So I was contemplating the ceiling potential of UGC contribution in SA right now?

We cannot escape the fact that the market is limited and SA users are not really web-cultured/savvy. The critical mass is also not there as we would like it. People are not plugged in and “always on” as in other markets.

I see the 90-1-9 rule playing out on most of our 24.com products. - 1% contribute and create a lot! 9 % a little and the rest just read. 

So extrapolate that to the size of the SA market of 5.6 million local users(according to the OPA stats), and the result is: 

56 000 South African online users are potentially avid generators of content, while another 504 000 will participate. - The rest will just view content.

Note that this assumption applies to user-generated content and not social networking participation. This is a reasonable assumption of the potential in the market in my view.

Arthur Goldstuck did research into the local blog market (December 2007) and asked all local blog providers and aggregators to participate to achieve a view on the total numbers. The result was 3 700 active blogs. We estimate no more than 5000 active currently. - Which means that roughly 0.1% of South Africans are blogging.

In addition to this Amatomu.com according to Nielsen stats has about 8 000 monthly unique users which amplifies the penetration of blogging in SA. It is nowhere near a mainstream activity.

I also realise that blogs are not the only form of UGC - people are also uploading pictures/videos to Flickr, Photobucket, Youtube, Zoopy, Blueworld and all the others out there. 

The kicker to this theory is that SA usage of Wikipedia and Youtube is huge according to both Alexa and Comscore Media Metrix -  but I doubt that people are contributing and rather passively viewing the content.

There certainly is a pure mathematical limit to potential. Another case in point is that we know as a general rule of thumb on may products that 10% of people will register. No matter how good your product is you may move the needle a little but chances of re-writing the rules are slim. 

Why am I writing this? Well with the wave of elation in the web2.0 space we have to honest with ourselves as early adopters and understand that the mass of SA users are not using Twitter, Friendfeed and all the other cool products out there.

Does that represent an opportunitygap in the local market? Maybe. Does this imply that SA start-ups should be thinking global rather than local if you want to get real traction. – Probably.

It’s a real challenge. But these are things to consider when putting down your business plan. At the end of the day marketers are looking for reach among other things and reach is something we grapple with in this market.

I know that IS announced a while ago in June that they were creating a VC-like fund for innovation and yesterday FMtech reported on more of the details.

I just wanted to say well done. It is great that companies such as IS are starting to invest in the SA web and start-ups.

“We are trying to improve the Internet in SA,” IS product development manager Jeff Fletcher said. - and that is a noble and worthy cause.

Our(24.com) investment into Blueworld Communities was a fantastic decision and I am sure Vodacom’s minority share in Zoopy.com will assist them to really grow their presence.

If you are looking to pitch a start-up them to HAVE to read “The art of start” by Guy Kawasaki.  In fact get your hands on anything you can from Guy - he is an apple legend and now focusses on getting start-ups started so to speak. The web is littered with his videos, talks and texts. You MUST do it. I read his book recently and was frothing at the mouth I got so excited. He details the best way to do pitches, plans and presentations. Key elements in getting funding.

I think we are going to see an explosion on the SA web and look forward to it!

So everyone saw the news about domains going ape.

It’s obvious but I just have to say that Google must be licking their lips.

It’s sentimental and quirky but they have never removed “I’m feeling lucky” from the homepage and now there’s a chance it will get  more action in the future.

Either way if this trend does take off then search will become even more nb.

Google’s strength and ranking algorithm has always been to find websites. It is what it was designed to do. It is far worse at finding real info. So this will play to their strengths if things proliferate.

Indecently i am also curious about how much search traffic I will generate via the word Gang bang in my headline - LOL!

Whatever …… I will def register  elanlohmann.unique !! or elan.fun

What will you register?

So after pulling numerous all-nighters, and now at 1:20am again, while working on my plot to take over the world I wondered if car-jackers in Jozi have to deliver business plans to their exco ……..

I mean - which ever way you slice it - those guys are running a business.

But I wonder if they have to submit a doc that says they will have stolen 100 cars by April 09 to gain a 40% share of the Sandton market in the luxury vehicle segment.???

Random ramblings. Bed time.

Got the domain, vision, mission - what next?

Values!

Values are a key ingredient of this business ….

·         Having a BIG IDEA you believe in

·         An IDEA that will change the world

·         Focusing everything on your IDEA and making it a reality

·         A STAKE in your IDEA’s success

·        Think BIG

·        Be Open  

·        Take risks

·        Make mistakes

·        Make an impact

·        Kill corporate culture

·        Feed people’s dreams

·        Assemble and reward talent

·        Freedom from Bureaucracy

·        Incubate a huge success story

·        Innovate and have fun doing it

SOUND EXCITING? MAKE YOU WET? up for a mad ride and crazy challenge?  WANT TO TAKE OVER THE WORLD WITH ME?

looking for geeks and web-a-holics. If you can write it or manipulate it you stand a chance.

If so IM or mail me -  elan13 at gmail

So - I have a domain, a name and a logo on the way (courtesy of Clint Bryce).

What’s next? Vision and mission I guess …………

Vision >>>>>>>

To innovate kick-ass web 2.0 technologies that firmly put South Africa on the global internet map.

Mission >>>>>>

To fearlessly and swiftly build useful, innovative technology platforms that enable community, communications, contribution and sharing to an engaged audience that can be monetised.

Ambitious - well I’m thinking “Go big - or go home!” : )

Any thoughts on refining these?