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Tello - Good Product, Dumb Strategy?
by Michael Arrington on January 24, 2006

Tello has been all over the news since last night. It hasn’t launched yet, but the promise is to allow people within your company and at trusted other companies to see your “presence”.

This means you can tell if they are using a landline, cell phone or IM application. You can use the Tello application to communicate with them and share applications. The system will work with traditional phones, blackberries and IM clients, and looks to be a killer productivity tool.

Tello raised $5.5 million from Eagle River, Evercore Partners, Rho Ventures and Intel Capital. The founders include John Sculley, Jeff PUlver, Craig McCaw and Michael Price.

I’m looking forward to testing this out, and maybe using it for my business. But Tello has made some odd choices in the weeks before launch.

First they clearly orchestrated a news blitz even though they are pre-launch. Ok, they got some great coverage. But why did they organize this way before launch? There won’t be as much hype on the day this goes live, when people can actually use the service.

Second, they’ve obviously decided that the bloggers don’t matter much. Om Malik and Alec Saunders took the time to write about them. Even though they each command a large and very relevant audience, Tello didn’t bother to list either of them on the news page. Lots of other bloggers wrote about Tello too (including our own MobileCrunch), but were not mentioned. Companies that don’t embrace bloggers tend to become attacked by bloggers. Companies that embrace bloggers, and thank them, get lots and lots of love.

Third, and this is minor - what’s up with the circa 1995 stock photography on the home page?

And no blog? Does Tello intend to communicate with us via press releases?

Of course, I will forget all of this (stock photography and all) if Tello is as cool as it looks like it might be.

Update: I have never been ripped into as aggresively as I have in the comments to this post.

Update: Tello has added blog posts to their news page. Good for them.

Comments rss icon

  • I generally like your blog, but shudder when you stray into pretentious rants like this. Please do criticize on the basis of the product but don’t whine because a company isn’t following your narrow script.

    “How dare they not involve the Web 2.0 intelligentia!?”

    “You mean viral blogging isn’t the end all and be all of new product introduction?”

    “We were all good little soldiers. Where’s our candy? What no reward? But we played the game! Burn 1.0 company, burn.”

    I think it’s time you stray from the teleprompter Mike: Web 2.0 is not utopia, deal with that. A little reality check every now and then does everyone some good.

  • Hey Mat - ok, point taken. But I did try to balance the story…and I do think a blog is a must have for any web company today.

    Web 2.0 is not uptopia? :-)

  • Mat - I think the criticism is more than fair. Mike did say “looks to be a killer productivity tool”. I think his advice is dead on.

  • Seriously, I agree with Mat. Are you trying to give up smoking, or has someone replaced your regular coffee with decaf? You’ve got a good gig going here, but too much more of this whiff of ‘I can make em and break em’ that I’m catching and I’ll unsubscribe.

    And Richard: a company whose product is aimed squarely at business is not going to catch any wind in their sails from the early adopter crowd.

  • Since all of these comments are anonymous, I don’t know if “real” people are saying this or not. I certainly don’t think I can “make or break” companies (did I say or imply that?), but I’m also not going to just write fluffy stuff like the NYT seems to these days. I say what I think. And in this case I think Tello has wrapped what looks to be a killer product with a really dumb website and communications strategy.

    James, on your second paragraph, I think I would have agreed with you a few months ago. But after reading an early version of Scoble and Israel’s Naked Conversations, and seeing how big, non web companies are using blogs to really connect with customers, I now disagree. An informal communication channel, like a blog, is an important way to talk to customers and potential customers.

  • Mike, I agree. Tello Rocks. You suck and your writing is terribel (sorry, someone had to tell you). click…unsubscribed.

  • Has it ever occured to you that Om Malik, Alec Saunders, and Mobilecrunch don’t actually matter much. I mean come on, they’ve got press from Business Week, eWeek, and Silicon Beat. Why would they want to clutter that up with with links to bloggers?

    Also, if the bloggers are pissed that they didn’t get their “kickback” then I’d say they’re blogging for all the wrong reasons. So much for writing for passion and not reward.

    Your post is by definition “fluff” since you don’t actually add any value and just bash a product that’s not even released yet. Maybe the NYT isn’t the greatest source of news, but this doesn’t even pass for semi-informative.

    - unsubscribed

  • Grey, I don’t think I am going to address most of your points but I will say that the bloggers I mentioned don’t need the links and may not have even noticed. But other bloggers will, and so my recommendations to companies has always been to have a blog, and if you can to point to people who review your product.

    I also think it’s worth pointing out that people like Om are actually bigger than some of these cited publications:

    http://www.alexa.com/data/deta.....at.com#top

    And, I did not bash the product. I can’t because I haven’t seen it yet. It looks like it addresses a real need though.

  • I think the comments from Mat, James, Kevin and Grey might all be the same person slamming you. Have you checked the IPs?

  • Gee Bill, what insight. Is it that hard to believe that Arrington on his high horse irritated several readers? I don’t know about the other posts, but these are mine alone. Yes, I will post anonymously because for all the hot air, Techcrunch has a large reader base and I’m not interested in putting a bull’s eye on for the author who obviously has no issue with leveraging his popularity to push his rhetoric (totally within his rights btw).

    Michael, you actually addressed all of my points (except for the fluffy writing, but that’s to be expected) so thank you. I think this graph illustrates my original point better:

    http://www.alexa.com/data/deta.....at.com#top

    And that’s just the online version!

    When push comes to shove, no one in middle management is going know/care who Om is (yes I know he writes for some glossies), but you can bet they’ll know Business Week.

    I think you need to stop huffing the Web 2.0 paint.

  • Connecting with customers and prospective customers is wonderful, but the percentage of microsoft customers who know who Scoble is will always be insignificant. Corporate blogs will always be about niche conversations for non web companies.

    I’m not saying they’re not valuable, but suggesting that they’ve somehow made a mistake by not having a blog is silly. Clearly their communications strategy is working well if they’re getting the positive press they are; and I think it’s kind of petty of you to try to bitch-slap them because they’re not playing in your sandbox.

    I agree with you about the stock photography though.

  • I don’t see why Mike should keep his mouth shut unless he’s got something nice to say, what’s the point in that?

  • Mary-Ann, it’s not that he’s being critical; it’s that his criticism isn’t relevant, and it smacks of too much time spent in the echo chamber.

  • Wow this is sounding like an AOL message board.

    First of all, bloggers are a great way to reach a certain kind of audience. If you’re trying to reach mid to senior level IT guys, bloggers are the way to go. If you’re trying to sell to CEO’s of companies that are not in the technology space, bloggers don’t matter so much. Given who is mixed up in this, I’d say their sales strategy is top down not bottom up. They want 20 HUGE clients not 25,000 small clients.

    Finally. John Sculley? In a tech start up? That’s clever idea…

  • Ditto the stock photography.

  • James, I found the criticism relevant. I know a few guys in that target market because I write about stuff that some of them do at the weekend. Just because they are used to brochureware and confusing copywriting doesn’t mean that’s what they want.

    Show them a Web 2.0 style site with big writing and simple and intelligent explanations and most of the time they’ll breathe a sigh of relief.

    There are better stock photos and ways of merging images out there too… :)

  • I think the reason that TechCrunch is so successful is that it usually reads more like journalism than a chatty, meandering blog.

    However, I’d rather read your take on sites that you find interesting and working, than critique of sites that you don’t, like the posts on Ning and Tello.

    I do believe the *press* is increasingly reading blogs, so I agree that a blog is a useful comm line…

  • Mike I dont think your criticism was that bad. I’ve seen moer lethal than that and deservedly so. Sounds like the comments are from Tello employees…What are they going to do next, steal newspapers that write up bad pieces on them?

  • The stock photography is old looking. I wouldn’t say that Om Malik is not important though. After all he is a senior writer at Business 2.0 which is my favorite business magazine, and I’m sure many other peoples as well. So if they get in good with Om they might just get in good with B2. Also you have to realize that even small blogs can make a big difference in how many users, and interested parties you will recieve to your site.

  • Early adapters read blogs and drive markets. Therefore reaching out to blogs should be a top priority of any new tech company. It’s not only smart but it’s also cheap press and the links you get are better than any paid banner ad ever would be. They also help increase your google pagerank quite a bit.

    Would I click on a banner ad for Tello? No. Did I just visit their website after reading about it here? Yes.

  • Michael,

    I don’t think you need to really worry about a few unsubscribers. From your feedburner count you have a greater “true” subscribers than most trade magazines and general newspapers.

    I’m surprised at the aggressiveness of the comments. Alex Popov is probably right about them being empolyees of Tello. Has Jeff Pulver made any comments about virulent negative comments yet? I notice from his post about Tello he is saying that the sceptical posts are good as it provides balance.

    The orignial commentators are off based regarding the importance of blogs for marketing. Hugh Macleod http://www.gapingvoid.com, Tara Hunt http://www.horsepigcow.com, Steve Rubel http://www.micropersuasion.com to name a few can give very detail accounts of the importance of the blogsphere in marketing. While many in the blogsphere do over estimate their importance, the blogsphere is growing in importance for corporate communication. Why else would companies exist just to track opinion in the blogsphere.

    All criticism is relevant as long as it is presented constructively as Michael did.

  • //Early adapters read blogs and drive markets//

    I had to spit out my tea and laugh at that pompous statement! You got the first part right but the second part..that’s funny!

    Demand drive markets, not a bunch of self-pompous, self-appointed people that think they are on the cutting edge.

    Good grief!

  • Mike,

    My gut tells me that the people writing flames work for Tello or their PR agency and they’re shaking in their boots because they think they screwed up.

    Here’s why I think that: These same people that ignored bloggers and failed to create a blog for Tello (probably their traditionaal PR flacks) think that bashing you is some how going to help? It just proves they are clueless. If they had a clue, they’d have a blog and point people there to address what you say! It would drive traffic to their site and create a dialog with potential customers. That’s blogging 101.

    Don’t let them bother you Mike. You made reasonable criticisms.

  • If your sales channel is a direct personal pre-existing relationship with CEO’s of companies not in the technology field bloggers don’t add much.

    These guys aren’t going for slow, organic, bootstrap, bottom up growth. These guys are going to have their board members call the CEO’s of other companies they are also on the board of. There going to sell those CEO’s directly. Those CEO’s are going to tell their IT people what they’re going to buy.

    We’re not their customers.

  • It is absolutely pathetic to see how much attention you think you deserve.

  • For all the fervor, nobody has stood up to defend Tello’s bad stock photos. Guess that’s settled, anyhow.

    To Michael’s critics: what does he have to discuss except these peripheral items? In his own words: I will forget all of this … if Tello is as cool as it looks like it might be.

  • I probably wouldn’t have known about Tello if I hadn’t read this post. I would have ignored it if it weren’t for Michael saying he was getting ripped. I check this site because Michael lets us know about new and rising products and services. That’s what he did with Tello. This is why people read his blog. What good would it be if he only praised every single site and didn’t criticize it? He might as well be posting up new logos with links and leave it at that. His insights and criticisms are his own and if you’re too narrow to realize that, go ahead and unsubscribe because it just demonstrates that you probably don’t “get it” anyway.

    With respect to his criticism of Tello, I agree with him. Why are we not their customers? Last time I checked I work for an enterprise and might be the one to tell my CTO about this service. Some CTOs have no clue about new services like this (even though they should). But admit it, most CTOs are unaware of bleeding edge technologies even if they’re right in their face. I know engineers who’ve never heard of Ruby on Rails or Digg. If it weren’t for bloggers like Om and Michael, I wouldn’t have heard about it. It’s the people that read this site that are trying to keep their finger on the pulse of technology. Without people like us, a lot of folks would never know about half of these services or sites. We’re free marketing and mavens that will could push the tipping point. Ignoring people like us does nothing to that end.

    I’ve worked in marketing for Sony, Apple and eBay so I think about these things all the time. Anyone with any sense knows that free and viral are good things. I look at that site and I think 2000 and outdated. They didn’t even bother to spend some money to make their website look half decent. Sure this isn’t a Web 2.0 service or site, but that doesn’t render their innovative marketing methods useless. The same people who are networked by their cell phone, blackberry, IM clients, are highly correlated to people who are up to date on the web. They might even read a blog or two. Board members and employees alike are surfing the web and either one can influence the decision-maker in a company to adopt Tello. By ignoring the web as a critical avenue to market to new clients, they are making a mistake. That’s all Michael was trying to say. Keep on doing the great job you’re doing Michael!

  • “Demand drive markets, not a bunch of self-pompous, self-appointed people that think they are on the cutting edge.”

    There are two products in the same market. They are pretty much identical and they’re both good products.

    Product A plays nice with bloggers and because of bloggers gets more attention from early adapters. Early adapters generate hype for Product A. More people hear about Product A and use it.

    Product B does the opposite. They focus on mainstream channels which are slow. By the time their article is reviewed in Product A has been receiving hype and coverage in the blogosphere for over a month now.

    Which product does better?

  • My gut tells me that Dave Lu work for Techcrunch or their PR agency and they’re shaking in their boots because they think they screwed up.

    Don’t let him bother you Mike-critics. You made reasonable criticisms.

  • Comment #29 (see #23) is hilarious.

  • This is quite funny line of comments! Thanks for pointing to them from the post as I often don’t read comments. Guess I should from now on! :-)

  • Shit, going anonymous (#29) was totally useless if people find the comment funny!
    Bah..

  • Whoa. Here’s another vote for support for you Mike, and another note of skepticism towards the critisizing comments from “unique” people. This post, like your others, is neither arrogant nor is your writing “terribel,” but informative and enlightening as always. I trust you aren’t taking most of this seriously. Keep up the great work, and thanks for your contributions to the community.

  • Yay! Let’s all jump on the blogger-bashing bandwagon. We’ll get refreshments and stew in our own coolness. We haven’t been corrupted by any of this “conversation” nonsense, let’s be proud of it! How dare this mere blogger suggest that any lessons have been learned by the past few years of transparency and openness on the internet. Press releases and mainstream media coverage for all!

    Sheesh.

  • #28

    Eric,

    I believe the comparitive performance of Product A vs. B will not be based based on whether bloggers or mainstream media hyped the product. It will be based on the level of marketing effort of each company and how good the product/service really is.

    Mike,

    You deserved to get ripped into because you used the word ‘hype’, not ‘marketing’ or ‘PR’. It make you appear to be a ‘hypster’ which I believe you are not (I hope).

    Smart entrepenuers and startups made a big investment in their venture and naturally want to build their company on solid marketing strategies, not hype. Hype strategies is for whack web sites that think VCs will get excited about their whack web site because there is ‘media buzz’ out there.

    Marketing is not ‘hype’. Marketing takes time and are well planned out. Sometimes marketing have to be done one handshake at a time. Just my 2cents.

  • Mike, you are free from editorial control. Keep feeding your opinion. When I read this, I didn’t think you were pompously self-promoting yourself and bloggers. You comments in that regard do have some merit. But I don’t think it’s black-and-white. If a company is 2 engineers in a garage, blogs are the vital. They likely can’t afford big marketing spends or a PR agency. And they don’t necessarily have adress books full of CEOs. John Sculley’s call, on the other hand, WILL be taken by ANY CEO in the Fortune 2000.

    Ultimately the product has to peform. The Dotcom landscape (even pre-bust) was littered with rock star teams (board, investors, founders) who created lots of hype and then imploded due to poor execution (too many chiefs, not enuf…). If Tello works well, is easy to understand and install, and responds quickly to user feedback, they have good chance of success. If stock photos were the predictor of demise…what’s the saying, “if I had a nickel…”

    You said it yourself: if the product is a star, you and everyone else will forget about stock photos and forgotten links (does anyone want to give them the benefit of the doubt that they just may have overlooked the blogs, and not intentionally ignored them).

    I would just say: keep doing what you’re doing, but be a little more careful when analyzing blogs’ (and your own) relevance. Let other crow about how necessary you are becoming.

    Now that I have come sincerely to your defense, can you help a brother out. Let me come to your BBQ. I promise I won’t take up much space. I hope you can squeeze me in.

  • “I think the comments from Mat, James, Kevin and Grey might all be the same person slamming you. Have you checked the IPs? ”

    I would agree with this or they are directly affiliated with Tello in some way.

    To digregard the bloggers who bring new products to the attention of the first tier of users..the users who really test and use beta products..the techies and tech enthusiasts.. IS a big mistake. I´m sure Mike doesn´t need the “attention”: He is meerly pointing out that you have made a big marketing mistake because you are ignoring your prime market: the readers of Techcrunch and similar blogs who are more likely to use a beta product, deal with the bugs, actually give you great feedback to improve your product, and pass it on to other tech enthusiasts. The mass market typically waits until a product is ready for prime time before jumping on the bandwagon. Business Week,etc aren´t going to help a prelaunch “product” at all or even a Beta product. It may help you produce a nice “news” page on your site, but it won´t help your product.

    To the people who responded in such a negative, condescending way: Be a little more professional with your criticism. Obviously you like something about what Mike is doing if you responded so quickly to his new review. I think he mentioned that the service “seemed” like a great idea;however, the path that Tello is taking is probably not the best..especially for a “prelaunch”. It just isn´t the most practical and beneficial way to get a beta product to critical mass within the first tier of users of bleeding edge products.

    Keep doing what you are doing Mike. This is the best blog to keep up to date on new products and services. For every one of these flamers, there are 1000s of us who love your blog and like it just the way it is.

  • I think Mike has lot of fair points here and the criticism was fair.

    It seems to me that employers or CEOs of Tello company are writing here anonymously against Mike’s criticism… What a shame.

  • Mike– stick to your guns. I actually kind of slightly agree with some of the points your critics (in this case), but the vitriol with which they deliver their opinion seems to be coming from an emotional and not rational place.

    I read this blog because it tells me about new web stuff, and usually has an opinion or some inside info that I can’t get anywhere else. Don’t let some harsh commentors change that.

  • I just wanted to write the 39th comment. 39 comments folks! And nobody cares? Come on.

  • What an interesting read…

    Two hours give or take since the frenzy…

    Has Tello realed in their own PR people now?

    Tello does look dull with the stock photos, but agreed does sound interesting and I would have never have known good, bad or indiffernt about Tello if it was not for you Mike.

  • tello

    - has stock photos on its site
    - doesn’t have a blog
    - doesn’t thank bloggers
    - orchestrated a news blitz
    - has PRs but no references to posts by bloggers
    - addresses CEOs, top brass & cares a damn what bloggers think

    and I presume, tello
    - doesn’t have an AJAXified client, no tagging either
    - they didn’t inform Mike of the launch

    is tello a Web 2.0 company in the first place? if yes, give me reasons why it is web 2.0. and if no, what’s it doing on a “weblog dedicated to obsessively profiling and reviewing new web 2.0 products and companies” then?

  • You post an update on how people are ripping into you. It was a process in the making Michael. This was just the straw that broke the camels back. I know several worthy companies you have passed up profiling, and continue to profile less than stellar “comapnies.” Socialporn is a good example of one of these. The term “company” is taking on a new role it seems in regards to techcrunch.

    You and your website are not ready for the success it has taken on, and the role it now plays on the web. You may want to think about the Cobain/Young method, and burn out before you fade away.

  • Yawn.

    Jabber has had this feature for more than 5 years now.

    With Google talk dont you think google will be all over this and these tello’es will land up getting crushed.

    Presence is core infrastructure: ergo it will land up in the bigs software bevies sometime soon.

    Yet another company built to flip?

  • Mike,

    I posted some comments about how to engage the blogosphere. I’m interested in your opinion.

    http://pauledmondson.blogspot......eb-20.html

  • 1. A lot of people have confused popular blogs with mainstream journalism. Mike, it seems that people expect that when a blog reaches a certain critical mass, it will suddenly conform to the mainstream’s unwritten rules. This site is your opinion - voice it!

    2. Tello is marketing old school style. Its not about whether blogs are *cool* or “2.0″ or whathaveyou; its about openness, transparency, responsiveness. Blogs and many of the tenets that fall under the 2.0 banner ultimately help close the loop on the customer feedback cycle - and thus are a good thing, above and beyond the goodwill equity they may generate.

    3. Endorsing Tello’s marketing strategy because bloggers are not their primary audience is a fair point; that being said, I think the disconnect is that they’re trying to generate buzz and public profile, but not following up with the “2.0 attitude” that many of us have come to expect from the new crop of startups.

  • I still think it’s funny that your readers think anyone who disagrees with your opinion must “work for the company”. Just more self-centeredness.

    Also, I see the title of this post has been changed from the much more inflamatory “Tello - Already Making Mistakes” to a more reasonable “Tello - Good Product, Dumb Strategy?”. That’s a classy move.

  • The folks who somehow think that the criticism of techcrunch has been orchestrated by tello are hilarious! Tello and their PR firm clearly don’t even know what a blog is; the point that a lot of you are having trouble facing is that this will in no way hurt their business.

    This isn’t Adam Curry and Wikipedia…

  • As the comments continue to roll in, I’ve been thinking. I’m wrong quite often, and people do call me on it. Sometimes they call me on it very rudely, but that’s ok. It’s part of the deal.

    But something else is going on here. There are a couple of people who are leaving negative comments undermany different names (IP addresses are the same). They either have a personal problem with me, or they are associated with the company in some way. If its just something against me, that’s ok. But if they are associated with the company, I think there is a real problem with Tello’s attitude towards the market. I have no way of knowing which it is, or either, but I do know that the reaction to my post is over-the-top aggressive.

    I will not allow this blog to descend into fuckedcompany.com-like language and I will moderate overly rude comments in the future (I have not needed to do this in the past). But I think what has happened in the comments area to this post is really interesting and so I am going to leave it as it is.

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