From Prospect to Prosperity: Referral Union

Tumbleweeds

2007-03-28T09:58:00.000-05:00

As you may have noticed, postings on here have been few and far between lately. This is partly due to other commitments (and UCLA going to the Final Four), but it is mostly because there just isn't much going on right now.

The site's development has hit some delays as the developers deal with fixing--and re-fixing--some design issues, and I have decided to save most of my advertising resources until the site is at least in beta version.

Things are coming along, however slowly. I encourage you to take a look at the updated site design here, and please feel free to leave feedback in the comments section.

In the meantime, I have been working with several organizations in order to develop mutually-beneficial partnerships. These include the Georgetown School of Foreign Service, which is a feeder into several job markets in the DC area and otherwise; MilitaryJobHunts.com, which helps military personnel transition into the civilian workplace, and InternZoo.com, which helps companies find interns (and vice-versa).

If you would like to get in touch about a mutually beneficial partnership, let me know. And if you're looking for a job or looking to refer one, make sure to pre-register here!

Updated Temporary Splash Page

2007-03-03T13:13:00.000-05:00

There's been a lot going on behind the scenes lately, most of which has dealt with uninteresting things like the site's back end admin development. On a more interesting note, the temporary splash page has been jazzed up a bit with some color and the new logo.

Primer on Accepting Credit Cards

2007-02-21T11:29:00.000-05:00

I've been shopping around for a credit card merchant for awhile now, and to be frank, the whole system seems rather opaque and rife with potential for fraud, waste, or both. I was glad to find this Forbes article a couple days ago, which does a decent job of giving a primer on the whole process. Some links to preferred merchants and examples of best rates would have been helpful (as would have some notes on e-commerce businesses specifically), but it was good nonetheless. I recommend it to anyone who is looking to set up a merchant account in order to accept credit cards.

What is Referral Union?

2007-02-13T15:43:00.000-05:00

Probably the most common question I get is "What is Referral Union?" There are several answers to this, and each serves a different audience. Let's explore a few possible audiences and the responses, but first the short answer:

Short Answer AKA the Elevator Pitch (This is probably the toughest one and is always in flux): Referral Union is a community of job-seekers and current employees of companies who offer referral bonuses. It introduces applicants, who benefit by getting a foot in the door to a great new job, to those working for their target companies, who are fiscally rewarded by their HR departments for referring qualified new applicants.

A bit more detail: Referral Union maintains two databases--one each for both applicants and current employees. Much like match.com, members of both databases can browse, search, and message anyone they're interested in, which will hopefully lead to successful pairings. From time to time, you will receive suggested candidates in your inbox; these are based on some keywords you entered when you created your profile. Yes, if you have a job but are looking for something new, you can create both accounts. You sly dog.

Potential Current Employees: Referral Union is a way for you to find qualified applicants to fill openings with your firm and earn the referral bonuses associated with them. Referral bonuses range from around $500 to as much as $10,000 and are one of the easiest ways to supplement your income. In addition to the fiscal rewards, many companies include such company-involvement activities on their yearly assessments, so you look good while taking an active role improving your company/practice/division/whatever. Once you create an account and upload your profile, which includes your contact info, your company's info, and select your account type, we will help you identify and screen the candidates. All of your contact information is kept confidential until you chose to release it to applicants.

Potential Applicants: Referral Union is a way for you to guarantee your resume gets put in front of an actual person. Instead of submitting it to a corporate career site where it might disappear or waiting for someone to email you after posting it on Monster or CareerBuilder, you can partner with someone who has an active interest in getting you hired. Because the current employee you link with has a financial interest in getting you hired, she will help you customize your resume and put it in front of as many people as appropriate. Don't think referral bonuses are a big deal? A search on Google for "referral bonus" returns over 900,000 hits. Some of these are unrelated, so let's narrow it to "'referral bonus' hire". Google returns over 100,000 hits. Even the Army offers one. Once you create an account and post your resume you can choose to either seek out potential matches or wait for them to come to you. Just like current employees, all your contact info is kept confidential until you choose to release it to a current employee.

My Friends: [see short answer above]. Also, why you never see me anymore.

Various Management Types not Interested in Receiving the Bonus but Who Want Good People Working for Them: Referral Union is a way for you and your company to make on-boarding more efficient and effective. Referral bonuses have long been a way for companies to bypass traditional methods of hiring new candidates, and their merits are well-known and documented (otherwise you wouldn't offer them). By flattening the professional market, we encourage the maximization of information sharing. This, combined with sophisticated filtering systems--both human and otherwise--increases and optimizes your candidate pool.

My Mom: I'm sorry I don't call enough, and I promise I'll send back your house keys as soon as possible...

Value Added

2007-02-13T12:32:00.000-05:00

While mulling over the conception of a Launch Party sometime over the next couple months, I came up with an idea of how to add value to both our applicants and current employees.

In order to extend the Referral Union community beyond the internets, I'm going to explore the idea of regular (perhaps monthly) happy hours that both applicants and current employees can attend. This would include drink specials, free appetizers, etc, and give both parties an opportunity to interact in a real-world environment. This would also help ensure applicants are good fits for the companies to which they're applying.

From a marketing standpoint, I might encourage members to bring a guest or two and include a free drink (or two) for each guest that registers. It's also a good way to get the word out about the site and encourage some 'buzz.'

The social and professional scenes in the Washington, DC area (where we're based) are very happy-hour-centric, and this sort of event is right up the young professional's alley.

Changes to the Logo

2007-02-12T21:10:00.000-05:00

After a long couple weeks, I believe we have hit on a logo that works a little better than the current one, here:
Oana worked hard creating several good options from two sites, here and here, which sparked a great deal of creative energy. Both of them required a subscription or purchase, though, and I frankly was not impressed enough by either to justify the capital outlay required. I thought we could do better on our own.

I pulled a good amount of useful information from Ben Hunt's site on web development, which covers myriad topics and is a very handy resource. I began by reading his handy article on creating a web 2.0 site, which may very well influence how Referral Union looks in the end. His take on what web 2.0 sites do, which I like:

They enable designers to shoot straight for the site's goals, by guiding the site visitor's eye through the use of fewer, well-chosen visual elements.
They use fewer words but say more, and carefully selected imagery to create the desired feel.
They reject the idea that we can't guess what people want from our sites

He also has a great piece on logos specifically. He covers shape, presence, weight, and contrast including several good and bad examples of each. Combined with these resources, I came up with some ideas and developed these logos

The small one will be used for smaller locations, icons, and branding while the larger one, which spells out both words will be used for other promotional activities where space is not a priority.

Here are my thoughts on how it measures up to Hunt's four criteria:

Shape: The logo, particularly the simplified one, provides a simple, recognizable shape. The synergy between the R and the U are brandable and the logo has texture without getting too complicated.

Presence: The logo makes good use of space and fills almost the entire area with meaning. There are no distractions--the first, and only, thing the customer sees is the company's name or initials.

Weight: Possibly the weakest area. Three colors are perhaps one too many (unless you don't count white, which my seventh grade art teacher might not have), and the 3dish effect might distract from the logo's overall boldness. Some of these distractions fall away with the simplified logo.

Contrast: On its own, the logo has good contrast--nothing really bleeds into itself. When placed against a white background, there exists the possibility of the yellow fading away a bit, so it will be important to ensure it remains vibrant in those situations.

I don't pretend this is the final iteration of the Referral Union logo, but I believe it is a significantly positive next step.

March Madness On Demand VIP Registration

2007-02-08T21:56:00.000-05:00

This is rather off topic, but I think it is worthwhile nonetheless, particularly considering the March Madness promo I am considering next month. Also, according to statistics, after job hunting, watching March Madness is the second biggest time waster in the workplace (note: statistics made up).

CBS Sportsline, which runs March Madness On Demand (MMOD), has begun VIP registration for this year's tourny. MMOD allows you to watch the first three rounds live via the internets even if the games aren't broadcast in your area. Last year, bottlenecks reached into the thousands which made watching the games very difficult. VIP access will bump you to the front of the line. So sign up for VIP membership, sign up for Referral Union, and participate in our bracket competition.

Also, Go UCLA.

Founding, Equity, Vesting, and other Things that Make your Brain Hurt

2007-02-08T15:38:00.000-05:00

Today I stumbled upon an informative piece by Joseph Hadzima, a Senior Lecturer at MIT's Sloan School of Management. It provides a good overview of some of the inner workings of founders' compensation, vesting, the law surrounding such matters, etc.

He contends most" ventures fail because of people issues and are really a failure of the relationships among the team members" and says the best way around this is fully discussing and disclosing equity structure from the start. Good, common sense, advice that apparently goes unheeded too often.

Site Updates #2

2007-02-08T13:20:00.000-05:00

Manish, my web guy, came back with more site updates yesterday. While it appeals to my sense of compartmentalization and order, I agree with Oana that to most people it is cluttered, boring, and way too blue and white. It sort of reminds me of Google's personalized homepage, which is full of feeds, boxes, and other widgets. It also doesn't really highlight the networking function of the site. From the homepage, it looks just like any other job site, which is the exact opposite of what I want it to do.

Further, the site undergoes some goofy formatting issues when viewed by Mozilla's Firefox browser for some reason.

In the next iteration, we're going to shoot for something that looks a little more interesting, isn't drowning in a sea of blue, and better highlights the site's main value--the democratization of the hiring process by empowering current employees and applicants.

I am also thinking about changing the splash page to look something like this, which is simpler and more to the point. It would allow Job Seekers or Current Employees to choose which part of the site to go to right away.

Please feel free to poke around the demo site and provide your feedback below. If nothing else, it looks better than Google's original page, which is something....

Eco-Friendly Advertising

2007-02-05T23:59:00.000-05:00

Joshua Jaffe, who writes for the VC Ratings blog, posted a story on Hangar Network, "a startup that sells advertising on biodegradable dry-cleaning hangers." This story can be found through either "Reads" list to the right or by clicking here.

At first blush, putting ads on biodegradable hangars sounds like sort of a dumb idea, but the more I thought about it, the more sense it made to me. Pretty much all the hangars I have in my closet are from the dry cleaner, and who knows how many times I walk by them every day. Seeing "We [HEART] our Customers" gets pretty old after awhile--why not ads instead? And they're biodegradable, which is nice I guess.

More to the point, dry cleaning hangars could be an extremely efficient way to market directly to my target audience--young professionals in upscale, yuppyish parts of town. According to their website, Washington, DC is their number 8 market. I've put in an inquiry for a rate card; who knows, if the price is right, you might see the Referral Union logo under your next suit jacket or blouse.

Flyers

2007-02-03T19:41:00.000-05:00

During my first week as a marketing intern at Referral Union I began working on increasing the number of pre-registrants by creating flyers aimed at both applicants (see sample) and employees in the DC area.

The flyers targeting applicants will be posted on bulletin boards at local universities, and possibly also distributed through their career centers, while those targeting employees will be given out in restaurants and cafes that are popular with professionals during their lunch break, and in bars downtown during happy hour, where they go after work.

This is just a start in our effort to raise awareness about the site, I am glad to be a part of the RU team, and look forward to many exciting and successful projects in the future!

Tinkering: Worthwhile Reads

2007-02-03T12:57:00.000-05:00

If you look to the right, you'll notice I've added two new sections to this blog: Worthwhile Reads and Good Reads. The first is through Google Reader, and the second is through WidgetBox. Google Reader allows you to share selected items from your various daily reads list while the widget pulls all the items from whatever RSS feed you select (in this case, one that aggregates Venture Capital items).

I'll keep experimenting with each in order to (a) hopefully provide some interesting/useful items and (b) explore how or if they might work on the final Referral Union site once it's launched.

If you'd like to use either of these, click the links above. They were both rather painless to set up once I figured out RSS feeds (almost all news sites support them now). WidgetBox has its own cache of supported feeds (about 1000 at the moment). While you're at it, sign up for my feed!

Dissapointment

2007-02-03T10:55:00.000-05:00

One of the two interns I decided to bring on was disallowed by his academic department. The department refused to give him academic credit interning for a company less than three years old. This is rather disappointing from one of Money.com's "10 Cool Colleges for Entrepreneurs." The university also recently submitted an application to the Kauffman Foundation for a grant to

"assist in developing the Institute for Entrepreneurship, Leadership, and Innovation (ELI Institute). This Institute will unify the university's current approaches to stimulating entrepreneurial behavior on campus and throughout the extended community."

Shame the university's policies do not reflect its rhetoric.

Design Updates

2007-02-02T14:17:00.000-05:00

I received the updated design for the site today, and I think it looks rather sharp. I had quite a few comments on the design and layout, but I think things are coming along well.

If you have any thoughts on the design, please feel free to leave a comment below.

Back to School

2007-01-31T13:43:00.000-05:00

After a lot of deliberation, I decided to accept the University of Chicago Graduate School of Business' (hereafter, GSB) offer for admittance to their MBA Class of 2009. While I received offers from the University of Virginia and Oxford, the choice really came down to either the GSB or London Business School (LBS, although people there hate the acronym).

Several factors informed/muddled my decision.

They are both great programs, and I believe most people would argue they're both in the top ten internationally. Chicago was actually #1 in Business Week's latest rankings, and it's consistently top five or ten in all others. LBS is similarly ranked and certainly the best program in the UK.

They both offered me the exact same financial aid package, although LBS said I could have all the money right away, which would have been nice. The GSB's package is split evenly over the two years.

How they differ:

Chicago allows you to select all (but one) of your classes, which is rather revolutionary in the world of business education. Most programs, including LBS, have a required packet of classes all first years have to take, usually in a cohort with the same students. The GSB only has one required class, five or six required categories of class (e.g. you pick one of four financial accounting classes), then a bunch of electives from which you build your concentration(s). LBS allows you to pick your own classes the second year, for the most part.

When visiting the schools, I got a rather different vibe from each program. Chicago seemed to be more about independence and customization with staff support to make sure you don't wander off and get a JD on accident. LBS was rather more nanny-like in its approach, which was sort of annoying. I almost expected them to tell me about curfew and required meals.

The students at LBS seemed more well-rounded and sort of unique, but that might just have been because I spent some time outside of class with them getting drunk off surprisingly strong Belgian beer...I was done after four or five pints. The GSB's rep over the years has sometimes included social awkwardness and extreme nerdiness, but any program with a Thursday Night Drinking Club (TNDC), weekly free-booze events called Liquidity Preference Functions (LPF), and a gambling club (creatively named the Risk and Gaming Club) can't be too bad, people-wise.

Each school's living experiences differed significantly, and living in London would have certainly been a more unique "experience" than Chicago. Chicago is a great town as well, though, as I understand. Many students from both programs chose to stick around after they graduate.

Chicago's brand is more powerful in the US and Asia, while London is well-recognized in Europe. However, I feel that an MBA from Chicago would transfer better to the EU than one from LBS to the US.

Finally, Chicago's Polsky Center, which runs all its entrepreneurial activities, hosts several competitions each year and really seems to put a lot of effort into helping its students either get their businesses off the ground or invest in someone else's.

In the end, I think LBS might have been a more "fun" choice, but the GSB will better prepare me to become a ninja assassin businessman. And if all fails, I can find my own fun in Chicago.

2/1/2007: Edit: I just received the "why didn't you come here" survey from London. It was quite lengthy, but I have included some of my selected answers below (my choices in bold):

1.4 Please indicate how you think we compare with your chosen school

Brand/Reputation: Worse

Cost of programme: Similar

Cost of living: Worse

Availability of student housing: Similar

Scholarships: Similar

Length of programme: Similar

Class size: Similar

Curriculum content/electives: Worse

Language requirement (In addition to English): Better

Quality of faculty: Worse

Career placement: Worse

Admissions service: Much Worse
Facilities - IT/Library: Worse

March Madness

2007-01-31T13:25:00.000-05:00

It's a little early to start hyping up the NCAA Basketball tournament, but as a UCLA (finished second last year, ranked #5 at the moment, and a huge basketball legacy) alum, I get up for the event every year.

I am tinkering around with the idea of running a promotion on my site where applicants and current employees can sign up and enter a bracket. The winner might get something like a free six month subscription, some career-advice books, or whatever. Plus, this gives me an excuse to enter another bracket (did I mention I picked GMU to make the Final Four last year?).

In order to enter the contest, users would have to register with the site, upload a resume, post their company, etc, all of which are free. Next up, Fantasy Kentucky Derby or Fafarazzi?

Equity and Adult Supervision

2007-01-31T11:25:00.000-05:00

Browsing through the Chicago GSB admitted students forum the other day, I came across several blogs and such that deal with tech in Chicago, various start-ups by current MBA candidates and the like. I'll post them once I have a more comprehensive list.

Until then, I'd like to mention a program/opportunity I stumbled upon in the process. TechStars is a group of entrepreneurs in Colorado who are starting what might be best described as a summer camp for entrepreneurs. They are going to choose ten founders (or groups of founders) to come spend the summer in Colorado, where they will provide incubation, mentorship, some classes, a bunch of networking opportunities, and in the end a small amount of seed money in exchange for equity: $5K per founder (up to $15K) for a non-voting 5% stake in your company.

In my opinion, $5-15K in exchange for 5% of your equity isn't a great trade off, but it's the other services they provide that really make it worth it. The incubation includes free legal help (including incorporation), shared office space, phone, internet, conference rooms, and other office-like amenities. This in addition to the speaker series they run, all the other entrepreneurs you'll meet, access to venture capitalists, angel investors, private equity types, etc, and all the fresh new ideas and perspectives you'll be introduced to (to which you'll be introduced? I hate dangling participles). Who knows if someone you meet there, an idea you generate, or whatever could be the catalyst that really gets your (my) business moving? It's certainly worth a look.

On another note, I think they have a great business model. They essentially get a slew of business plans to choose from, pick the ten best, lay out between $5-15K each, and get 5% equity in all of them. I obviously don't have access to their finances, but I can make some rough assumptions:

10 groups x 3 founders each x $5K per founder = $150,000
Rental of office space, utilities, furniture, etc amortized each year = $250,000
Speakers and mentors = probably free
Legal help = free
Servers = free
Random Stuff I didn't think of = $100,000

So they lay out about $500K each year in exchange for a 5% share of what they consider to be excellent ideas/start-up companies. This is obviously a gross simplification, but if one of their sponsored enterprises gets acquired for $10M each year (or two for $5M, etc), they make their money back. I get the feeling they'll do quite well with this while helping a lot of people out. Win win, just like Referral Union (hopefully).

At any rate, I filled out their relatively painless 28 question application and sent it in. I'll keep you posted on our status....

In the meantime, check out their blog. It's full of interesting info, answers, and pretty pictures. Here's another take on the entrepreneurial boot camp.

Great Success!

2007-01-26T16:46:00.000-05:00

I had the pleasure of speaking with two great candidates for the internship position I posted last week. I have decided to offer them both positions, and I have no doubt there will be plenty of interesting work for them. I will be working with them to develop both my current marketing strategy and other great ideas they come up with. Once they get up and rolling, you can look forward to blog entries from both Oana and Terence.

Further, I was introduced to an interesting resource yesterday, www.internzoo.com. This site allows employers to post internships for free and college students presumably peruse the postings and apply. It seems like a good idea, so I signed up and posted my internship on the site. I'll keep you posted on how well it works.

Free (or very cheap) Stuff for my Business

2007-01-26T14:16:00.000-05:00

Buy.com has a deal for free (after rebate) 512MB thumb drives through tomorrow (limit two). You'll be charged for the $27 each up front, but you can reduce that by five bucks if you order $50 worth of stuff through this link. Just click on the Hot Deals tab once you get to the site.

So, assuming I actually send in the rebate forms (somewhat iffy...), I actually make $5 on the deal, minus postage, and I get 49 miles on my credit card.

Another inexpensive vendor I've found is http://www.vistaprint.com/, which does all sorts of business cards, magnets, calendars, etc. Their posted prices aren't great, but if you get on their mailing list, they'll send you emails with ridiculous discounts pretty frequently. I think I got 250 business cards for like $4, including shipping. Use this link for 30-60% off. Beware, they send three or four emails a week, so if you don't want them clogging your inbox, use a spam account.

1/31/07 Edit: I received an email from Buy.com today saying my stuff shipped even though the site said they were out of stock when I ordered...

2/1/07: Edit: The items came in the mail today. Success! There's another one available here.

Priming the Pump

2007-01-25T10:29:00.000-05:00

Now that I've had a fair number of current employees register, I need to start looking at ways to build up the applicant database. I'm going to start with college campuses in the DC area, since that's where the majority of current employee pre-registrants work. Some of these schools include Georgetown (where I earned my MA), The George Washington University, American University, Catholic University, George Mason University, Howard University, University of Virginia, University of Richmond, Marymount University, James Madison University, and a few others.

Some helpful resources within each school might include: The Panhellenic Associations and the InterFraternity Councils (which govern greek life on campus), various professional clubs, career services, and good-ol' fashioned flyer-posting. These all sound excellent tasks for my intern(s).

There are also various national and regional governing bodies for both greeks and clubs. Most of them put on conferences where companies can host a booth for between $500-1000. These might be good events to attend in the future.

The Virtue of Vice

2007-01-24T18:01:00.000-05:00

They say you'll never go wrong investing in vice. Apparently the maxim holds true even with affiliate programs. When I first posted about my affiliate partnerships, I placed links to each in the body. The two highest click through rates (CTR) were for The Wine Messenger and Frederick's of Hollywood at 9.52% and 7.55%, respectively.

If this is your bag, and apparently it is, check out some of my new affiliate partners:

Business Credit Cards

2007-01-24T16:25:00.000-05:00

Over the past few months, I have applied for and received a few business credit cards. They are basically the same as personal consumer cards, but they typically have your business name on the front. You don’t have to own your own company to apply for these cards, and a lot of people choose to get them just because the credit check doesn’t count against your personal credit rating.

I decided to get them for a few reasons: (1) It’s a very simple way to separate personal and professional purchases; (2) Like most personal cards, the business cards I applied for offer different perks such as 0% APR for a year, cash back, or statement credits after your first purchase (or a pre-set minimum); (3) They typically provide small-business related suites of services that you won’t find with personal cards; and (4) If you find the right cards, you get a very low interest rate loan to pay for business expenses.

Of course, if you dig yourself into debt with these cards, you’re just as hosed as you would be with personal credit cards, so watch out.

I found two of the cards through www.mymoneyblog.com, which is a good blog that deals with various matters of personal finance. It’s one of the blogs I’m going to include in my “daily reads” once I get around to putting it together. Jonathan, who maintains the blog, has done a much better job of describing the different options, their upsides, downsides, etc that I could ever hope to do, so if you're interested in an overview, check out his posting here.

The three cards I acquired and the rationale behind each:

Citi Professional Cash MasterCard: This is going to be my primary business card. When I applied, they were offering 0% APR on all purchases for a year. Now it's 0% APR on balance transfers, which is still a good deal if you're carrying a balance elsewhere or want to try this. Also, I get cash back on all my purchases, which instantly adds a couple percentage points to my profit margin (or reduces my losses). Also, I like Citi's web-based interface, and there is a branch down the street from my apartment if I ever require in-person attention.

Chase United Airlines Mileage Plus Platinum Business: As a United Mileage Plus member, this was an attractive option. The offer waives the annual fee for your first year (typically a credit card deal breaker), 25,000 miles, some free travel options, and a couple other perks. It requires $250 in purchases before you get the miles, and I believe you have to keep the account active for six months. I'll close it after I get the miles.

American Express Platinum Business Premium Cash Rebate Card: This card offered a $250 statement credit after your first purchase, but unfortunately it looks like this deal is over. You still get 5,000 points with your first purchase, which is something. I've made my purchase and am waiting for my $250. I'll cancel as soon as I get it. Here are some other options for free cash.

Here is another good source for credit card deals if you're so inclined. Remember, just because it's a business credit card doesn't mean you're not held personally responsible.

Back to Work

2007-01-23T07:39:00.000-05:00

I'm heading back to the US from London today after a quick trip across the pond to visit the London Business School's MBA program. For those of you who haven't had to deal with me over the last several months while applying for and visiting MBA programs, my decision is currently between the University of Chicago's Graduate School of Business and London Business School.

Both programs are great, and I think they would each contribute differently to the development of my site. The GSB would really strengthen it in the US, giving me access to all sorts of Venture Capital and Private Equity types, while LBS would open all sorts of doors to a more international market.

I'm currently looking into what the implications of living abroad while running this site might be (tax-wise, among other issues). If you happen to be an accountant and have some insight, feel free to leave a comment.

Craigslist, redux

2007-01-19T12:43:00.000-05:00

Putting up the ad for an intern on the volunteer part of CL didn't really work out, so I gave in and posted it under the normal job listings. Since I'm looking for someone(s) with a variety of abilities and interests, I put it up in two categories at $25 each: business/mgmt jobs and marketing/advertising/PR jobs.

I'm not really happy that I had to spend money on this, but so go the costs of doing business. The irony of having to pay to post a listing on a job site while constructing a job site myself is not lost on me.

This is just one more thing I never really thought about in the past. In my mind, Craigslist was always a free, easy way to find roommates, sell something, or whatever. I suppose they need to make money somehow too, and they get their revenue from job postings.

AdSense, etc

2007-01-18T14:22:00.000-05:00

I've decided to sign up for Google's AdSense despite some misgivings on how it sometimes uglies up a site. I'm going to try it out on the blog here to see how it works then decide if I want it on the actual site.

Signing up is pretty painless and really just requires a valid website and an address. It takes a couple days for them to approve/disapprove your account, then you're ready to go once you fill out some easy tax info and verify your bank account (unless you want your money sent in check form, in which case this isn't required).

There are a few options once you sign up:

AdSense for Content, which allows you to put text ads on your site with a few different options, including lists of ads or boxes of them

AdSense for Search, which places a Google search dialog box on your site. You get paid when people search and go to particular sites.

Referrals, which work in pretty much the same way as an affiliate program

I don't really know how much sites make for AdSense, since their payout schedule is double top secret, and their terms of service don't let me disclose any of that once/if I make any money.

According to one resource I read about this, Google has a "heat map" of where readers' eyes go, which is therefore the best place to put up ads. Makes sense if you think about "above the fold, on the left" theories of newspapers, movie posters, etc.

So feel free to poke around the blog here and leave feedback on how you think things look with the ads. If I determine the cost (site uglitude)/benefit (cold hard cash) ratio is sufficient, I'll use them on the Referral Union site. Otherwise, I'll canx them.

For more info from someone who actually knows what he's doing, click here, here, or here.

Pre-registration going well

2007-01-18T13:29:00.000-05:00

The pre-registrants continue to come in, and I'm happy to say employees of some top firms have signed up.

Here's a sampling:

Rolling the (free) dice with Craigslist

2007-01-18T11:29:00.000-05:00

In order to fulfill a couple of my needs, I have looked to another useful internet networking site, www.craigslist.org, to find an intern (or two) and to solicit more pre-registrants. CL charges $25 per category for job postings, so I put the internship ad up under the volunteer tag, which is free. Also, I wasn't entirely sure which category was the best for soliciting pre-registrants, so I picked the financial services category under small biz ads. I'm a little skeptical, but we'll see how it goes.

Do you want to be my intern? Apply!

Feedback from Last Night's Email

2007-01-17T12:08:00.000-05:00

Apparently there is some maximum number of recipients allowed by Outlook, so it took about 45 minutes to get the email out to everyone last night. Ten people at a time is no way to email a large group.

The response, though, was encouraging. A couple people signed up right away and more streamed in through the evening and into the morning. Also, a few people signed up who were not on the original distro list, which means the email is getting passed around to some degree. I'm glad people are taking advantage of the chance at a free six-month subscription for pre-registering.

Further encouragement came in the email responses I received from friends and other well-wishers. A couple excerpts to toot my own horn a bit and show how encouraging friends can be:

"Very impressive! I like the concept and the presentation, I think you've got a great thing here."
"You know, this is actually a good idea...."
"Wyatt... pretty cool idea man! Good luck!"

Less encouraging were the Out of Office and Mailer-Daemon emails indicating I've lost touch with some people.

One interesting point I noticed among those who signed up for more information: everyone who ticked the box as a current employee also ticked the box as a potential applicant.... It looks like everyone is always looking for new opportunities.

Affiliate Programs

2007-01-16T23:06:00.000-05:00

As part of www.referralunion.com's revenue plan, I am looking into using affiliate programs to offer users useful products or services they might want to direct their new found windfalls toward.

For example, if someone receives a $1000 referral bonus, he might look into buying a nice bottle of wine, sending his mom flowers, or spending the money in other interesting ways. Through the site, I want to offer him (or her) some ideas on what to do with the cash. Affiliate programs offer a certain commission to sites that send customers their way, typically between a few percent to almost 100%.

LinkShare.com has helped me find several dozen potential partners and has been very easy to use. Once you sign up, all you have to do is browse through their categories and select the affiliate programs to which you would like to apply. Some approve you right away, some decline you right away, and the rest get back to you within a day or so.

As of now, I have been accepted by the following vendors. Their commissions are listed as well:

	10%-12%
	7%
	4%-12%
	1%-2.5%
	20%
	12%-15%
	11%
	6%
	0%-7%
	6%-10%
	10.5%-15%
	15%-20%
	8%-12%
	3% or $2.00-3.00 flat fee
	$1.50 flat fee
	10%
	75%
	$1.00-7.00 flat fee
	13%-15%
	10%-12%
	0%-7%
	3%-7%
	20%-25%
	8%-10%
	5%-10%
	10%

Of note, Ford, Best Buy, ProGolf.com, and Dell declined my application, so feel free to never purchase anything from them again. Alternatively, click away on the merchants above...

Payment Methods: Visa, MC, Google Checkout?

2007-01-16T22:02:00.000-05:00

Looking into various methods of payment available to the site's users, I've begun to develop an appreciation for stores, bars, etc who have a minimum purchase requirement for credit cards. Per-transaction fees are rather high: about 3% (depending on the company's status: e-commerce results in a higher fee) of the total sale plus a mandatory $.23 or so. This doesn't work out too well for a gas station selling a candy bar for $.65.

Preferring cash to credit is against every major credit card's terms of service, of course, which makes minimum purchases a no no, but I can see the logic behind it.

This is one reason Google Checkout is an attractive option. They're offering no service charges through the end of 2007, and it's much simpler to set up than major credit cards. Of course, having the Visa/Mastercard/Amex option adds some legitimacy and flexibility, so I will likely use both options.

If you've never set up a Visa/MC/Amex account it requires a bit of work. You need to go to the www.visa.com (or whichever), where you apply for an account. At this point, you are given a lengthy list of merchants through which you can set up accounts. Within less than 15 minutes of registering, I received four emails and two phone calls from said merchants, which is either nice or annoying.

From there, you have to just pick one, from what I can tell. There are several sites out there to help you, but every merchant seems sort of the same once you select the lowest rates, etc. I suppose I'll go with one of the merchants who will give me QuickBooks (retailing for about $200) for free, which is apparently rather common.

FAQ Development

2007-01-16T18:12:00.000-05:00

I'm working on putting together the FAQ and have pasted what I have so far below. I am looking to flesh this section out, so please feel free to comment below (or email me) with other questions you think might be useful to the user.

Frequently Asked Questions (FAQs)

What is Referral Union?

Referral Union is a professional networking environment that introduces people who get referral bonuses for referring successful candidates for jobs to those looking for jobs at their companies.

In other words: Andre works for Cube Farm Inc, and his company pays him $5000 every time he refers a candidate for an open position with the firm. It is Referral Union’s goal to help him find a suitable candidate (or several suitable candidates). In addition, let’s say Emma—a wonderfully qualified candidate—would love to work at Cube Farm Inc, but she knows that applying through the website might take forever, and there’s a good chance no one will even look at her resume. If only she knew someone who worked there, she could get the inside track and make sure her resume is put in front of someone. Enter Andre, who was looking to refer someone just like her but didn’t know anyone. Everyone wins!

How does it Work?

Referral Union maintains two databases.

One database holds information on all the current employees looking to refer candidates to their companies. The only information visible via the website is the company, its industry, the functional positions the company hires for, and its geographical location.

The second database holds a repository of applicants’ resumes sorted by job objectives, location, qualifications, etc. Again, no contact or identifying information is visible.

Once a user registers and logs in, he or she can search, sort, or browse either database to find either suitable applicants or potential job opportunities (or both, if that’s their thing). Once you find a suitable match, you just click on it, and a request is sent to their account inbox. From there, they decide if they’d like to get in touch with you or not. Conversely, once your profile is up—either your resume or current employer profile—other users can seek you out and sent you a message. Also, users can create a search profile on their account, and Referral Union will suggest candidates and/or jobs, so all you have to do is login and check your inbox.

Where did this idea come from?

Bored at work one day, the site’s founder, Wyatt, received an email from his company’s HR people saying they were looking to hire people with a specific skill set. There was a $7,500 referral bonus for each candidate hired. With dreams of round-the-world vacations, fast cars, and condo down-payments in his head, Wyatt sent emails to just about everyone he knew looking for someone with the required training who was looking for a job. Nothing. So then Wyatt did an internet search for a site like Referral Union that could help him find some people to refer. Nothing. While stewing about how he was going to have to take a normal vacation, keep driving his beat up car, and keep renting in an apartment with two roommates, he decided to create a site to help people just like him and maybe make a little money in the process. So while he’s still driving the same thing, going on the same lame vacations, and sharing a tiny apartment, maybe he can help some people out in the process.

What’s in it for me, the current employee?

A couple things. First, your company will pay you for your qualified candidates. While it’s not money for nothing, it’s usually quite a bit of money for not a lot of work. Also, you’re taking an active role in bringing in new talent to your company, which is a good thing.

What’s in it for me, the applicant?

Well, you get an inside track to a new job, bypassing a lot of the red tape associated with applying via websites, career fairs, and the like. Also, since the current employees really want to see you hired, they will often come to you and help champion your resume.

What’s in it for Referral Union?

Besides the inner joy and good karma associated with getting good people good jobs and putting money in your pocket, we hope to turn a small profit. Someone has to buy beer and pizza for the guys in the back.

So I Should Just Pick a Bunch of Resumes and submit them all to My HR People so I can get as much Money as Possible?

No. Well, not unless your company hires literally everyone who applies. Otherwise, you’ll probably get on their bad side for filling up their inboxes with unqualified and inappropriate candidates, and you’ll end up with a stapler through your windshield or something. More importantly, they will ignore your quality referrals and you won’t get paid. For some tips on selecting the right candidates, click here [link to tips for current employees’ page].

Is it secure?

You bet. We know you don’t want your information all over the internet, which is why we hide your name, address, email, phone number, etc to people looking at either the jobs or the resumes. Only YOU can decide you want this information sent to either candidates or current employees once they request your information.

[Web developer language here for how secure the database is, etc]

What’s the Catch aka How does this Ruin my Life Somehow?

There really is no catch. You get to refer candidates to your employer and collect a bonus from it. Applicants get the inside track on a new job. We make a small profit. Everyone wins.

How Much Does it Cost?

Applicants get to use the site for free. They can create a profile, upload their resumes, and send and receive emails to current employees. For current employees, it is free to set up a profile and receive emails. By upgrading to Gold Member status [link to subscription page] for a small monthly fee, current employees can respond to emails and initiate contact with prospective applicants.

Pre-registration Email Going out Today

2007-01-16T15:29:00.000-05:00

I finally figured out how to use Outlook to manage the various email accounts associated with the site, and I composed my pre-registration email. I tried to send it out at work, but my company's firewall blocks my outgoing emails (incoming messages are fine, apparently), so I will have to do it when I get home.

For some background:

I have decided to prime the pump somewhat before the site comes online. While it will be about six weeks before it's good to go, I want to populate the database with quality postings before that. This way, the database isn't empty when people show up. No one wants to be the first person to arrive at a party. I selected various people from among my professional and personal network who are good candidates as either applicants or current employees, or know people who might be (if you get the email and know people who could use the site, pass it along!).

The email gives a good overview of what the site does and what's coming in the future. I also introduced my "Six months free" promotion. I will be giving away free subscriptions to a number of pre-registrants. This way, they will have sufficient time to find applicants to refer before they have to pay. It's sort of a two-pronged strategy. First, it incentivizes early registration, which helps me, and second, the more quickly the site matches up applicants and current employees, the sooner it will be able to publish testimonials. Pre-registrants who are not selected for six free months will get two free months instead. Applicants are free, of course.

Design Template Coming Along

2007-01-16T15:12:00.000-05:00

I went through a couple design templates this weekend, and it looks like we're coming along after some revisions. Some initial issues I never even thought of arose when everything came back written in British English instead of American English. e.g. things were written as "centre" vice "center," "CV" vice "resume," etc.

I like the color scheme and the categories, but I'm somewhat biased toward blue and the UCLA color scheme (Go Bruins). I have decided to go without advertising for the time-being, and I think it will clutter and confuse things. Also, I want to offer the most value possible to initial visitors to build traffic and populate the databases. After all, what's the use of a professional networking site if no one uses it... High database population and traffic benefit both me (ads in the future) and clients (more applicant/job choices). It's a trade off to go with less revenue now, but I think it will be worth it.

Splash Page is Up!

2007-01-16T14:58:00.000-05:00

As of a couple days ago, the temporary splash page is up on www.referralunion.com. From the site, users can get a quick idea of what the site does and sign up for more information. As I start publicizing my site, it seemed like a good idea to make sure there was something there when potential clients went to the site, not just a blank page.

As I've said before, my web knowledge is about zero, so I just created an idea of what I wanted in PowerPoint and sent it off. Manish (the web guy) and his guys were great about making it look professional and usable.

I need to have Manish add a few things to it, including a link to this blog, but it'll do for now.

There have been a few problems here and there with the information going to the right place, but that is mostly fixed now. So go sign up!

Choosing a Web Developer

2007-01-16T14:03:00.000-05:00

As someone with little to no web development experience, it quickly became clear that I was going to need to hire someone to put the site together for me.

After asking around to see who knew good web developers, it seemed like everyone did, and collecting random tidbits from conversations was no way to go about selecting someone to whom I would be paying a fair amount of money. I had just read Thomas Friedman's The World is Flat and thought about a site I had seen awhile back, www.elance.com, which does the same thing for freelance consultants, web developers, designers, etc and prospective clients that Referral Union hopes to do for professionals.

With elance, you can can post a project and several (I had seven) providers can bid on it over a given amount of time (a week for me). Several of the bidders were based in India (hence the Friedman reference above, which talks a lot about outsourcing and off-shoring), and they seemed to offer the best value, in general. After they bid, I simply selected the one I thought would do the best job for the best price. A nifty feature offered by elance, which is common to other intermediaries such as ebay, is a provider feedback section, where each bidder is rated by previous clients. This really helped me make my decision and gave me confidence in the bidders' ability to handle the job.

Things are still in the development phase, obviously, but I have been very pleased with Manish at Web Integrated so far. The only road bump is the time difference, nine hours, which occasionally causes communication delays.

Welcome

2007-01-16T13:40:00.000-05:00

Welcome to "From Prospect to Prosperity." This blog chronicles my quest to create a useful, relevant, and--hopefully--profitable website that fulfills an unmet need. This unmet need is the practical application of free-market theory and the notion perfect information as it relates to a particular sector of the job market. In this case, that sector is professional networking among job applicants and those who work for companies who offer referral bonuses for new hires.

If all this sounds like gibberish, here it is another way:

Referral Union is a professional networking site that seeks to match up those applying for jobs with those currently holding positions at companies that offer referral bonuses for new hires.

The benefit to applicants and current employees is significant:

Applicants: Because they are referred by an employee already working at the company, the applicants have an inherent advantage over those applying by other methods.

Current Employees: The current employees receive a cash reward from their employer for referring a qualified applicant; further, the employee is seen as taking a larger, proactive, role in his company.

This way, current employees can proactively seek out potential applicants and take charge of the bonus system in a more efficient manner. Instead of canvassing all your friends for potential applicants, current employees will have a vast database from which to choose.

Further, applicants get the inside track to the application process, skipping over the inefficient HR behemoth and going straight to the source, ensuring at least SOMEONE looks at their resume.

Welcome to the blog, and please check back for regular updates. In the world of e-commerce entrepreneurship, things move quickly...