I find myself in an usual business at a very unusual time.
After spending years working with technology leaders in telecommunications, software and security, I wanted to explore the expanding role of social networks in our everyday online worlds. So I went looking for opportunities in this new “cool” space. Not so easy given my decidedly lack of “coolness” (I haven’t seen “20 something” in a few decades). Yet nonetheless, in a sheer stroke of great luck and timing, I recently landed at Paltalk — the leader in social networking, about 4 months ago.
I settled in to learn about this space. I wanted to understand how can our networks provide us with the kind of verified information that our real world networks provide us all the time? How do we integrate the collective power of the Twitters and Facebooks and UTube’s into our everyday online activities? What’s the best way to stay transparent in our social networks, yet remain safe to prying digital eyes?
As all these new concepts were rolling around in my head in those first early weeks at Paltalk, the economic floor began to give way and everything changed. Day after day the bad news was rolling in – first the financial sector, then the business sector. The speed of the financial decline is breathtaking. And the awful ride is not over yet.
But business at Paltalk is good. In fact, just today, Jonathan Blum wrote an article entitled; A surprising winner in the downturn: consumer video conferencing, and Paltalk is the primary beneficiary of this trend. In fact, we seem to be the only highly profitable and financially healthy company in the social networking space.
Why you ask? I’ll share our secret – but be warned – it is a radical idea.
Our secret is that we spent 10 long hard years developing serious technology to deliver a well designed rich media, interactive real time communications platform. And then we did not just give it all away for free (though some of our best features like SuperIM are totally free). We reserved our highest quality video and audio technology for subscribers and subscriptions makes up the vast majority of our revenue. Unlike our competitors, we did not build a business model around ad revenue that, in hindsight, never materialized. Nope, we banked on people willing to pay for great quality. Gee – what a concept.
And now as I see an eerie déjà vu of tech bust of 2001 (only bigger), I wonder why we did we not learn our lesson? What’s the point of a just cool company like Twitter with no real business model beyond a vague allusion to some monetization strategy in the future.
The point is that “Cool” has no currency – I don’t care what the cool bloggers and reporters and VC’s think. Making money is cool today.
That’s the point!