes a

There are two compensation models for the program: performa
nce fee structure
and classic fee structure. The performance fee structure provides 4% to 8.5% referral rates
based on the
volume and type of product shipped from Amazon or a third party. The classic
fee structure is a fixed referral fee rate of 4%.

Sign u
p for the Amazon Affiliate program is

Other affiliate programs
Li nkshare
Cl ickbank

Commission Juncti on

hundreds more.

icrosoft adCenter

Microsoft adCenter is very similar to Google Adsense in which
website owners receive fees

based on a cost
click rate. The difference is that adCenter allows advertisers to direct
their ads based on the viewers’ demographics.


also allows the advertiser to control


Pheedo is an ad
serving capability via RSS. It is compatible with feed management and
blogging services, including Feedburner, MovableType, Typepad, Wordpress and Expression

Pheedo can help you maximi
ze your earnings by providing ads both for your feeds
and for your site. Advertising campaigns that run both in feed and on
site deliver the best
results to our advertisers and command a premium. Our publishers benefit financially from
running Pheedo ads i
n both places. You control how often ads run in your feed. Set ads to
run as ofen as one ad every post, or up to one ad every 10 items. We've found that running
ads every 2

3 posts is optimal for most feeds. Pheedo is the premier feed advertising

and we simplify the process of creating, producing, distributing and tracking
advertising for RSS feeds. Advertising agencies, global corporations and premium online
publishers of all sizes work with Pheedo to create successful RSS marketing campaigns.
eedo arms publishers with the tools and knowledge required to understand, monetize and
market their RSS content including data and analysis of content feed usage and consumer


Feedburner offers custom RSS feeds and web tools to manage

and simplify
how a site owner
distributes and tracks its feeds
The tools allows publishers to analyze how many subscribers
they have, where they are subscribing from and what their preferences are.
The monetary
reason for using Feedburner is
in its abili
ty to attach
party ad
serving ad (such as
Google adSense ads)

to the feeds and widely distribute them to increase site owners’ cost
click (CPC) revenue.



program that pays bloggers for mentioning advertisers in their blogs. The ad
vertiser, its
products and/or services must be mentioned at 3 least three times in order to receive

Other similar

ams are LoudLaunch and PayPerPost.

Blog Advertising Network


similar to Adsense and Adw
, there are hundreds of
ng networks and more coming onboard each day. Here a few:










Accounting in a start

business can be done two ways: on your own, or done by a bookkeeper
or accountant.
There is a variety of accounting s
oftware programs on the market

some that are
even geared to online businesses. The benefits to doing your own accounting are cost and that
you have the financial information at your fingertips. A bookkeeper or account can take it a set
further. Both can
help set up an accounting system that best fits your business. They also provide
tax consulting and preparation. Bookkeeping is just part of accounting. Accounting encompasses
tracking assets, both cash and capital equipment, liabilities, and other busines
s operations,
analyzing the data, and forecasting for future business growth.

The Law


Anyone who operates a business, alone or with others, may incorporate.
There are many
advantages to incorporating your business especially when it co
mes to protection.
Creditors of
the corporation cannot hold the owners of the business personally liable for debt. Because stock
or equity can be sold, it is much
for a corporation to raise capital

Ownership of an
incorporated business can also be
transferred when a company is incorporated.

There are a few types of business entities: a General Corporation or C Corporation, an S
Corporation, and an Limited Liability Corporation (LLC). A

C corporation, is the most common
corporate structure. A gener
al corporation may have an unlimited number of stockholders.
Consequently, it is usually chosen by those companies planning to have more than 30
stockholders or large public stock offerings. Since a corporation is a separate legal entity, a
stockholder's p
ersonal liability is usually limited to the amount of investment in the corporation
and no more.

An S Corporation is a general corporation that has elected a special tax status with
the IRS after the corporation has been formed. Subchapter S corporations a
re most appropriate
for small business owners and entrepreneurs who prefer to be taxed as if they were still sole
proprietors or partners. The LLC is not a corporation, but it offers many of the same advantages.
Many small business owners and entrepreneurs

prefer LLC because they combine the limited
liability protection of a corporation with the "pass through"" taxation of a sole proprietorship or

The biggest difference between an S Corporation and an LLC is that the S
Corporation must have a b
oard of directors, where as an LLC can be managed by the owner or
an owner
appointed manager.


A patent is a document issued by the U.S. Patent and Trademark Office (PTO) that grants

for a limited period of time on the manufacture, use,

and sale of an invention. These
exclusive rights last between 14 and 20 years, depending on the type of invention.

A patent gives
you the right to exclude others from making, using, offering for sale, or selling your invention in
the United States or impo
rting your invention into the United States. Once a patent is issued, it
becomes your responsibility to enforce the patent, the USPTO will not enforce your rights for you.
From the USPTO you are only granted rights that are honored within the United States
, U.S.
territories, and U.S. possessions.

The type of patent for a Web 2.0 company would be a utility patent, which covers a process or
method for producing a useful, concrete, and tangible result.

The cost of patenting will vary
depending on the patent c

the parts of a patent which define the boundaries and legal
basis of the patent protection. There is a $150 filling fee, a $650 fee if your patent is approved
and issued, and
$450, $1150, $1900

for maintenance fees paid at 3 1/2, 7 1/2, and 11 1/2

after your patent is granted.

c) Funding documents

We have approximately 15 legal documents in Microsoft Word that will need
to be converted to
wiki pages.

3) People

a) Board of Directors

A board of directors is the governing body of a corpor
ation that

elected by shareholders.
board is typically made up of representatives from inside the company, such as the CXOs,
president and vice presidents, and those from outside the company, someone who is not an
employee or stakeholder. The primar
y role of the board of directors is to

b) Advisory Boards

n advisory board is a group of professionals or consultants who can
direct and advise


Because it is an unofficial group (unlike the board of directors) it
can be str
uctured to best fit the company. Generally, it includes a legal advisor, and accountant,
marketing consultant, human resources expert, financial advisors, or other business advisor or
industry specialist, depending on the strengths and weaknesses of the co


4) Tech

a) Software

Pointers to the web sites for the following software projects:





Ruby on Rails


able Type




b) Infrastructure

i) Hosting

to lists/rankings of hosting services

Best Host Ratings




ii) Scaling

ii) Admin

Pointers to Linux admin tips

5) Product

a) Development

Outsourcing resources:

Pointers to eLance, Rent a Coder

6) Marketing

There are many ways to promote a
. However,
the first and most important step, which
will pa
ve the w
ay for generating ads and revenue on your site
, is to

optimize your site for search.
This means that in the content

(HTML text)

of your
web site
you’ll need to have the phrases and
keywords you would expect people would
search for.
Once this is done, you’l
l want to have your
URL added to the major search engines so that they’ll include your site when searches are
conducted using words or phrases found in your site.
An additional tactic for getting the search
engines to find the Website is to work with other

webmasters of related sites to link to your site.
This is important because the more clicks you receive on you site, the higher your site is ranked
in the search engine results.
You can also provide RSS
capabilities to your site

so that news
feeds can pic
k up related topics and disseminate them to other sites. To optimize your site for
search is free.

Another way to promote your site that is relatively inexpensive is to issue a press release
announcing your site or something new about your site and distrib
uting it over one of the many
press release distribution services.
The distribution services circulate the press release to a wide
range of media outlets, Websites, and search engines. The price for distribution varies. Some
sites provide free distribution

and other charge fees dependant on where you want your press
release distributed.

If you want to go beyond this step to further promote your site

and have the budget, you may
consider buying

advertising or “sponsored links

or ads
” on search engines or con
related sites
through ad programs such as Adwords or adCenter.
There are a few ways this works, but
basically you “pay per click,” meaning you pay a fee anytime someone clicks on your ad, which
jumps to your site.

Pointers to:

Google Adwords


Search Engine Optimizing blogs/sites

Search Engine Round Table


Search Engine Land




press releases

7) Glossary

Accredited Investor

a term used by the SEC to descr
ibe an investor who meets certain
financial standards and can qualify for purchases of certain types of securities exempt from


a term frequently used in defining characteristics of Web 2.0. It is the
collection of information
from multiple web sites based on a keyword or a set of keywords and
then reformatted and redistributed. This is typically done via RSS.


short for “Asynchronous JavaScript and XML. It is a way of programming Websites
using several programming langu
ages with JavaScript joining them together.

Angel Investor

an individual who invests his or her own money in a start
up or privately held
company. The intent of the investment is to get a higher rate of return.


open source HTTP Web server soft
ware to handle web requests and serve up web


acronym for
nterface, the source code used by a programmer so
a program can communicate with other programs.


short for Weblog. A Website has content very simil
ar to a journal or newsletter and
based on a specific subject. The entries are in reverse chronological order and are made by
one individual or a group. Typically, viewers are invited to respond to the entries.


a list of and links to related b
logs found in the sidebar of a blog. “Blogrolls” can be
manually generated.

Bridge Loan

a short term loan that bridges the gap between the termination of one loan and
the beginning of another.


the signing all documents required to transfer o
wnership from seller to buyer.

Convertible Note

A convertible note is a loan to
a company with an interest rate. The

(e.g. Angel Investor)

has the
to convert the enti
re principal amount of the note

into equity when an institutional inve
(e.g. Venture Capitalist)
makes an investment.

Debt Financing

the act of borrowing money for working capital or to make capital
expenditures. The money is accumulated by selling by selling bonds, bills, or notes to to
investors, who are promised re
payment of the principle and interest on the debt.

Due Diligence

a process of inspection that a venture capital or other private equity firm
carries out before closing on a deal. It is typically a review a company’s accounting practices
and manageria
l structure.


a way of collaboratively classifying Websites. It is a practice used in social
networking sites where users can tag Website content

pages, images, links, etc.

keywords of their choosing, and the system automatically cat
egorizes them.

on Investment

be subsequent or 'follow
on ' rounds of funding after an initial round
of funding is made by an existing investor.

Full Ratchet

dilution provision that protects the original investors if the

equity at a lower valuation then in previous financing rounds.


short for "permanent link". It is a specific link that readers can use to bookmark a
blog post.

Investment Banks

a bank that acts as an agent between the issuer of securities
and the
investors by providing advisory services. They also are involved in facilitating mergers and
acquisitions, private equity placements and corporate restructuring


acronym for “Initial Public Offering.” It is the first time a company sells sha
res openly to
the public on the stock market.

Lead Investor

the company’s primary investor, such as a venture capital firm, that
organizes the financing with other investors.

Liquidation Preference

when a company is liquidated, any assets will be use
d to pay off
investors in order of priority.

up Period

in an Initial Public Offering (IPO), it is the period of time determined by the
underwriters in which an investor must wait before selling or trading company shares
subsequent to an exit.


named after a type of hip
hop music where two or more songs of different styles
are remixed. A Website that collects and reformats unrelated or competing
information or

Mezzanine Financing

a final stage of financing prior to a company’s I
nitial Public Offering


simple codes that identify

specific kinds of data on Webpages,
so that the
information can be extracted by software and indexed, searched for, saved, cross
or combined.


short for “mobil
e blogging.” Using a mobile device

digital camera, PDA, cell

to remotely update a blog with text, images, audio, or video.

Movable Type

proprietary software for creating, publishing and maintaining blogs. It is
written in Perl and backed by M
ySQL, and offers the widely used TrackBack feature.


open source database based on the structure query language (SQL). It is
commonly used with Websites for adding, removing, and modifying information in a


a program allows

you to read messages posted to Internet newsgroups, and to
post your own messages.


an acronym for Outline Processor Markup Language. An XML
based format for
describing outline
based content and allows exchange of outline
structured information
ween applications running on different operating systems and environments.

Pari Passu

latin term for “without
It indicates that two series of equity will have
the same rights and privileges.


acronym for “php Bulletin Board.” A fre
e, open source bulletin board package based
on the PHP scripting language and supports MySQL, MS
SQL, PostgreSQL or
Access/ODBC database servers

the name is a combination of “iPOD” and
“broadcast.” It is an audio broadcast that has been converted

to an MP3 file or other audio file
format for playback in a digital music player or computer. Listeners can subscribe to a
podcast through an RSS feed and is updated each time a new podcast has been published.


a free object
relational database

management system.

Private Placement

a security offering to a limited number of investors.


an acronym for “Rich Site Summary” or “
Really Simple Syndication.” A form of Web
syndication used by Websites and blogs using XML format, it allows the d
istribution of news
headlines and other content on the Web to interested users.
RSS allows a person's computer
to obtain and understand the information, so that all of the lists that person is interested in
can be tracked and personalized for them.

Ruby o
n Rails

also known as RoR. It is an open
source framework for Web development in
Ruby, an object
oriented programming language.

Seed Capital

early stage financing used to develop a business idea or project.


acronym for “Search Engine Optimizati
on.” The process of organizing Website content
so it ranks high

in various search engines

when someone searches for specific phrases
related to the site.

Series A

the initial round of stock offering during the seed or pre
IPO stage of a company.

al Bookmarking

an activity in which people share their Website bookmarks. Instead of
creating a bookmark in a browser, they are made to a publicly accessible Websites. Some
Websites classify the bookmarks with tags or keywords and use Folksonomy to rank
bookmarked site content.

Social Networking

using the Internet to network and communicate with other people who
share a similar interest, purpose, social status or goal. Networking and communication is
typically done via a Website that is dedicated
to bringing people together.


keywords in the form of HTML code that help Internet users to classify, rank, share
and locate specific information.

Tag Cloud

also called a “weighted list,” it is a way of visually displaying a compilation of
tags in

text with the most popular topics in a larger or bolder font. It allows visitors of a site to
quickly determine what topics are represented.

Term Sheet

a preliminary document used by a potential investor to initiate and expedite
investment negotiations.

A term sheet is legally non
binding and
summarizes the size and
conditions of the investment that the investor is willing to accept.
After negotiations are
settled, the document is reviewed by legal counsel and a binding, long
form legal agreement
is gen
erated and signed by all parties.


used in most blogging tools, it is a signal or ping to a blogger that someone has
written about his or her blog.


a community forum authoring tool
used to run large boards or discussion groups.
uses PHP as the scripting language and MySQL as the back
end data base.

Venture Capital

also known as “VC”, it is an equity investment, or “seed money,” that is
typically associated with early
stage or pre
IPO companies.

Web 2.0

a term coined in 200
4 by O’Reilly Media. The exact definition is still in debate,
However, O’Reilly Media’s definition from the
O’Reilly Radar Web 2.0 Principles and Best

report is: “
Web 2.0 is a set of economic, social, and technology trends that
collectively form
the basis for the next generation of the Internet

a more mature, distinctive
medium characterized by user participation, openness, and network effects.”


a Website that uses a collaborative editing tool that allows a community of users to
add and ed
it site content from their computer directly to the site. The term “Wiki” is short for
the Hawaiian word “Wikiwiki,” which means fast.


a free open source blog authoring system written in PHP and MySQL, and
boasts ease
installation and ease