

Next big buzzword: Pre-commerce - lrock
http://yongfook.com/post/27814053498/pre-commerce

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weego
So by putting your own label on something that everyone knows is a "Big Thing"
(kickstarter) you hope to create a self-fulfilling prophesy that it will
become a buzzword, which you can then use to crow about how you predicted it,
possibly even fuelling some speaking engagements.

Vacuous blog syndication at it's finest.

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fookyong
To me, Kickstarter is just one example (or execution) of pre-commerce. I think
there was a post on techcrunch recently about this too: Kickstarter is just
scratching the surface. Vertical integration is the next step (think
Quirky.com) that more startups will/should try.

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Zenst
Sounds like a rewording of vapourware, big in the 90's games areana.

<http://en.wikipedia.org/wiki/Vaporware>

I therefore predict the next buzzword to be buzzocks, when somebody tries to
make a new buzzword and overloads the talk variable :).

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prostoalex
This is similar to what Tim Ferriss describes in 4-Hour Workweek. He'd create
one-page microsites (similar to what Launchrock offers nowadays), buy up
proper domains, and then test his product idea by purchasing search engine
ads.

Not only could he iterate on product idea by tweaking the search ads and
reacting to CTR changes, but visitors to the sites were advised to leave their
email, so by the time the product was ready to launch, he'd have a great opt-
in list.

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jasonkolb
"One example of how an MVP can manifest is dummy landing pages."

This is not a minimum viable product, it is a minimum viable ad. A product
implies you have actually built something. Please do not belittle the act of
actually building something any more than it already is.

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corkill
Pre-Selling <http://mixergy.com/sam-ovens-snapinspect-interview/>

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mahesh_rm
Pre-Commerce : Production = Derivative : Hedge Fund

Draw your conclusions.

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mooism2
Could you expand on that please? It's not clear to me what your pseudo-
equation means, and therefore I don't understand the reasoning behind it.

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mahesh_rm
'In simple terms, pre-commerce is “buying stuff that doesn’t exist yet”. In
more grown-up words, it’s a framework for companies to cheaply establish
market demand for a new product idea and acquire the cash flow to produce it.'

[OP]

'Reported earnings on derivatives are often wildly overstated. That’s because
today’s earnings are in a significant way based on estimates whose inaccuracy
may not be exposed for many years. The errors usually reflect the human
tendency to take an optimistic view of one’s commitments. But the parties to
derivatives also have enormous incentives to cheat in accounting for them.
Those who trade derivatives are usually paid, in whole or part, on “earnings”
calculated by mark-to-market accounting. But often there is no real market,
and “mark-to-model” is utilized. This substitution can bring on large-scale
mischief. As a general rule, contracts involving multiple reference items and
distant settlement dates increase the opportunities for counter-parties to use
fanciful assumptions. The two parties to the contract might well use differing
models allowing both to show substantial profits for many years. In extreme
cases, mark-to-model degenerates into what I would call mark-to-myth.'

[[http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivati...](http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf)]

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When you make assumptions concerning something's value with no concrete
immediate exchange of the goods you are valuing [simply put, you are
finalizing transactions for things you are not shipping], you are in fact
delaying market's feedback and the possible negative consequences this latter
can produce to your assets. By employing Pre-Commerce in your model, you are
not getting early feedback. You are just betting you will be able to provide
in the near future the value you are paid for right now, and you are selling
to your customers a burden-share of risks, along with the product you offer.
Sure in some occasions you will be able to meet your users' expectations. But
if and when you won't, bad things will hit you [and your company] with much
greater impacts.

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mooism2
Thank you, that makes much more sense.

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yo-mf
In theory this sounds interesting, but it runs up against a fundamental
difference between startups and more mature organizations. Startups embrace
failure and accept change; mature organizations reject failure and fight
change. Therefore to give power to the consumer in this manner is simply not
feasible for a major brand that is invested in its existing research and
development programs. Outside of the one off marketing stunt, this mode of
commerce will only exist in the fringes and by smaller, independent creators
geared towards bespoke development.

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joncalhoun
this has been around for quite some time. why do you think some infomercials
offer products that won't ship for 2 months? kick starter has just made it
more obvious that it is a presale.

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bravoyankee
Call me a special little snowflake, but why is he eating in the photo? I have
a hard time taking the article seriously with a profile pic like that.

Anyone else feel it's a distracting photo, and perhaps even disrespectful to
the reader?

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fookyong
Thanks for the feedback... never thought it would be taken as disrespectful!

Might change it, not in love with that photo.

But yes as another poster said, I have a history with internet+cooking.

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bravoyankee
Yeah, I found it off-putting and I wasn't as receptive to your message after
that.

But then again, I did say I'm a special snowflake. It could very well be only
me who is off-putting and has the problem.

