Time to get curmudgeonly again
Minnesota was already the home of W3i and their "pay people to buy iPhone games" product (the discontinued "Apperang"). Now we have another entry in the "shortcuts to building a user community" field, Wahooly. This MN-based startup recruits users for other new startups, by offering equity to the users. Signing up (and blogging/tweeting/FBing
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I'd like to try and give you a different perspective. Everyone's entitled to their opinion, so I'm not trying to talk you out of yours. I simply want to respond.
The legalities have been dealt with. We have a securities attorney that's working with us to make sure that everything we're doing is legit. There's no intention to try to manipulate the system, we're simply trying to make a proposition that's appealing to two different parties. So far, the reaction from both sides has been outstanding.
Many times, startups have a double-edge sword scenario. They can't sell x without users and they can't get users without x. This is a solution to that problem.
You choose to define these people as customers, which isn't necessarily accurate. It's not required that they actually use the startup's product or service. Their primary goal is to help promote it. Look at them as advertising contractors. And, from that standpoint, it's no different than someone who supports a brand to protect their investment in the companies stocks. This has been going on for ages.
Finally, I'd like to say, I've covered startups editorially each and every week for over a year and a half. I saw some pretty incredible ideas that didn't go anywhere. They just never gained the traction they needed, plain and simple. One could argue that if a startup was worthwhile, they wouldn't need Wahooly. That might be true, but you could also say the same thing about any startup that joins YCombinator or any other incubator. And, if it weren't for an incubator, Airbnb.com (among many others) may never be were they are today. This is just another option.
Again, thanks for providing your thoughts, I appreciate hearing the opposing thoughts.
Dana Severson
Founder - Wahooly
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