• Sign Up
Back to All Topics
Lowe
mitch lowe | 04/07/2010 03:11 PM

Open Beats Closed: The conversation continues...

Thanks, everyone, for the thoughtful responses and ideas. I’m jazzed by your enthusiasm.

I’ll provide some feedback to many of your comments. First, though, I want to address some of the characteristics of a great team, and why these characteristics are so important to Quirky’s success.

The hallmark of a great team in any organization is that everyone’s voice is heard. People debate and enthusiastically argue for what they think is best for the team. And then, ultimately, a decision must be made. All teams have participants and a decision maker. It could be the CEO, the manager, the coach, whoever – but for progress to be had, someone must be responsible for making what are sometimes difficult decisions, quickly, and often with incomplete or imperfect information.

That’s what we are. Quirky is a team: employees and community, in this together. Ideas for how to improve will come from the community and from Quirky’s staff. We want the best ideas to win, regardless of source. Often the ideas will be polar opposites and often our decisions will be difficult ones. Our commitment is to listen intently, and then do our best to make the best possible decision in any given situation.

We’re young -- a work in progress. We’re going to make some mistakes. But we’ll constantly be learning, constantly trying to get better. Our goal is to be the best team we can be.

Ok, on to some feedback:

Improve the voting criteria. We hear you. This has been brought up a number of times and we’re actively researching new ways to do this. Stay tuned. We expect to roll out some changes in late spring.

Can we help sell to retailers? We’re intrigued. Obviously, with our business model, our focus on consumer products (low margin to begin with), and our commitment to sharing revenue with the community, we’ll always have to figure out ways to do more with less. If we can include the community, that’s even better. We’re trying to think through how we could effectively do this. How to certify someone? How to ensure all sales reps are terrific ambassadors of the Quirky brand and community? How do we ensure that reps don’t play favorites with products? How do we manage negotiating terms and conditions? How would reps coordinate with our ops team to understand inventory levels, timing, etc.? There’s a lot here. We’ll post this sometime soon as its own topic and begin vetting more thoroughly with you. In the meantime, where else could the community participate? Customer service? Site quality assurance? Application development? Marketing? We love the ideas! Keep ‘em coming.

Show us the votes: The purpose of voting on weekly product ideas is so you can let us know which products most interest you and so we can get specifics on the different criteria and how the products rank on each. In the end, we’re responsible for deciding which product has the best chance to be a commercial success, so that we can share as much money as possible back with the community. Our internal evaluation includes an IP search, a review of the competitive set, whether we can manufacture it within our cost structure, whether we can price it competitively, is it on-brand, and does it have a chance to make an impact and solve a real problem. Votes help guide these decisions – in a big way. But ultimately we have to use our judgment, experience and expertise to make the final call. We don’t want the person with the most friends on Facebook to have an unnecessary advantage. We also want to look at the underlying demographic information on each of the votes to give them appropriate weighting based on the product type and category. Showing the votes will just raise more questions than answers. But we do want to help educate and to provide more clarity about our product choices, so…

Tell us why you chose what you did. You’re right. We should be doing this. Each week, we’ll provide an explanation of why we chose how we did in a given product eval round. Give us a little time to get this right. We want our explanation to be illustrative and actionable for the community and to help promote stronger and stronger idea submissions. We’ll begin testing this and will probably roll it out sometime in May.

I’m worried that community growth may be bad for me individually. A couple thoughts here. First, growth means change, and we understand that change can make some of our early members a little nervous. But a rising tide will absolutely raise all ships. It may be a little tougher to earn influence in each product, but the influence will be worth far more in real dollars. A more robust community means more products make it into production, get sold directly on the site and get distributed domestically and internationally. It means more and better ideas, more word of mouth, better comments and ideas in the development phase and more brand ambassadors out spreading the word. Secondly, the idea of multiple categories is something we’ll consider once the number of product submissions grows beyond a certain point, or when the ratio of influencers to products to influence gets too high. Before we get there, though, we need to get better at what we’re doing now. We’re trying to build something enduring and profound. To do that, we need an incredibly strong foundation and we don’t want to stretch too far too soon. We’ll be monitoring this closely.

Can we put up barriers to limit the number of influencers (fees, limits on product involvement, seniority for existing influencers, etc.)? In line with the point above, we really want to be free of any barriers for participation. Not everyone can afford the $99 product submission fee, and we really think it’s important that as many people as possible be able to influence and help build great products. For now at least, we’re not considering putting up any barriers.

Can we verify accounts to limit/stop gaming? We want to make sure there isn’t any gaming either. We have a strong stopgap in place today: when someone wants to withdraw money, that person has to have a W-9 tax form issued. If we ever see one person with more than one form, we will instantly remove that person from the community. It hasn’t happened yet. That said, with a community like Quirky, there will always be someone trying to figure out if there’s a way to game the system. We’re watching closely.

How can reviewing names and logos be made easier? Again, we agree. This process could be made a whole lot easier. Our design and tech teams are beginning to evaluate options on this subject. Give us 6 to 8 weeks, and we’ll make it better.

Is it better to use polls or open-ended questions when asking for community feedback? There are pros and cons to each option and we’ll continue to use both. The threshold question worked great as an open-ended question because it sparked debate and resulted in us looking at the topic from totally different perspectives. We wouldn’t have gotten that kind of insight from a poll.

Is it possible for there to be some discretionary influence given to someone who provides a great comment or moves a product in a new/better direction? We already do this to some extent, but we’re continuing to look for ways to evolve our influence engine to handle comment influence better.

Thanks again to everyone for your enthusiasm and participation. You gave us a lot to think about, and we’ll continue brainstorming ways to address all your points. You may not always agree with our decisions, but you will always be heard, and we’re working extraordinarily hard to make decisions that are in the best interest for all of us.

Responses
Marc-bw
Marc Miller | 04/07/2010 | 04:05 PM

The biggest hole I see in Quirky's business model is that most Quirky products don't sell because they're not the right products, and the ones that have huge market potnetial just aren't getting the right exposure. Products are approved by voters, then fail to get the preorders necessary to begin manufacturing, or fizzle out after one round. That indicates the voters represent a vocal minority market instead of the total addressable market (TAM).

Product approval is based on the inventor's effective use of social media to drive traffic to Quirky. Ingenius idea for scaling Quirky marketing, but "engineering"-minded i nnovators are often not good at marketing. Even marketing professionals struggle with how to effectively use social media tools to drive quality traffic because it's so new. Selection of product should be based on actual TAM numbers (marketability and potential to sell well).

Channel reseller suggestion: I agree that the increased exposure through retailers would be good for the products, but usually the retail channel needs proof of the demand before they'll carry the merchandise. That's why they prefer certain products over others -- it's based on there being high enough demand to offset the cost of shelf space. Online "e-tailers" might be a better channel, especially those who already have high traffic. Most of Quirky's products would do well on a web site like Amazon, for example. However consider also that each product will do well with a different audience. Consumers are increasingly unresponsive to broad-brush marketing campaigns; you need to break it down and be more specific. It might be more effective to use a tool like e-Cairns to identify blogs best suited to each product.

For example, Frosty Faces might sell well if advertised alongside a blog post about making snowmen with the kids. The spatula would be great on a cooking blog. In contrast, cooks who use spatulas don't necessarily care about snowmen, and people who like snowmen don't necessarily care about spatulas (unless it will help them build a snowman). Why? For starters, we don't all live in places that get snow (San Jose, San Francisco, Sacramento, Miami, Austin TX, Phoenix AZ, and Maui, to name a few densely populated areas), and many of us don't do enough cooking to need anything more than an ordinary spatula.

Edited At: 04:06 PM - 04/07/2010
Bigger_image
Michael Kloeckner | 04/07/2010 | 04:51 PM

Thanks for the update Mitch

Italy05 020
Brian Shy | 04/07/2010 | 06:49 PM

Thank you for considering our feedback and taking the time to communicate your response. Feels good to know our voices are heard

Matt
Matthew Fleming | 04/07/2010 | 07:03 PM

Mitch: thanks for all that. you clearly listened and responded in a timely way. it was nice that you also provided time frames, though we know that they can be hard to stick to, so my hope is that we are patient and that you update us once in a while on the your proposals. you and ben seem to make a good complementary team.

congrats on the new round of funding.

Img_0969
Fred Ende | 04/07/2010 | 07:46 PM

Well said, Mitch. Many of us are more than willing to help Quirky continue to grow in any way we can. And congrats on the ca-ching. More money for Quirky equals more fun for everyone.

Austinsmall
AustinQuirky | 04/07/2010 | 09:37 PM

This is my favorite part about Quirky. As a community we continue to evolve. I enjoy the process and participating in it. That process requires that someone like mitch fill us in on whats going on, but it does not require that he do so with heart. I'm thankful that mitch has taken the time to acknowledge our comments and give us a idea of where Quirky is headed for the future. Its excellent to hear that quirky has secured its immediate future with the new investors. I was however under the impression that quirky was very much headed towards having our products listed in more retail stores. Hence the hiring of new sales associates and the change in percentages to reflect direct and indirect sales - Can we get a update on where Quirky currently is in regard to wholesaling?

Picture5
Clinton Fleenor | 04/07/2010 | 11:06 PM

Thanks Mitch - I imagine we quirkers tend to underestimate the ease Ben and the staff sacrifice when they incorporate our ideas instead of just making decisions. We're like a bunch of volunteers - trying hard simply because of passion. I know working with volunteers is "like trying to herd cats" (we're stubborn and independent), but I sure appreciate Ben and the staff working with us.

Hey Marc - I agree that the pre-sale process is quirky.com's biggest challenge right now.

In a sense, the pre-sale process acts as a final "market viability check" on products. But since the current pre-sale process is skewed by uncontrolled variables, it doesn't tell quirky.com whether a product succeeded or failed because of demographics, marketing style, exposure, or market viability. And since it doesn't tell quirky.com why a product succeeded or failed, it doesn't tell quirky.com what to do with it. I think the result is that quirky.com has some viable products that are not being produced because of the skewed process (and some non-viable products that are).

I think there are two solutions:

One solution, which you mentioned, is to pre-sell products beyond quirky.com...choose outlets where most of the variables (demographics and exposure & marketing, etc.) match the target market of the product.

The other is to restructure the quirky.com pre-sale process so all the variables are controlled. Keep demographics, marketing style, exposure, the "pre-sale" effect, social sales, and price, etc., from affecting whether or not a product hits the pre-sale threshold.
If the market viability of a product is the only factor that effects pre-sale success, then quirky.com will know what to do with it.
In other words, if a product succeeds in a controlled pre-sale process, quirky.com can be confident that it's viable. If the product fails, quirky.com can be confident that it's not. Then quirky.com can confidently invest more resources in the viable products, and confidently discard the others.

If we are artificially pushing non-viable products past the pre-sale threshold and into production, that may be the most dangerous thing facing quirky.com right now. In my opinion, it's going to be tough for quirky.com to flourish if it's producing products that won't actually sell.

We need to know which products are viable, and which products are not...and a controlled pre-sale process could tell us that.

Edited At: 07:50 AM - 04/08/2010
Judisigler-mugstir
Judi Sigler | 04/08/2010 | 10:01 AM

Mitch: Thank you for the insight. I have learned so much from Quirky--both the staff and the community. It's been a fascinating experience. I'm still watching & listening.... came across this article by Brian Solis and thought the last paragraph could have been written by Quirky:

"The wisdom of the crowds, when harnessed creatively, will reveal everything businesses necessitate to inspire the creation of meaningful and authentic products…where consumers become stakeholders as their voices contribute to the shaping and evolution of the end result. And, those who weave the deliberate acts of listening, predictive analysis, and studying market reactions will learn and demonstrate that markets are indeed defined by conversations."

Source: http://bit.ly/9nbAmz

I am
Joao Mesquita | 04/08/2010 | 10:38 AM

So you're asking for patience because Quirky will change for better. No problem. We had it in the past and i think we will have it again.

I agree with almost everything except for this:

- Non barriers (fees theme): if we are not creating barriers, then open the system for us or make it softer. Example: for active members, that are interested, create a monthly fee (50$ enough?), instead of the 99$ per submission. Creativity will flow like never has. I really cant stand the obligation of beeing "sharp eyes" to get discount coupons.

- Verify accounts: its not a barrier to catch new people. I think that only a total idiot would believe that Quirky is just a scam to get our 99$... I like to Prevent rather than to React. Maybe the future will support this idea. I hope not.

Bottom line, whats new tends to scare people away, and i think that its our job to make this a solid and recognized concept. And to think that its just getting started...

386143_10150405758366947_500851946_8656423_976308660_n
Cody Stowers | 04/08/2010 | 10:55 AM

@Joao charging $50 a month would be the death of Quirky I would almost guarantee. Especially in this economy. People do not have $600/year to spend on a mortgage let alone a website membership. Even having two membership 'types' both free and paid wouldn't work. The $99 fee is there to help cover costs, sure. But its also there to prevent every idea that pops into someones head from being posted.. You add a $50 monthly membership for free submissions you'll get a small group of people who pay for one month and submit 10 ideas each, each week so instead of us only choosing from around 30 submissions you'd have to decide amongst double or triple that.

I am
Joao Mesquita | 04/08/2010 | 11:35 AM

Cody, active members are not "one night stand" members. I think Quirky knows who they are. As usual, i forget to say that we could set a maximum number of ideas that each member could submit each week...my bad.
Finally, if we are having no barriers, except for a 99$ submission plus 10$ to resubmit, arent we gonna have the double or triple submissions in the future anyway?
If we want to prevent, and maintain things as they are, its quite simple. Make that pre-product research like it is in this topic: http://www.quirky.com/forums/topic/38
I hope this clears what i meant to say :)

Avatar - 3 sand - custom
Sandra Lehr | 04/08/2010 | 11:58 AM

Joao - I don't think you meant (in your example above), a $50 per MONTH fee right? I'm going to assume it was an annual fee. I know Quirky has stated over and over they don't want to impose fees. However, I'm on board if there were, someday, an annual fee of $25 - 50. I don't have the time to be reviewing 50 - 100 ideas each week and I WANT to continue to be an active member.... I haven't tallied the # of hours I spend doing quirky stuff (pitching ideas, reviewing ideas, rating, forums, social marketing). My guess it's in the 15+ range. On an hourly basis, I don't want to even guess my wage. : )

Austinsmall
AustinQuirky | 04/08/2010 | 12:05 PM

@sandra - right there with you.... I'm sure its only pennies per hour.

Avatar - 3 sand - custom
Sandra Lehr | 04/08/2010 | 12:16 PM

... or less, in my case. Ha!

Picture5
Clinton Fleenor | 04/08/2010 | 02:18 PM

I think we need to think of ways to make quirky's growth feel good, instead of trying to keep things the same by limiting growth.

Here's my idea...

Scalable invention submission process (or, "neighborhoods")

As more and more invention submissions come in and the number gets unmanageable, develop submission categories for the inventor to choose from (quirky.com already has four shopping categories). As the number of invention submissions goes up, quirky responds by increasing the number of categories. For example, if quirky is getting 100 submissions a week, quirky develops six categories and the inventors choose one for their invention.

Here's my "neighborhoods" analogy: I've lived in Mattoon, IL (pop. 20,000), Richmond, VA (pop. 200,000) and Chicago (pop. 3,000,000). While the cities were vastly different in general, in my specific day-to-day interactions in the six blocks around my house the three cities felt the same. A neighborhood is a neighborhood - Chicago just had more of them.

The quirky community is like one neighborhood right now, and we want to keep that neighborhood feel. But what happens if we explode from 500 active voters to 50000 active voters? We'll have a hard time feeling like one neighborhood. What if we designed quirky to increase the number of neighborhoods as the number of quirkers grew? What if the 50000 active voters participated in 100 neighborhoods of 500 quirkers each? Then we would keep our quirky neighborhood feel no matter how big quirky got.

What might happen at quirky:
--Quirky could create two categories ("electronics and accessories" and "other") next week, and we would have about 15 submissions to review and vote on in each category instead of about 30. Then if I want to spend a lot of time on quirky, I can review and vote on both categories. If I don't have a lot of time, I can choose just the category I'm most comfortable with. I don't cheat myself and inventors by trying to review 30 ideas if I only really have time for 15.
If, in a few months, there are 45 invention submissions coming in a week, quirky develops a third category for inventors to choose from. And as the numbers of invention submissions rise, so do the number of categories. In five years, quirky could have 1000 inventions a week, each one submitted into one of 50 categories.
--Quirky.com ends up with multiple invention submission winners every week. This means multiple industrial design, logo, name, and tagline projects every week. Again, if I have a lot of time, I can participate in all of them. If I don't, I can choose one of the categories. If, for example, we had 100 inventions in six categories resulting in six winners, most of the industrial designers will have flashes of insight about (and submit ideas for) just one or two of the winners. Instead of 150 industrial design submissions to look at and vote on for the one invention, there might be 25 industrial design submissions for each of six inventions. The same thing might happen with the naming, tagline, and logo projects. If I have time to wade through 750 name submissions, I can consider and vote for names for all all six inventions. If I don't have the time, I can choose the one category I identify with the most and look at the 125 names for just that one invention.
--Quirky.com ends up with multiple new products going into pre-sale every week. We'd have to change our mindset about pre-sale. Right now, pre-sale is our attempt to get a product into production. If, instead, pre-sale was designed to simply be a "market viability test", then instead of us pushing a product through pre-sale, the market viability of a product would push it through pre-sale (we'd have to redesign the pre-sale process so demographic mismatch, marketing (or lack of), social sales, the "pre-sale effect", and delay in product availability, etc. don't affect a product's ability to make the pre-sale threshold). We would still actively sell the product because we hope to make money, but our efforts to sell would no longer determine the fate of the product.
The rare product that passes this last test and proves to be viable moves on to production. Because quirky knows the product is viable, it can confidently pour tons of resources into it. Multiple sales people with convincing marketing research results for the product...multiple retail contacts...quick engineering/prototyping/preproduction turnaround...quick factory tooling...media announcements...advertising...etc. All of the products that don't prove to be viable? - maybe the inventor and the major ideators get a nicely framed print of the final quirky product rendering - and the product idea is discarded.

I think a scalable system, not a limiting system, is the key to keeping quirky flourishing as it grows. This "neighborhoods" idea is just one possibility. What else could we do?


Submit Your Response