codypo

One note here: Experiment 2 isn't exactly passive income, not until I get a lot more comfortable with the code. That's the goal, though, and I think it's the likely choice for the greatest amount of income (and least amount of work) in the long run.

I have had a few interesting experiments here in the past year.

Experiment 0: I bought a hotel affiliate site off of flippa. It did pretty well initially, but I didn't do enough investigation into how the previous owner had been generating traffic. In short, there was a lot of untoward stuff going on. As I was getting all of that straightened out, the site got (deservedly) banned from Google's index for a few key terms. I made my money back and learned a valuable lesson: don't buy sites off of flippa.

Experiment 1: I created a few different sites around a big product launch, and monetized via product reviews and the Amazon Affiliate program. This worked very well for a period of time; the site was grossing $100 a day for several weeks with essentially 0 work. Slowly, my site dipped in the rankings for the key terms as much bigger players got their act together. From this, I learned that one-off sites can be valuable, but probably not in the long term. I should've sold the sites at their peak.

Experiment 2: I wrote some algorithms to find underpriced stocks and then examinate a few strategies around that security's options. This was actually a lot of fun. Based on my program, I ended up buying out-of-the-money puts on 5 or 6 different stocks. I'm sitting on a small profit right now. The next step is to exit my positions, finetune the algorithms based on a few key things I learned, and put more money into action.

Thanks for the shout out, it's always great to hear from a happy user!

You are correct on the business model; right now, it's promotional fees from developers plus device manufacturer licensing fees.

You are also correct that we focus on a different use case than Kyte. It seems to me they're more focused on location and telephony (very worthwhile, btw!), whereas we are all about making it for kids to find and play great apps.

This looks like an excellent implementation of a great idea. It's actually somewhat similar to what we do at Famigo (see http://www.famigo.com/sandbox/), though we're much more about content management and recommendations than GPS and telephony features.

With respect to the location feature, AT&T actually offers a somewhat similar service called AT&T Family Map for a monthly fee of $10-15. I believe that's a white-labeled version of an existing app (it might be Life360, not sure) with some integration into their back office APIs. I really encourage the Kyte folks to do some investigation here; other carriers might be looking to solve similar problems with respect to family location. That is, after all, the carriers' most lucrative market segment.

On the fiction side, I absolutely loved Shogun by Clavell. I didn't know what to expect, and I found an epic that was captivating in many ways. I also started Neil Gaiman's Sandman series. I realize I'm about 10 years behind everyone else, and I've found it most deserving of all of the hubbub.

With respect to nonfiction, I enjoyed Schroeder's recent biography of Warren Buffett, entitled the Snowball. It was much less of a hagiography than much of what you read on him. He's a fascinating, complex man.

Ha, this is actually pretty funny in retrospect. There I was, giving a talk on all of this great stuff we do with our data, having no idea that a good portion of that data had just vanished. The universe has many potent mechanisms for keeping us humble.

For a lighter side of both Steve Russell and Alan Kotok, you absolutely must read Steven Levy's Hackers.

A large chunk of this book deals with the very early computer scene of MIT in the late 1950s and 1960s. Both of those guys played a big role, especially Russell. He developed a game, Spacewar, that just enraptured the whole PDP crowd and led to this mania of gameplay and hacking, gameplay and hacking, etc.

It is really a delightful book. It's great to see these gentlemen recognized for their more formal contributions.

At the very least, this post has given me the title of my forthcoming autobiography: Words that Are Evocative of Sex and Feces.

Unrelated: one thing we've really learned with this launch is the value of a great video. People seem to be responding really well to that as compared to a wall of text, probably because it's much more effective in telling the story behind the product. These videos actually aren't all that expensive, either.