Archive for August 2010

 
 

The Turing-roulette Game

I don’t know if it has been proposed earlier, but the other day I had an interesting idea about creating a variant of Turing Test and mashing it up in a Chataroulette kind of environment. As you may be aware, Turing test comprises of a game where a human chats with an unknown entity (which may be a computer or another human). The job of a human is to figure out whether the entity is human or a computer. It is proposed that if a computer passes Turing test (that is, if it manages to fool the human into thinking that it is a human), then we may call that computer “intelligent”. Unrelated to Turing test, Chataroulette is an online site where random strangers are paired up for chatting.

What if we mix Turing test and Chataroulette and then turn the whole concept upside down? Well, I think the consequences will be pretty interesting. Read on.

THE SETTING: An environment with multiple human and computer (chatbots) participants. A human participant is randomly paired with either a human or a computer.

THE RULES: Human has to convince during the chat that s/he is indeed a computer (chatbot)! After the chat is over (or during it), human can decide whether the other entity is human (who also makes a similar decision) or is a computer (which doesn’t make any decision). For a human, if the other entity decides that s/he is a chatbot, he wins 10 points and other entity loses 10 points. On the other hand, if a human makes a decision the other entity is a chatbot (and it is indeed true), s/he wins 10 points and chatbot (creator) loses 10 points. And if a human decides that chatbot is indeed a human, s/he loses 10 points while chatbot (creator) gains 10 points. In the end, the human or chatbot with most points wins the game (and a prize money?).

THE ESSENCE: So, every human in the game has to act like a chatbot while at the same time discern whether his chatting partner is an actual human (disguising as chatbot) or a chatbot (disguising as human). And every chatbot has to act like a human.

What makes this game interesting is the dynamics of chat and element of suspense. Imagine if you were in this game, you will suddenly start chatting in a goofy fashion (because you are emulating a chatbot). You won’t try to be too-smart (so that you are detected as a human) and you won’t try to be too-dumb (because you will be caught as an obvious deception). As a chat bot creator, you are not just relying on intelligence of your program to win the game. You’d also like to exploit the fact that a human will be over-cautious while declaring the program as chatbot (because humans also disguise as chatbot). So, the actual chatbot need not be a perfect chatting machine!

THE QUESTION: As a human, how do you win the game? What sort of conversation would you hold in this game to disguise yourself as chatbot? And what clues during the chat will tell you that the other entity is a chatbot?

How making money changed my perspective on startup ideas

I admit it: my previous (so called) “startup” Kroomsa was a failure. Back when I was starting up, I remember how game changing I thought it was. We wanted to revolutionize Indian music scene by inserting audio advertisements into music. We also vowed to donate 20% of proceeds from advertisements to a charity organization. Do you see how cool the idea was? Though this business, we combated piracy of music, made money for independent bands and helped society by supporting charities. All at once!

Except that we never made a penny out of the venture. First mistake: none of the team members was doing it full time. Second mistake: none of the team members had any experience in music industry. Third and biggest mistake: the idea was “cool”. To my hacker brain, this crazy business model was like dope. I distinctly remember being on a high for several days when I initially thought of that idea.

According to my then interpretation of “execution is important than the idea”, I started implementing the business model without doing any reality check at all. I built the music platform, roped in friends to help me, contacted a few initial music bands, uploaded music and added a dummy advertisement in songs! Before I realized my project was a startup. As time passed, I realized:

  • Nobody likes to listen to advertisements in songs. In fact, people hated it. Lack of basic market research.
  • Nobody in India likes to pay for music, let alone for independent rock music. Market was tiny.
  • With no experience in music or corporate industry, we had no clue how to bring in advertisers. Lack of business and marketing plan.
  • Finding good bands and signing them up was a non-scalable, extremely laborious task. So, our inventory of music was small. That meant even if we found an advertiser, our reach wasn’t so appealing. The chicken-and-egg problem.

Eventually we gave up on the startup when we realized: a) although we got covered in national newspaper because of the coolness of idea, it wasn’t exactly a startup; b) even theoretically, it will never grow big enough as a business (because market didn’t exist). In fact, even after months we hadn’t made even a single penny and there was no hope how it will make money.

In the process, my then 18-year old version learned the importance of business idea being grounded in reality. All this was extremely helpful when I founded Wingify last year. The first product is Visual Website Optimizer, an A/B split testing tool. Even though there are (or should I say inspite of) established companies in the market, the startup is making money and the revenues are steadily growing month-after-month.

Why is Visual Website Optimizer making money while Kroomsa didn’t? I think it boils down this:

The idea isn’t sexy. I am not going to change the world with it. But I am now solving a real pain-point in a big-enough market validated by presence of competitors. Since people are already paying for what I intend to offer, mine just needs to be easier, better or cheaper and the startup will make money and get customers. In short: I am making things that people want to pay for.

Yes, the phrase “make things that people to pay for” is worth repeating twice. Because I have now started making money with Visual Website Optimizer, my perspective on startup ideas has changed completely. A few years ago, my first reaction on getting a startup idea would be “Oh wow, this could be next Google. How do I get started implementing it?” Now my first reaction is on the lines of:

How will this make money? Who will pay for it? Is market big enough? And most importantly: do competitors exist?

So, next time you get a startup idea, ask yourself if established competitors (not other startups) exist in the market. If not, you better think twice because it could be an indication that the market doesn’t (or cannot) exist and you will never be able to make money in it.

Good luck with your startup ideas!