In my years covering technology, I’ve gotten more than my fair share of pitches related to the latest consumer Internet startup. Thanks to this I’ve been able to witness what amounts to be a near-familiar life cycle for these companies. Not every company hits every step, but most of these will be familiar to those of you in the Silicon Valley Social Media/Web 2.0-Something trenches.
One day an entrepreneur is chatting with his friends, gets an idea, writes about the idea on his or her blog, and then starts coding. A few weeks or possibly days, a beta — increasingly a euphemism for a not-fully-thought-out-product — emerges.
Then the buzz builds and the company opens up the beta far and wide. Maybe TechCrunch, ReadWriteWeb, WebWorkerDaily or WebWare write about the product. Either way, this is the first traffic spike and the entrepreneur rejoices. The VCs come calling. If they don’t, the angels will certainly do a fly-by.
But eight weeks later reality sets in. The traffic stops growing or — worse yet– dives. The VCs stop calling and blogs start posting Alexa charts that look like ski slopes or tabletops. But as an ever-optimistic entrepreneur it’s time to regroup, gather your programmers, toss back some Red Bull and…
If the user adoption press releases, the widget and subsequent coverage can’t get your site growing again, it’s time for the big guns...the open API. Now you’re a platform! The startup gets a fresh round of publicity, maybe more exposure to new users, and the founder rejoices again. This time the money men get serious because you have shown them you can survive the Silicon Valley jungle and you have a Facebook strategy.
Maybe the media is getting too insistent with their questions about how this service is supposed to make money. Maybe the bills from Amazon Web Services are getting too high, or the VCs are getting impatient. The blogs are back to posting unflattering Alexa numbers. Compete data backs those charts up! So it’s time for advertising.
If the startup is well-funded or has a famous founder, the ad unit might be something novel like a widget, pre-roll voice ads on a mobile phone, or Beacon. Otherwise it’s generally based on banners and Google AdWords with promises of more to come.
But selling online advertising is hard. If Google, Yahoo, AOL or Microsoft haven’t stopped by with a buyout, it’s time to consider reality. You could always try your hand as an ad network or merge with a competitor, but more than likely it’s time to sell that domain name and user base on eBay or quietly shut your doors. Better luck next time.

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Slashdot totally misinterpreted Jeremy's post about MySQL starting to build features first for their customers. As a business model , this sounds like a good way to get revenue , customers want certain features that are valuable to them , so why not let them pay for it .
The question however is how your development cycle works. Often this method of keeping code first for your paying customers , and when "the feature has been paid for" give it to the opensource community , is the wrong one.
What it comes down to is that you neglect the release early , release often and the peer review , many eyeballs see more bugs, fundamentals that made opensource projects big and stable. You are in effect stepping back to a proprietary model where you have to rush your deadlines because you have promised customers such and such feature, hence letting your customers do your beta testing.
It?s not like it?s the first time MySQL pulls this trick. They already did that when building a Carrier Grade edition for Cluster. That indeed also was a product where they had customers paying for unstable beta products.
The peer review process is one of the things that insanely attracted me in Open Source, the code that you get is not some piece of overrushed code where a developer made a dozen shortcuts because he had to make a deadline, but a piece of code that has been reviewed by many , discussed, and then eventually allowed into the project.
Releasing beta level code to customers and eventually to opensource means you miss out on a lot of the features a true opensource project has.
Often the reason why Open source minded organisations still chose for this approach is to get revenue to be able to hire more developers/ support peope and improve the product faster. But it's a vicious circle, because your product isn't up to the standards you are used to you need more people to support it.
However in the MySQL case , a mostly user community, lesser user development contributions, this could make sense.
The Ubuntu developers are moving very quickly to bring you the absolute latest and greatest software the open source community has to offer. This is the Ubuntu 8.04 beta release, which brings a host of excellent new features.
(...)
Read the rest of Ubuntu 8.04 (Hardy Heron) Beta Screenshots Tour (19 words)
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Dear Falconers,
MySQL 6.0.4-alpha, a new version of the MySQL database system including
the Falcon transactional storage engine (now at beta stage), has been released. The main page for MySQL 6.0 is at:
If you are new to the Falcon storage engine and need more information,
please read the Falcon Evaluation Guide at:
http://www.mysql.com/why-mysql/white-papers/falcon-getting-started.php
and the Falcon White Paper at:
http://www.mysql.com/why-mysql/white-papers/storage-engines-falcon.php
MySQL 6.0.4-alpha is available in source and binary form for a number
of platforms from our download pages at
http://dev.mysql.com/downloads/mysql/6.0.html
and mirror sites. Note that not all mirror sites may be up to date at
this point in time, so if you can’t find this version on some mirror,
please try again later or choose another download site.
We welcome and appreciate your feedback, bug reports, bug fixes,
patches etc.:
http://forge.mysql.com/wiki/Contributing
The change list is extremely long. Therefore I did not c&p’ed it here. You can view it online at:
http://dev.mysql.com/doc/refman/6.0/en/news-6-0-4.html
We are planning to build a base of official testers for WikkaWiki, this post is to announce the launch of our beta-testing programme and the availability of (unstable) nightly builds from our code repository.
(more…)
The Wikka development team has made Wikka 1.1.6.4, release candidate 1 (RC1) available for download and testing. Please download from the WikkaWiki home page. Additional links to the release notes and issue tracker can be found there as well. While this release candidate has been thoroughly vetted by the development team, we do not recommend its use in a production environment. We anticipate the final release of Wikka 1.1.6.4 to occur at the end of the month.
Thank you so much for your patience. We believe this release will be well worth the time to upgrade to, as it addresses several spam-related issues that have cropped up with earlier Wikka versions over the past few months.
The Wikka development team has made Wikka 1.1.6.4, release candidate 1 (RC1) available for download and testing. Please download from the WikkaWiki home page. Additional links to the release notes and issue tracker can be found there as well. While this release candidate has been thoroughly vetted by the development team, we do not recommend its use in a production environment. We anticipate the final release of Wikka 1.1.6.4 to occur at the end of the month.
Thank you so much for your patience. We believe this release will be well worth the time to upgrade to, as it addresses several spam-related issues that have cropped up with earlier Wikka versions over the past few months.