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So people are paying to get listed in a search engine before it even launches. What a scam.

Reminds me of online directory listing scams that get gullible small businesses to sign up over the phone.

Also reminds me of the million dollar homepage, for some reason. Probably because it's pretty clever :)

[JacobAldridge]

I don't think they're paying to get listed in the search engine - they're paying for exclusive rights to Keywords for a year, and with first right of refusal next year.

Imagine you had exclusivity to a Google keyword like Viagra, Sales, or Wedding? Crikey that would be worth a lot, so what if, just maybe, Leapfish get it right and compete with Google? Their argument, which I guess current customers have bought, is that surely that's worth taking a punt.

[CapitalistCartr]

Leapfish can't both compete with Google,and be dependent on Google, which their current model is. If they get "exclusivity to a Google keyword like Viagra, Sales, or Wedding" Google will change to fix that problem. Competing with Google's ownership of keywords on Google's own search engine ain't a reliable business model. Anything that involves outsmarting Google is a weak proposition.

[asmosoinio]

I'm pretty sure JacobAldridge was using "owning Google keyword" as an example, and did not mean that you could actually own a Google keyword today by buying it from Leapfish.

You get exclusivity to a Leapfish keyword, and this might be the equal of owning a Google keyword if they go big.

[JacobAldridge]

That's exactly my point. It's a gamble - how likely is it any of the new search-based start-ups will overtake Google? - but it could pay off.

[keltex]

Similar to the toolbar companies that sold keywords. One company "Portal Response" (google it for lots of complaints about the scam) sold keywords for $1000-$2000 a pop for 1 year exclusives.

Their pitch was that they blocked child porn websites. Another was a myspace search toolbar.

[replicatorblog]

yeah seems a bit shady, but a really cool social hack to circumvent typical funding. If people used the power for good it would make an inspiring Startup School talk, ala the 1MM px page.

[SwellJoe]

But, I suspect you'd have to lie outrageously to accomplish this "social hack". Who spends millions of dollars on nothing, without having heard a massive line of bullshit first?

So, I don't think I'd be inspired by such a talk. I was also not really inspired by the million dollar home page, either...sure, he made a million bucks, but that's not an enduring business and it is not a repeatable business model. It's a fluke, like winning the lottery. I'm not an entrepreneur to merely make a million bucks; I'm in it to build something of lasting value to the world. A common side effect of building something of lasting value is making a lot of money.

[replicatorblog]

I don't mean this exact approach, but something like Kickstarter where people could prepay a few bucks for something. Imagine if Blizzard offered people who paid $15 some special weapon or tool in their upcoming MMO. They have a massive fan base, but is their a way to "presell" with a startup?

[SwellJoe]

That's why I suspect lying (over-promising, making outrageous claims, whatever) would be needed for an unheard of company to make a large sum of money on nothing more than a promise.

Yes, Blizzard could pre-sell products, because they have millions of fans that trust them to produce good games. Can a company no one has ever heard of do the same? If the founders are famous from prior ventures, perhaps, but completely unknown? It seems unlikely.

So, I guess if one could concoct a scheme that would work, honestly, and for unknown founders and an unknown startup, that would be interesting and inspiring. I lack the imagination required to figure out how to do it (as do the folks behind this particular scheme, since it seems pretty obvious that they chose the over-promise and outrageous claims path).