Digital Telepathy Helps You Build Your Web 2.0 Startup

Trackbacks/Pings (Trackback URL)

1. * MISS UNIVERSE
   

   November 8th, 2007 at 9:18 pm

   This has the potential to be a life saver for so many newbies.

   There have been several instances of visiting a Start-Up’s Website after getting excited about service review in a popular blog - only to find the site down or the service extremely slow.

   Imagine blowing an opportunity like that - especially if the site is TechCrunch, Mashable, Engadget or LifeHacker

2. zwe
   

   November 8th, 2007 at 9:23 pm

   bill will be perfect at this.. i wish they had time for my new one..

3. Andrew
   

   November 8th, 2007 at 9:32 pm

   is it me or shouldn’t you be able to everything except development on your own as a start up founder?

4. george
   

   November 8th, 2007 at 9:46 pm

   I just don’t see this working - a startup is about creativity and production. If the founders need the help of dt, something is wrong and as an investor I would look elseware.

5. Dharmesh Shah
   

   November 8th, 2007 at 10:03 pm

   Interesting attempt at productizing what is a widely needed service among startups.

   What I find interesting is the wide range of potential costs ($15,000-$250,000!). I’m curious as to how this is that different from a startup advisory/consulting firm that would provide a similar subset of services.

   The value of a product (vs. a service) is that it “scales”. Customers benefit by lower prices (since cost of delivery is lower) and the company benefits because the margins are better.

6. nick of cebu
   

   November 8th, 2007 at 10:03 pm

   I concur with #3 [Andrew], though I’d think you should also be able to do development.

7. Tom
   

   November 8th, 2007 at 10:16 pm

   Just the line item “scalable revenue model developed” is more than most web2.0 companies have even started to think through.

8. Duncan Riley
   

   November 8th, 2007 at 10:22 pm

   Nick/ Andrew
   not everyone has the skills to do everything in a startup. not every one is a coder for example.

   George
   The VC’s I spoke to when I went through the process were glad that we were getting help: there’s far too much junk around with ppl who don’t know what they are doing. It’s not unwise for a startup to get some help along the way…a smart startup knows that it cant possibly know everything and knows to get help when required. Having said that as I said in the post it’s not for everyone…if you’ve got experience you’ll probably know what you’re doing, but if you’ve never run a startup before or need some help along the way I think this is a great idea…and it’s certainly a lot cheaper that startup coaches

9. Andrew
   

   November 8th, 2007 at 10:35 pm

   Duncan thats why I left development out of my list. Not everyone is a programmer.

   But everything else is pretty common sense and if you are passionate about your idea, you probably already figured out everything, + it helps to do the actual design/mock up yourself…because you are bound to get a whole bunch of new ideas that you just didn’t think off, when figuring out the concept.

   From the looks of it, its a glorified web development & SEO company that will tell you “Hey…you can add adsense and make BILLIONS!”

10. Duncan Riley
    

    November 8th, 2007 at 10:49 pm

    Andrew
    true…but to you and me. I’ve seen some pretty bad business plans in my time; not everyone has the benefit of education etc to write a killer business plan. Some people can code but couldn’t articulate a business plan, do the market research etc. In my case I’d think I could write the business plan, but market research (done properly) isn’t my thing.

    I’d say though don’t be so cynical: I knew this company from when it was pitching startups to TC and they are switched on, they are serious about helping build businesses. It’s not for everyone, but it is for some. Heck, I’m rusty at building a startup from scratch, I might even use their services…it would be nice to have a helping hand along the way

11. Jesse
    

    November 8th, 2007 at 10:55 pm

    This is really interesting. Good job Duncan.

12. Morgan Warstler
    

    November 9th, 2007 at 12:02 am

    Gilded age.

13. chrisco
    

    November 9th, 2007 at 12:21 am

    I’m a 1st-time startup founder and this is something I would consider exploring, especially if comp could be a mix of cash and stock, both for cash flow purposes and incentive purposes. Get in touch if you want to chat, guys. Cheers.

14. Fred
    

    November 9th, 2007 at 12:36 am

    I’m in the camp with those who think the vast majority of this stuff should be learned by the founders through reading and meeting with people.

    If you outsource engineering, $15k can launch a pretty decent prototype. The money would be better spent on a product than on consultants imo.

15. Yang huang
    

    November 9th, 2007 at 12:59 am

    This is indeed great news. Often in a startup many face the problem of unable to find the right founding members or lacking in a specific area of skill. Nonetheless, the real problem for first time entrepreneurs is that they don’t know how to bring it to the market and create the buzz.

16. Jose E.
    

    November 9th, 2007 at 2:36 am

    The site is dead.

17. Rob Walters
    

    November 9th, 2007 at 2:57 am

    Step 1 - You cut a hole in the box.

18. Shafqat
    

    November 9th, 2007 at 3:16 am

    I’m interested in the item ‘Initial Buzz Building.’ This could make or break a startup and I’m wondering what they could offer. Not much details on their website unfortunately, but I imagine its all about the contacts they have. Pitching to TC and getting a client on the front page is probably worth a significant amount of money. I agree with Duncan that its probably helpful to some, but I think it just takes some of the joy and satisfaction out of the startup process.

    Shafqat

19. Wilson Cleveland
    

    November 9th, 2007 at 5:43 am

    Great post and brilliant idea on Digital Telepathy’s part. I’m a PR guy who works with a lot of startups and often times I wish there was more that I could do to help them build their company and get the word out beyond PR, marketing and communications. More PR firms are moving into services these days and I think that’s a good thing. Smart move, DT!

20. steveballme
    

    November 9th, 2007 at 5:54 am

    The most important thing you need for your web 2.0 startup is to be partnered with Microsoft!

    http://fakesteveballmer.blogspot.com

21. Cocktails, Gadgets & More
    

    November 9th, 2007 at 5:58 am

    I agree with Fred, that money can be used towards building a decent prototype first. As a founder you should be able to do everything else - but more importantly are you building something that people will want to use? It would be better to spend $15k on a prototype with a 10/20/30 business plan vs the whole shebang, and if you’ve got a few PAYING CUSTOMERS then you can focus on full scale strategy and design. Too many startups launch with the whole nine yards but if you can’t make any money what’s the point in spending that $15k - $250k? Just take a look at techcrunch’s deadpool …

22. Brody
    

    November 9th, 2007 at 6:58 am

    If I were a newbee today, I’d hook this up along with Sun Microsystem’s Startup Essentials Program — the resources some companies are aggregating for you to just turn the key are amazing! Vrroom Vrroomm..

23. meetingflex.com
    

    November 9th, 2007 at 7:18 am

    just what i wanted..hope my vc signs the bill

    

24. dave
    

    November 9th, 2007 at 7:36 am

    so does TC now cover local services firms too? this is a ridiculous post…but if this is where you’re headed, i hear that a few dry cleaners are moving into the home pickup service, and there’s a gas station in boston that still does full serve and 10 point diagnostics - any chance you could cover them too, or do you need to owe a favor first? any chance you could include your auto insurance provider too - they must be doing something ‘totally cutting edge’ too!

25. Joe
    

    November 9th, 2007 at 8:30 am

    If you write a check to these people, you deserve what you get, which is to waste 100% of that money.

    Bear in mind that Tech Crunch is not a real publication, so don’t count on them to do basic fact checking for you. (Hence the credulous, as in gullible, positive review of this firm).

    #1 : “Digital Telepathy” is in San Diego, not a locus of the tech industry. So what are the odds that the people there actually know the trade? Pretty low. Reason to be skeptical. It could be worse. They’re not in Boca Raton or Great Neck.

    #2 : Check the Careers section. Smells of “get press first, then hire people if customers show up”. They’re hiring everyone from a “web developer” to an “executive administrative assistant”. Try clicking through for more details on an open position, doesn’t work.

    #3 : They are asking for a lot of money for little value, and have every incentive to tell startups what they want to hear. No objective way to measure performance or value delivered. They may be nice people, or they may be shyster douchebags looking to cash in off you.

    My point here is not to trash Digital Telepathy, they may simply be decent people with a mediocre idea that most entrepreneurs would be well advised to avoid. It’s mainly to point out that Tech Crunch should not be running stories like this, or should be approaching them with the appropriate level of skepticism, which in this case is a lot.

    If you’re in need of startup or web s/w news, there are plenty of other places you can find it. If you think you need to spend tens of thousands of dollars to design your business plan, DON’T QUIT YOUR DAY JOB.

26. Alan Wilensky
    

    November 9th, 2007 at 8:53 am

    I provide similar strategic (market intelligence, differential analysis) for startups, but I omit the UI work. Even some of the big boys use me to punch holes in new plans they have for Web Applications and B2B pre-launch. So if a humble man like myself, transplanted from Boston and struggling to make a name in the valley, can be useful to some, I guess they can too.

    I’m cheaper. I find that agencies touting strategies, (and who also charge tens of K), are sometimes want to subtly endorse whatever the client is leading into, rather than give candid opinions that might be unwelcome. I don’t sugar coat.

    In general, pre-launch product sector analysis can be a good ‘vote’ in the decision matrix when steering or making fine adjustments. It’s a lot cheaper, no matter who you use; I’ve been retained by a couple of institutional investors that occasionally make direct placements.

    My, point (rambling)…..hiring an outside ’strategic sector analyst as one who will say exactly what they find, good or bad, is a precious service:

    1) We are only there for a closed ended engagement, no career axe

    2) We are generally fixed cost

    3) We, I, usually specialize in sectors that we continually cultivate, and have an ear to the ground.

    4) As freelancers, if an unpopular adjudication is crystallized in our reporting, it can be ignored, and the truth will out.

    It’s getting crowded out here in the valley, it was easier in Boston, somewhat, but it’s a legit service for new and mature companies that are contemplating entering a new sector or competitive quadrant with only the advice of an internal manager, and employee.

    It’s a vote with hopefully reasoned advice. Good luck to ‘em.

27. Don
    

    November 9th, 2007 at 8:57 am

    In order to reasonably judge the value of what you’re paying for, a service like this is actually best used by someone who already has a few start-ups under their belt.

    If it’s your first time with a website idea, chances are you can get it built for $1K-$2K via outsourced freelance programmers. Better to save money and actually get some experience first. Once you have a feel for what you’re doing, THEN perhaps make a bigger investments with a company like this.

28. Chuck Longanecker
    

    November 9th, 2007 at 9:07 am

    Hey all, thanks for your open and honest comments. Duncan, thanks for the coverage!

    Andrew and George are right that founders need to be creative and have a clear vision for their business/app. The last thing that we want to do is hand holding as it’s nearly impossible to create an authentically inspired 2.0 app without the driving force of an entrepreneur. We always recommend that people bootstrap their startup if they have the skills and capacity to do so. However, if you’ve got a great idea and want to get to market as fast as possible we have the process to enable you to do so. We chose this direction because this is what we are passionate about…who wouldn’t want to work on creating new and exciting businesses every day?

    In regards to costs, we tried to create a scaled system so that most people would be able to work with us in some capacity. At the same time, we have to maintain the integrity of our process, so strategy needs to come before design…etc. Most of the costs of the strategy, research, design and prototyping range from $15k-$75k. Add on development and it kicks us up to $175k - $225k. We recommend having some type of outside funding for the full enchilada.

    We are open to working partially for equity, however we are very selective of the projects we partner on. We have also formed an app management company called REBEL where we will be creating our own apps. We hope to partner with business rebels to create David-like apps to take on the Goliaths. Feel free to hit us up with ideas. http://www.re3el.com

    Please keep the comments coming. We aren’t perfect and its always great to get feedback. At the same time, it’s nice to know that we are on to something!

29. I Am Not Posting To Spam My Blog
    

    November 9th, 2007 at 9:08 am

    @25: Good post. Perhaps TechCrunch should move it to the top of the page and move the advertorial down to the 25th comment.

30. Jon
    

    November 9th, 2007 at 10:01 am

    It is a founder’s responsibility to do most of this work. Offshoring entirely is a big mistake, however if used as a “second set of eyes” I like it.

31. Dale Cook
    

    November 9th, 2007 at 10:14 am

    Chuck Longanecker:

    I’ve been developing web applications, on a consulting basis, for a long time - I wrote my first one in 94 (actually I wrote my first internet application in 89 but that’s a different story). I primarily specialize in helping start-ups develop a strategy for development and deployment, and then, not surprisingly, develop and deploy their application. If the project is interesting I actually do a lot of the development myself and if I need additional help use only on-shore talent (here in the Bay Area).

    Over the years I’ve developed just about every type of application you could think of. Most recently it’s been social networks, of one type or another.

    I must say I’m a little stunned at your development costs as outlined in your comment. According to that, development of any system costs $150,000. I find this number surprising for a number of reasons.

    1. Development costs should depend on the complexity of the system; it should never be a straight cost.

    2. $150,000 buys a LOT of complexity - even at the high end of contracting rates we see for developers in San Francisco, say around $150 per hour, that’s 1000 hours, or looking at it another way, 25 man weeks of work. That’s 2 high end, senior, exceptionally competent developers working for 3 solid months. Considering that I know some great developers that charge $75 per hour, we’re now talking about a years worth of development time. Like I said that’s a LOT of complexity.

    Admittedly, the above does not include your markup, or project management time, but we’re still talking about a lot of development dollars here. As an example, we just finished building a fairly involved ratings site (kind of like Digg, but for anything), with a full public API, for under $35K

    3. Given the availability of development environments that are ideally suited to start-ups and can provide complex feature sets with minimal development effort (Ruby on Rails, Django, etc.) this number becomes even more difficult to understand.
    Yes, I understand the scalability arguments around Rails and the like, but that’s not a problem for a start-up, it’s a problem for an established company.

    To be honest I’m actually curious about your development strategy and I seriously think that you could easily reduce your development costs, and hence provide a much less expensive experience to your clients, and perhaps provide service to even more clients, since as we all know, cost is always a factor. If you’re interested in talking, drop me a line at info at dalecook dot us.

32. Alan Wilensky
    

    November 9th, 2007 at 11:12 am

    I think there are some service separation issues here:

    1) Steering for prototype and scale to application development assistance (very crucial when the founders are not experts both in the sector and the technology)

    2) Sector / Product intel and strategy. Knowing who you are butting heads with and how they are positioned, countering strategies, surveys, real metrics of an immature market that may not be well reported on.

    3) Get to market strategies, alternative channels (OEM, partners, licensing)

    Just some thoughts on what I have run into when working with some folks. Product managers in the sense of mid-boost phase companies can use help, as they are overworked; a consultant can keep them on top of the sector issues and cater to their particular needs.

33. Whatever
    

    November 9th, 2007 at 11:29 am

    This could only be considered a good idea in the intelligence starved air of “Web 2.0″ and Silicon Valley.

    If you need this much help getting your idea of the frickin’ ground then you are screwed. Go back to work in the cube. Self employment isn’t for you.

    Here’s some advice and it won’t cost you $15K-$150K: The world doesn’t need another bloated, poorly written social networking site. The 325,254,981 that already exists are working just fine at lowering the national IQ.

    And another: Your “Web 2.0″ idea should involve revenue. That means people pay you money. (I feel the need to dumb it down so that the Web 2.0 entrepreneurs can understand it.) Further, the revenue should be more than your expenses. I know this is an advanced topic. Email me for my consulting rates. I can explain subtraction to even someone in Silicon Valley.

    Finally: If you plan on having a startup that is built around software and you can’t write code then you are screwed. You can’t outsource your competitive advantage. People like Chuck will say you can. But is he wrong.

    All that notwithstanding…I’m certain that there will be at least a few people who think they can be the next “Web 2.0 ” zillionaire if they just pay enough money to people like Chuck. And they are all, and I mean all, destined to absolute failure. Except Chuck…He’ll be laughing all the way to the proverbial bank.

34. David Mackey
    

    November 9th, 2007 at 11:58 am

    Sounds very interesting. I’ll be bookmarking this one.

35. Ryan Morris
    

    November 9th, 2007 at 1:17 pm

    We used DT for help with our company’s product: http://beta.razoo.com. They rock! They’ve been really helpful. Go DT or go home!!!!!

36. Whatever
    

    November 9th, 2007 at 1:29 pm

    Ryan,

    What product? Social network for change? That’s not a product. It might be a worthy cause, but it’s not a marketable product.

    If you’re running non-profit or a hobbyist site and you can swing DT’s fee, then more power to ya. But that’s entirely different than trying to monetize a web site and paying someone else to figure out all the hard stuff.

37. duncan, duncan, duncan
    

    November 9th, 2007 at 1:35 pm

    this is how we know there is a bubble -> companies 900 miles away “changing direction” to make money off the frenzy of people and investors chasing web 2.0 millions.

    “biz in a box”? come on, sounds like “pie in the sky” to me.

    this is classic snake oil salesmen: charge a lot of money, tell someone 15/45/90 days, and it’s so easy they can put it in a box

    it’s much tougher than that here in the real world

    who are their customers? i’ve never heard of them.
    where are their testimonials saying how invaluable they are?
    never believe what a company says about itself. be skeptical

    i guess they should make hay while the sun’s shining, maybe move here to the valley and make a killing before it bursts again, but they’re just chasing.

    so is techcrunch, michael used to be good and “hard hitting”, now we get this flowery junk.

38. Kim Curtis
    

    November 9th, 2007 at 1:57 pm

    Here’s the hidden value for a guy like me:

    I have 4 major projects going on right now. One is web-based and the others involve a merger, new product development and existing business expansion. I’m stretched! If I can take my great web idea and pay someone to do all the stuff that I don’t have time to do but will put me in a position to go raise some serious cash, sign me up. We’ve already done a ton of research and as much development that we are capable of otherwise, I wouldn’t even think of spending the money for a Digital Telepathy.

    Sure it cost $15k-$150k but how much did I save in lost opportunity costs because I’m having time management issues?

39. Startups Rule
    

    November 9th, 2007 at 3:46 pm

    It\’s an interesting concept and I begin to wonder how the VC and Angel world will take to this as the investment comes down to the team, but there isn\’t really any information on their website about who is behind their team. If you\’re going to take on a large expense like this I hope there are qualified people behind this biz in a box product. I too am interested in the testimonial part and execution, maybe a free webinar? Walk the talk.

40. Whatever
    

    November 9th, 2007 at 4:02 pm

    There is no way I would invest in a startup without a team. This model just like offshore development DOES NOT work for webapps.

41. Chuck Longanecker
    

    November 9th, 2007 at 5:11 pm

    I noticed a lot of comments about the absence of a solid revenue model behind most apps. A huge fault of our industry is that some people believe, if you build it, they will come and if they come, you will get acquired. Every new business should be able to stand on its own without any consideration of acquisition or dependency on member count or traffic based advertising revenue. So we develop creative strategies and multiple revenue models that do not discount the user’s experience yet still provide value to website partners.

    I disagree with the comparisons to offshoring. We focus specifically on expanding our clients’ ideas and building revenue models around them. Our process works because everything is linked and created from the perspective of an entrepreneur. The strategy is conceived from the founder’s idea, the UI and functionality reflects the strategy and the development brings everything together. We tried offshoring many times over the years. It works for spec work and spec work only. It’s rare that an offshore team will add value to your product or offer creative solutions to your problems along the way.

    Great point about the testimonials. We’ve put in a request to the clients listed in the project section on our website and will update it as soon as we have permission from those clients. We’ve also added some of the previous reviews of our projects.

42. I Heart Web 2.0
    

    November 9th, 2007 at 5:30 pm

    Hey “Whatever” - what kind of person comments like a covetous teenager without even leaving a name or link. Must you lurk in the shadows? I’m curious to see what kind of apps you’ve created…

43. Skeptical
    

    November 9th, 2007 at 9:17 pm

    Chuck can you provide some links to startups who used your biz in a box plan that are known to be successful? Show us some sites that have mass adoption or a scalable revenue model that is working in the real world…..

44. MojoPages
    

    November 9th, 2007 at 9:18 pm

    I’ve worked with Chuck and the DT team for a while now and these guys are extremely innovative, creative and seriously smart. Hiring DT can save you 10’s if not 100’s of hours in recruiting top talent to your team. They have the knowledge, experience, and the passion. Not only are they really good at what they do but they are also a pleasure to work with.

    In the early stages of a start up outsourcing is critical; Outsourcing to DT will increase your chances of success and make life at your startup a little easier.

    I feel fortunate to have met Chuck and the DT team. I’m a serial entrepreneur and when you find people like those at DT who share your expertise and passion it’s truly refreshing and energizing.

45. Rodney Rumford
    

    November 10th, 2007 at 2:45 am

    Glad to see these guys get coverage here on TC. I have worked with Chuck @ DT and his team on several occasions and they have always delivered outstanding results.

    I was not aware of their new offering and I can see were it could be very valuable to new startups. Chuck is right in saying that they take on projects that they are passionate about. These guys have always impressed me with their passion, intelligence, vision & execution. He has built a great team, which is no easy task.

    As a side note; I really dig their new office space. Totally Hip!

    Cheers!

    Rodney Rumford
    Editor: http://www.FaceReviews.com

46. Alexis Kopikis
    

    November 10th, 2007 at 10:07 am

    As a point of reference, after funding two VC backed companies I created a Boston-based strategic-design consultancy in 2005, Propel Consulting which provides a similar service for entrepeneurs. Over the past two years we have worked with over 30 seed and VC backed companies in the Boston area.

    We work with Series A companies on an equity basis to:

    - Crystallize the opportunity into a practical product
    - Rapidly visualize the product so it can be validated and help close investors, customers and partners
    - Identify high level product plan
    - Build Beta version

    We partner with the leading VC firms (General Catalyst, IDG Ventures, Softbank, North Bridge, Kodiak, Venrock etc.) to both help them on the deals they ‘hatch’ and also bring them deals we help cultivate. Our services extend to Series A and Series B companies, as it is not just about what you can create/define in the first 90 days, but an evolving and refined ongoing strategy that will make the company sustainable in the long run. We work with funded companies on a fixed price/fixed deliverable basis with a cash + equity model.

    We work with experienced investors and entrepeneurs and this is what they say the ROI of our service is:

    “Getting it right the first time”
    “Accelerated development by 50%…at a fraction of the cost”
    “Reduced product execution risk”
    “Instrumental in helping communicate the vision”
    “Focused our team and closed our key partnerships”
    “Lifted my valuation”

    Samples of clients include Sermo, Bungee Labs, Enpocket (acquired by Nokia), Systinet (Acquired by Mercury), Pragmatech, ScanScout, Awareness Networks.

    On the comment about geography, I couldn’t agree more. Being in Boston gives us proximity to the entrepeneurs and investor community. We are able to make the connections and introductions between entrepeneurs, investors and increasingly more difficult to find resources. I believe it is critical for a consulting firm to be able to sit face to face with the client and be plugged into the local community.

    That said, I am from San Diego originally and wish you guys the best of luck. It will be interesting to see how your model grows and I agree with you 100%, there’s no better job I could think of that helping entrepeneurs start successful companies.

47. Chuck Longanecker
    

    November 10th, 2007 at 12:35 pm

    Hey Alexis,

    Thanks for your comments. You have definitely built an impressive business and seem to have a solid understanding of the entire life cycle(s) of growing a business.

    To clarify The 90 Day Web App - this is just the tip of the iceberg with the creation of the basics for a new online business. It’s by no means a finished product. It is meant to jump start an concept and take it to market. Our Cultivate process is designed help continue the innovation management and provide insights for organic growth of the product. Our goal to help inspire innovation within our clients, not define it for them.

    I would be interested in talking with you more offline.

48. pit
    

    November 10th, 2007 at 1:30 pm

    from a distance this looks like a “add water” strategy. usecase: create a startup, get funding, exit early. it´s like a robot factory for dumb ideas. smells like 1999.

49. Alexis Kopikis
    

    November 11th, 2007 at 10:41 am

    Glad to spend some time chatting Chuck. You can ping me at alexis at propelconsulting dot com.

50. Alice
    

    November 11th, 2007 at 1:30 pm

    Biz in a Box? $250k? I can do the same thing, and I guarantee it would be a whole lot less expensive.

51. Pat
    

    November 12th, 2007 at 1:44 pm

    This article says they are moving from PR firm to “services.” Isn’t public relations a service?

    LOL!

52. Chuck Longanecker
    

    November 12th, 2007 at 2:15 pm

    Just to clarify, we were a digital marketing agency before this new direction, we have never offered PR services with the exception of some online press releases. We had worked on about ten web 2.0 applications for clients and ourselves before the switch, so we are well versed with the process. We also already had a team of designers, marketers, developers and business professionals to take on the job. So the transition was quite natural.

53. Lars
    

    November 12th, 2007 at 2:38 pm

    I think the people that have posted on this forum have demonstrated a very healthy skepticism of entrepreneurship, the Web 2.0 “revolution”, and of digital-telepathy. And Whatever (#33, #36) and others bring up a good point - there’s a long track record of overpromising and underdelivering in our industry.

    But I think that’s where Chuck and the people at digital-telepathy differentiate themselves. You *can* outsource your software development, you *can* hire a consultant to give you advice, you *can* try to create buzz through an ad agency, you *can* read Business 2.0 to find out what’s going on in the world (or wait, no you can’t do that last one any more). Or you can find a team of people with experience and knowledge to handle all of that in one place.

    I think one of the things that truly sets digital-telepathy apart is that what they offer actually IS a “biz in a box” (slightly less physically impossible than a “pie in a sky”). I know this because they helped me get my latest venture started (http://www.myteamcaptain.com). And while I hired them for more specific, smaller aspects of my business’ development, I can’t speak to their ability to execute their new end-to-end business model from personal experience. I do know one thing, however. There aren’t very many other organizations with the ability to effectively do everything they are talking about in one stop.

    San Diego is not San Francisco. But the beauty of the Internet is that it doesn’t have to be. Chuck and his team have experience in all of these areas and from my experience and from talking to their clients, they have executed on them very well.

    Continue being skeptical and asking questions - I can guarantee Chuck and digital-telepathy will have your answers.

54. Kirtok
    

    November 12th, 2007 at 8:17 pm

    I think this is a great concept. I have seen so many startups without a decent market research. Even some self funded startups who have spent serious money without a solid business plan.

    I also strongly agree with Lars (#53), you can hire many companies to do each part profesionally, or you can have a creative team of people doing much of the work for you.

    If the communication and brainstorming is in place during DT’s process, it’d be a great way to get things done.

    I’m seriously thinking about giving them a try with my next project.

55. Whatever
    

    November 14th, 2007 at 3:02 am

    Where is Arrington on this post? What’s your point of view?

56. Joe
    

    November 14th, 2007 at 2:24 pm

    This type of posts is the reason a lot of times I can’t consider Techcrunch a reliable source of information. I miss the days TC was only Arrington and most of the content was actually useful and objective.
    Duncan you know a lot of people are actually going to contact that company hoping the BS (excuse my french) they just made up about “biz in a box” will actually work. Many people might lose their money and time because they trusted the opinion of TechCrunch.

    I recommend anybody considering using “biz in a box” for your business checking the company portfolio first. If you read the descriptions you will find that all of the projects they feel comfortable listing are just graphic design work. There is not development but an unknown Spanish social network with nothing special. Nothing hey have done is “recognized”, “successful”, “has mass adoption or has a scalable revenue model”

    I RECOMMEND YOU READ A MORE OBJECTIVE AND HONEST REVIEW AT:

    http://www.drama20show.com/200.....the-tooth/

    “There are always opportunists who look to exploit atmospheres of euphoria for their own personal gain and Web 2.0 has created a significant amount of euphoria. But the most telling sign that the Web 2.0 euphoria is likely peaking (besides the seven signs revealed in Bible 2.0) is that such a blatant attempt at exploiting the euphoria received a positive plug on one of the most prominent Web 2.0 blogs.”

    AND:

    http://www.uncov.com/2007/11/1.....-seriously

    “Here’s the deal. You pay these douchebags anywhere between $15,000 and $250,000, and they will take your idea through all of the important Web 2.0 steps. In order, they are:

    * Coming up with an idea for a product that has existed for the past 15 years.
    * Writing it with a shitty MySQL backend. (Includes time spent not understanding the differences between MyISAM and InnoDB.)
    * Pitching it to Mike Arrington.
    * Defending it in the comment threads on Uncov.”

    AND:

    http://www.stoweboyd.com/messa.....lepat.html

    “How can a company offer a turn-key business-in-a-box service without regard for the specifics? By taking a common denominator approach, and not paying a lot of attention to the client’s need for differentiation, I bet.

    This reminds me of the era in the last bubble when everyone’s logo looked the same, with an electron swooshing around the name of the company.”

    “I wonder if Digital Telepathy used their own 15 day process to come up with this business model?”

57. Joe
    

    November 14th, 2007 at 5:47 pm

    This type of posts is the reason a lot of times I can’t consider Techcrunch a reliable source of information. I miss the days TC was only Arrington and most of the content was actually useful and objective. Duncan you know a lot of people are actually going to contact that company hoping the BS (excuse my french) they just made up about “biz in a box” will actually work. Many people might lose their money and time because they trusted the opinion of TechCrunch.

    I recommend anybody considering using “biz in a box” for your business checking the company portfolio first. If you read the descriptions you will find that all of the projects they feel comfortable listing are just graphic design work. There is not development but an unknown Spanish social network with nothing special. Nothing hey have done is “recognized”, “successful”, “has mass adoption or has a scalable revenue model”

    I RECOMMEND YOU READ A MORE OBJECTIVE AND HONEST REVIEW AT:

    http://www.drama20show.com/200.....the-tooth/

    “There are always opportunists who look to exploit atmospheres of euphoria for their own personal gain and Web 2.0 has created a significant amount of euphoria. But the most telling sign that the Web 2.0 euphoria is likely peaking (besides the seven signs revealed in Bible 2.0) is that such a blatant attempt at exploiting the euphoria received a positive plug on one of the most prominent Web 2.0 blogs.”

    AND:

    http://www.uncov.com/2007/11/1.....-seriously

    “Here’s the deal. You pay these douchebags anywhere between $15,000 and $250,000, and they will take your idea through all of the important Web 2.0 steps. In order, they are:

    * Coming up with an idea for a product that has existed for the past 15 years.
    * Writing it with a shitty MySQL backend. (Includes time spent not understanding the differences between MyISAM and InnoDB.)
    * Pitching it to Mike Arrington.
    * Defending it in the comment threads on Uncov.”

    AND:

    http://www.stoweboyd.com/messa.....lepat.html

    “How can a company offer a turn-key business-in-a-box service without regard for the specifics? By taking a common denominator approach, and not paying a lot of attention to the client’s need for differentiation, I bet.

    This reminds me of the era in the last bubble when everyone’s logo looked the same, with an electron swooshing around the name of the company.”

    “I wonder if Digital Telepathy used their own 15 day process to come up with this business model?”

58. Bandwagon in a Box
    

    November 15th, 2007 at 9:59 am

    Looks like they’ve got a real hit factory down there.

    What a joke.

    Is there a way to “Block Sender” on TechCrunch to eliminate the spam Duncan writes?

59. LAWSUIT.COM
    

    November 15th, 2007 at 11:02 pm

    dockets.justia.com/docket/court-txwdce/case_no-1:2007cv00252/case_id-231601/

60. LAWSUIT.COM
    

    November 15th, 2007 at 11:04 pm

    http://dockets.justia.com/dock.....231601/%5C

61. “Biz In A Box” Service Another Sign that Web 2.0 is Running Long in the Tooth
    

    November 15th, 2007 at 11:18 pm

    “Biz In A Box” Service Another Sign that Web 2.0 is Running Long in the Tooth

    Posted on November 13, 2007
    Filed Under Web 2.0 Kool Aid |

    Digital Telepathy, a “digital marketing agency that embodies the Web 2.0 philosophy of a democratized Internet,” is hoping to make dreams a reality for wannabe Web 2.0 entrepreneurs who lack the skills necessary to get a startup off the ground. For $15,000 to $250,000, Digital Telepathy claims to be capable of providing aspiring Mark Zuckerbergs and Kevin Roses with a “truly unique business concept,” “proven user experience design” and a “completed web app” - all in three months. If that doesn’t sound juicy enough, they’ll even throw in a solid revenue model - something that the majority of the most popular Web 2.0 startups have failed to develop.

    In Reality 1.0, if it sounded too good to be true, it probably was too good to be true. In the Reality 2.0 world of Web 2.0, if it sounds too good to be true, it must be, well, true.

    There are always opportunists who look to exploit atmospheres of euphoria for their own personal gain and Web 2.0 has created a significant amount of euphoria. But the most telling sign that the Web 2.0 euphoria is likely peaking (besides the seven signs revealed in Bible 2.0) is that such a blatant attempt at exploiting the euphoria received a positive plug on one of the most prominent Web 2.0 blogs. This despite the nauseating, amateurish and downright unconvincing text that permeates the Digital Telepathy website:

    You have a great idea. But before you elope and go get married to it, it’s a good to do a background check and make sure your friends on the web are excited about it. So, we’ll knock your idea around, ask all the right questions, and then make sure we dress it up to stand out on the big day.

    Would you wait until the second story of your house is finished to make sure that the cement in your foundation is dry? Well, we wouldn’t either and we think building web apps that way doesn’t make sense either. Instead we use test driven development built in Ruby on Rails and enable you to see the process every step of the way.

    The funny thing about users is that they only use when it’s easy, fun and/or useful to do so. So, if you are going to build something, stop for a second and allow us to listen to your users. We’ll then throw some design ideas on the wall and then prototype and refine those ideas until they are brilliant.

    Why wait until your app is finished before you start talking about it. Instead, we’ll dress it up sexy and take it out on the town to steal some glances and get people talking about it. That way, when the clothes come off and it’s naked for all the world to see there will already be a long line waiting there to catch a glimpse.

    Poor metaphors and typos aside, I would encourage aspiring Web 2.0 billionaires with more money than brains to ask themselves: if Digital Telepathy is able to build a successful Web 2.0 startup in 90 days and successful Web 2.0 startups have commanded significant valuations from investors and acquirers, just why is Digital Telepathy so eager to make paltry sums of up to $250,000 when the businesses it’s supposedly going to create for clients could be worth so much more? Wouldn’t Digital Telepathy inevitably make a lot more money building its own portfolio of startups given its apparent sure-fire methodology for creating successful Web 2.0 businesses?

    The obvious answer is that Digital Telepathy would rather take your money because it knows the truth: there is no such thing as a “biz in a box” – even in Web 2.0 You can’t write a check and have someone deliver a great turnkey startup. Building a great application doesn’t ensure that you’re going to be able to execute on a strategy that drives success. And with seemingly dozens of new Web 2.0 startups launching daily (most of which are copycats), the idea that somebody has a formula for creating so much buzz for your service that users are waiting in line to use it is patently absurd. But the self-proclaimed “digital visionaries” at Digital Telepathy want you to believe that this is all possible despite the fact that anybody with an iota of common sense should smell something funky.

    This is what Web 2.0 has become: a dream. The startup itself is now a commodity that is packaged and sold. Web 2.0 proponents love to celebrate that reduced barriers to entry make it possible for the next generation of Internet entrepreneurs to innovate and build new businesses, but few seem ready to acknowledge that most startups fail and that for every Web 2.0 success, there are and will be dozens of failures. The myths of Web 2.0 that will drive people to use services like Digital Telepathy will inevitably lead to disappointment. In my opinion, while there are viable business opportunities in the space we call “Web 2.0,” the sooner the Web 2.0 bubble pops, the better off the market for innovation on the Internet will be.

    If you’re not convinced by now that Web 2.0 is getting a little bit long in the tooth and that outfits like Digital Telepathy are trying to exploit the hopes and dreams of wannabe Internet entrepreneurs who read about Facebook’s $15 billion valuation and want to get in on the action, you need look no further than the fact that Digital Telepathy claims to be the “first carbon-neutral digital marketing agency.” BS 2.0 never smelled so good.

62. Web 2.0 Biz In A Box. Seriously.
    

    November 15th, 2007 at 11:20 pm

    Web 2.0 Biz In A Box. Seriously.

    Ted / 12.Nov.2007

    I think I’ve been pretty clear so far that the quality of engineering in Web 2.0 is, uh, sub par. Maybe, some of the people who develop these things shouldn’t be writing software. It could be that the best career path for many “JavaScript engineers” is suicide.

    Well now you don’t even have to know what Ajax is to join the Web 2 Founders’ Club.
    Kevin Rose Paid Some Dude $10/hr To Write Digg.com

    Of course, knowing dickshit about engineering and getting into Web 2.0 is nothing new. But now, you don’t even have to know the fundamentals of business. A company called Digital Telepathy has “changed direction” (read: failed at previous business plan) to become a full-service Web 2.0 startup factory.

    Here’s the deal. You pay these douchebags anywhere between $15,000 and $250,000, and they will take your idea through all of the important Web 2.0 steps. In order, they are:

    * Coming up with an idea for a product that has existed for the past 15 years.
    * Writing it with a shitty MySQL backend. (Includes time spent not understanding the differences between MyISAM and InnoDB.)
    * Pitching it to Mike Arrington.
    * Defending it in the comment threads on Uncov.

    I wonder if they help you with your Series A financing, showing you how not to get horsefucked by the venture capitalists. I am guessing no.
    Who’s That Drivin? Patrick Swayze!

    Duncan Riley plugged this thing on TechCrunch, with the defense that “not everyone has the skills to do everything in a startup”. News flash: not everyone should be doing a startup.

    If you don’t have a clue about the the engineering that goes into an internet company, then congratu-fucking-lations, you are Ron Gutman of Wellsphere. You know, the MBA type who is thinking “There’s a lot of money in that there internet. How can I exploit other people to get it?”

    It’s OK. The American subprime mortgage disaster is going to drive Google stock down even further. Google stock is the currency of Web 2.0. As it devalues, there will be fewer acquisitions, and all of this shit will eventually go away.

    Well, at least it’s a theory.

63. Digital Telepathy: Business In A Box
    

    November 15th, 2007 at 11:21 pm

    […]

    Digital Telepathy offers three design my business options with varying service levels based on the length of each plan. The 15 day plan provides a wannabe startup with market research, strategic alignment, scalable revenue model, instruction manual for project completion and a concept summary delivered as a “Biz in a Box”. The 45 day plan offers (in addition to the 15 day plan) “initial buzz building,” and a range of design services including basic prototyping, usability testing, blueprints, concept mapping and other design services. The 90 day plan adds development services including full scale back-end development for beta release, front end development, private beta invites, feature development and more.

    The Biz in a Box service isn’t for those already in the industry, or those with a lot of experience, although Digital Telepathy also offers services for existing startups looking for advice on taking their business to the next level. I know when I was previously involved in a startup it was difficult to know where to start, and who to get advice from. Even when you do find someone it’s often not a cheap experience either, the consultant I dealt with previously charged 6 figures to basically guide us in the right direction, without providing any development services.

    Digital Telepathy is passionate in helping startups they believe in. DT’s Sarah Carr described the change of direction to me as follows: “It’s pretty cool because we are basically saying to our clients, to the Internet/social space, and to the entire WORLD that we are going to actually DO what we love to do and just get rid of all the crap that bores us to death.” I asked CEO Chuck Longanecker about the cost and he responded “the most important thing for us (dt) is to work on projects that we are passionate about and enjoy doing. The second most important thing is to eventually get paid for what we do, so that we can keep doing it.”

    Prices range from $15,000 through to $250,000, although each project is calculated on a per startup basis. It may sound like a lot of money, but it’s a lot of service for your buck, and it is competitive.

    Wow.

    I agree that services are more palatable to clients when laid out like products: like boxes of cereal on the shelf. However, the way that this whole story is swallowed, unexamined, baffles me.

    How can a company offer a turn-key business-in-a-box service without regard for the specifics? By taking a common denominator approach, and not paying a lot of attention to the client’s need for differentiation, I bet.

    This reminds me of the era in the last bubble when everyone’s logo looked the same, with an electron swooshing around the name of the company.

    Now, everyone will wind up with the same business plan, disgorged by the same process, sitting in a similarly crafted unique position.

    Full disclosure: I have had no contact with DT, and I am not knocking their intentions. Hell, they may even have people specifically asking them to do what they are doing. And, yes, in a sense I am a competitor, since one fringe of my consulting work at The /Messengers touches on marketing, although my major work these days is product strategy and application design.

    Here’s my own extremely helpful diagram, detailing my unique way of working with clients in 15, 45 and 90 day engagements. Nothing like a visual to clear things up.

    How Work Works

    I wonder if Digital Telepathy used their own 15 day process to come up with this business model?

64. Chuck
    

    November 20th, 2007 at 5:46 pm

    Joe @ 57

    I agree that you should always review both the positive and negative posts to find common ground on a subject. However, I would not place merit on reviews that did not perform sufficient research. Nearly every assumption or perceived fact stated in the articles that you posted are incorrect.

    In fact, our team at dt had the courage to leave a comfortable and successful way of building apps for clients because we found ourselves getting too similar to the many “apps factories” that are trying to commoditize our industry. We did this to improve the chances of unique and ground-breaking apps making it to market.

    I encourage those that have posted negative comments to get in touch with us personally as I am confident that we are in the same corner fighting for better apps created in a better way.

    RE: Our Projects. We have developed nearly every project in our portfolio and built close to 5 web apps in the last year. Tierranatal.com is a site that deeps a bit deeper than your typical social network. It puts the spotlight on Mexican townships, not individual people and allows those who have immigrated to the US stay in touch with their hometowns. They speak Spanish, but they are actually Mexican.

    I can’t really reply to the last posts as they just seem to be copy and paste jobs of the articles that you originally mentioned as comments.

65. Joe
    

    November 21st, 2007 at 5:21 pm

    Chuck @ 64

    1) Very neutral comments.. The way you write and the cheesy / ridiculous copy of your website (and business model itself) makes me believe you know nothing about the web industry.

    2) Can you please list the 5 web apps you developed in the last year? I believe you are a scammer because if your company did develop anything significant it would be listed in your portfolio.