Start-ups on the cheap

joe kraus This past Wednesday, Joe Kraus, founder of JotSpot stopped by at Business 2.0 office. While he was meeting up with Michael Copeland, senior writer at the magazine who covers venture capital, I popped in for a few minutes to say hello. Amongst various things that were discussed included Basecamp, which we love, and other new developments. I am glad to see he articulated his thoughts in this post, and how the cost of getting a start-up going were lower than ever before. I have written about this trend in the past, on numerous times including my two stories, Rise of the Insta-Company and The New Road To Riches. Lately Michael wrote a piece on the instant companies, which are leveraging the new trends outside of technology arena. And last month, Mike and I, penned The Fifth Wave story, that touches about some of the themes Joe brings up. I hope a lot more people are paying attention to this. I agree with most of his points except the use of Google as a means to spread the word. I think Google is a medium of choice for now, but it will not be the case. Recent cases of click fraud have exposed its short comings. I think we need to seriously rethink the marketing model – Google AdSense for now is a efficient way of doing old styled marketing. Its not new – text has replaced banner ads. RSS ads are not the answer, for they are like radio ads, throttled down your throat. Instead, we need new thinking. But I am sure Joe is on the job.

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