Ben Elowitz, serial entrepreneur shares how Wetpaint, his latest venture, has reached over 450,000 user created sites and the secret to his success (hint: focus on the customer).
Interview conducted by Nathan C. Kaiser on Monday, August 6, 2007 in Seattle, WA.
What we found is that people are looking for a way to have a better connection, a better way to build new information online. Some of the newer technologies, like wikis, have helped move in that direction. The only trouble is wikis started out being written for technical people. Ordinary people have a really hard time using them. We make it much easier to engage with other people who share your interests online.
What, from a technology perspective enables this type of business model to be a success?
We’ve only been up and running about a year, and we’ve seen over 450,000 people create their own website with Wetpaint. That helps a lot because there’s so much more demand, because of the higher participation.
The second big thing is that there’s a way to monetize this now with advertising revenues, so the consumers don’t have to pay a subscription fee. A subscription fee can be such an impediment to creating a site like this. Because we’re able to offer it for free, we see so many people bringing up new sites every day.
The last thing is that we’re also seeing, from some larger companies, that to better connect with their consumers online. Those larger companies see it as a strategic priority to bring consumers into a conversation using Wetpaint and similar services.
The number of topics is, frankly, high. What we’re also seeing is that a lot of people are coming online in order to join a site that is already up and running and help make those sites bigger. It’s getting even larger with the ability to create your own private site, so that if you have a group of friends who want to coordinate. Maybe a sports team or an event, you can create a private site, now.
So what we keep saying is that there are so many applications where people are looking to collaborate online, my making it easier to collaborate, the volume has been astoundingly high.
Has Wetpaint started to transition into that larger demographic?
As a result, we’ve seen that our top categories are things like entertainment. We see sport sites. We see music sites, and there’s really a very clean green sections of interests that people are collaborating online with.
That’s exactly right. What we try to do is make it easy to connect with other people and build and exchange information online. To do that, we leverage lots of the wiki technology, but also some of the social networking. For example, it’s very, very important to get to know other people, who are on the site with you and to be able to manage who you can invite and know on the site.
Some other ways we find that it’s really helpful to let people have authorships the way they can on a blog, and have the dialogues that they can have on the message boards. So we really bring all those together. It’s almost like if you take web publishing, but you move it from something that you have to be a professional to do, and you make it easy enough for anybody to take part in.
And then now with the types of wikis that we’ve just announced where we really let anyone have a wiki, we’re even seeing departments within companies creating a website just to be able to exchange information on the site.
We’re still investing in the business. What we’ve been finding is that advertising is actually a very viable way for us to make this service free for consumers, and to support it. So it’s been super helpful to let us sort of drive so much as options from consumers. So, so far, so good.
For example, a lot of moms like to exchange information with other moms and they have mom websites looking for those resources from one another. But they like to have their personal information on the site, and once you put personal information on they don’t want it to be public anymore.
What we’ve found is that the number one most requested feature from Wetpaint over the last couple of months, is private sites. So we made it possible now where only people who are invited can log in and see that kind of information.
We’ve really tried to make a lot of those things that other people consider premium services available just as part of the free package.
One thing that we do that might be of interest here, in addition, is that we work with the companies that I mentioned. For example, media companies and electronic manufacturers are interested in other offerings. For them, we have a separate organization offering, where when they really want to get the word out about their product and build a community, we can help them do that.
What they’re finding is that by building a collaborative website, they’re getting their consumers engaged with all types of content. We’ll share advertising revenues with those partners, we’re finding that they’re able to solve a real problem that they have, which is how to create more advertising inventory and make more money.
We really dug down into what the consumer wanted and then designed a website and a product experience that really made it comfortable, and in fact reassuring.
With Wetpaint, it’s a different challenge. It’s a space that consumers traditionally have found intimidating to contribute to a website. While our friends are helping us there, because we’re all getting so much more comfortable, we really designed a user experience that removes the fear and uncertainty that people have historically dealt with at other sites. We want it to be as easy as possible for people to create their own site.
It’s pretty hard to get customers to adopt a service that’s all about your agenda. So, instead, we always make sure that when we have those types of calls we’re looking long and hard at what the consumer wants. What our customers need. From there we make the changes that our customers will value.
Number two is that they’re focused on valuing the consumer experience. That’s so important at all levels, really. They understand what’s important to our customer.
Number three is that we have such a talented group, and we believe in having very high standards, so we look for people who are really experts at what they do. Then we’re able to trust the expertise that each one of us brings to the team, and work extraordinarily well with them.
We really do look first at what we’re doing to help our users. From there, the rest should take care of itself.


