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Veteran Online Travel Agency Pioneer Is Newly Appointed Advisory Board Member

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Terry Jones Joins Advisory Board at Fareportal

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Marketwire – Management Changes:

Gallagher Brings 20 Years of Experience to One of the Fastest-Growing Segments of Online Media

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Online Advertising Veteran Joe Gallagher Joins Jun Group as Chief Revenue Officer

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Craig S. Billings Appointed as President and Chief Executive Officer of ZEN Entertainment

May 12, 2011

Former IGT Executive Takes Helm of Fast-Growing Free-to-Play Online Poker and Social Gaming Company

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eCrypt Technologies Hires Social Media Expert Tris Hussey as Community Manager to Lead Product Campaign

April 28, 2011

Leading Social Media Expert and Author, Tris Hussey Joins eCrypt Technologies Inc. as Community Manager and Online Media Producer to Lead Product Promotion, Adoption, and Conversion From Competing Technologies

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Amazon.com’s Profit Tumbles More Than Expected

April 26, 2011

SAN FRANCISCO — Amazon.com says its net income fell 33 percent in the latest quarter, a steeper drop than Wall Street expected as the online retailer battles stronger competition from Wal-Mart and other rivals. The world’s biggest online retailer posted net income of $201 million, or 44 cents per share, down from $299 million, or 66 cents per share, a year ago. The earnings were well short of the 61 cents per share that analysts polled by FactSet expected. Revenue rose 38 percent to $9.86 billion, ahead of the $9.54 billion that analysts were forecasting, and up from $7.13 billion a year ago. For the second quarter, Amazon says it expects revenue of $8.85 billion to $9.65 billion. Analysts were expecting $8.75 billion.

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Karen Dionne: Why 99-Cent e-Books Are a Bad Deal — For Authors

April 18, 2011
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Plex Systems Inc. Announces Appointment of S. Craig Huke as Chief Financial Officer

April 14, 2011

AUBURN HILLS, MI–(Marketwire – April 14, 2011) – Plex Systems, Inc., provider of Plex Online, the leading Cloud ERP solution for manufacturers , today announced that S. Craig Huke has joined the company as Chief Financial Officer.

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Al Norman: Wal-Mart Wants You to Pay Online Sales Tax

April 11, 2011

Giant retailers like Wal-Mart and Target are using mom and pop stores as human shields in their battle against Amazon.com over taxing online sales. The powerful real estate investment trusts that build bricks-and-mortar malls, along with the big box stores they rent or sell to, now want you to pay a sales tax on Internet purchases. And its being done in the name of the small merchants that were dispatched to an early grave by the likes of Wal-Mart. But the business interests who are pushing what they call the “Main Street Fairness Act,” are not exactly from Mayberry, RFD, and the competitive advantages they used to destroy Main Street merchants were certainly not a battle fought on a level playing field. At the end of March, the Arkansas General Assembly passed legislation called the “Main Street Fairness Act,” which forces online retailers to charge customers a sales tax. The Arkansas media credited the many “small business owners (who) called and wrote letters” with passage of the bill — which the governor signed a few days later. Not a word about Arkansas-based Wal-Mart, which has been a huge booster of the legislation elsewhere. Instead, the only retailer quoted in the story was the proprietor of a small bookstore in Blytheville, Arkansas, population 16,000. According to a Wall Street Journal article two weeks earlier, “Wal-Mart Stores Inc., Target Corp. and other large retailers are ratcheting up a political campaign to force Amazon.com Inc. to collect sales taxes, sensing opportunity in the budget crises gripping statehouses nationwide.” The article fingers these big-box stores as the money behind the Alliance for Main Street Fairness, which is pushing an online sales tax bill in a number of states this year. One Wal-Mart official told the Wall Street Journal , “The rules today don’t allow brick-and-mortar retailers to compete evenly with online retailers, and that needs to be addressed.” Wal-Mart crying about fair competition? Three weeks before Arkansas passed its “fairness” legislation, a similar bill was signed into law in Illinois. Wal-Mart issued a press release shortly after the law was signed which said: “Gov. [Pat] Quinn has once again demonstrated he is willing to do what is right for Illinois and its businesses. During these economic times, it is vital for the state of Illinois to collect the millions of dollars of unpaid sales tax while allowing it to level the playing field for brick and mortar businesses who support our local Illinois communities.” Wal-Mart went on to pledge that it would “continue to collect and remit all sales taxes due on all Walmart.com sales to alleviate all regulatory burdens from its customers,” and said the company was “committed to supporting the affiliate programs which help to drive Walmart.com’s online business.” The Arkansas and Illinois laws, like those in New York, North Carolina and Rhode Island, are called “affiliate nexus laws” because an online retailer’s presence in a state is measured by its affiliate network. When New York passed such a law, Amazon.com sued the state. Wal-Mart’s affiliates program “allows you to earn commissions from qualifying sales when you refer customers to Walmart.com.” Here’s how it works: If I have a website, I place a link to Wal-Mart products on my site, and when a visitor follows those links to Walmart.com, and buys something, I get commission from Wal-Mart. Wal-Mart claims that it currently partners with more than 45 Illinois-based affiliates representing millions of dollars in revenue. If the Main Street Fairness Act forces Amazon.com to charge sales taxes because it has an affiliate network in Illinois, the online retailer will dump its affiliate network in that state in order to avoid having its sales taxed. Wal-Mart stands to make millions in additional online sales when Amazon.com pulls out of the Illinois market because it will pick up Amazon.com’s former affiliate network. National legislation with a similar intent has been filed in Congress since at least the summer of 2010. The national “Main Street Fairness Act” would allow states to mandate that large Internet and mail-order retailers collect state and local sales taxes. But first states would have to pass the Streamlined Sales and Use Tax Agreement (SSUTA), which establishes certain standard benchmarks for product definitions, uniform requirements for filing sales tax returns, and a centralized registration process. 24 states have adopted SSUTA. The Main Street Fairness Act would waive these requirements for small online retailers and catalogue companies. The legislation has the backing of groups like the National Retail Federation and the National Association of Real Estate Investment Trusts — hardly Main Street mainstays. Most of these state and national lobbying efforts are not being driven by mom and pop retailers, who are dangling on thin profit margins. Ironically, the national chain stores, which helped drive many of these small retailers to an early grave, are promoting the cause by wrapping themselves in a “Main Street” banner — even though none of them are located on Main Street — but off in some concrete bunker near the highway exit ramp. If this legislation were called the “Wal-Mart Fairness Act,” no lawmaker would touch it. Big Box stores understand the importance of proper packaging. They also have learned that retailing and politics are both about salesmanship. The Massachusetts Main Street Fairness Coalition is a perfect example of such political packaging. The coalition says, “Our local small businesses operate at a significant 6.25% price disadvantage to out-of-state, online businesses, leading to fewer sales at brick-and-mortar establishments who contribute so much to our community.” But the “local small businesses” in the Massachusetts Coalition are powerful lobbying groups like the Retailers Association of Massachusetts, which is well-stocked with retail chains on its Board of Directors, including Wal-Mart, Target, Sears, BJs, The Gap, and J.C. Penney. RAM has fought sales tax hikes for years, and in 2010 spent $168,686 lobbying on Beacon Hill over issues like “unencumbered” online retailers. This week the International Council of Shopping Centers testified at a legislative hearing in Boston on behalf of the online sales tax, estimating that Massachusetts may be losing as much as $355 million in uncollected online sales taxes. Whatever you think this online sales tax debate is about — it is not about Main Street, and it is not about tax fairness. It is a clash between large real estate/national chain stores vs. large online retailers. Mom and Pop has little to do with it. If a sales tax is ever imposed on Internet sales, the financial burden will fall on low-income and middle class households — not the big corporations who are tussling over market shares. The sales tax is a very regressive, blunt instrument, and millions of online shoppers should not blame Main Street businesses if this tax ever comes to pass. You can thank companies like Wal-Mart for the extra charge on your order. Al Norman is the founder of Sprawl-Busters . He has been helping communities fight big box sprawl for 17 years.

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Australian Market Report of April 6, 2011: Motopia Limited (ASX:MOT) Bolsters Business Wire Online Reach in Australia And New Zealand

April 6, 2011

Australian Market Report of April 6, 2011: Motopia Limited (ASX:MOT) Bolsters Business Wire Online Reach in Australia And New Zealand

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BrightRoll Appoints Former Yahoo! Executive as Chief Financial Officer

April 4, 2011

Key Hire Bolsters Executive Team of Fast-Growing Online Video Ad Company With Deep Financial Experience

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Video: One Kings Lane’s Mack Sees Growth in Luxury Discounts

March 29, 2011

March 28 (Bloomberg) — Douglas Mack, chief executive officer of One Kings Lane, discusses the company’s growth strategy in the online luxury home goods market. He speaks with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

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Nathan Newman: How Amazon’s Unfair Practices Are Worsening State Budget Crises

March 18, 2011

I love Amazon. Our family is a Prime member and, living in New York City without a car, we order from Amazon what feels like every other day. And their service is fabulous, with usually next-day diaper delivery for our new baby and customer service where you reach a real human being instantly. And pretty much a no-questions-asked return policy. So with such great service and wide popularity with its customers, why does Amazon feel it can only compete with an unfair tax advantage? As I detailed here , Amazon is unfortunately leading the political charge against states seeking to require online retailers to collect sales taxes on goods sold in their states. Just this past week, Amazon terminated its whole Illinois affiliate program , where local websites link to Amazon, in order to evade a recently passed Illinois law that required online retailers market in the state to pay sales taxes if they had people in the state marketing on their behalf. Losses of state and local sales tax revenue from online retailers evading the tax will total an estimated $11.4 billion by 2012, according to this University of Tennessee study . That adds up to hundreds of thousands of teachers that states will need to fire, community health clinics closed across the nation, and cutbacks in public safety in all our communities. Why Won’t Amazon Compete on a Level Playing Field: I live in New York which passed a similar law, and Amazon chose not to terminate its affiliate program here, so I pay sales tax on Amazon purchases. But that hasn’t stopped me and other state residents from using Amazon, since even with sales tax, it often provides better value than competitors locally. But why should Amazon ever get the unfair competitive advantage of not having to collect sales taxes? A basic principle of tax policy is that the same product should be taxed the same whoever sells it. Customers should never be making decisions based on evading taxes; otherwise, less efficient retail strategies may be adopted based on the tax system rather than on the inherent value of the service. Online Tax Evasion Shifts Tax Burden onto Low-Income Families: And it’s just economically unfair to make it more expensive to shop at a local store than to shop online. Online shoppers at places like Amazon are wealthier than people who only shop locally. So if online shoppers aren’t paying the sales taxes needed for local schools and hospitals, that means the tax burden shifts from wealthier residents to poorer residents. Most people don’t realize lower-income families pay a higher percentage of their income in state and local taxes than the wealthy , so the rise of online shopping and tax evasion is just making a bad situation worse. Excuses for Online Sales Tax Loophole aren’t Persuasive: And the following are just a few quick rebuttals to Amazon and other online retailer arguments as to why they deserve their loophole. I’m going to tap a report by Michael Mazerov at the Center on Budget and Policy Priorities, who has been birddogging Amazon for years on this issue, for many of these arguments: Myth: Online Retailers Don’t Benefit from Sales Taxes: First, Amazon contracts with delivery trucks using roads paid with tax dollars and their users benefit from state investments in broadband expansion in states across the country. Second, the sales tax isn’t paid by Amazon; it’s paid by its customers, who live and benefit from the wide range of services paid for with local and state tax dollars. Myth: Collecting taxes from multiple states is too complicated: In a database-driven world, which Amazon and online retailers specialize in, matching different tax rates to different customers is just not very challenging. And since Amazon already collects sales taxes on behalf of companies like Target, who have a physical presence in most states and are obligated to collect all sales taxes, it actually has the infrastructure in place. In fact, it calculates and collects sales tax in some states on behalf of approximately 5,000 independent merchants that sell items on its website, despite its public complaints of how tough it would be to collect from its own customers. Myth: Tax Avoidance is not a Big Part of Amazon’s Strategy: The reality is that Amazon has created multiple corporate subsidiaries to try to evade state taxes. For example, Amazon subsidiary A-9, based in California, is responsible for the ongoing refinement of the search engine customers use to find items on Amazon’s website — obviously a key asset for a company that sells 24 million different products – yet Amazon doesn’t pay sales tax in that state. It has inventory warehouses in Arizona, Indiana, Nevada, Pennsylvania, Texas, and Virginia structured as separate corporations, so that Amazon ships its own goods using its own warehouses in those states, yet claims it has no physical presence. And then there are just the gross political deals, such as the one currently being proposed in South Carolina, where Amazon will build its own warehouse in that state, yet will receive a special tax break from the state explicitly allowing it to evade taxes. The state Chamber of Commerce and conservative groups are condemning this $40 million giveaway to Amazon as a grossly unfair deal for the company. Need a Federal Solution: Ultimately, even the laws like New York’s and Illinois’s will only address part of the problem of online retailing. What’s needed is a federal law requiring all retailers selling goods in any state to collect and remit sales taxes to the home state of each customer. A Main Street Fairness Act has been introduced repeatedly over many years, but is now needed even more desperately by state governments facing massive deficits. Crossposted from TechProgress

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Matt Cohen: Rethinking Project Management: Can Quality Output Be Cheap?

March 7, 2011

There’s a saying in project management that says you can have anything you want and it can be fast , cheap , and good … but you have to pick just two of those standards. In other words: Your project can be done fast and well, but it will cost a lot. Your project can be done fast and cheap, but it won’t be any good. Your project can be done cheaply and well, but it will take time. Unfortunately this hard truth comes up a lot because people generally want to have all three. They’re under a time crunch and need the work done yesterday ( fast ), they don’t have any money in the budget to pay for it ( cheap ), but it’s an important project and it needs to be of the highest quality ( good )! Good project management usually involves holding quality at a high standard while trying to control the time-line and the costs as much as possible. Of course, we’ve all seen good and cheap be sacrificed, but the one component that never seems to get ignored is fast . You would hope that good would be an absolute given, but people will give up quality (or pay through the nose) to have something done by tomorrow morning. There is, however, an informative exception to this. The power-pop band OK Go owes a lot of their success to their undeniable talent for making music videos that you have to see to believe. ( “Have you seen the one where they dance on the treadmills? How about the one with the Rube Goldberg machine?” ) You don’t just want to watch videos like that, you want to share them to everybody you know, which explains their huge success on YouTube. The common thread that runs through all of their videos is that they seem to be willing to forgo fast in favor of making something that is both cheap and good . OK Go videos tend to look low-budget, but in a good way. They have a homemade appeal. But while they didn’t invest a lot of money (relative to the quality of the output), they did invest a lot of time in planning, preparing, practicing, and shooting the videos. It’s worth noting that OK Go isn’t just performing a balancing act between the three criteria, they are pushing it to extremes. They’re not just giving up fast , they are investing in slow. How many man-hours do you think went into creating this? Old Spice did something similar when they created a series of online commercials featuring Isaiah Mustafa, the extremely funny (and shirtless) star of their “I’m on a horse” TV spot. Instead of making something remarkable by sinking a lot of time into the project, they pushed time to the other extreme–the online spots were shot insanely fast. About 100 different online ads – each of which featured Mustafa responding to a real Tweet or Facebook message – were all written and shot in single day. So, what did they have to give up to get that much work done so quickly? They willingly sacrificed quality. Or rather, they redefined what qualifies as “good.” To make the concept work, the ad agency (Weiden + Kennedy) wrote, shot, and posted on the fly. The client (Procter & Gamble) didn’t approve any of the online spots. They had to sign off in advance and (GASP!) trust their agency to deliver something that would support the brand. I’m going to guess that the writers didn’t do a lot of drafts for any given spot and that the director didn’t do a lot of takes. Quality (especially quality control) went out the window. But that made a new aesthetic. Yes, compared to the quality of the original “I’m on a Horse” spot, the online ads are lackluster. But for a commercial personally directed at one single viewer, each ad was incredible. When you watch them, you understand the constraints and enjoy them for what they are: a funny execution of a remarkable idea. There is a tendency to look at the fast/cheap/good model as an obstacle. The question becomes “What are we going to have to do without?” But it doesn’t have to be that way. I remember when Richard Wilbur, who was the Poet Laureate at the time, spoke at my high school. One of the things he said was that the structure of a poem (such as the meter and the rhyme scheme) was a challenge that poets set for themselves. It can be difficult to express your ideas within the rigid structure of a sonnet, but working within limitations is what makes the results potentially exceptional. Yes, it would be nice to have unlimited resources, but setting constraints for yourself can often lead to inspiration. Budgets and schedules are the natural constraints in business. How can you creatively use those constraints to achieve something remarkable? Find more business insights from unlikely places at Unexpected Experts.

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Content Marketing Software Company HiveFire Appoints Michael Souza as Vice President of Sales

March 1, 2011

Experienced SaaS Senior Sales Executive and Online Marketing Veteran Will Be Backbone of Company’s Growth Strategy

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CEO, COO Of E-Commerce Giant Alibaba Resign

February 21, 2011

SHANGHAI — Chinese e-commerce giant Alibaba says two of its top executives are resigning to take responsibility after a probe discovered more than 2,000 suppliers had defrauded customers, sometimes with the alleged collusion of its sales staff. Alibaba said in a notice Monday to the Hong Kong Stock Exchange that its chief executive and chief operating officers, who were not implicated by the investigation, were resigning to take responsibility for the company’s “breakdown in integrity.” The company said 100 sales representatives, out of a total workforce of 14,000, allegedly involved in defrauding customers were fired. Some supervisors and sales managers had either intentionally or negligently allowed the creation of fraudulent “storefronts” by letting some 2,326 suppliers evade authentication and verification measures, it said. Most purchases involved offerings of popular consumer electronics at bargain prices with low required minimum orders. “The methods of the perpetrators suggest that they have engineered an organized and systemic attack on the integrity of the Alibaba.com platform for illegal gains,” the company said. “The investigation concluded that the pursuit of short-term financial gain at all cost had tainted parts of our sales organization, risking serious damage to our company’s core values,” it said. Jack Ma, the entrepreneurial whiz and former English teacher who founded Alibaba in 1999, said he was sending a strong message meant to reinforce trust in his company, which has thrived in this age of online commerce and outsourcing. “One of our most important values is integrity. That means the integrity of our employees and the integrity of our online marketplaces as trusted and safe places for our small business customers,” Ma said in a statement. Jonathan Lu Zhaoxi, CEO of affiliated Chinese e-commerce company Taobao, will replace David Wei Zhe as Alibaba’s CEO, the notice said. It did not say who would replace resigning COO Elvis Lee Shi-Huei. Alibaba, based in the eastern Chinese city of Hangzhou, claims more than 56 million registered users in more than 240 countries and regions. The company says it investigated after noticing an increase in complaints of fraud by buyers using its websites in late 2009. The probe found that 1,219 of its “Gold Supplier” customers who joined in 2009 and 1,107 that joined in 2010 had engaged in fraud against buyers. Alibaba terminated the “storefronts” of those allegedly fraudulent customers and will collaborate with authorities to seek redress, said company spokeswoman Linda Kozlowski. But such efforts would depend partly on buyers deciding to take legal action, she said. The average amount of fraud involved in the cases was less than $1,200, the company said. It gave no total amount involved. But Kozlowski said the company has paid out $1.7 million since 2009 from a fund set up to redistribute to buyers any revenues from companies found to be engaged in fraud. “We decided we did not want to take revenue from fraud,” she said. Alibaba, whose shares are traded in Hong Kong, says the cases would not have an impact on its overall finances.

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Naveen Jain: Manage Your Company’s Online Identity — Or The Competition Will Manage It For You

February 15, 2011

Your LinkedIn profile is diligently maintained, your blog is free of comment spam, and you tell your kids to wipe their Facebook pages clean of party photos. You work hard to maintain control of your personal online identity. But do you give the same attention to how your business is portrayed online? The online identity, or “o-dentity,” of your business can help or hinder its bottom line. Yet, too many executives fail to safeguard their company’s online reputation. If you allow disgruntled customers or bloggers with a grudge to speak out unhindered about your company, rest assured your competitors will pounce on this opportunity to spread the (negative) word. Following are the five most common mistakes top executives make regarding the management of their company’s o-dentity, and some advice on taking control to prevent a downward spiral. 1) Delegating o-dentity and holding steadfast to the “it’s not my job” attitude. Many top executives see managing the link between CEO voice and corporate brand as something their PR and marketing firms do, along with managing a blog and the company’s Twitter feed – that’s why you hired them, right? However, control of a company’s online reputation can no longer be outsourced without further thought — or worse, kicked downstairs to IT and the SEO management team. Noise from the online world is too loud, complicated, and fast-moving to delegate this task. CEOs need to proactively communicate with potential customers or investors in social media outlets such as blogs, Twitter, Facebook, and LinkedIn. If you’re not making a connection between your voice and views as a CEO, and your company’s brand, you’ll become a corporate dinosaur. Think of Steve Jobs and Apple Computer, or Jeff Bezos at Amazon, execs who truly live and breathe their brands. The presence and voice of the CEO is now more important to branding than the right logo, tagline or campaign. 2) Clinging to one-way communication with customers. In the old days (that is, before 2003 or so), you talked to your customers and they didn’t talk back – or at least they didn’t talk back in a way that could result in a crisis in a matter of hours. If customers were unhappy, they called customer service, their problem was solved, and the CSR rep closed the file – end of the story. Nowadays, customer communications has morphed from a one-way street into a multi directional super highway, and CEOs who ignore this fact do so at significant peril. Top executives who are engaged with customers and online influencers on a daily basis can rectify problems before they turn into crises. To get a handle on the dialogue surrounding your company, you need to spend time reviewing the top 10 thought-leader blogs and Twitter feeds covering your industry – don’t rely on summaries from assistants or wait until they tell you about the negative buzz. You and your company should be engaged daily in two-way conversation with the top influencers in your industry, whether these are executives of other businesses or vocal customers. Granted, this won’t be an easy transition for executives who aren’t comfortable with such direct (and possibly confrontational) contact with influencers – it’s easier to deliver a speech and be done with it. Nevertheless, you need to ask questions and listen to what influencers are saying. Don’t talk “at” people — talk “with” them. 3) Underestimating the power of insights from unhappy customers. Building on the last point, not all CEOs are willing to accept the fact that today the power of one voice – that is, a customer – can provide valuable insights on products and services. Before social media changed the world, a disappointed consumer could only tell a handful of other people about their experience. Today, one viral posting about lousy service (like the infamous recording of an AOL member’s argument with a customer service rep) can result in thousands of social media posts or even stories in The New York Times or Wall Street Journal . Learn from Dell’s example of retooling customer service: After getting hammered in the blogosphere about poor response to online customer complaints, Dell created a “social media swat team” that monitored blogs for negative posts about Dell’s products. The posts are routed to this team, which can then quickly respond before the negative post gains traction. And be proactive: Don’t wait for complaints to come in through the toll-free number before you do anything about them – contact unhappy customers before they can negatively influence other customers. Airlines, often roundly criticized for poor service, are getting smarter about fast response to customer problems via Twitter and other social networks. Delta Air Lines now has a special team, @DeltaAssist , that monitors Twitter for passenger complaints. 4) Believing that customers understand the difference between The Wall Street Journal and a blogger. Executives think consumers can differentiate between a respected media outlet like The Wall Street Journal or The New York Times – whose staff are governed by a code of ethics, and whose lawyers ensure reportage is fair and accurate – and a blogger with a few readers who could be backed by your competition. Today everyone with a Internet access can be a “journalist,” regardless of whether they have had training and answer to a team of editors, or simply started a blog using free software. Don’t assume consumers can discern the nuances of journalism – if your customers take bloggers or Twitter users seriously, then you should too. When Sean Parker, an entrepreneur and the first president of Facebook, was concerned at how his portrayal in the movie “The Social Network” was damaging his online reputation, he didn’t just sit still. He reached out to Henry Blodget, CEO of the online business publication Business Insider and a Huffington Post columnist, to tell his side of the story . Thanks to Blodget’s posts, as well as tweets to his 24,000+ followers, Parker was able to present an alternate picture of his life and accomplishments. 5) Sending out inconsistent messages to external and internal audiences. Do you tell customers that you pride yourself on exemplary customer service, then fail to offer them a toll-free number for questions so they can speak with a real person? Do you proclaim your company as an innovator, yet tell your employees that you’re pulling back on R&D? You need to represent the company internally in the same way you do to your customers. Two excellent examples come to mind: Nordstrom and Gilt Groupe . Nordstrom is legendary for its in-store customer service, and has successful extended this experience to the web. Likewise, Gilt Groupe, the discount designer fashion website, projects an image of exclusivity and stellar customer service. Both embrace consistent messaging. There’s no disconnect, because the image is reality. When you make a mistake — like shoe retailer Kenneth Cole did recently by tweeting, “Millions are in uproar in #Cairo. Rumor is they heard our new spring collection is now available online,” — quickly apologize and communicate that the message is at odds with the company’s image, both inside and out. Cole tweeted : “I apologize to everyone who was offended by my insensitive tweet about the situation in Egypt. I’ve dedicated my life to raising awareness about serious social issues, and in hindsight my attempt at humor regarding a nation liberating themselves against oppression was poorly timed and absolutely inappropriate.” Avoiding the “don’ts” above can help you gain visibility into and control of the online dialogue surrounding your company. Remember, if you don’t take charge of your o-dentity, the competition will be happy to do it for you.

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Meg Whitman’s New Gig

February 11, 2011

CINCINNATI — Former eBay Inc. CEO and 2010 California gubernatorial candidate Meg Whitman has returned to the Procter & Gamble Co.’s board of directors. The Cincinnati-based consumer products maker whose brands include Tide detergent and Pampers diapers said Friday that Whitman has been appointed as a 12th board member, effective immediately. Whitman, 54, was on the company’s board from 2003 to 2008. P&G’s CEO and board chairman, Bob McDonald, said in a statement Friday that Whitman was an outstanding director and P&G welcomes back her business knowledge, vision and “passion for winning.” Whitman, a Republican, resigned from the boards of P&G, eBay and DreamWorks Animation SKG shortly before launching her bid for governor. She lost to Jerry Brown after waging the costliest state-level campaign in U.S. history. Her spending included $144 million from her personal fortune, but Brown bucked national GOP momentum in November and won by 13 percentage points. As eBay’s CEO for 10 years, Whitman oversaw the online marketplace’s rapid growth.

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CSG|PR Promotes Health PR Specialist, Shannon Fern, to Director of Health & Wellness Practice

February 8, 2011

Award-Winning Practice Designs Innovative and Measurable Traditional and Online PR Solutions for Health-Focused Clients

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Elizabeth Warren: Pricing Needs To Be Clearer

January 31, 2011

WASHINGTON — No tricks. Less fine print. Clearer agreements. That’s how banks should market products to consumers, says Elizabeth Warren, the Harvard law professor in charge of setting up a new federal agency that will police credit cards, mortgages and other financial services. The Consumer Financial Protection Bureau was created as part of the sweeping overhaul of financial regulations last year known as the Dodd-Frank Act. Proponents said such an agency could have sounded an early warning for the abusive lending practices that precipitated the economic meltdown. It’s not clear when a permanent head will be named to lead the new agency. Warren, a vocal consumer advocate who first championed the creation of the agency, is a possibility but is regarded as a contentious choice. President Obama did not need Senate confirmation when he named her in September as a special adviser to help oversee the creation of the agency. The CFPB won’t be able to exercise its rule-making powers until July 21. In the meantime, Warren has been making key appointments and meeting with banking executives and consumer groups to get the agency up and running. In an interview with The Associated Press, Warren said one of the first goals will be to make the true cost of financial products easier to understand. She said that should eventually drive down prices for consumers. Here is an excerpt: ___ Q: You’ve said improving the disclosure of credit card terms is going to be a top priority. How is the CFPB going to change what’s provided to consumers? A: Think about how long a credit card agreement has become – it’s become pages and pages and pages of largely incomprehensible fine print. In effect, it’s paperwork that says “Don’t read me,” and that’s a real problem. Because hiding in that fine print can be anything. So one of the things we want to push toward is trying to clear out that kind of shrubbery. So that if there are real changes that a company is proposing, they stand out. They’re not camouflaged by all those other words. Q: And what’s the timetable for when consumers can expect to see such changes? A: Well, it’s interesting. I think people are starting to see somewhat clearer disclosures. For example, there are a couple of major credit card issuers who – following our early conversations last fall – went back and voluntarily rewrote their own credit agreements and began to shrink them down. There have been others who’ve advertised their credit products along the lines of “No Tricks,” “Less Fine Print,” “Clearer Agreements.” This agency, even before it has its full legal authority, has driven a conversation and driven a direction for the industry. And it’s toward a better informed customer who can make apples-to-apples comparisons among products. Q: In terms of the required disclosures – do you see new forms replacing the Schumer box, which is already intended to clearly lay out the APR, fees and other terms for a credit card? A: We’re having conversations with credit card issuers right now and talking through what the Schumer box does and how it might be improved. You know, even the Schumer box has gone from smaller and skinnier to longer and more complicated. So I will readily admit it’s an uphill walk to try to get there. But I think we’re developing a path in working with the companies. In terms of a timetable, I just have to remind you. We won’t have legal authority to do anything by way of rule-making authority until after July 21. But we’ve started now with the industry and with consumer groups and with other stakeholders, investors – talking with them, showing them what we have in mind, asking for their input, asking for their data, asking for information. Q: More banks began to cut back on free checking last year in response to new regulations. Do you think further regulation by the CFPB will drive up the price of banking? A: If the consumer knows the price of a good, the risk associated with it, and can make apples-to-apples comparisons, that’s what makes markets work for consumers. They can figure out who’s offering the most expensive product and who’s offering the cheapest product. And I’m of the belief that over time, that’s going to make financial products cheaper for consumers, not more expensive. Q: Online banking is top-of-mind right now. With so many new mobile and online banking options, is the CFPB dedicating a team to ensure these options are safe? A: We’ve organized the new consumer agency to be market facing. That means that we have divisions dealing with (1) revolving debt and credit cards, (2) mortgages and installment loans, like student loans (3) with payments and deposits and (4) credit reporting and (5) debt collection. We want to be a very data driven agency around those five markets. Technology and innovation is hitting all of them. And so a big part of what we’re doing is hiring people who are technology savvy and actually deeply interested in it. Q: Another area the CFPB will be reviewing is services for people who don’t have a bank account. How do you regulate services like payday loans and still ensure people have access to small loans? A: Well you know, access to small dollar loans is critical to many families. The notion that we somehow try to eliminate that, it’s just not going to happen. It can force people into unregulated markets, including “Jimmy the Leg Breaker,” which is not where we want people to be. So it is important from a regulatory standpoint that people are not at the mercy of lenders who build business models around fooling people. They’re drawn in the front door thinking they’re going to pay one price and then beat about the head and ears, financially speaking, so that they’re paying much, much more. On the other hand, there’s a real problem. And that is how to get good, small dollar lending started in areas where there’s great need. Sometimes that’s going to be by community banks. Sometimes it’s going to be by non-bank lenders and sometimes it’s going to be innovations and new technology that’s going to open up markets for the currently underserved population. I anticipate a lot of change in this area. Q: Is the idea to bring the unbanked population into the traditional banking world? Or is there a valid place for services like check cashing? A: I think the traditional banking world concept is going to change over the next 10 years. I think technology changes it and I think the needs of an unmet population (change it). I’m going to take a little bit of a side step from the question. The basic paradigm in which we’ve thought about this is actually starting to break apart.

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Microsoft Earnings Edge Down On Slow PC Sales

January 27, 2011

SEATTLE — Microsoft Corp. said Thursday that its net income for the latest quarter fell slightly from a year ago, and it beat Wall Street’s expectations despite the weak personal computer market. Sales of Office 2010 to consumers and businesses buoyed the results, as did the popularity of Kinect, Microsoft’s new motion-sensing controller for the Xbox 360 video game system. Microsoft’s net income for the October-December quarter was $6.63 billion, compared with $6.66 billion in the same period last year. Thanks to stock buybacks, its net income rose to 77 cents per share, from 74 cents. Analysts surveyed by FactSet were expecting net income of 69 cents per share for the fiscal second quarter. Much of Microsoft’s business depends on selling copies of the Windows operating system and Office desktop software, products that usually rise and fall with fluctuations in the personal computer market. Microsoft launched Windows 7 in the same quarter of 2009, making for a tough comparison. Revenue plunged 30 percent in the Windows division to $5.1 billion. Worldwide personal computer shipments only grew about 3 percent in the latest quarter, as Apple Inc.’s iPad and the promise of more tablet devices to come made consumers think twice about what kind of device to buy. However, the division that sells Office software and other programs saw revenue rise 24 percent to $6 billion. Big companies that put off buying new technology during the worst of the recession are more willing now to upgrade their systems. Microsoft said the division’s revenue from businesses rose 18 percent while revenue from consumers jumped 49 percent, both because of sales of Office 2010. Strength in the entertainment and devices division, which is responsible for Xbox 360, also helped make up for weak Windows sales. Microsoft says it sold 8 million Kinect controllers, helping push revenue for the segment up 55 percent to $3.7 billion. In all, Microsoft’s revenue edged up 5 percent to $20 billion, topping analysts’ expectations for $19.2 billion in revenue. The software maker rushed out its earnings report a few minutes early, just before the markets closed for the day. Shares spiked to more than $29 per share in heavy trading about 15 minutes before the closing bell, before dropping back to $28.87, a 9 cent gain for the day. They slipped 16 cents to $28.71 in extended trading. “A preproduction draft of our earnings release was discovered by one or more media sources who then published our results to the Web before market close,” Bill Koefoed, Microsoft’s general manager of investor relations, said in a statement. Microsoft posted its official numbers after consulting with the Nasdaq stock market, he said. The company is reviewing its procedures to avoid a repeat of the earnings leak. This has happened before to other companies, including The Walt Disney Co. last year. A reporter accessed the quarterly report by guessing the Web address Disney would use before the information was made public, based on the pattern used in past quarters. Microsoft did not immediately say whether the media used a similar tactic to obtain the early results. Despite a successful holiday season for Kinect, Microsoft still needs to prove it is heading in the right direction in areas where it currently lags behind market leaders. Thursday’s report included a wider loss in the online division, which is mostly made up of online advertising. Google Inc., which makes almost all of its money from online advertising, saw its earnings in the same period rise 29 percent to $2.5 billion. Devices running a new smart phone system, Windows Phone 7, went on sale during the quarter, but in its quarterly filing with the Securities and Exchange Commission, Microsoft did not mention its contribution to the entertainment and devices division, which also houses Xbox.

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Sam Pizzigati: Life at the Top: An Endless Bowl of Bonuses

January 24, 2011

Back in the Great Depression, even at the height of America’s misery, some people made quite a bit of money. Chase National Bank chair Albert Wiggin, for instance, netted a windfall worth over $4 million after the 1929 stock market crash — the equivalent of over $52 million today — trading his own bank short. But most of America’s rich actually saw their fortunes sink, and significantly so, during the Great Depression. The average incomes of the nation’s richest tenth of 1 percent, calculates economist Emmanuel Saez, fell from $1,242,237 in 1928, the last full year before the Great Depression, to $737,861 in 1931, as measured in today’s dollars. Our current Great Recession is most definitely not repeating this sinking-at-the-top history. Our rich today are more than holding their own. On Wall Street, business has hardly ever been better, with profits this past year projected to settle at the fourth-highest all-time total. Wall Street bonuses, new data show, are enriching bankers and traders at levels not far off the records set in the go-go years right before the 2008 financial industry meltdown. At JPMorgan Chase, news reports last week detailed , $9.33 billion in 2010 compensation will be divvied up among 26,314 employees, for a $369,651 per employee average, about the same as the $378,600 average in 2009. But few “average” JPMorgan employees will make anywhere near that $369,651 figure. Bonuses at JPMorgan — and every other Wall Street giant — go disproportionately to top bankers and traders. At Goldman Sachs , 35,700 employees will “share” $15.4 billion in compensation for 2010, a $430,700 average, down somewhat from 2009′s $498,246 average. For Goldman execs, not to worry. The $15.4 billion 2010 pay total doesn’t include any of the stock trading windfalls that Goldman’s top executives — the bank’s 475 managing “partners” — will soon be reaping. Back in December 2008, with Wall Street reeling and Goldman shares selling at a bargain-basement $78 each, Goldman’s power suits awarded themselves options to buy 36 million shares of Goldman stock at that bargain price, ten times more options than Goldman granted the year before. Goldman shares have lately been selling around $175 each, creating a potential $100 per share personal profit for Goldman’s elite. Overall, analysts reported last week, Goldman Sachs CEO Lloyd Blankfein and his family are now sitting on a stash of Goldman shares worth $355 million. All these dollars cascading onto Wall Street, says JPMorgan Chase CEO Jamie Dimon, signal “the foundation of a broad-based economic recovery.” That signal, outside Wall Street, remains exceedingly weak. Unemployment rates in the United States are running substantially above jobless rates in Germany, Japan, and other peer nations. And U.S. wages, the Wall Street Journal noted earlier this month, “have taken a sharp and swift fall” all across the nation. One consequence: America’s “doubled-up” population — families that have lost their homes and moved in with friends or relatives — has hit the 6 million mark. These hard times everywhere but at the top, New York Times analyst David Leonhardt suggested last week, most likely at root reflect contemporary America’s deep-seated power imbalance “between employers and employees.” U.S. employers , notes Leonhardt, now “operate with few restraints.” With labor protection laws loophole-ridden and courts tilting aggressively the corporate way, companies can dictate outright labor relations terms with their employees. To maintain profit rates, these companies can downsize, outsource, and replace full-timers with temps. Or shove down wages and slash benefits. Or hoard cash and speculate on financial markets — and never have to worry that anyone in government will intervene. We historically, here in the United States, have had a word for power imbalances this striking and stark: plutocracy, or rule by the rich. The plutocratic rule we experience today can seem all-encompassing. The rich and powerful appear to slide endlessly and effortlessly from the summit of one sphere of American economic and political power to another . Some of these moves make national headlines. Peter Orszag, after running the federal budget office for the Obama White House, moves to a plush senior global banking slot at Citigroup. Former JPMorgan Chase executive Bill Daley becomes the new White House chief of staff. Other moves go more under the radar. Former U.S. senator Mel Martinez, a Florida Republican, moves to JPMorgan Chase. Theo Lubke, the lead derivatives expert at the New York Federal Reserve Bank, hops in bed with Goldman Sachs. The top exec in the New York City public school system, Joel Klein, joins the Rupert Murdoch media empire as an executive vice-president. In this clubby atmosphere , backs get scratched at the power summits — and everyday people get shafted. New York City’s richest 1 percent, as one new report details, now average more income per day — about $10,000 — than New York’s poorest 1 million residents average in a year. How long can this state of affairs continue? History can be a guide — and an inspiration, too. In the Great Depression, over five years passed before Congress felt enough grassroots heat to start passing the landmark bills — like the Wagner labor rights legislation — that truly upended America’s power dynamics. We’re still only three years into the Great Recession. Wall Street’s bonus boys may not be as home-free as they think. Sam Pizzigati edits Too Much , the online weekly on excess and inequality published by the Washington, D.C.-based Institute for Policy Studies. Read the current issue or sign up to receive Too Much in your email inbox.

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Critics Call New Job Network An ‘Economic Recovery Killer’

January 22, 2011

A new online job network is on the scene, with the kind of webwide reach that has older job recruiting sites in a tizzy. The huge new job network –consisting of over 40,000 sites, and continually growing–is actually its own domain that will use the suffix “.jobs” to designate sites that display job opportunities by profession and location. For example, sanfrancisco.jobs or engineer.jobs would take you to a page listing job openings in San Francisco, or for engineers. Or you might go to sanfrancisco.engineers.jobs for engineering jobs in San Francisco. Though there’s something absurdly intuitive about labeling a job-seeking domain with .jobs, the move has career-building sites like Monster.com wrathfully worried over what they perceive as a massive threat to their own profitability. Actually, the .jobs domain has existed since 2005, when it was licensed by a company called Employ Media. But until recently, it functioned primarily for established companies to list the job opportunities in their own organizations–a prospective photocopying maven might go to xerox.jobs to find a position with Xerox. Last year, Employ Media decided they wanted to expand the domain’s use to job-seeking organized more generally by region and occupation. To do so, they turned to the Internet Corporation for Assigned Names and Numbers, or ICANN . ICANN is the group responsible for maintaining the virtual infrastructure of the web by coordinating the use and registration of web domains like .com and .edu so that the global network can function smoothly. ICANN approved their request, but a number of job-seeking websites and related organizations calling themselves the .JOBS Charter Compliance Coalition viewed the proposed expansion as unjustly dangerous to their own interests. They in turn filed with ICANN to reverse the decision, arguing that the expansion violated the charter Employ Media had agreed to back in 2005. In December, ICANN ruled that they would allow the expansion , but would also keep a close eye on Employ Media. The site universe.jobs, a central point for the .jobs network, is live. In a strange twist, the company partnering with Employ Media to execute the universe.jobs initiatives, the DirectEmployers Association, is led by a former Monster.com president, Bill Warren. The coalition warned ICANN that the .jobs domain was “causing substantial and continuing harm to numerous members of the Internet community, including many smaller, regional and niche job boards that are suffering immediate and irreparable harm from the operation of the Charter-violating Dot Jobs Universe.” But there’s a divide between those who see .jobs as a jobsite-killing beast circumventing the code of business competition, and those who see it as simply another step forward in the continually morphing landscape of our World Wide Web. Peter Weddle, the executive director of the International Association of Employment Web Sites, was unreserved in his fear. “This is an economic recovery killer,” he told the Washington Post . “It’s going to infringe on the trademarks and undermine thousands of small businesses who have spent the last 15 years serving job seekers very well.” But others note that .jobs is merely doing exactly what job recruiting websites did back when newspapers were the go-to source for job information: taking the industry into a yet-unrealized future. “It strikes me as rather disingenuous of the online job recruitment sites to cry foul over the creative destruction caused by broader applications of the .jobs domain. These very same online job recruitment sites were the former disruptors themselves, and the great beneficiaries of the Internet domain name land grab. They were all for disrupting the traditional models of job recruitment companies ten years ago. Now that they are the entrenched players in job recruitment, they are crying for support to curb the new disruptors,” said Jonathan Askin, a professor at the Brooklyn Law School, who compared the job seeking sites’ push to block .jobs to a counterfactual scenario where the “government outlaw[ed] the automobile because it would destroy the horse and buggy industry.” Ultimately, .jobs will test the way that domain use and registration functions, especially if the imbroglio draws scrutiny to ICANN’s activity. Though ICANN does not control content, or access to the Internet, its role as a coordinator of the naming system puts it in a unique position to aid or forestall the growth and transformation of the web. The .jobs squabble is not the first, nor will it be the last of the battles to come as new Internet practices inevitably supplant or transform old ones. “Every technological leap leaves a few dead companies in its wake,” Askin said.

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Barry Moltz: 20 Most Important Words for Your Small Business

January 14, 2011

Words are powerful things. And what they mean has a big influence on your customers’ expectations. It is important in your business to understand and define each term for your company and customers. It will make a big difference in how your company grows. 1. Belief: What people think and accept as true. May not correlate with facts. Have great sticking power, even when they are wrong. 2. Complain: What a customer does when they are unhappy. They complain to themselves, to friends, on the Web, and even sometimes to you. 3. Disney: A place where most customers are always happy. This takes a lot of employee training. 4. Empowerment: Training employees to make decisions on their own to help a customer without talking to “the boss.” 5. Feedback: Giving the customer the opportunity to tell you what they think at many different stages of interaction, and the opportunity to do it in many different ways depending on what is convenient and appropriate for them. Something smart companies listen to and take to heart. Associated with the Three Times Rule–if you hear something about your business three times, whether you like it or not, pay serious attention. It is probably true. 6. Forever: Relative time the customer feels they need to wait. 7. Happy: An impossible dream that is sometimes worth the pursuit. No business strategy in the world can make all customers happy. 8. Humans: Who every customer wants to talk to when they call your company. 9. Kick the Cat: What employees do when they take their frustrations out on the customer. Blowing a situation out of proportion. The kiss of death for a company. 10. Mistake: The hardest thing for the company (or the customer) to admit. 12. My Manager: The person the customer is seemingly always getting passed to or who always gets blamed by the employee if something goes wrong. The catcher in “passing the buck.” 13. Overpromise : Making a commitment to a customer or to all customers that the company is not economically able to keep. 14. Patience : What businesses think customers ought to have. What customers think they have a lot of. 15. Peer Reviews : Online references written by customers on the level of quality or service in your company. Sometimes called an open reputation system. 16. Pest: A customer the company may need to fire to be more profitable. 17. Promise : A solemn commitment to a customer that the company will honor and the customer will not forget. 18. Self Service: Tools such as kiosks and Web tools for customers to assist themselves. Not always linked to satisfaction, but increasingly linked to high expectations of a quick turnaround. 19. Survey: A mostly ineffective means of getting customer feedback, especially when the company bribes the customer to do it. 2 0. Voice Mail Jail : Every customer’s nightmare, especially if they do not get a call back. What important words would you add?

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Pamela Jones Harbour: Former Regulator Poses Questions About the Google’s Deal With ITA

January 7, 2011

Reading about Google’s proposed $700 million acquisition of Cambridge, Mass.-based ITA software in the Boston Globe and elsewhere evoked memories for me of tough decisions I made as a former Federal Trade Commissioner and Deputy AG in the New York State Attorney General’s office. Google’s proposed acquisition of ITA and potential dominance in the online travel market raises substantial questions I would ask as a former antitrust regulator. Search engines form the gateway to the Internet, connecting consumers to information and commercial offerings, including travel. Already, 30 percent of all search engine traffic for online travel sites begins with Google. Even though most users complete their flight searches on online travel sites like Kayak and Expedia, Google’s share of initial travel searches already gives it enormous sway over the $80 billion in travel purchases made online in 2009. Most consumers have never heard of ITA, but have probably used its technology. ITA’s QPX software powers the majority of online flight searches. Searching for flights is complex due to an almost endless combination of schedules, routes, availability tariffs, rules, fees and real-time information on seat pricing and availability. It took the MIT computer scientists who founded ITA nearly five years to create a commercial product. ITA licenses its proprietary technology and unique real-time access to data from the airlines on seat pricing and availability to many of the most popular online travel sites such as KAYAK, Travelocity, Hotwire, and Microsoft for Bing Travel. The ITA acquisition would allow Google to collect more user data, command higher advertising rates and extract a greater share of online travel searches and search advertising. This deal would allow Google to dictate who gets a license to ITA’s critical technology and strengthen Google’s ability to steer search traffic in online travel. Allowing Google to acquire ITA would enable it to dominate both the front-end (search) and back-end (search advertising) of the online travel marketplace. In light of that background, as a former regulator, I would pose several questions: 1. Google is under investigation by the European competition authority and the Texas Attorney General for allegedly altering search results to disadvantage competitive sites. How could an auditor determine that Google was not disproportionately favoring its own businesses, if the ITA deal closes? 2. What would prevent Google from using its trove of consumer information to become a data broker to the airlines, essentially teaching airlines how to extract higher airfares from consumers by adjusting their pricing strategies? Google could combine the ITA data with the consumer data it has already collected and start offering targeted marketing campaigns to airlines: “Would you like to market your flights to Cancun to consumers making $100,000+ per year who have searched for “Mexico” and taken a trip in the last 12 months?” There have been reports of web sites already charging consumers higher prices based on past purchasing patterns, on a wide variety of goods and services (ranging from CDs to travel). 3. What would prevent Google’s search advertising prices from increasing after the acquisition? In Japan, after regulators approved the Google/Yahoo Japan deal, Google’s keyword advertising rates reportedly increased by up to almost 5 times preceding amounts. Wouldn’t the airlines pass along those higher costs to consumers? 4. Would the effect of Google’s dominance in search and search advertising, combined with the acquisition of ITA’s unique technology and real-time access to airline data, give Google control of both the supply and demand side of travel search? Google would have access to the real-time seat availability and price information, the ability to extract higher advertising fees from airlines, the incentive to teach airlines how to discriminate among consumers, and enough consumer information to control what a consumer sees. 5. Finally, would the effect of the proposed acquisition reduce consumers’ quality of information, reduce travel advertisers’ choices and product variety (due to increased ad rates), and potentially diminish innovation in online travel search? I’m no longer a regulator who can review this proposed transaction, but the world is certainly watching those who are. The government must act now to protect consumers, stop search deception and promote fair competition online.

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Inder Sidhu: Reality Check: Is Your Business Strategy Ready for 2011?

January 7, 2011

Here’s a sobering thought for the new year: most business strategies are woefully incomplete. So reveals a new survey from McKinsey Quarterly. The publication polled 2,135 executives about their business strategies to determine how many could pass a stress test of 10 questions . The survey asked about granularity, uncertainty and flexibility, among other things. In the end, the majority of executives polled said their strategies could not pass four of the survey’s simple tests. This means many leaders are basically winging it in several important areas. But you don’t have to. With the new year just beginning, it’s not too late to put your own business strategy to the test. The one featured in the McKinsey Quarterly is excellent. If you’re pressed for time, here are five questions from me worth considering: 1. How differentiated is your strategy? When you drive to work or browse the Internet, do you come across companies doing pretty much the same thing as your organization? If so, does your strategy include specific ideas for out-maneuvering them? You’d be surprised how many business strategies do not. One reason is because many business leaders have difficulty accepting that their ideas are not unique. They tend to downplay imitators or ignore potential disrupters. It’s a common mistake. The truth is originality is like gold — extremely valuable and very rare. If your business plan is based on some sense of exceptionalism , then it must be truly different to prevail. If other organizations offer goods or services at similar price points, you must rethink you value proposition. 2. Does your strategy depend on macro-economic growth? Though we are a mere few days into 2011, economic indicators look better than a year ago. Already, stocks are trending up and manufacturing is showing signs of life . This positive information comes on the heels of sales for the holiday shopping season, which increased 5.5 percent over 2009. But let’s not get ahead of ourselves. The new 112th Congress was just sworn in on Wednesday. It is likely to make steep cuts in many areas. It must also resolve a huge dispute about the national debt ceiling. Considering how much of the nation’s GDP is tied to government spending, the outcome will likely have far-reaching effects. In other words, it’s anybody’s guess how strong the 2011 economy will be. Most experts forecast GDP growth in the United States to be between 3 percent to 3.5 percent. But what if it turns out to be half that due to unforeseen circumstances? Will your strategy still work? The fact is most business leaders don’t have a Plan B. Their strategies for staffing, acquisitions, business development and more are almost always based on strong economic growth. When results don’t meet expectations, however, companies get lost. Take Hillcrest Bank of Kansas City. It bet big on real estate lending and failed last fall. Had it devised a business strategy that could work in all kinds of weather, it might not be out in the cold today. 3. Will your strategy work if you or any of your company’s other leaders leave? Most businesses have recalibrated parts of their strategies since the recession save, perhaps, for one important area: talent retention. In the past few years, voluntary turnover has been rare. With fewer jobs available, even top performers stayed put during the downturn. But with key sectors of the economy springing to life, employees are weighing their options. More are likely to change jobs if not careers in 2011. Is your organization prepared? By that I mean will your strategy work if any of your top leaders depart? Or is it dependent on their unique skills and capabilities? Also worth considering: can your business survive a sudden jolt in the form of demands for higher wages and better benefits? If hiring does improve as some experts forecast, then these questions will have to be factored into your business strategy this year. 4. Does your business strategy take into account things that are beyond your control? The past decade has been nothing short of a revolution in terms of technological advance. Just 10 years ago, the most popular navigation tool for drivers was a paper map and the most popular social meeting place was Starbucks. Now everyone uses MapQuest and Facebook instead. It’s a different world today, of course, though you might not know by looking at some companies’ business strategies. Blockbuster is in bankruptcy because it underestimated the impact new technology would have on its business. Similarly, other companies are struggling to cope with new regulations put in place after the collapse of the housing market and the tumult that followed in the financial sector. Congressman Darrell Issa , the incoming leader of the House Committee on Oversight and Government Reform, is trying to roll back rules that have hurt businesses. But it could be years before his efforts help your company — if ever. Take time, thus, to thoroughly assess the impact that innovation and regulation could have on your organization this year. 5. Can your business strategy stretch as far as your opportunities? When you think of Amazon.com, you think of books, electronics and clothing for consumers. But advanced computing services for businesses? You might be surprised to learn that the online retailer is fast becoming a major player in cloud-based computing. (My company, Cisco, has certainly taken notice.) What Amazon is doing, however, is not uncommon. A lot of successful organizations started off in one industry and then expanded to another when the time was right. Phone giant Nokia? It stared off in the wood pulp business. Fashion purveyor Gucci? It was originally a saddle maker. The point is these organizations had flexible business strategies that allowed them to take advantage of opportunities and market transitions. What about your organization: Could it embrace a new business model without upending its existing one? It can’t if your existing strategy is too restrictive and the minds of your leaders are too closed. Hopefully the above will open the floor to some new discussion where you work. Meantime, Happy New Year. As John Lennon sang, let’s hope it’s a good one. Inder Sidhu is the Senior Vice President of Strategy & Planning for Worldwide Operations at Cisco , and the author of Doing Both: How Cisco Captures Today’s Profits and Drives Tomorrow’s Growth . Author proceeds from sales of Doing Both go to charity. Follow Inder on Twitter at @indersidhu .

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Al Norman: The Wal-Mart/Netflix Conspiracy: Bad Movie

January 2, 2011

Judge’s Ruling Clears Way For Class Action Litigation OAKLAND, CA. — It must have seemed like a great plot line at the time. On May 19, 2005, Wal-Mart and Netflix put out a press release announcing that the companies’ two online retail sites would “promote each other’s core business.” The deal was described as a “joint promotional agreement” which would allow each company to benefit from each other’s “complimentary expertise.” The agreement was a non-compete deal which divided up the DVD market by drawing a bright line separating DVD rentals from sales, based on the companies’ strengths. Netflix would promote Wal-Mart’s sale of DVD movies, and Wal-Mart would promote Netflix’s DVD rental business. Neither company would intrude onto the other’s territory. According to their joint press release, the two companies agreed “to market one another’s key movie business at their respective websites.” Wal-Mart agreed to stop its DVD rental service — which it did in June of 2005 — and its rental customers would “be offered the option to become Netflix subscribers at their current Wal-Mart rate for one year from the date they sign up.” Wal-Mart also agreed to use its website, walmart.com, to promote and refer customers who wanted to rent DVDs to Netflix. To this day, walmart.com/movies does not rent DVDs. In return, Netflix, which claims to have more than 16 million members, agreed to promote Wal-Mart’s online movie sales, including a pre-order price guarantee, which Netflix allowed to be accessed from its website, and promoted through mailers sent to Netflix subscribers. The pre-order price guarantee ensured customers the “lowest available price on pre-order movies,” according to the companies’ joint statement. In response to this “agreement” between two of its rivals, Blockbuster advertised a special offer to Wal-Mart and Netflix DVD subscribers: if a Wal-Mart or a Netflix subscriber switched to Blockbuster’s online DVD rental service, the subscriber got two months of free service, a free DVD of their choice, and a freeze of their subscription rate for a year. “We’ve experienced tremendous growth in our online movie sales,” said Wal-Mart’s chief marketing officer for the retailer’s website, “and are committed to enhancing our focus in this business at Walmart.com. We’re equally excited to team with Netflix, the pioneer of online movie rentals, which not only distinguishes both of our core online competencies, but offers a complementary solution of value, service, and convenience to customers.” Netflix’s CEO, Reed Hastings, added: “This agreement bolsters both Netflix’s leadership in DVD movie rentals and Wal-Mart’s strong movie sales business, while providing customers even more choices and convenience. Both companies will continue to expand their respective leads in providing the best in movie entertainment to millions of online customers.” But for DVD rental subscribers, it was not apparent how this deal translated into “more choices and convenience.” Instead, it looked like a choice made for the convenience and profit of the retailers — not for consumers. The deal ended major competition in DVD sales and rentals. Netflix told its investors that it believed the agreement “would not materially impact the company’s current subscriber growth or financial performance.” Netflix boasted that teaming up with Walmart.com would bolster the company’s competitive position, because the popularity of Walmart.com and the Web site’s traffic “offer an opportunity for increased awareness and referrals to the Netflix service.” This week, the Netflix/Wal-Mart DVD deal was back in the headlines — but with a negative spin. A U.S. District Court Judge in Oakland, California ruled that a Netflix subscribers’ lawsuit brought in 2009 challenging the DVD agreement as monopolizing the market could proceed as a class action lawsuit. In an order dated Dec. 23rd, Judge Phyllis Hamilton ruled that the plaintiffs were “united by common and overlapping issues of fact and law.” According to the lawsuit, the alleged conspiracy began when the chief executive of Netflix, met the CEO of Walmart.com for dinner in January 2005 to discuss how to push back competition in the DVD market in the U.S. At that time the Netflix and Wal-Mart website were competitors in online DVD rentals. The lawsuit charges that Netflix and Wal-Mart colluded to divide the DVD market and reduce competition when they announced their “joint promotional agreement.” The lawsuit claims that this agreement was reached after main rival Blockbuster began challenging Netflix by renting DVDs online. Netflix’s agreement with the Arkansas-based retailer removed Wal-Mart as a rental competitor, and gave Netflix an advantage over Blockbuster by having Wal-Mart directing subscribers to Netflix. Despite their market agreement with Netflix, Wal-Mart dropped hands with its partner when the lawsuit was filed. The giant retailer — no stranger to class action litigation — decided to settle with the plaintiffs, and reportedly will end up paying out $40 million to erase the claim. A hearing on the Wal-Mart motion will be held in early February. Netflix is not part of that settlement — it was a deal that Wal-Mart cut on its own The Judge agreed that the Wal-Mart/Netflix alliance kept DVD rental prices higher than they would have been in a fully competitive marketplace. “As a result, millions of Netflix subscribers allegedly paid supracompetitive prices,” the Judge wrote. At the time of the Wal-Mart/Netflix deal, Blockbuster had approximately 9,100 stores worldwide. That number today has fallen to 7,000 stores. In 5 years, Blockbuster has been forced to shut down 23% of its stores. Blockbuster now tells its shareholders “the Company is no longer just a chain of video stores… Blockbuster now offers convenient access to media entertainment any where and any way consumers want it — whether in stores, by mail, through vending / kiosks or digital download.” Now that a judge has ruled the plaintiffs can form a class, Netflix may be forced either to appeal the decision, or face years of litigation. A company spokesman told the Associated Press, “The case has no merit and we’re going to continue to defend it.” At least Wal-Mart understands how this movie ends: it has learned to treat class action lawsuits as a loss-leader, settling dozens of them. Netflix should download Wal-Mart’s script: settle the case, admit no wrong-doing, pay millions to the plaintiffs, and get back to its “core competency.” Al Norman is the founder of Sprawl-Busters, and the author of the book “The Case Against Wal-Mart.” He can be reached at info@sprawl-busters.com

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Video: Mason’s Groupon Seeks to Raise as Much as $950 Million

December 29, 2010

Dec. 29 (Bloomberg) — Groupon Inc., the online-coupon site that spurned a $6 billion offer from Google Inc. this month, has filed to raise as much as $950 million in funding, according to the venture-capital website VCExperts. Groupon Chief Executive Officer Andrew Mason is shoring up the company as he ponders an initial public offering in the new year. Bloomberg’s Deirdre Bolton reports on Mason and Groupon in today’s Movers & Shakers. (Source: Bloomberg)

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Video: Mason’s Groupon Seeks to Raise as Much as $950 Million

December 29, 2010

Dec. 29 (Bloomberg) — Groupon Inc., the online-coupon site that spurned a $6 billion offer from Google Inc. this month, has filed to raise as much as $950 million in funding, according to the venture-capital website VCExperts. Groupon Chief Executive Officer Andrew Mason is shoring up the company as he ponders an initial public offering in the new year. Bloomberg’s Deirdre Bolton reports on Mason and Groupon in today’s Movers & Shakers. (Source: Bloomberg)

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Matt Wilson: Social Media Helps Wall Street Meet Main Street

December 15, 2010

Social media is all the buzz in small business. Everyone has gone to their local mom and pop store and seen that they are using social tools to keep in touch with their clientele. Everyone has seen the Wall Street-backed companies with commercials on television that end in “Follow us on Twitter!”. But what we looked to explore is where Wall Street meets Main Street: franchising. These franchisors are taking their customer service and marketing efforts to social media, directly helping the everyday franchise owner increase their sales on Main Street. Franchisees have the mentality of a small business owner operating in their local community while still having the perks of being backed by a big corporation. Take a look at these eight franchisors who are taking their efforts to social media… Tasti D-Lite “The Grandfather of Interactive Awards” BJ Emerson of Tasti D-lite came up with the revolutionary idea to use social media as currency. They are the first to link such outlets to customer loyalty programs and now other franchises have followed in their footsteps. Regulars of Tasti D-lite probably already use the franchise’s “treatcards,” rewards plan that accumulates points with every purchase. Every 50 points are redeemable for a medium cup or cone. Their media program allows customers to register their “treatcards” online and link them to their social footprints such as Foursquare and Twitter. By doing so, customers will earn double bonus points if they enable the program to automatically update their Twitter and/or Foursquare accounts with every purchase. Website: tastidlite.com Facebook: facebook.com/tastidlite Dunkin’ Donuts “Quality Customer Care through Social Media” Dunkin’ Donuts’ has been hard at work in their social media outreach. Most notable is their interactive website which offers ordering online, store locators and even offer a thorough nutritional chart for their health conscious consumers (very brave). They also have a very popular Facebook page consisting of about a million fans, and Twitter page that garnered 56,000 followers and growing. Their perks leave much to be desired, hence the occasional free iced coffee or delectable treat that will fall on a random occasion such as National Donut Day; however, the franchise focuses on quality customer service by actively responding to their fans’ experiences with the franchise. On any given day, the franchise will make certain to respond the majority of their mentions if not all of them. That may seem basic, but it’s really an extraordinary feat. Think about how many fans lurk by their computers praying to Zeus that today might be the day that @ kimkardashian responds to their tweet. In addition, fans are promised insider information about upcoming products. Website: dunkindonuts.com Facebook: facebook.com/DunkinDonuts Twitter: @ dunkindonuts 7-Eleven “Viral Marketing through Gaming” 7-Eleven hasn’t figured quite yet how to capitalize on social moguls such as Facebook and Twitter, but in this day and age, nothing says viral marketing like an interactive game. 7-11 took this to heart when the convenience store chain launched the online dating game: “Wake Up With a Hot Brazilian,” to promote their newest product, Brazilian Bold coffee. The premise of the game was to enter the hot and heavy “711 club” and work that romantic IQ on the Sims inspired characters lounging around. High scores were redeemable at any franchise for free cups of coffee. Website: 7-eleven.com Facebook: facebook.com/7Eleven Church’s Chicken “Pay it Forward” Franchisor Church’s Chicken launched a campaign deemed “Pay It Forward” where fans were interviewed and asked, “Do you know what good is?” (A play off of their 2007 campaign: ‘I Know What Good Is’) which were all featured in podcasts and video blogs. Church’s Chicken also launched its Twitter account and promised to add one dollar to a pledge fund for each follower they accumulated in a thirty-day period. Church’s Chicken hoped to reach 10,000 so they could give away 1,000 dollars to ten individuals living in urban areas. The winners have yet to be announced. Website: churchs.com Twitter: @ ChurchsChicken Subway “Promoting Healthy Lifestyles on the ‘Net” It has been interesting to watch Subway position itself as not a fast food chain but a fit alternative, aiding many Americans on the pathway to a healthy lifestyle change. Their website hosts a collection of blogs that range from Jared (Subway’s original spokesperson who garnered fame for losing a significant amount of weight, eating nothing but the franchise’s sandwiches) to Olympic gold medalist Michael Phelps. Now they are building their Twitter following by sending out promotional news, interacting with their customers and highlighting their publicity on shows such as, The Biggest Loser. Website: subway.com Facebook: facebook.com/subway Twitter: @ subwayfreshbuzz Hampton Hotels “Learn the best Travel Anywhere” With the recent blows to the economy and families strapping down their boots in anticipation of hard times, hotel franchises such as Hampton Hotels could have the upper hand on boutique hotels if they play their cards right. Hampton Hotels has been increasing its popularity through a hyperactive Twitter page. Followers learn first hand of special rates, promotions, and new locations and have the opportunity to win a free stay if they offer feedback. They also offer tips on traveling, such as saving on airfares and staying healthy on the road. Website: hamptoninn1.hilton.com Twitter: @ hamptonfyi Domino’s Pizza “Monitoring Twitter on Gigantic Computers” Domino’s Pizza has also been working on it customer through Twitter . Their website is impressive and includes a “pizza builder” for online ordering. They also make sure to highlight their customers. Most notable in that area is Ramon De Leon, who manages seven of these franchises in Chicago. His team closely monitors Twitter on four computers for any comments concerning their area and act upon it immediately, depending on the issue. For example, he issued a public apology via both Twitter and video blog to a woman who received the wrong pizza an hour late. He also made sure that she received her order without her even having to ask. He also recorded a video blog to thank another fan that tweeted happily about her order. Website: www.dominos.com Facebook: facebook.com/Dominos Twitter: @ Dominos The Chicago Bulls (just for fun) “WebMD for Future Athletes” The Chicago Bulls have grabbed social media by the metaphorical horns (excuse the pun). The team is actively evolving its website to accommodate a more interactive playground for its fans. Maybe most interesting is their incorporation of Chicago Bull’s “Ask the Docs” where fans can consult the team’s official sports doctors for some tertiary advice. The Bulls also have a Youtube channel named BullsTV . Website: nba.com/bulls Facebook: facebook.com/chicagobulls Twitter: @ chicagobulls

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David Gorodyansky: Even Savvy Shoppers Can Get Scammed — Tips for the Holiday Shopping Season

December 7, 2010

Last week marked the official beginning to the holiday shopping season. More people will be buying their stocking-stuffers online than ever before this year. comScore predicts online spending this holiday season will grow by at least 9%, two times last year’s pace, and the National Retail Federation (NRF) is expecting 2010 holiday retail sales to rise by 2.3% this year to $447.1 billion, compared with a rise of only 0.4% last year. In fact, the NRF reported that 33.6% of Thanksgiving weekend sales (Thursday-Sunday) were online, the highest percentage ever. Yet as the number of Internet shoppers rises, so do the threats to both personal security and privacy. We are voluntarily putting more of our personal information out there than ever before through social channels like Facebook and Twitter and the associated purchasing mechanisms which have latched on to these communities — but are we being smart about our online activity? Not really. The average consumer remains negligent to the fact that their information is not automatically protected when online. Security breaches come in all shapes and forms, from sidejacking — where someone on your Wi-Fi network literally hijacks into your internet session to steal your info — to lesser known tactics of fake e-coupons that allow hackers to gain access to your credit card information. The recent release of Firesheep shed light on the fact that, despite some protection, we all still need to take measures to protect our personal information online. What many people don’t realize is that while your credit card numbers might be made public when shopping online, so can your behavior — which can be even more frightening. What’s even more alarming is that these privacy violations don’t just come from rogue hackers. Rather, big companies are in the practice of violating individuals’ online privacy everyday by monitoring and storing what you buy. Recently in the news there has been a resurrection of noise around Deep Packet Inspection (DPI), intrusive technologies for profiling and targeting Internet users with ads which goes beyond monitoring just Web browsing and literally tracks an individual’s behavior online. Creepy isn’t it? Even some of our favorite websites are getting into the game, such as Facebook passing your data to third party sites and Google’s Wi-Fi data collection. The point is, the general need to raise awareness around online privacy is all around us. Rest assured that not all hope is lost as there are a number of simple ways that you as a consumer can take your privacy and security into your own hands. Here are some simple tips and tricks that make it possible for anyone — tech savvy or not — to stay safe and private when hunting for the big deals and surfing the Web this holiday season: 1. Antivirus: Invest in antivirus software like McAfee, Symantec or Webroot, which helps to blocks viruses, spyware, spam and lesser known threats to consumers like trojans, worms and rootkits, encrypting critical passwords and making your PC invisible to hackers. 2. Download and be done: While antivirus technology is critical, it remains the case that only 40% of people are actually protected by their antivirus. To help ensure that you are completely secure and protected online, combine this with a tool like as Hotspot Shield, a completely free download (Virtual Private Network — VPN) which keeps you secured and blocked from outside eyes. 3. Stamp of Approval: Look for accredited seals of approval from third party entities. And wherever you enter your credit card or other personal information, make sure that there is an “s” after http in the Web address. This means that it is encrypted. 4. Lock and key: Make sure there is a tiny closed padlock in the address bar, or on the lower right corner of the window. This lets you know that the site is secure. 5. Too Legit? This one can be a bit tougher, but take a minute to look for signs that the business is legitimate. Goes without saying that the Amazons and Targets of the world are legit, but for smaller shops, double check that it’s a credible business by calling the main number or doing a quick online search for other user reviews. Online shopping provides an easy option for savvy shoppers, but make sure you’re smart about how you buy. Follow these tips and protect your identity, information and right to online privacy this holiday season.

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Video: Google’s Shah Calls Boutiques.com a `Curated Experience’

December 2, 2010

Dec. 2 (Bloomberg) — Munjal Shah, director of product management at Google Inc.’s Boutiques.com, talks about the website’s emphasis on visual search technology and the outlook for the online retail company. Shah speaks with Mark Crumpton on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

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Tests Show Toxic Metals In Children’s Products Exceed Federal Limits By 1000 Times

November 22, 2010

LOS ANGELES — Drinking glasses depicting comic book and movie characters such as Superman, Wonder Woman and the Tin Man from “The Wizard of Oz” exceed federal limits for lead in children’s products by up to 1,000 times, according to laboratory testing commissioned by The Associated Press. The decorative enamel on the superhero and Oz sets – made in China and purchased at a Warner Brothers Studios store in Burbank – contained between 16 percent and 30.2 percent lead. The federal limit on children’s products is 0.03 percent. The same glasses also contained relatively high levels of the even-more-dangerous cadmium, though there are no federal limits on that toxic metal in design surfaces. In separate testing to recreate regular handling, other glasses shed small but notable amounts of lead or cadmium from their decorations. Federal regulators have worried that toxic metals rubbing onto children’s hands can get into their mouths. Among the brands on those glasses: Coca-Cola, Walt Disney, Burger King and McDonald’s. Coca-Cola, which had been given AP’s test results last week, announced Sunday evening that after retesting it was voluntarily recalling 88,000 glasses. The AP testing was part of the news organization’s ongoing investigation into dangerous metals in children’s products and was conducted in response to a recall by McDonald’s of 12 million glasses this summer because cadmium escaped from designs depicting four characters in the latest “Shrek” movie. The New Jersey manufacturer of those glasses said in June that the products were made according to standard industry practices, which includes the routine use of cadmium to create red and similar colors. To assess potential problems with glass collectibles beyond the “Shrek” set, AP bought and analyzed new glasses off the shelf, and old ones from online auctions, thrift shops and a flea market. The buys were random. The fact it was so easy to find glasses that appeal to kids and appear to violate the federal lead law suggests that contamination in glassware is wider than one McDonald’s promotion. The irony of the latest findings is that AP’s original investigation in January revealed that some Chinese manufacturers were substituting cadmium for banned lead in children’s jewelry; that finding eventually led to the McDonald’s-Shrek recall; now, because of the new testing primarily for cadmium in other glassware, lead is back in the spotlight as well. AP’s testing, conducted by ToyTestingLab of Rhode Island, found that the enamel used to color the Tin Man had the highest lead levels, at 1,006 times the federal limit for children’s products. Every Oz and superhero glass tested exceeded the government limit: The Lion by 827 times and Dorothy by 770 times; Wonder Woman by 533 times, Superman by 617 times, Batman by 750 times and the Green Lantern by 677 times. Federal regulators will decide whether the superhero and Oz glasses are “children’s products” and thus subject to strict lead limits; if U.S. Consumer Product Safety Commission staffers conclude the glasses to fall outside that definition, the lead levels would be legal. Judging by the agency’s own analysis, obtained by the AP under the Freedom of Information Act, the Oz and superhero glasses appeal to kids. “Licensed characters based on action superhero themes or friendship themes are very popular” with children ages 6 to 8, CPSC staff wrote when explaining why the “Shrek” glasses, which featured the cartoon ogre and his friends, would end up in children’s hands. Warner Brothers said, “It is generally understood that the primary consumer for these products is an adult, usually a collector.” However, on Warner Brothers’ website, the superhero glasses are sold alongside kids’ T-shirts with similar images and a school lunch box. An online retailer, , describes the 10-ounce glasses as “a perfect way to serve cold drinks to your children or guests.” http://www.retroplanet.com The importer, Utah-based Vandor LLC, said it “markets its products to adult collectors.” The company said less than 10,000 of each set had been sold and that the products were made under contract in China. The company said that superhero and “Oz” glasses both passed testing done for Vandor by a CPSC-accredited lab, including the same lead content test that ToyTestingLab did for AP – a test only required of children’s products. Spokeswoman Meryl Rader did not answer when asked why a test specific to children’s products would be performed on glasses the company said were not intended for kids. “The results were well within the legal limits” of 0.03 percent lead, Rader wrote in an e-mail. The company would not share those results. Informed in general terms of AP’s results, CPSC spokesman Scott Wolfson said that the agency would pursue action against any high-lead glasses determined to be children’s products. The agency has authority to enforce lead levels for glasses going back decades, he said. AP’s testing showed Vandor’s Chinese manufacturer also relied on cadmium. That toxic metal comprised up to 2.5 percent of the decorative surface of the Oz and superhero glasses, nearly double the levels found in the recalled “Shrek” glasses. But the CPSC only limits how much cadmium escapes from the designs, not how much cadmium the designs contain. Even that regulation is new: The CPSC used the “Shrek” glasses to establish a standard for how much cadmium coming out of children’s glassware creates a health hazard. Five of the glasses that AP tested, including one ordered from the online Coca-Cola store, shed at least as much cadmium as the CPSC found on the “Shrek” glasses. While those five could have been deemed a health hazard under the CPSC guidelines used for the recall, recent revisions tripled the allowable amount of cadmium and the agency may no longer consider them a problem. The agency has said its upward revision means the “Shrek” glasses did not need to be recalled. The all-red Coke glass shed three times more cadmium than the Puss in Boots “Shrek” glass that worried federal regulators the most last summer. Coke Zero and Diet Coke glasses did not exhibit the same problem. In announcing that it was voluntarily recalling 22,000, four-glass sets “for quality reasons,” the Coca-Cola Co. said the glass designed to look like a red can of Coca-Cola “did not meet our quality expectations. While recent tests indicated some cadmium in the decoration on the outside of the glass, the low levels detected do not pose a safety hazard or health threat.” The company said consumers who purchased the glasses from Coke’s online store will receive an automatic credit; customers who bought the glasses in retail stores will be instructed on what to do starting Nov. 30. The glasses, which Coke said were “designed for the general adult population,” were manufactured in the United States by Arc International, the same company that made the recalled “Shrek” glasses. In all, AP scrutinized 13 new glasses and 22 old ones, including glasses sold during McDonald’s promotion for a 2007 “Shrek” movie. The used glasses date from the late 1960s to 2007, mostly from promotions at major fast-food restaurants. Thousands of such collectibles are available at online auction sites; countless others are kept in American kitchen cabinets, and used regularly by children and adults. First, AP screened them using a state-of-the-art Olympus Innov-X gun that shoots X-rays into a glass and delivers an estimate of how much lead, cadmium or various other elements are present. The glasses were then sent to ToyTestingLab, which is accepted by the CPSC as an accredited laboratory for a range of procedures. The glasses were tested according to the procedure that the safety commission used in the “Shrek” recall. The decorated surface of each glass was stroked 30 times with water-soaked wipes, with each stroke representing a hand touch. The wipes were then analyzed for how many micrograms of lead, cadmium or other elements they collected. Finally, for seven of the superhero and Oz glasses the lab extracted samples of the decorations. That colored enamel was analyzed for its total lead content. “I was extremely surprised at the levels,” said Paul Perrotti, ToyTestingLab’s director, of the total content test. He said his lab has seen glasses that fail to meet government standards, “But not 30 percent lead.” Despite what Perrotti described as “grossly high” levels, the wipe testing picked up very little lead coming out from these seven glasses. His staff had to use a diamond-tipped grinder to remove the colors, suggesting the enamel was strongly bonded to the glass. Perrotti and glass engineers interviewed by AP said the surface of the glasses AP tested could break down with repeated use, scouring and trips to the dishwasher, making the metals more accessible. Following a cascade of problems with products manufactured in China, Congress in 2008 passed strict new limits that effectively ban lead in any children’s product. The underlying materials in these products – including the baked-in enamel – cannot be more 0.03 percent lead. Lead has long been known to reduce IQ in kids; recent research suggests cadmium also can damage young brains. Cadmium also is a carcinogen that can harm kidneys and bones, especially if it accumulates over time. Cadmium, however, also happens to be an indispensable pigment for an important part of the color palette – without it there is no “fire engine red” (think Superman’s cape and Dorothy’s slippers). Lead on the other hand is not essential. A lot of a toxic metal in a glass does not necessarily mean a health hazard. Most of the 35 lab-tested glasses were safe under normal conditions – their decorations shed very low or no detectable amounts of lead or cadmium. Among those that did release higher levels in the wipe test, none gave off nearly enough to make someone immediately sick, according to AP’s analysis of the results. Instead, the concern is low levels of exposure over weeks or months, whether kids also are eating a sandwich or licking their fingers. In addition to the seven contaminated Oz and superhero glasses, 10 others raised concern over longer-term contact – two for both lead and cadmium, five for lead only and three for cadmium only. According to widely used computer modeling, the contamination that came off three of the glasses could measurably increase a child’s blood lead level. If half of what gets onto a child’s hand enters their mouth, as the CPSC calculates, seven of the glasses would require fewer than 20 hand touches for kids age 6 and under to exceed U.S. Food and Drug Administration guidelines for the maximum amount of lead they should ingest in a day. Most of the 10 additional glasses were released before 2000, including a Disney “Goofy” glass distributed by McDonald’s that shed lead and cadmium, and three “Return of the Jedi” glasses from 1983 released by Burger King. One of the “Jedi” glasses hit the FDA lead level for 6-year-olds after just eight touches. Both fast food chains said in statements that their glasses met applicable safety standards at the time they were manufactured. Disney, which ran several promotions with McDonald’s for glassware AP tested, had no comment. Using computer modeling, nationally recognized toxicologist Dr. Paul Mushak, who has advised government agencies including the CPSC and now operates a consulting practice in North Carolina, concluded that if half of what came off the glasses was ingested, it could raise a 5- to 6-year-old’s blood lead level by 11 percent on the high end and 4 percent on average. The blood level changes didn’t alarm Mushak, but he expressed concern because lead from the glasses would be absorbed into the bones, only to be released much later in life, for example in menopausal women. Mushak suggested that the safety commission’s wipe test could underestimate real-world exposure, because it uses water on the wipes, a very mild approach. AP’s testing showed that when glasses were subjected to a wipe wetted with artificial sweat, the amounts of lead or cadmium that came off were up to four times higher than water wipes. Members of the association representing the U.S. glassware industry say the glasses are safe and strongly protest that the wipe test does not accurately reflect how much lead or cadmium escapes in the real world. Myra Warne, executive director of the Society of Glass and Ceramic Decorated Products, said she is frustrated that the CPSC used it, rather than a more commonly used method developed by the FDA. “As we are aware, government agencies don’t always (or perhaps often) share their insight and knowledge with one another which is likely why CPSC and others are fixated on improper test protocol for our products,” she wrote in an e-mail. ___ The AP National Investigative Team can be reached at investigate(at)ap.org

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easy-forex® exhibiting at The Middle East Online Trading Summit & Awards 2010

November 3, 2010

easy-forex® exhibiting at The Middle East Online Trading Summit & Awards 2010

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Jeremy Shepherd: My Journey From Flight Attendant To CEO Of A $20 Million Company

November 1, 2010

When I was nine, I started my first business. It wasn’t much. I baked cookies and sold them for 10 cents a piece or a dollar a dozen outside the local shopping center. A good weekend might net only about $10, but that was a profit I had earned, creating something from nothing. I knew from an early age I wanted to be an entrepreneur. Fast forward 12 years. I was a flight attendant for Northwest Airlines. I had picked up a second passion during my teenage years: foreign languages. I had learned Spanish and Japanese well enough to become a language-qualified flight attendant. I spent the next several years traveling the world. While on a layover in Beijing in 1996, I joined a group of flight attendants on a visit to the Hongqiao market in Chongwenmen. The market fascinated me. It was a four-story building filled with clothing, electronics and, most of all, pearls. Knowing only that pearls were supposed to be expensive, I bought a $20 strand for my girlfriend. Back home, I presented the pearl strand to my girlfriend. She promptly took it to her jeweler for an appraisal. He valued the strand at an astounding $600. Light bulbs lit up in my head. Over the next month, I visited every jewelry store in town inquiring about pearls. I could do what most jewelers could not: fly to China while being paid and purchase pearls for pennies on the dollar. It felt like a win-win situation. I thought I just needed to find a few stores whose owners agreed. I quickly learned that most stores carried goods on memo or consignment, or they worked with wholesalers in the U.S. Nobody was interested. I almost gave up. I had been telling others about my business idea. A friend called with a suggestion. He had been selling odds and ends in a sort of garage-sale format on eBay. He convinced me to try it. I posted my first Dutch auction. I knew very little about pearls, so I posted only the information written on the appraisal. The next day, I cashed my paycheck and flew to Beijing, where I returned to the same market and seller. I purchased as many of the identical strands as I could. When I returned home, the Dutch auction had closed. Every piece I had listed sold. I was in business! Shortly after finding my niche, I decided to try selling pearls from my own Web site. In 2000, I launched PearlParadise.com, a site I designed myself. That was probably my first big mistake. Rule number one for budding online entrepreneurs: If you’re not a Web designer, hire one who has a successful record. Over the past 10 years, I have become deeply involved in every aspect of my online business. I have grown PearlParadise.com from a small operation run from my kitchen table to the largest niche-retail pearl Web site in the world. We have offices in the US, Canada and Europe. The keys to my success have been to constantly learn, innovate and evolve as e-commerce has grown, and to surround myself with people who are experts in their fields. Other keys to my success include: Becoming an expert in my niche — pearls Developing a working knowledge of Web design Using social media to create viral awareness of our brand Capitalizing on search engine optimization and placement The application of analytics related to pay-per-click campaigns and comparison shopping engines I have made many mistakes. But every one has been a learning experience. As entrepreneurs, we live to take chances and to create something from nothing.

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FxPulp to Participate in Middle East Online Trading Summit & Awards 2010

October 29, 2010

FxPulp to Participate in Middle East Online Trading Summit & Awards 2010

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FxPulp to Participate in Middle East Online Trading Summit & Awards 2010

October 29, 2010

FxPulp to Participate in Middle East Online Trading Summit & Awards 2010

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Josh Silver: Washington Post Endorses Comcast-NBC: Ironically Proves Dangers of Mega-Merger

October 25, 2010

Today, the Washington Post published a piece of unabashed corporate advocacy , arguing that the pending mega-merger of cable giant Comcast and NBC-Universal should be swiftly approved by regulators. The editorial claims that media concentration is not a problem, and that “advocacy groups (opposing consolidation) have been poor prognosticators of the effects of large media mergers.” I’m not sure what planet the WaPo editors live on. Weakened media ownership limits have led to a media system with far too many newspapers, radio and television stations in too few hands. Public interest groups have correctly predicted the host of problems brought by rampant consolidation: woefully few outlets owned by women and people of color, huge profit pressures that result in job cuts, closed news bureaus, and a system where hard hitting, investigative commercial television and radio journalism is nearly an oxymoron. Radio is homogenized, with too many ads and opinions, and scant original reporting. On television, the most important issues are synthesized into seven second sound bites and impossibly short segments that are devoid of context and crucial information. The net result of ownership consolidation (aided and abetted by the rise of the Internet) is poorly-staffed newspapers and commercial television and radio that are long on hot-headed opinions, advertisements and mindless entertainment, but short on the substance that an informed democracy requires. Defenders of the status quo are either benefiting from it, or are like frogs in warming water: it happened so slowly, they haven’t realized it’s boiling over. The great irony of the Post’s endorsement is that the editorial itself is a poignant example of why the Comcast-NBC merger is so dangerous. When media companies control too much, their own interests — and opinions — directly conflict with the public’s desperate need for sound policy and diverse, independent, critical viewpoints. The Post is not a disinterested or neutral observer in this case. The Washington Post Company owns Cable One, provider of television, internet and phone services to several states. They own six television stations, a long list of print publications, plus Slate.com, Foreign Policy and other online sites. Yes, the op-ed technically discloses this, but fails to disclose how greatly these interests influence the Post’s position on this issue. The Post suggests that “FCC officials should resist calls by some merger opponents to impose ‘net neutrality’ principles.” Yet it fails to explain that, as an Internet service provider, the company has self-interest in abolishing Net Neutrality, the rule that prevents Internet providers from creating fast lanes and slow lanes on the Internet in order to maximize profits. The Post argues that the $30 billion deal “should be allowed to proceed,” and that strong conditions need not be applied to the deal. Instead “[c]ompetitors who believed that they were harmed by unfair dealing could have their complaints adjudicated by the FCC” on a case by case basis. But to anyone familiar with the FCC, the threat of enforcement is almost always an empty one. The process is long and expensive — and complaints languish for months or even years before any FCC action, if at all. And that’s for companies that can afford high-powered connections and high priced-attorneys. If you’re an average person whose cable bill is skyrocketing, or whose internet connection is slow and expensive — well, you’re screwed. The backlog of consumer complaints at the FCC is notorious. For the vast majority of people, the agency’s complaint process is a right without a remedy. Comcast is already the nation’s largest Internet broadband and cable television provider. NBCU owns 26 television stations, Universal Pictures, the NBC Television Network, Bravo, CNBC, NBC News, MSNBC, Oxygen, Syfy (Sci Fi Channel), Telemundo, USA Network, and the Weather Channel. If the merger is approved, a single corporation would own a huge array of popular content and would control how that content — and the content produced by its competitors – is distributed over the airwaves, cable, and Internet. As all media moves to a digital platform, the harms of the “vertical integration” of content and distribution become more severe. Comcast can starve competing online video providers by withholding access to NBC programming. It can also move video content that is currently offered for free on sites like NBC.com behind a “paywall” tied to a cable subscription so that you must pay for cable TV if you want to watch TV online. President Obama boldly proclaimed — on the campaign trail and once he took office — that he would promote policies that “encourage diversity in the ownership of broadcast media, promote the development of new media outlets for expression of diverse viewpoints, and clarify the public interest obligations of broadcasters who occupy the nation’s spectrum.” Obama’s top antitrust official Christine Varney said in May 2009, that “vigorous antitrust enforcement must play a significant role in the government’s response to economic crises to ensure that markets remain competitive.” Yet today, Wall Street analysts are increasingly bullish that the merger will be approved by the FCC and the Justice Department, cheered on by Washington Post’s editorial page. Score yet another victory for the entrenched big money interests that rule Washington, and yet another defeat for the American people.

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Inder Sidhu: Clicks and Mortar Integration: Where Retail Excellence and Relevance Come Together

October 25, 2010

No time to shop for tonight’s dinner? It’s not a problem if you live in the Mid-Atlantic or Southeastern part of the United States. Now you can order groceries online at harrristeeter.com and pick them up curbside at dozens of Harris Teeter stores. With the time you save there, you could swing by Nordstrom and indulge yourself in the shoe department. Can’t find your size? No worries. Just go online to Nordstrom.com and search more than 100 company store warehouses with a single click. Isn’t this what shopping convenience is supposed to be? Harris Teeter and Nordstrom think so. And so do a growing number of other companies that are working to make your life easier by integrating their online and on-site shopping experiences. They are investing in new software systems and changing internal policies to reduce any barriers between their “clicks” operations and “mortar” stores. This is something many have tried before but few have mastered until recently. Even at some of the nation’s most successful retailers, a truly integrated experience is still a work in progress. At Best Buy, for example, items purchased online can be returned for store credit. Exchanges, however, are not yet possible. Why the hitch? Blame it on the current gap between business excellence and customer relevance in retail. Like many companies, retailers understand that in order to succeed, they have to produce both year-in and year-out. But they are challenged by ongoing technology changes, economic pressures and evolving customer demands. In recent years, retailers have made great strides improving their business excellence by optimizing their supply chains and rationalizing their store counts, among other things. While these efforts have steadied retailers during the recession, they haven’t yielded much in the way of improved customer relevance. But integrating online and on-site stores is. Unlike other initiatives, this work directly benefits customers, whose demands are constantly evolving. Today, consumers want to shop both online and in person when it suits their needs. Regardless of where they buy things, they want to return them wherever it is most convenient. The only way retailers can provide this type of convenience is by integrating their online and on-site operations. This often requires a software overhaul and an organizational realignment. Any retailer that fails to get this is apt to fall behind. But those who make the effort can benefit handsomely. Take Nordstrom again. In August, Nordstrom Direct President Jamie Nordstrom told The New York Times that integrating the company’s online and on-site warehouses translated into “some pretty meaningful results.” In the 11 months after the integration was complete, same-stores sales jumped 8 percent. Other factors contributed to the increase, but Nordstrom singles out the inventory change as having a significant impact. “We can sell more without having to buy more inventory,” he said. “That plays through to margins and, ultimately, earnings.” Other retailers are making changes with the hopes of achieving similar gains. At Kohl’s stores, for example, shoppers who can’t find items in their size or preferred color can now browse an in-store kiosk and take a peek at what’s inside the warehouse. Instead of leaving disappointed, more and more are walking out satisfied. In a bid to increase customer relevancy, many companies are now taking clicks and mortar integration a step further. Gap, J. Crew and other retailers now rely on Facebook, Twitter and other forms of social media to communicate news about store sales and to distribute retail discounts. Then there’s cosmetics retailer Sephora, the division of luxury products giant LVMH. In September, the company released an iPhone app that shoppers can download and use to read product information and consumer reviews while shopping inside its stores. As of late October, nearly half the people who reviewed the app on the Apple iTunes store gave it a five-star rating. “I love how you can scan any product or QR code to see reviews and videos,” said one customer. “Today’s obsession is fresh and fun. Way to go Sephora!” Becoming your customer’s obsession? It’s hard to get more relevant than that. Or more excellent. By increasing both among its customers, Sephora has out-performed its rivals throughout 2010. And so have other retailers who have committed to doing both. Inder Sidhu is the Senior Vice President of Strategy & Planning for Worldwide Operations at Cisco , and the author of Doing Both: How Cisco Captures Today’s Profits and Drives Tomorrow’s Growth . Follow Inder on Twitter at @indersidhu .

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Video: O’Kelley Says AppNexus Growing Fast, `Hiring Like Crazy’: Video

October 22, 2010

Oct. 22 (Bloomberg) –- Brian O’Kelley, chief executive officer of AppNexus, discusses the outlook for the online real-time display ad-bidding company. O’Kelley speaks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: Kerner Says Social Media Worth Billions to Investors: Video

October 22, 2010

Oct. 22 (Bloomberg) — Lou Kerner, a social-media analyst at Wedbush Securities Inc., talks about the impact of social media on the Internet and advertising. Kerner, speaking with Deirdre Bolton on Bloomberg Television’s “InsideTrack,” also discusses venture capital opportunities within the online business space. (Source: Bloomberg)

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‘Foreclosure Mill’ Employees Got Gifts For Altering Documents, Witness Says

October 18, 2010

At a large Florida “foreclosure mill,” a manager signed up to 1,000 documents a day without reading them and employees were given gifts to speed up foreclosure paperwork, according to depositions released today by the Florida Attorney General’s Office. The news, also reported by Tampa Online , comes as Bank of America, the nation’s largest bank by assets, announcement that it would resume more than 100,000 foreclosures in 23 states after an internal investigation of its practices. Florida authorities are investigating the law offices of David J. Stern over how it handled foreclosure paperwork. As the AP notes, Cheryl Salmons , an office manager at the law offices of David Stern, “would sign 500 files in the morning and another 500 files in the afternoon without reviewing them and with no witnesses,” according to Kelly Scott, a former assistant at the firm. The perks for good performance were considerable, according to Scott’s statement. Tampa Online notes office employees were lavished with gifts: “As a perk of Samons’ [ sic .] job, Stern’s office would routinely pay her personal mortgage, a car payment, her electric bills and her cell phone bill, according to Scott, who told investigators Stern also bought Samons [ sic .] a new BMW sport utility vehicle every year and gave her and other employees jewelry. Additionally, Stern purchased employee David Vargas a house, a car and a cell phone, Scott claims in her statement.” According to Kelly Scott’s statement, Cheryl Ramos’s marathon document signing sessions took place in an office conference room and would leave her wearied. From Scott’s deposition: They would [be] stacked amongst each other, side by side, and Cheryl would come twice a day, in the morning and mid-afternoon, around two or three o’clock and she would sign all of them, every single one of them… Cheryl would give certain paralegals rights to sign her name, because most of the time she was very tired exhausted from signing her name numerous times per day. You had to understand it was more than five hundred files that she’s signing morning and afternoon. David Stern had an especially close relationship with the mortgage giants Fannie Mae and Freddie Mac, Scott said in her statement. The lenders were “considered his babies,” Scott said and employees would change codes to hide files when their representatives visited the office. View PDF’s of the new statements here .

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Emily Dubner: Baking For Good Founder: Talk To As Many People As You Can

October 16, 2010

When I first began developing the idea for Baking for Good , I figured the path to building my startup was simple. I’d quit my job, wrap myself in a little cocoon for a few months, toiling away and eating salad, and then emerge as a beautiful entrepreneurial butterfly, delivering brownies and cookies to friends and family in times of sadness or celebration. But that’s not how it worked out in the end. Early on, I ignored the advice of some older, wiser people who encouraged me to speak with as many people as I could. Instead, I dove in and started to develop the concept in relative isolation. I drafted business plans, sketched website frameworks, and edited recipes while planted in my seat on a 5-hour flight or alone at a hotel room desk late at night (at the time, I was traveling to Seattle every week for my consulting firm.) All of the decisions I made, I made independently. I decided it would be quickest and most cost- effective to outsource the web development to a firm in India. Ten minutes later, I submitted a request for proposals on the online freelancing website Elance.com and chose the lowest bidder ($400! To build my whole website! In 3 months!). I was a master at PowerPoint; all I had to do was set up the pages of the website in a PowerPoint template and email them to Partho, my friendly developer, who would then give the pages online functionality and even throw in his own design expertise. But it turned out Partho’s design expertise wasn’t exactly in line with the look I was going for. I tried to explain the concept of a bake sale to him. I even emailed him a link to Wikipedia’s entry on it. To this day, I have not shared with a single person the initial designs he came up with. The look was all wrong: lime green and bright purple with a giant grinning Barney-like dinosaur mascot. I wasn’t ready to give up on Partho just yet, and when he submitted a request for another $400 because the project was bigger than he had anticipated, I readily gave it to him. Much to my dismay, once the transaction cleared, I never heard from him again. In truth, Partho’s abandonment of my project was a blessing in disguise. Around this time I met with a friend who gave me the advice that you only get one shot to launch your website, and it’s worth making it look professional on the first go. I took this to heart, deactivated my Elance account, and started calling up designers and developers in NYC. My meetings were both invigorating and terrifying. Promises of awesome, beautiful websites and great support contrasted with price tags of tens of thousands of dollars and timelines of several months. So much for a $400, 3-month investment. I ultimately began working with Paperwhite Studios to brand the site and Crush + Lovely to develop it. Now I had a team that shared my vision of an online bake sale and had the skills to bring it to life. Not only that, but I could actually meet with them, stopping by for impromptu brainstorming sessions or picking up the phone to share a new thought. Each step took many more days or weeks than I wanted it to, and I had to adjust to letting others do some of the thought work. But the site was so much better for it, the business cards so much prettier for it. I was proud to show it off and get the input of others, whereas previously I had wanted to keep it all to myself until it was “ready.” There are downsides to talking to as many people as you can. Everyone’s got their opinions on what’s best for you, what changes you should make, what really awesome feature would make the site so sweet. I had to learn to take every comment as a suggestion, to use what I could and keep everything else in the back of my mind. Crush + Lovely helped me put this all in perspective. They encouraged me to keep things simple: make sure initial site visitors can grasp the whole concept easily, and build from there. This was not only the sensible solution, it was also a much more cost-effective one than building in all the possible functionality in the beginning (and then having to fix or tear things down if they didn’t work out). In September 2009 we launched a simple but elegant website. It was my company, but I didn’t go at it alone. Nor was I right to think that I could.

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The Top Cities Where It’s Cheaper To Rent Than Buy: Trulia (PHOTOS)

October 11, 2010

With top lenders like Bank of America and PNC issuing far-reaching moratoriums on foreclosures, now may just be a better time to rent than buy. A simple calculation called the price-to-rent ratio can give you an indication of whether it’s a better move to rent or buy a home. Trulia, the online real estate data provider , evaluated the price-to-rent ratio in the 50 largest U.S. cities by population. By comparing the average purchase price of a 2-bedroom home — including mortgage fees and maintenance expenses — with the average rental price for 2 bedroom apartments, condos, and townhouses, Truilia came up with a handy, back-of-the-envelope way to gauge a local market. (Check out their previous edition here .) Cities with price-to-rent ratios between 16 and 20 indicate that it is cheaper to rent than purchase a home, but certain financial situations may make ownership a viable option. In cities with price-to-rent ratios of 21 and above, it is much more expensive to buy than rent. Check out Truila’s latest list of U.S. cities in which it’s cheaper to rent than buy a home:

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Video: TD’s Tomczyk Says Investors Hesitant on Economy Outlook: Video

October 9, 2010

Oct. 8 (Bloomberg) — Fred Tomczyk, chief executive officer of TD Ameritrade Holding Corp., talks about investor sentiment. Tomczyk also discusses the online brokerage’s reality television show and growth strategy. He talks with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

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Video: Hoffman Says Social Networking Still in `Early Stages’: Video

September 24, 2010

Sept. 24 (Bloomberg) — Reid Hoffman, founder of LinkedIn Corp., talks about the online professional networking site’s business strategy and the outlook for social networking. Hoffman, speaking with Margaret Brennan and Clarium Capital Management LLC’s Peter Thiel on Bloomberg Television’s “InBusiness,” also discusses LinkedIn’s acquisition of ChoiceVendor, a website for reviews of business service providers. (Source: Bloomberg)

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Dennis Santiago: Keep a Watchful Eye on Banks From Your Mobile Phone

September 13, 2010

The days of the desktop or even laptop computer as a person’s primary interface to the internet are numbered. The trend is to do more and more on the go on your telephone handset. Everything needs to re-cast itself onto these devices as terms like IPhone and Android replace PC and MAC as what people argue when talking platform preference. We see banks going from “on line” banking to “in hand” banking. The applications themselves are compacted down XHTML mini-websites that run quite well on mobile browsers that are then encapsulated inside device specific app shells to make them more convenient on a person’s phone. Ok that gets the supply side of banking tools moving. It’s only logical that the next step is to bring consumer and even professional analytics to the handheld device. There is need for independent ways to find banks and — more important — ask consumer choice questions about how they rate compared to their neighbors. At Institutional Risk Analytics, we think that need extends to something anyone can access on the go. Having built and donated the online tool that helped power the “Move Your Money” project earlier this year, we got plenty of exposure to what consumers need in the palms of their hands so we decided to take a crack at a testbed. Try it yourself on your phone’s browser at BY CLICKING HERE or going to http://us1.irabankratings.com/mobile/home.asp . The tool is laid out in the simplistic “point and shoot” style guide necessary to make it work while standing in line at Starbucks. It works on a regular browser too actually in keeping with adhering to the simplest possible HTML tenets. We decided to start our tests with four functions. 1. Get a Grade – Shows if the bank is above or below the ‘B or better’ marker line. 2. Find Nearby Banks – Finds banks by zip code for now. We’ll make it device location aware a little later. 3. Read the Latest IRA Newsletter Article – Provides a simple test for packaging in depth writing so we can figure out how news and blog sources should interact with a handheld surveillance tool. 4. Industry Fact Sheets – To experiment with packaging numbers intensive reference data into a handheld device. And then it gets better, This experimental application covers all banks large and small so you can look up the branches of the mega money centers as easily as the tiny community banks. It delivers grades on them all and lists of nearby branches. Then the tool has “map links” that will automatically invoke Google Maps with one touch of your thumb. But wait there’s more, A fifth function allows your phone to log in to IRA’s online IRABankRatings.com consumer and light industrial system and once logged it’ll enable you to access all the reports you have your desktop/laptop application from the browser. If you are a full level advisory or government user of the even more powerful Professional IRA Bank Monitor with it’s Counterparty Quality Scoring and “Shadow” CAMELS calculators, it will let you extend those reports into your handset too. This means the tool silo is set up like a layer cake of horsepower. Use the level most appropriate to the type of user you are. The purpose of this of course is to enable everyone from casual consumers to field personnel to have a greater portion of their information needs served conveniently because this in the end is what preventing future systemic risk is all about. Efficient market discipline means increasing transparency for everyone from the most learned elites to the proverbial little old lady from Pasadena. Take a look for yourself. It’s pretty cool for a five day old application, roughly about the same age the Move Your Money Zip Code Tool was on December 29, 2009. I expect we’ll see more of these kinds of “ordinary people’s” surveillance tools tracking banks over time. Some will help keep the playing field more transparent and others will market special interests. But if we all learn to read between the lines better we will ward off becoming a “Third World America”. Note: For those that note that this testbed is full of IRA products, yes that ‘s true. But when one wants to build something to tinker with quickly it’s sort of important to only use pieces you actually own and have the rights to do with as you please. I have no idea what the final mix of components for a true killer app is yet. Feedback and suggestions are welcome.

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PHOTOS: In-N-Out, Five Guys Tops, McDonald’s Dead Last In Consumer Reports’ Fast Food Burger Rankings

September 8, 2010

Consumer Reports ‘ October issue runs the results of their fast food burger survey , taken by 28,000 of their online subscribers. The respondents ranked 18 fast food burgers on a scale of 1 to 10, and the final results of the survey, along with a photo of each candidate, is below. In-N-Out Burger and Five Guys shared the top honors, each earning an average score of 7.9. You may remember this same burger duo from last month’s Zagat fast food survey, where Five Guys edged out In-N-Out for their best fast food burger crown . The mega-chain trio of McDonald’s, Jack in the Box, and Burger King rounded out the very bottom of Consumer Report ‘s list, lending some credibility to this set of burger rankings (though we can’t speak for some of the smaller chains in the middle — Back Yard Burgers, Checkers, Krystal anyone?). Below are the complete rankings from first to last, with the overall score (on a scale of 1-10) they each received. How do these burgers stack up for you ?

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Alfred Gingold: CHASE HOME WEASEL UPDATE

September 7, 2010

For a couple of weeks after my post about Chase Home Finance’s continuing attempts to defraud my wife and me , things were all quiet on the mortgage front, almost. We mailed in our August payment early (just principle and interest, just what we owe), so it would arrive well before August 1st. We can’t pay online now, as the “make payment” option automatically includes $563.36 of fictive escrow. We received an email on July 24th acknowledging and thanking us for our payment. Three days later, the 27th, we received another email saying our mortgage payment was coming due. On August 3th, we received a email saying our mortgage payment hadn’t been paid and we received precisely that same message every weekday for the rest of the month. After the 16th, the messages added a $33.71 late fee to the sum we were said to owe. Evidently, we had not gotten through to them. It was not for lack of trying. The very day after we received Chase’s letter detailing our imagined delinquencies and its latest escrow dreams, we faxed a politer-than-they-deserved letter and the canceled checks, etc. that proved our case. No response. Then we emailed the qualified professionals at Chase Customer Care Online, whose reply made it abundantly clear that no qualified professionals had read our email. Finally, I broke down and called, something I’d hoped to avoid doing, because whenever I speak to a Chase Customer Care professional, my blood pressure spikes, or least it feels that way. This call was no different. After explaining everything to a Chase Customer Care Pro, I was told I need to explain it all again to a CCC Pro of the Tax Department persuasion. My call was patched through to a guy named Ken (first names only at Chase Customer Care!). Ken took my name, asked me to wait a moment and promptly disconnected me. Called back and spoke to Carmina, who put me through to someone named Synina; maybe I should stick to CCC Pros whose names rhyme? Synina listened politely to my story, assigned our case a work order number, 135331499, and said the matter would take two weeks to clear up. Two weeks later, we’d heard nothing from Chase aside from ten more emails saying our August payment had not been received. Then on August 25th, just as we were about to leave town for vacation, August mortgage payment sent off, we received both a letter and a call from Chase. The call came from the Department of Dunning, a bewildered soul who kept repeating that our August payment was due even as I ventilated on the subject of the check the bank has acknowledged and, more important, cashed and, more broadly, the perfidy and general loathsomeness of her employer. Soon I was on the phone w ith JoAnne of the Tax Department. She had a soothing voice and a polite manner and she assured me that the whole situation would be resolved in the not-too-distant. The letter was from the Chase Insurance Processing Center, informing us that if we didn’t send proof of insurance within two weeks, Chase would take out a policy for us and escrow us for it. We thought it odd to hear from the Insurance Processing Center at this moment, since we haven’t missed or even been late with an insurance payment since 2006. Does Chase’s right hand knows what the left one is stealing? We wondered, faxed proof of insurance and left town in pouring rain, hopeful we might be nearing the end of this particular Chase scam. We got home a week later. More mail from Chase! Our August payment had been accepted without late penalties or escrow and our neighbor’s water bill is now gone from the list of our “delinquencies” (thanks, JoAnne). Still, September mortgage statement states we owe $496.63 in escrow, $66 less than before, but still $496.63 more than we owe. Perhaps Chase’s rapacity would be less galling if JP Morgan Chase didn’t lead all other banks in money spent on lobbying congress , or if they hadn’t paid a $28 million dollar settlement so the federal government wouldn’t pursue charges that Chase deceived borrowers and engaged in abusive practices . A company that spends like that really should stay away from petty larceny; it’s unseemly as well as being, you know, criminal. I’m trying to give Chase Home Weasel the benefit of the doubt. It’s been a hot summer (though I bet the Chase’s downtown mother ship is as cool as a wine cellar) and Chase Home Weasel has been foreclosing on its borrowers’ home and dragging its corporate feet on those HAMP loan modifications the government pays the banks to do. On the other hand, screw’em. I’m thinking small claims court.

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9 Of The Strangest Homes In America: Zillow (PHOTOS)

September 7, 2010

The housing market is still slumping underneath the weight of foreclosures, a stagnant job market and skittish consumers. If you’re looking for a decidedly alternative approach to home-buying, we may have some options for you. Courtesy of Zillow , the online real estate provider, we’ve gathered nine of the strangest homes in America. Included in this odd bunch is a decommissioned missile site, a former firehouse and, if you tire of bucolic views, a circular Connecticut home that can rotate at varying speeds. Check out Zillow’s list of some of the strangest homes in America — and visit Zillow for more information :

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