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da6cc283ddba10273aa7f73594207bcb | https://www.forbes.com/sites/kashmirhill/2012/07/05/yes-the-cops-can-text-you-from-your-drug-dealers-iphone-to-bust-you/ | Yes, The Cops Can Text You From Your Drug Dealer's iPhone To Bust You | Yes, The Cops Can Text You From Your Drug Dealer's iPhone To Bust You
Don't do drugs, kids. But if you do, don't assume that the person texting you back from your drug dealer's phone is in fact your drug dealer.
After police in Washington seized the iPhone of a "suspected drug dealer," Detective Kevin Sawyer scrolled through the phone's recent calls and text messages. One of the text messages from contact "Z-Jon," read, "I've got a hundred and thirty for the one-sixty I owe you from last night." Sawyer responded asking Z-Jon if he "needed more."
Unaware that his drug dealer had been arrested, Z-Jon replied "that would be cool" and that he would "prefer to just get a ball." A court document helpfully explains that a "ball is a a drug weight equivalent to approximately 3.5 grams." Z-Jon and "his drug dealer" continued to text one another, and agreed to meet in the parking lot of a local grocery store to make the exchange. But instead of getting a ball, Z-Jon, a.k.a. Jonathan Roden, got arrested. He was later convicted of attempted possession of heroin.
Roden tried to challenge the conviction, arguing that the detective violated Washington's Privacy Act -- which forbids government types from intercepting or recording "private communication transmitted by telephone." Roden argued to an appeals court that the text messages should have been suppressed, because they were intended for his drug dealer not the detective (obviously).
The Washington Court of Appeals was not sympathetic, ruling that the messages were private, but because Roden knew that his text messages were being sent to another device where they would be "recorded," i.e. saved, he had no "reasonable expectation of privacy" once they were sitting in his drug dealer's text inbox. He has no idea who could potentially read them once they were stored there, says the court. (The court didn't get into the ethics or legality of a detective posing as the drug dealer.)
It was an ugly ruling, said one judge on the appeals court.
"Following the majority's analysis, any communication that has a traceable electronic or paper trail will not be protected because consent to disclosure can be implied from the trail," wrote Judge Marywave Van Deren in a spirited dissent. "This is clearly contrary to the legislature's intent when it created the Act, which explicitly included protections for telegrams and any device designed to record. The legislature intended to protect private communications regardless of how such communications were transmitted."
Judge Deren says that the detective should have either gotten consent from the drug dealer and his customer to read their text messages (ha!) or should have gotten a search warrant. Given the vehemence of the dissent, I suspect this decision may be successfully appealed again to the state's Supreme Court.
STATE OF WASHINGTON v. JONATHAN N. RODEN. Hat/tip: Venkat.
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3e3371ab5883a1a46f85dd45943ee761 | https://www.forbes.com/sites/kashmirhill/2012/07/09/cell-phone-companies-cough-up-data-to-law-enforcement-hundreds-and-thousands-of-times-per-day/ | Cell Phone Companies Cough Up Data To Law Enforcement Hundreds and Thousands of Times Per Day | Cell Phone Companies Cough Up Data To Law Enforcement Hundreds and Thousands of Times Per Day
Snitches
A first of its kind report of how often cell carriers are asked to provide data to law enforcement contains some shocking numbers. Congressman Ed Markey asked nine carriers, including AT&T, Sprint, T-Mobile and Verizon, how often the government and the po-po came calling for information last year. Via the New York Times:
1.3 million = total number of law enforcement requests for "text messages, caller locations and other information in the course of investigations." 116 = average number of requests the tiny Cricket fields each day. 700 = average number of requests AT&T fields each day. 1,500 = average number of requests Sprint fields each day. $8.3 million = the total amount in bills that AT&T sent to law enforcement and government agencies to comply with their requests. (That was up from $2.8 million in 2007.)
AT&T actually has double the number of subscribers that Sprint has (over 100 million, to Sprint's 55 million, according to Wikipedia), but Sprint fields double the number of requests. So either Sprint caters to a criminal element, or it may be that Sprint's reported automated web interface for law enforcement has resulted in a higher number of requests for the carrier.
Eric Lichtblau of the New York Times notes that the number of requests is almost certainly lower than the total number of subscribers whose information was turned over, "because a single request often involves multiple callers." For example, law enforcement will sometimes ask cell companies to tell them whose phones were in the vicinity of a given cell tower, say if they're trying to hunt down a serial killer or bank robbers whose phones may have been on the scene of multiple crimes.
The rise in these types of requests helps explain why the number of wiretap requests that law enforcement makes is falling. Everyone knows it's way easier to text someone than it is to call them. And it's much easier (and cheaper) for the government to read those texts than it is to listen in on that phone call.
One legal wrinkle in all involves the location tracking aspect. The Supreme Court ruled this year law enforcement should get a warrant before slapping a GPS tracker on a suspect's car. A cell phone is an even more effective way of tracking a person's location, but the legal requirements for getting location data about a person based on the location of his or her cell phone are still murky.
"The absence of a clear statutory framework regarding the legal requirements for provision of location information to the government and ambiguity from the evolving case law suggest Congress should clarify the law to provide certainty to all stakeholders," writes Sprint VP of government affairs, Vonya McCann, at the end of her letter to Representative Markey.
More Demands on Cell Carriers in Surveillance [New York Times]
Markey: Law Enforcement Collecting Information on Millions of Americans from Mobile Phone Carriers [Congressman Ed Markey]
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54fcb0e5102fb240f58562a805eed001 | https://www.forbes.com/sites/kashmirhill/2012/07/30/guy-adams-banned-from-twitter-for-tweeting-nbc-executives-email-address-good-rule-poorly-applied/ | London Olympics Critic Banned From Twitter For Tweeting NBC Executive's Email Address | London Olympics Critic Banned From Twitter For Tweeting NBC Executive's Email Address
The journalism world is buzzing over Guy Adams, a journalist covering the London Olympics, being banned from Twitter. Like many Twitter users, Adams has been critical of NBC's coverage and decision to delay its broadcasts for prime-time. As Deadspin recounts, Adams urged his followers to target their complaints at the NBC executive he claimed was responsible for the network's decisions around the Games: "The man responsible for NBC pretending the Olympics haven't started yet is Gary Zenkel. Tell him what u think! Email: [redacted]@nbcuni.com," Adams tweeted.
An NBC Sports spokesperson says the network reported Adams for violating Twitter Rules which specify that users "may not publish or post other people's private and confidential information, such as credit card numbers, street address or Social Security/National Identity numbers, without their express authorization and permission." Adams isn't happy about the suspension of his account and argues that the email address isn't inherently private because it was a corporate email (in a format that's fairly easy to figure out) and is listed elsewhere on the Internet.
While that is true, it may also be true that Twitter made a judgment call and decided the tweet was malicious, that Adams was encouraging people to flood Zenkel's inbox with hate mail. (C'mon. He was.) As a private company, Twitter's entitled to decide when a user is violating its terms of service.
I do think it's interesting that Adams has been banned for doing something less egregious than what was done by musician M.I.A. in the past. Two years back, M.I.A. was upset about a profile written about her in the New York Times Magazine, so she tweeted the cell phone number of the journalist who had written it and encouraged her hundreds of thousands of followers to call it. Perhaps the journalist was not as proactive as NBC in complaining about the posting of her private information, because M.I.A. was not subject to the same treatment as Adams.
Many people are calling this a "Twitter rule no one's ever heard of" and are critical of it. But prohibiting users from publishing others' private information is a good rule, though it may be poorly applied here. It is once again that conflict between privacy protection and free speech.
Of course, the downside of all of this for Gary Zenkel is that the ban has given rise to the Streisand Effect. Twitter is buzzing about it, and many an article has been written in blogs and the mainstream media, meaning that Adams's tweet and Zenkel's email address have gotten far more attention than they would have otherwise. The tweet has been reprinted in numerous articles -- usually without my kindly redaction above -- and Zenkel's email address, as the New York Times notes, has now been tweeted by many Adams sympathizers.
Next up: perhaps basketball stars will complain to Instagram about being photographed while sleeping.
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c4c33e55ddc7f96fef76e9bd878d6e41 | https://www.forbes.com/sites/kashmirhill/2012/08/01/how-your-browsing-history-is-like-a-fingerprint/ | How Your Browsing History Is Like A Fingerprint | How Your Browsing History Is Like A Fingerprint
Hundreds of thousands of Internet users visited the site
Back in 2009, a tool showed up on the Internet to tell you "what the Internet knows about you." It was a website that demonstrated how your browsing history could be sniffed -- by sniffing yours and showing you all of the websites you'd recently visited. Boing Boing among others gave the "Web-privacy-related webapp" a thumbs up.
Turns out the folks behind the site planned to use visitors' Web histories to run an experiment. They wanted to know if the history of sites we've visited are little fingerprints that are unique to us. Turns out they are in many cases say the researchers in a recently published paper, "Why Johnny Can't Browse The Internet In Peace: On The Uniqueness of Web Browsing History Patterns."
We present the results of the first large-scale study of the uniqueness of Web browsing histories, gathered from a total of 368,284 Internet users who visited a history detection demonstration website. Our results show that for a majority of users (69%), the browsing history is unique and that users for whom we could detect at least 4 visited websites were uniquely identified by their histories in 97% of cases. We observe a significant rate of stability in browser history fingerprints: for repeat visitors, 38% of fingerprints are identical over time... The results indicate that Web browsing histories, which can be obtained by a variety of known techniques, may be used to divulge personal preferences and interests to Web authors; as such, browsing history data can be considered similar to a biometric fingerprint. Since Web histories are largely unique to person and, as shown, stable over time in some of the cases, they can be understood as an identifier and potentially be used to strengthening of tracking, in addition to revealing information about a particular user’s browsing interests.
In other words, we're kind of boring -- as in repetitive -- in how we browse, but exciting, in that we do it uniquely from one another. My pattern of visiting Forbes, Facebook, Courthouse News, Gawker, WeatherUnderground, Amazon and Reddit** on a regular basis is probably unique from yours, and would let someone "sniffing" my history potentially recognize me as the same visitor on different visits.
Luckily most major browsers have blocked the ability to sniff their surfers' histories, though this could still be useful to those entities (ahem, advertisers) with the ability to track us from site to site to, for example, try to identify us on different devices.
I asked one of the researchers, PhD student Lukasz Olejnik, about the decision to turn people visiting a privacy site into guinea pigs.
"The demo site's data collection approach may be a bit on the edge, but the main reason for demonstrating the history leak was to convince browser vendors to solve the underlying vulnerability (which had been known for over 10 years)," he said by email. "Unfortunately, similar techniques had been adopted by unscrupulous websites and we decided the most effective approach was to show how big of a privacy problem it could become. Thankfully, the strategy (used in our project and by several similar sites) was successful and all major browsers now provide such protections by default."
The data won't be tapped again, says Olejnik.
"All copies of history detection data are now deleted from any Internet-facing servers and they won't ever be shared; they were analyzed exclusively in aggregate," he says. "Additionally, our research related to browsers' history leaks should not be underestimated. We wanted to stress that such threats are still there."
For those that visited, it's likely not the first or only time you've been part of an experiment and didn't realize it.
** Have reserved the right to name only the ones that aren't horribly embarrassing.
Note: Story was updated with additional quotes from Olejnik.
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8a32f65f58f6d36002d13ae7dd262fa1 | https://www.forbes.com/sites/kashmirhill/2012/09/10/reminder-sharing-facebook-intel-with-your-enemies-is-a-bad-bad-idea/ | Reminder: Sharing Facebook Intel With Your Enemies Is A Terrible Idea | Reminder: Sharing Facebook Intel With Your Enemies Is A Terrible Idea
Troublemaker
What do the Taliban and an angry boyfriend in Philadelphia have in common? They both turn to Facebook for strategic info to use against their enemies.
First off: the Taliban. The Australian government is warning its soldiers about digital Mata Haris. The Aussies have discovered that Taliban insurgents are posing as attractive women on Facebook and friending soldiers as a way to gather intel. It's a tried and true method, says David Axe at Danger Room, who includes in his write-up a case of explosive over-sharing. In 2007, four brand-spanking new Apache helicopters were bombed in Iraq after soldiers posted photos of them online that included geotags that allowed the enemy to "determine the exact location of the helicopters inside the compound." Whoops. Disturbingly, more than half of the Australian soldiers surveyed for the report had never been trained in social media safety. Time to add Facebook and Twitter sessions to boot camp.
Closer to home, Facebook played an intimate role in a love triangle that grounded an airplane. Philadelphia, "the city of brotherly love," did not live up to its moniker last week. Philly resident, Kenneth Smith, 26, was angry with his girlfriend's ex, Christopher Shell. So he did what any outraged romantic rival might do: He sent angry text messages. Oh, and called in a fake bomb threat that resulted in a U.S. Airways plane bound for Dallas returning to Philadelphia so that Shell could be searched for liquid explosives... So, you know, just your typical rom-com story fodder.
Christopher Shell's detailed travel updates may have helped a romantic rival plan an elaborate hoax.... [+] Photo of Shell on his Dallas-bound flight, posted to Facebook, via Gothamist.
What was Facebook's role? According to the feds, Shell had posted a "compromising" photo of his ex-girlfriend to Facebook. The compromised woman and her current beau, Smith, were obviously displeased. It would seem that Shell was an avid Facebook user. Beyond using it to humiliate exes, he employed it to broadcast his travel plans. He planned to spend last weekend in Dallas to celebrate his 29th birthday. According to Gothamist, he was posting regular updates on Thursday about his arrival at the Philadelphia airport, his easy trip through airport security, and all of the other minute travel details that drive us crazy when our friends spam our news feed with them. If the Gothamist reporter could see the updates, I'm assuming Shell's privacy settings were not very robust, and that he was broadcasting this publicly. It seems that Kenneth Smith took advantage of that intel to stage the bomb threat hoax, allegedly making a call from a public pay phone using the name "George Michaels" to report that Shell would be boarding the flight with liquid explosives.
After authorities turned the plane around, and detained, searched and questioned Shell, they let him continue on to Dallas, where his bad luck continued. In Texas, he was arrested for outstanding drug warrants. Meanwhile, Smith is now the one in hot water, reports Reuters. He was charged with falsely reporting a bomb threat and "could face a maximum of 10 years in prison and a fine of up to $250,000." U.S. Airways tells the Philly Inquirer that the stunt cost it "upward of tens of thousands of dollars."
Meanwhile, I really hope things work out between Smith and his lady love. The only upside of all this is that it appears to have led Shell to take down his Facebook page (and thus the compromising photo). So, mission accomplished?
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fca9cabaff26313e75ec27e51017ee3a | https://www.forbes.com/sites/kashmirhill/2012/09/13/google-blocks-bizarre-anti-islam-film-trailer-on-youtube-in-egypt-and-libya/ | Google Blocks Bizarre Anti-Islam Film Trailer On YouTube In Egypt and Libya | Google Blocks Bizarre Anti-Islam Film Trailer On YouTube In Egypt and Libya
Google wades into foreign policy
After a protest at the American embassy in Egypt and the killing of four Americans, including ambassador Christopher Stevens, at the embassy in Libya, fingers were pointed at a bizarre YouTube trailer for a film called "The Innocence of Muslims." The trailer for the poorly-acted, low-quality, intentionally-inflammatory film disparaging Islam and Mohammed reportedly caused the protests and violence at the embassies after it was dubbed in Arabic. Since an initial Associated Press story about the provenance and supposed $5-million cost of the movie, many doubts have been raised about the weird film. The actual film may or may not exist. The filmmaker "Sam Bacile"definitely doesn't exist. And it seems unlikely the film is really to blame for the violent assault on the Libyan embassy.
In a PR and social media fumble in Cairo, the embassy spokesperson released an unapproved statement saying, "we firmly reject the actions by those who abuse the universal right of free speech to hurt the religious beliefs of others." The spread of the belief-hurting video was aided, of course, by social media, and specifically by YouTube. As happens every time something controversial and politically inflammatory starts spreading this way, eyes turned to the company responsible for the network to tamp the spread.
Google has responded by "temporarily blocking" the trailer on YouTube in Egypt and Libya. You can still access it from the States and elsewhere. (But you probably don't want to. It makes House of Wax look like Oscar material.)
In a statement to the media, Google says:
We work hard to create a community everyone can enjoy and which also enables people to express different opinions. This can be a challenge because what's OK in one country can be offensive elsewhere. This video--which is widely available on the Web--is clearly within our guidelines and so will stay on YouTube. However, given the very difficult situation in Libya and Egypt we have temporarily restricted access in both countries. Our hearts are with the families of the people murdered in yesterday's attack in Libya.
It's a difficult call for a company that has historically resisted making censorship decisions. And at this point, one wonders if it's even possible to stop the spread of something that's already gone viral, in people's imaginations if not their RSS feeds. But increasingly, companies like Twitter, Facebook, and Google are being drawn into global debates regarding access to inflammatory material. Via CNet:
In May, the Pakistani government blocked access to Twitter over potential "blasphemous" caricatures of the prophet Muhammad. Two years earlier, Pakistan temporarily pulled the plug on connections to Facebook after a Seattle cartoonist's satirical suggestion that Thursday be dubbed "Everybody Draw Mohammed Day."
Eva Galperin of tech liberties non-profit EFF wasn't pleased with Google's decision. She writes:
Once YouTube has made the decision to pro-actively censor its content, they start down a slippery slope that ends in YouTube Knows Best moral policing of every video on their site. It is disappointing to see YouTube turn its back on policies that have allowed it to become a such a strong platform for freedom of expression. We hope that this new-found enthusiasm for pro-active censorship is a temporary aberration rather than a sign of things to come.
Meanwhile, some in Libya are using social media to send a different message. Check out these photos uploaded to Imgur, of Libyans holding signs written in broken English expressing apologies and regret over what transpired at the American embassy in their country.
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c4f18da6d3a03a7c298cd2a8e69857c2 | https://www.forbes.com/sites/kashmirhill/2012/09/24/facebook-users-are-convinced-years-old-private-messages-are-being-shown-publicly-on-their-timelines-but-theyre-probably-wrong/ | Facebook Users Convinced Years-Old Private Messages Are Being Published On Timelines. (But They're Wrong.) | Facebook Users Convinced Years-Old Private Messages Are Being Published On Timelines. (But They're Wrong.)
Thanks to a French newspaper report that was later picked up by TechCrunch, many a Facebook user is flipping out over the idea that private messages sent prior to 2010 are suddenly being published on users' Facebook Walls. "Bug or security breach?" asked France's Metro claiming that "private messages dating from 2007, 2008 and 2009, now appear directly in users' Timelines."
Facebook users flocked to the social network to check and indeed found intimate things that had been written to them displayed on their Timeline -- about city visits, and being missed, and being loved, and having to skip that lunch date.... But Facebook says there is no bug, and there is no breach. Those seemingly intimate messages were actually written on people's Walls back in 2007, 2008 and 2009. With the nostalgic fog induced by time, users just now think they were direct private communications.
"A small number of users raised concerns after what they mistakenly believed to be private messages appeared on their Timeline," said Facebook in a statement. "Our engineers investigated these reports and found that the messages were older wall posts that had always been visible on the users’ profile pages. Facebook is satisfied that there has been no breach of user privacy.”
I went back into my old messages and Wall postings from 2008 and 2009 -- not the most pleasant experience, actually -- to see whether any of the postings on my Wall had been sent to me privately or to see if any of my private messages to other users were showing up on their Walls. They weren't. There's my collection of Wall postings. Some of them look intimate, right? But I've confirmed that they were all written publicly on my Wall. Our public communications can in fact be quite intimate, either because we forget about the public gaze or because we want to put our intimacy with someone on display.
I've asked anyone who thinks their private messages have been made public to confirm that they appear both on their Wall and in their inbox. No one has been able to do that (yet. Or perhaps they just don't want to send me a steamy chat.) I talked to one New York-based journalist who is convinced this happened to him, despite Facebook's denial. He has deleted his inbox messages from that time, but says the messages exposed on his Timeline were of a "very private nature," including one from 2009 sent while he was in university. In it, a friend is making a disparaging comment about a classmate with whom they were working on a project. That classmate was among his Facebook friends, and would have been able to see it, so this journalist is convinced the comment would not have been made publicly.
Gallery: The Facebook Wall Of Shame 10 images View gallery
A Facebook spokesperson tells me that there are two completely separate systems for private messages and Wall postings, and that this kind of mix-up isn't possible. He thinks the confusion may be due to people switching over to Timeline and having old Wall postings dredged up. "Wall postings before 2009 didn't have likes and comments," says security spokesperson Fred Wolens. "You're only seeing one side of these conversations, rather than a thread, so they look private."
If nothing else, this can serve as a reminder to users that a brief missive sent to a friend publicly might seem nonchalant now, but in a few years, when you look back, it might seem incredibly intimate. Such is the nature of our captured public chatter.
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8d95e0a8a173348f1f2e628145a14fe8 | https://www.forbes.com/sites/kashmirhill/2012/12/05/hunter-moore-is-going-to-start-posting-your-nude-photos-again-but-will-only-post-your-home-address-if-he-thinks-youre-a-horrible-person/ | Hunter Moore Will Post Your Nude Photos But Will Only Include Your Home Address If He Thinks You're A Horrible Person | Hunter Moore Will Post Your Nude Photos But Will Only Include Your Home Address If He Thinks You're A Horrible Person
Hunter Moore of Is Anyone Up
Hunter Moore has become the king of revenge porn thanks to a site he launched in 2010 called "IsAnyoneUp." He invited people to submit naked photos of themselves or others and then would post the nude photos juxtaposed with screenshots of Facebook profile pages to make it crystal clear whose naked body you were ogling and how to 'Poke' them. I first interviewed him in the summer of 2011 before a meteoric rise to infamy that involved the nude bodies of many people who did and didn't want to appear on his site, many news articles about him, an appearance on Anderson Cooper's show, an FBI investigation, a profile in Rolling Stone, and eventually, in April of this year, the shuttering of his site.
Now, eight months later, he's terrifying anyone who's ever taken a scandalous selfie with plans to pick up where he left off. He made waves by telling Betabeat that the twist on a relaunched site would be the inclusion not just of people's Facebook accounts, but their home addresses. "We’re gonna introduce the mapping stuff so you can stalk people," he told reporter Jessica Roy.
He has since backtracked. "I'm not going to do that," Moore told me. "I was totally drunk during that interview. I don't remember it."
But a month before the interview Moore tweeted, "I'm putting people's house info with google earth directions. Life will be amazing."
“I’m in a different mindset every day. I’m trolling," he says. “I’m still going to do the addresses but for my critics and people coming after me legally.”
Or other people he thinks deserve it. He says he doesn't want "some crazy ex-boyfriend submitting his ex’s naked photos and pics and her address and she gets raped."
"Address posting won’t be open to the public," he says. "But it depends on the situation. If a dude rapes a girl and this is her way of getting back at him, then I’ll publish his address.”
Moore may have been swayed by the arguments of Danielle Citron, a University of Maryland law professor, who has suggested that Moore's posting people's home addresses along with their nude photos could get him into legal trouble. While Moore is careful to point out in every interview he gives that his nude photo posting is protected by the Communications Decency Act, a law that shields websites from liability for the things that their users post --the nude photos proffered by IsAnyoneUp fans in Moore's case -- he may not have been aware that the law doesn't shield sites from criminal charges.
"There's an argument to be made that he'd be aiding and abetting cyberstalkers," says Citron. "It's amazing what’s he saying out loud. If your purpose is to help stalkers find their victims, that will hurt him when a jury is trying to make a finding of criminal intent."
“Hunter Moore just seems amused by the chaos," Citron astutely observes.
He is. Like every good troll, he loves the attention and is an expert at stirring the hornet's nest. He even managed to attract the attention of Anonymous this time around. In response to Moore's plans to create a Google Nude Earth, Anonymous launched "Operation Anti-Bully. Operation Hunt Hunter" and doxed him, publishing his address, a list of his social networking accounts, the names of his parents and grandfather, and his phone number (which was wrong).
“It baffles me that people think I care," says Moore. “My whole life is public. Go on my Instagram feed and you’ll see my real phone number. I’m not a pedophile hiding behind a Skype screen. They’re just giving me more attention, more traffic, more people knowing about me. I sell more t-shirts.”
Because Moore keeps little secret, exposure is not an effective weapon against him.
“I’m not a kid from Kansas City," says Moore. "Come to my house. Stab me. I’ll make money off of it.”
(That actually happened.)
He says he doesn't get many actual visits to his home, though the FBI did stop in about three weeks after he shuttered IsAnyoneUp as part of an investigation into a hacker who submitted nude photos to the site that had been taken from people's email accounts. "One day I woke up with a shotgun in my face,” says Moore who maintains he's done nothing illegal. "They had to do their job. They took all of my computers. I just bought new ones. I don’t give a f***.”
Back in August, Moore told The Daily (R.I.P.) that he would relaunch his site on October 31. That didn't happen. He tells me it's likely to happen in January. “We’re doing video content and we’re filming right now," he says.
He hasn't been inactive since IsAnyoneUp went down. His activity has simply moved to Twitter, Tumblr and Instagram. The Twitter and Tumblr accounts have more unclothed bodies that you'd find at a nudist convention, but the platforms don't seem bothered by that. Though it would appear to violate Tumblr's Community Guidelines, they've raised no objections and did not respond to a press inquiry. A Twitter spokesperson says nude content is not against Twitter's terms of service as long as it's not child porn -- though the site does have a "sensitive content" label that is usually added to pics of that variety. When it comes to revenge porn, users might have an easier time getting their photos taken down if they're tweeted. You can claim ownership over nude selfies and file a DMCA complaint if someone tweets out your pic. Twitter will "withhold the tweet if they have ownership rights," says the spokesperson.
By comparison, Moore's Instagram account is tame.
“Instagram banned my phone, so I had to buy a new iPad to start a new account,” says Moore.
Why was he banned?
“I had sex with one of their employees and I broke their TOS," he says. Instagram TOS explicitly bans nudity. “Now I’m just posting photos of my cat. Instagram is a huge platform. I don’t want to mess it up. I’ll post the dirty photos using Tweetdick." (Ed. note: That's not a typo.)
As for the relaunched site, Moore is wary about talking about it too much.
“I have 30 MBAs up the ass, so if I say the wrong thing, they’ll rape me," he says.
This is how Hunter Moore talks. He says it will "start off exactly as it was." Yes, that means the thousands of people who had breathed a sigh of relief over their nude photos disappearing from the Internet are going to be back to cursing Hunter Moore's name every time they Google themselves.
"We’re doing all the social networks now, not just Facebook," says Moore. "We’ll link to your LinkedIn, your Twitter, your OkCupid page. And we have a killer comments tool that goes across all platforms. We're going to give the readers more control over the content they post and take the liability away from me."
Importantly, Moore says he has serious funding now, though he declines to say who is funding him. “People want to be involved but don’t want their names associated with it," he says.
$150,000 has been poured into the site to make significant tech changes, including video and a social networking aspect. He describes it as an "app for hooking up."
“Our users will be rewarded for meeting people through the app. If you go to Starbucks and meet five hot girls and confirm it, we will buy your coffee next time you go," he says when asked for an example of rewards.
So it’s like Foursquare but you check into hotties?
"Not exactly," he says. "We just want you to get your penis touched more often."
I suggest they call it F***square.
Moore says nude photos continue to pour in through his temporary submission site. He claims he's getting 35,000 a week now. “I have too much content. I have a goldmine of boobs and dicks," he says.
I ask what he thinks the ratio is when it comes to people submitting their own nude photos versus those of people they want to burn.
“It’s always going to be 50% revenge porn, 50% self-submitted. I don’t care which it is as long as the person in the photo is 18 or older," he says.
When I interviewed him in 2011, he told me that he didn't want to ruin anybody's life and that if they had a serious job -- "like a schoolteacher" -- he'd take down their nude photos if they asked. That's not the case anymore.
“It depends. If someone is getting physical threats, I’ll take it down but that’s it," he says. "I’m not making cakes here. I’m making money off of you. I’m not going to have a removal process anymore.”
“It’s going to be full of mayhem," he says. “Right now, I’m just doing my parties and building my brand. I have a book deal with William Morris Endeavor. I'm mostly just touring and getting girls naked.”
So how is he making money for now?
"I sell 15 t-shirts every hour. I can’t keep them in stock. I get paid to recruit girls for porn gigs. I get paid to tweet and retweet stuff," he says. And when Moore headlines a party, he gets paid to D.J. and to bring in guests. "I used to get paid $1,500 - $3,500. After the Rolling Stone profile, I get $5,000 to $7,000 per party."
Moore seems unworried about anything: bills, lawsuits, the torment he causes people who don't want to be on his site.
“I’m just building a brand," he says. "And once I launch the site, it’s going to be a world takeover.”
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3a4ac70e0282f3bd2cce7e0d027363e7 | https://www.forbes.com/sites/kashmirhill/2012/12/26/oops-mark-zuckerbergs-sister-has-a-private-facebook-photo-go-public/ | Oops. Mark Zuckerberg's Sister Has A Private Facebook Photo Go Public. | Oops. Mark Zuckerberg's Sister Has A Private Facebook Photo Go Public.
Being a member of the Facebook founder's family won't protect you from having your privacy breached on the social network. On Tuesday night, Randi Zuckerberg -- older sister to Facebook's CEO -- posted a photo from a family gathering to Facebook (of course), showing her sisters using Facebook's new Snapchat-esque 'Poke' app on their phones, with Mark Zuckerberg watching with a confused look on his face. It popped up on the Facebook newsfeed of mediaite Callie Schweitzer who subscribes to Zuckerberg. Assuming the photo was a public one, Schweitzer tweeted it to her nearly 40,000 Twitter followers. Zuckerberg was not pleased.
A not so merry Christmas for Randi Zuckerberg (Screenshot from my colleague Ryan Mac)
"Not sure where you got this photo," she tweeted at Schweitzer. "I posted it to friends only on FB. You reposting it to Twitter is way uncool."
"I would hate for a private photo of mine to be public and would never want to do same to others," replied Schweitzer, deleting the photo. While she was nice, others preferred to be on Santa's naughty list. Buzzfeed nabbed the endearing photo and posted it. The fact that the photo captured the Zuckerberg family using a Facebook app that exists to undermine the permanence of photos is just the start of the irony here...
Schweitzer explained that the photo had popped up in her newsfeed. Zuckerberg then realized that she had fallen prey to Facebook's complicated privacy setting machinations. Perhaps with the help of the Facebook expert at hand, Zuckerberg figured out what had happened: Schweitzer is friends with one of the people in the photo, and so was able to see the otherwise private photo because a friend was tagged in it.
Zuckerberg pulled back on her Internet road rage, and accepted Schweitzer's apology in a tweet that she has since deleted:
Schweitzer graciously deleted the photo and tweet
By this point, of course, it was too late for the photo not to become news. Zuckerberg can at least comfort herself by remembering that she is not the first Zuckerberg to be flummoxed by Facebook's privacy settings. Back in 2009, Mark Zuckerberg had his whole profile -- including photos and his events calendar -- go suddenly and dramatically public after a Facebook privacy setting overhaul that seemed to take him by surprise.
This is the difficulty of Facebook. Despite simplifications and "shortcuts," the privacy settings are not always easily navigated. Sensitive information can unexpectedly leak. Even if you manage to master Facebook's settings, your friends' selections as to who can see their content may wind up undermining your privacy decisions.
Rather than faulting the social network, Randi Zuckerberg preferred pointing the finger elsewhere.
After deleting her exchange with Schweitzer, older sister Zuckerberg -- who previously worked at Facebook and specializes in marketing -- spun the privacy breach as Schweitzer's fault. She offered a lesson in digital etiquette on Twitter: "Always ask permission before posting a friend's photo publicly. It's not about privacy settings. It's about human decency."
That's richer than the egg nog many of us were drinking yesterday.
Hat tip: Ryan Mac
Also on Forbes:
Gallery: Tech Wreck: The Fall Of Social Web Billionaires 9 images View gallery
Mark Zuckerberg Just Got A Lot Less Private
What You Actually Need To Know About The Changes Facebook Is Making To Its Privacy Policy
SnapChat: The Biggest No-Revenue Mobile App Since Instagram
Randi Zuckerberg On Keeping It Real In Bravo's 'Silicon Valley'
Reddit's Biggest Moments
How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did
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13f6dad89ed1525d0e483909fb853d9d | https://www.forbes.com/sites/kashmirhill/2013/01/14/five-ways-technology-has-allegedly-ruined-dating/ | Five Ways Technology Has Allegedly Ruined Dating | Five Ways Technology Has Allegedly Ruined Dating
No.
News alert from the New York Times and the Atlantic: Technology is ruining dating.
A piece in this month's Atlantic entitled "A Million First Dates" suggests "online romance is threatening monogamy," because people allegedly prefer continually perusing online dating sites' "horrible den of humanity" to settling down and getting married. Not to be outdone, the New York Times followed up this weekend with a piece on the "End of Courtship," which explores the well-trodden hypothesis that Millenials only know how to "hang out," not date. As is the usual format for these pieces, a series of women air their dating grievances while a token man or two celebrates the "casual" state of things. The twist in this piece is that it places the blame on technology. Basically, your smartphone and Facebook account are going to make you single forever. It sounds dire! These pieces would have you believe we're worse at mating and dating than the pandas.
So how is technology putting a bamboo stake in the heart of romance according to these august publications?
Too much texting, not enough dates. "Dating culture has evolved to a cycle of text messages, each one requiring the code-breaking skills of a cold war spy to interpret," a 30-year-old woman tells the New York Times after she put on her favorite pair of skinny jeans for a date that never happened. According to the Times, rather than doing a dinner and a movie, most daters now instead exchange "phone texts, Facebook posts, instant messages." Emoticon flirting is the new first date. Lowered barriers to entry. According to the Times: "Traditional courtship — picking up the telephone and asking someone on a date — required courage, strategic planning and a considerable investment of ego (by telephone, rejection stings). Not so with texting, e-mail, Twitter... it removes much of the need for charm; it’s more like dropping a line in the water and hoping for a nibble." In other words, technology has transformed all single folk into lazy fishermen with 10 lines in the water instead of Captain Ahab types focused on spearing just one elusive soul mate. Unromantic tech speak. Men don't put effort into "composing a coherent message to ask a woman out" complains one 34-year-old blogger. "A typical, annoying query is the last-minute: 'Is anything fun going on tonight?'," according to the Times. "More annoying still are the men who simply ping, 'Hey' or ' ’sup.'" I hope those at least come with a ";)." It's too easy to meet someone new. That's what Dan Slater claims in the Atlantic. Single people abound on dating sites meaning someone new/different/better/hotter/carrying-less-baggage is just one wink/poke/OKCupid message away. Facebook has ruined the first date. We've Facebook-stalked ourselves out of small talk. "Online research makes the first date feel unnecessary, because it creates a false sense of intimacy," says the author of the 'Hookup Handbook" to the Times. Sadly, asking someone to name their favorite TV shows is no longer stimulating conversation for the first date. What a shame.
Crazily enough, despite technology "ruining" dating, people still seem to meet people and fall in love. Alexis Madrigal of the Atlantic challenged the premise of Slater's piece -- that sites like OkCupid have shot an arrow through the heart of monogamy -- by pointing out that "the heaviest users of technology--educated, wealthier people--have been using online dating and networking sites to find each other for years. And yet, divorce rates among this exact group have been declining for 30 years."
Technology has certainly changed the way we communicate with significant others (and potential significant others) and added new complications to the process. Before 2005, daters didn't have to think about whether to untag themselves from photos with their exes or when it was the right time to Facebook friend a romantic interest. And the proliferation in ways to communicate has given men and women much more material to obsess over during the dating process, but it seems premature to slap together some anecdotes and suggest technology has brought about "the end of courtship."
There are of course other factors; the NYT article does nod its head at the state of the economy over the past five years and budget-cutting around dating. But that should only mean the first date involves cheap tacos rather than several rounds of $14 craft cocktails. More importantly, there's the matter of expectations, and how you communicate and enforce those expectations. A voice of reason at the end of the New York Times article makes this point:
Cheryl Yeoh, a tech entrepreneur in San Francisco, said that she has been on many formal dates of late — plays, fancy restaurants. One suitor even presented her with red roses. For her, the old traditions are alive simply because she refuses to put up with anything less. She generally refuses to go on any date that is not set up a week in advance, involving a degree of forethought.
If you want to date someone who takes you on real dates, then don't respond to 10 p.m. "'sup" texts.
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eff489090a0feed5c94d6f32cda4741e | https://www.forbes.com/sites/kashmirhill/2013/01/16/software-developer-who-cleverly-outsourced-his-job-to-china-betrayed-by-his-digital-footprint/ | Software Developer Who Cleverly Outsourced His Job To China Betrayed By His Digital Footprint | Software Developer Who Cleverly Outsourced His Job To China Betrayed By His Digital Footprint
I can haz six-figure salary to watch cat videos?
A software developer's clever plan to outsource his job to a developer in China and to spend his work days surfing Reddit and watching cat videos was derailed thanks to the digital trail he left behind. Verizon shares the tale on its security blog. An unnamed U.S. company using Verizon as its Internet service provider (ISP) asked for Verizon's help in figuring out why a user based in China was establishing a VPN connection to their network on a daily basis. They assumed it was a hacker. A digital investigation revealed that not to be the case.
The suspected hacker was connecting to the network using credentials that belonged to "Bob," a software developer in his mid-40s that Verizon describes as an "inoffensive and quiet family man." They assumed he must have some kind of malicious software on his computer enabling the hacking, so they took a forensic image of his desktop. (Yes, your employer can do that.) His daily Web browsing history told an interesting story. From the Verizon blog:
A typical ‘work day’ for Bob looked like this: 9:00 a.m. – Arrive and surf Reddit for a couple of hours. Watch cat videos 11:30 a.m. – Take lunch 1:00 p.m. – Ebay time. 2:00 – ish p.m Facebook updates – LinkedIn 4:30 p.m. – End of day update e-mail to management. 5:00 p.m. – Go home
Bob was getting a six-figure salary for that arduous workday. Further investigation of the computer's files revealed "hundreds of .pdf invoices from a third party contractor/developer" based in, of course, China. Points for creativity, Bob!
As it turns out, Bob had simply outsourced his own job to a Chinese consulting firm. Bob spent less that one fifth of his six-figure salary for a Chinese firm to do his job for him. Authentication was no problem, he physically FedExed his RSA token to China so that the third-party contractor could log-in under his credentials during the workday. It would appear that he was working an average 9 to 5 work day.
Verizon notes that Bob had excellent performance reviews and was considered "the best developer in the building." Verizon's report doesn't say whether Bob got promoted to management or fired nor whether the company wound up hiring the apparently talented China-based developer.
Case Study: Pro-active Log Review Might Be A Good Idea [Verizon Security Blog]
Gallery: 10 Incredibly Simple Things You Can Do To Protect Your Privacy 10 images View gallery
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95029607048439b2ed3d3c59af108421 | https://www.forbes.com/sites/kashmirhill/2013/04/17/google-glass-bid-up-to-95300-on-ebay-before-seller-realized-he-couldnt-sell-them/ | Google Glass Bid Up To $95,300 On eBay Before Seller Realized He Isn't Allowed To Sell Them | Google Glass Bid Up To $95,300 On eBay Before Seller Realized He Isn't Allowed To Sell Them
Augmented reality fetches a high price on eBay
In February, Google ran a contest for Glass offering "winners" the opportunity to be "Glass Explorers," i.e. the guinea pigs who will test out Glass in the wild. Downside: Explorers have to pay $1,500 for the product and for the privilege of being called "Glassholes." Upside: They get to test out a brand new product before anyone else, earning the envy of early adopters everywhere. One 26-year-old Explorer came up with an even better upside: he planned to auction off his pair of Glass on eBay to pay down his student loans.
The Explorer, who wishes only to be known as "Ed from Philadelphia" due to fears of being harassed by Google enthusiasts, listed Glass with a starting bid of $5,000. He said he didn't have the Glass in hand yet but could show the winning bidder the tweet from Google that notified him he'd won the contest. Over the course of four days, bidding surpassed $95,300. But today Ed had to shut the auction down.
"I took the auction down after learning that those Explorers who already received their Glass had gotten terms of service agreements prohibiting the sale or transfer of the device," he says. No one from Google reached out to him, but he did see the terms of service agreements that were sent to the first bunch of developers who received their Glass this week.
The TOS say: 'If you resell, loan, transfer, or give your device to any other person without Google's authorization, Google reserves the right to deactivate the Device, and neither you nor the unauthorized person using the Device will be entitled to any refund, product support, or product warranty."
Sheesh. It sounds like you can't even let a friend try them on.
"I didn't want to jeopardize my getting a pair of Glass," says Ed. "So, I voluntarily removed the auction and I'm still excited to get the Glass even if I cannot sell it."
He's a little peeved though about not having the right to do what he wants with something for which he'll have paid $1,500.
"It doesn't make a lot of sense," he adds. "If I'm paying $1,500 for it, it's my property. Why can't I resell it?"
Ed says he got a few messages and bids that he thought were legitimate, offering from $8,000 to $10,000 for his Glass, but that most of the outrageous bidding came from "trollers from a Google Glass group," who joked about bidding the product to astronomical levels for the attention it would receive. Even the low bids, though, would have allowed Ed to make a nice profit on the deal.
I chatted with a legal expert, Eric Goldman (who is also a Forbes writer), about the resale issue. He said the issue is a complicated one.
"Ordinarily, manufacturers can't restrict the resale of the goods they sell," says Goldman. "But when the goods contain software, they may be able to contractually prohibit resale. And when the goods contain 'kill switches,' it's possible that the manufacturers can legally 'brick' the items on resale remotely."
It's doubtful Google will prohibit resale of Google Glass when it hits the market for real. The TOS that have been posted thus far specifically apply to the Explorer program. It seems Google wants the select few who get to try out Glass to tell it about the bugs and kinks in the product not to brag about the profits they make on it. They're for Google Explorers not Google Entrepreneurs.
Gallery: Stunning Photos Of Google's Massive Data Centers 16 images View gallery
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0672a28025a51ffe38530c62e2f8eded | https://www.forbes.com/sites/kashmirhill/2013/05/09/snapchats-dont-disappear/?sh=42aed242bdda | Snapchats Don't Disappear: Forensics Firm Has Pulled Dozens of Supposedly-Deleted Photos From Android Phones | Snapchats Don't Disappear: Forensics Firm Has Pulled Dozens of Supposedly-Deleted Photos From Android Phones
Another way to undermine Snapchat's privacy promises
A 24-year-old forensics examiner from Utah has made a discovery that may make some Snapchat users think twice before sending a photo that they think is going to quickly disappear. Richard Hickman of Decipher Forensics found that it's possible to pull Snapchat photos from Android phones simply by downloading data from the phone using forensics software and removing a ".NoMedia" file extension that was keeping the photos from being viewed on the device. He published his findings online and local TV station KSL has a video showing how it's done.
"I was surprised no one else had done it because of how easy it was," said Hickman by phone. "It just took a couple of days to discover it."
Hickman started the research while in a Mobile Forensics Class this spring. He says it's come in useful at Decipher Forensics as clients have wanted Snapchat evidence from phones in divorce and missing teenager cases. He says they have grabbed 60 to 70 deleted Snapchats from phones so far, with at least 40 photos taken from just one phone.
Hickman says he's now doing research on Snapchat recovery from the iPhone; a few months ago, Buzzfeed found at least one flaw that made that possible. At the time, Snapchat founder Evan Spiegel told Buzzfeed, "The people who most enjoy using Snapchat are those who embrace the spirit and intent of the service. There will always be ways to reverse engineer technology products — but that spoils the fun!"
If you don't want to spoil the fun, don't send photos to someone via Snapchat that could one day be used against you in a court of law.
Snapchat has not responded to a request for comment. I'm curious whether the Federal Trade Commission -- which is the federal agency responsible for investigating companies for deceptive or misleading practices -- will be taking a closer look at Snapchat and its claims to users that photos are deleted. This exploit seems like a rather simple one.
H/T @mathewi via @normative
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694eea67d195361dcbb27764b2895850 | https://www.forbes.com/sites/kashmirhill/2013/07/10/heres-a-tool-to-see-what-your-email-metadata-reveals-about-you/ | Here's A Tool To See What Your Email Metadata Reveals About You | Here's A Tool To See What Your Email Metadata Reveals About You
Earlier this week, Mike Masnick of Techdirt complained that anyone who dismisses the NSA's collection of metadata around people's phone calls and emails (as revealed in the Snowden Leaks) "because it's 'just metadata' doesn't know what metadata is." The argument is that you can learn a lot about who a person associates with and what they might talk about without actually reading their emails or listening to their phone calls. Coincidentally, MIT Media Lab released a tool this month that allows people to analyze their own email metadata. Called Immersion, it scrapes a user's Gmail account looking only at the metadata (From, To, Cc and Timestamp fields of the emails) to present an overview of their network.
If you're comfortable handing over that data to the MIT Team -- they promise to let you delete it -- give it a try to show what it reveals about you. The team tells me that 210,000 people have run the tool so far. I'm one of them. Here's my own Immersion chart showing my network dating back to 2004, when I started using Gmail. I've removed my contacts' names (for privacy reasons!) but labeled some of the nodes and clusters. Ethan Zuckerman, a professor at MIT, was less inhibited in sharing his contacts.
It's worth noting that this tool only works because of our tendency to archive everything. I've saved over 70,000 emails rather than deleting them.
My email volume was highest in 2009 and 2010 when I used my personal account for work purposes. What stood out to me was the patterns in my clustering. Significant others are easy to identify and it's quite easy to find some of my story sources -- which could potentially be interesting to a snooper -- as they were disconnected from the rest of my networks.
"The fact is that, as I argued two weeks ago, the metadata is what the spooks want for the simple reason that it's machine-readable and therefore searchable," says John Naughton at the Guardian. "It's what makes comprehensive internet-scale surveillance possible."
If nothing else, the tool is a way to quantify who matters to you, and thanks to a sliding time scale, you can see as certain people rise and fall in importance to you; their bubbles swell or shrink or fade away. Even though it's just metadata, getting that perspective on my social network was almost as poignant as time traveling through old emails and gchats -- an experience described too well in this Thought Catalog post from 2011.
The tools' creators say its release was not related to the NSA revelations, but they do say they hope it will make people think about privacy. "It helps explore privacy by showing users data that they have already shared with others," says the site.
I asked them what they mean by "others" here. "The other party that the user has already shared his/her data with in this case would be Google, as we are currently using Gmail as the email provider," says Deepak Jagdish of the MIT Media Lab by email.
Thanks to the way we live today, when most of our digital communications rest with third parties, we are constantly leaving digital trails with them that reveal much about us. Google infamously made its users' most intimate clusters of Gmail contacts public when it launched the social network Buzz -- a privacy mistake it came to regret. And of course, it's now becoming evident that those trails are of interest to intelligence agencies.
If you don't use Gmail, you can perform a similar analysis of Facebook using a tool from Wolfram. So, what does the Immersion team plan to do with all this valuable metadata handed over to it by navel-gazing users?
"Our primary reason for allowing users to save their metadata is for a faster launch of the visualization when they visit next time," says Jagdish. "Apart from that, in the future we also plan to calculate some aggregate statistics for all the users who have saved their Immersion profile, but at no point will we publish any data of any personalized form."
Still, you might want to delete your data after you use the tool, if you do indeed worry about your privacy.
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de13d8f7e248c36cfe8f853b02069f49 | https://www.forbes.com/sites/kashmirhill/2013/07/24/blueprints-of-nsa-data-center-in-utah-suggest-its-storage-capacity-is-less-impressive-than-thought/ | Blueprints Of NSA's Ridiculously Expensive Data Center In Utah Suggest It Holds Less Info Than Thought | Blueprints Of NSA's Ridiculously Expensive Data Center In Utah Suggest It Holds Less Info Than Thought
The NSA data center in Utah will be up and running by the end of September
For the last two months, we’ve been bombarded with stories about the spying information-collection practices of the NSA thanks to documents leaked by the agency’s most regretted contract employee, Edward Snowden. The degree of forced exposure has gotten to the point that once secret information gathered for the agency -- whose acronym is jokingly said to stand for "No Such Agency" and “Never Say Anything” -- was the subject of a press release on Friday; the Office of National Intelligence announced that it got the legal sign-off for a fresh batch of “telephony metadata in bulk” from companies such as Verizon and AT&T – despite continuing controversy over that including the call records of millions of Americans who are non-terrorists and non-criminal suspects.
The NSA will soon cut the ribbon on a facility in Utah built to help house and process data collected from telephone and Internet companies, satellites, fiber-optic cables and anywhere else it can plant listening devices. An NSA spokesperson says the center will be up and running by the "end of the fiscal year," i.e., the end of September. Much has been written about just how much data that facility might hold, with estimates ranging from “yottabytes” (in Wired) to “5 zettabytes” (on NPR), a.k.a. words that you probably can’t pronounce that translate to “a lot.” A guide from Cisco explains that a yottabyte = 1,000 zettabytes = 1,000,000 exabytes = 1 billion pettabytes = 1 trillion terabytes. For some sense of scale, you would need just 400 terabytes to hold all of the books ever written in any language. Dana Priest at the Washington Post decided to go with a simpler, non-technical approximation, saying the million-square-foot facility will store “oceans of bulk data.”
However, based on blueprints of the facility obtained by FORBES – and published here for the first time -- experts estimate that the storage capacity of the data center is lower than has previously been reported given the technology currently available and the square footage that the center has allocated for its servers.
Level 0 of one of the four data halls on the site
The motherlode for the massive, multi-building site is a set of four identical data halls; they are flanked by buildings containing power sources, batteries and back-up generators, as well as an administrative building and a kennel (dogs are part of the site’s security plan). Within those data halls, an area in the middle of the room – marked “MR – machine room/data center” on the blueprints – is the juicy center of the information Tootsie pop, where the digital dirt will reside. It’s surrounded by cooling and power equipment, which take up a goodly part of the floor space, leaving just over 25,000 square feet per building for data storage, or 100,000 square feet for all four buildings, which is the equivalent of a Wal-Mart superstore.
Level 1 of the data hall, where servers will be housed
Brewster Kahle, with the Internet Archive's servers
Brewster Kahle is the engineering genius behind the Internet Archive, which is kind of like the NSA for the public Web. The NSA data center will accumulate private interactions and information and make them searchable; the Internet Archive’s Wayback Machine does the same thing for the open Web for historical purposes. Kahle estimates that a space of that size could hold 10,000 racks of servers (assuming each rack takes up 10 square feet). "One of these racks cost about $100,000," says Kahle. "So we are talking $1 billion in machines."
Kahle estimates each rack would be capable of storing 1.2 petabytes of data. Kahle says that voice recordings of all the phone calls made in the U.S. in a year would take up about 272 petabytes, or just over 200 of those 10,000 racks.
If Kahle’s estimations and assumptions are correct, the facility could hold up to 12,000 petabytes, or 12 exabytes – which is a lot of information(!) – but is not of the scale previously reported. Previous estimates would allow the data center to easily hold hypothetical 24-hour video and audio recordings of every person in the United States for a full year. The data center’s capacity as calculated by Kahle would only allow the NSA to create Beyonce-style archives for the 13 million people living in the Los Angeles metro area.
Top level of the data hall, which will be chockful of cooling equipment due to the heat coming off... [+] the servers
Even that reduced number struck Internet infrastructure expert Paul Vixie as high given the space allocated for data in the facility. He came up with a lower estimation. Assuming larger 13 square feet racks would be used, factoring in space between the racks, and assuming a lower amount of data storage per rack, he came up with an estimate of less than 3 exabytes of data capacity for the facility. That would only allow for 24-hour recordings of what every one of Philadelphia’s 1.5 million residents was up to for a year. (But who would want to watch that?) Still, he says that's a lot of data pointing to a 2009 article about Google planning multiple data centers for a single exabyte of info.
"For all I know, Google has hit and exceeded that target by now," says Vixie. "But in 2009, one XB split across many global data centers was a lot."
William Binney, a former employee of the NSA turned whistleblower, believes the agency is guilty of unconstitutional information gathering on American citizens, and that the sheer size of the data centers in Utah and elsewhere suggests that the agency wants to vacuum up everything it can, including the content of people's phone calls and emails. He points to a former FBI agent claiming on CNN that the government could listen to phone conversations that Boston marathon bomber Tamerlan Tsarnaev had with his wife before the bombing. When a CNN correspondent expressed surprise that it would be possible to get access to those pre-attack phone calls, the former FBI agent responded, "Welcome to America. All of that stuff is being captured as we speak whether we know it or like it or not."
Binney gave the 5 zettabyte estimate to NPR and also included it in an affidavit filed in Jewel vs. NSA, a lawsuit filed by AT&T customers over the NSA's placing surveillance equipment in a secret room at one of the telecom's outposts in San Francisco. His estimate is based on the assumption the facility might offer equipment like that developed by Cleversafe. The company says it has a 10-exabyte data storage system that involves portable data centers with 21 racks each:
Cleversafe is the only company that can deliver on this requirement today. Its 10 Exabyte data storage system configuration, which uses the same innovative object-based dispersed storage technology originally developed by the company, has been expanded to allow for an independent scaling of storage capacity and performance through a Portable Datacenter (PD), a collection of storage and network racks that can be easily deployed or moved. Each PD contains 21 racks with 189 Storage Nodes per PD and 45 3TB drives per Storage Node. This geographically distributed PD model allows for rapid scale and mobility and is further optimized for site failure tolerance and high availability. The company’s current configuration includes 16 sites across the U.S. with 35 PDs per site and hundreds of simultaneous readers/writers to deliver instantaneous access to billions of objects.
Binney read this as meaning that 21 racks could hold 10 exabytes, and assumed an efficient rack size of 4 square feet, which he says is standard for government use. However, he misread the Cleversafe marketing materials. They actually say that 560 portable data centers of 21 racks each (or 11,760 racks) can hold 10 exabytes. Chris Gladwin, founder of Cleversafe, says that in January of 2012, 10 exabytes of storage system would have needed "about 2 million square feet."
"A 10 EB 'usable' system today would take about 1 million square feet," he says by email. "And in a couple years, you could build a 10 EB system in half that space."
Back to Kahle's estimate: he thought the power bill for supporting a facility with that many servers would be $70 million per year for 75 megawatts, based on each rack consuming 5 kilowatts of power, plus air conditioning. Wired estimated a $40 million bill based on a 65-megawatt power demand. The NSA declined to make a representative available for this story or confirm the authenticity of the data center blueprints. However, its director for installations and logistics, Harvey Davis told NPR the annual maintenance bill on the center would be $20 million.
A power building for the facility
Randy Sparks, a consultant who has helped construct data centers for a major tech company and Lucasfilm, says any estimation based on a blueprint is going to be heavily dependent on very specific assumptions. Some data centers privilege computing power over storage power, and we don’t know for sure what the NSA wants from this facility as it has not released specific information about the center’s storage capacity or function.
“It’s somewhat immaterial,” says Sparks. “Given the rapid advancements in data storage technology, is there really an upper limit to the amount of data that can be stored?”
All experts queried for this piece cited Moore’s Law, saying that storage capacity will increase exponentially over the years. It's capacity will double every year and a half per the principle, meaning that the NSA’s ability to store information will only increase.
“I always build everything expandable,’’ said the NSA’s Davis in his interview with The Salt Lake Tribune.
Plus, this is just one NSA data center of many, as detailed in Dana Priest's recent comprehensive overview of the NSA's expanding operations in the Washington Post.
Given the increasing ease of keeping data, Kahle is worried about a future in which we live in a completely-surveilled society, where any information that can be collected will be collected and will go into a data warehouse for potential analysis.
“If there’s the will and the opportunity, there is the technical ability and the cost is low,” he says. “You don’t need dossiers of people if you just collect all of the data and can collate it at any time.”
Follow @kashhill
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113b2a8561a85aa47fd7e811cd167e7b | https://www.forbes.com/sites/kashmirhill/2013/10/07/payment-providers-and-google-will-kill-the-mug-shot-extortion-industry-faster-than-lawmakers/ | Payment Providers And Google Will Kill The Mug-Shot Extortion Industry Faster Than Lawmakers Can | Payment Providers And Google Will Kill The Mug-Shot Extortion Industry Faster Than Lawmakers Can
A website that specializes in optimizing old mug shots in Google searches
'A picture lasts forever' is likely not the thought going through a person's head when he or she is being booked at the clink (well, unless that person is Lindsay Lohan). Yet mugshots have over the last few years taken on an Internet permanence thanks to a host of sites that use liberal public records laws to get their hands on mugshots and make them part of people's Google footprints. The industry first started getting scrutiny two years ago when Wired highlighted a Florida mugshot site that made its money by publishing slammer shots and running ads alongside them, or worse, charging people to have them taken down.
The practice has only thrived and expanded since then, according to a piece in the New York Times this weekend that looks at the rise of the embarrassment extortion industry and attempts by individuals and lawmakers to curb the practice while not impeding on freedom of information. Legislators in Utah have, for example, forbidden sheriff's offices from giving mugshots to sites that will charge to take them down. A lawyer in Ohio has filed a class-action lawsuit against some of the sites accusing them of extortion and violating people's "right of publicity," a state statute similar to the one that got Facebook sued for using people's profile pics in 'Sponsored Stories.'
But rather than a legal fix, New York Times reporter David Segal's investigation may be the fix. His inquiries to Google, Paypal, Visa, American Express, Discover and others about their role in promoting and monetizing these sites has led to a serious backlash. Google has changed its algorithms to rank these sites lower -- under the premise that they run afoul of an unspecified Google guideline. Via the NYTimes:
[Google introduced] that algorithm change sometime on Thursday. The effects were immediate: on Friday, two mug shots of Janese Trimaldi, which had appeared prominently in an image search, were no longer on the first page. For owners of these sites, this is very bad news.
And in a move that resembles the Wikileaks payment blockade, every payment provider contacted by Segal said they had plans to cut off funding to the sites. “We looked at the activity and found it repugnant,” Mastercard general counsel Noah Hanft told Segal.
MasterCard executives contacted the merchant bank that handles all of its largest mug-shot site accounts and urged it to drop them as customers. “They are in the process of terminating them,” Mr. Hanft said. PayPal came back with a similar response after being contacted for this article. “When mug-shot removal services were brought to our attention and we made a careful review,” said John Pluhowski, a spokesman for PayPal, “we decided to discontinue support for mug-shot removal payments.” American Express and Discover were contacted on Monday and, two days later, both companies said they were severing relationships with mug-shot sites.
Segal writes that Visa is also reexamining its payment processing for these sites. One of the mugshot site owners expressed dismay at the drop in site traffic and losing his ability to collect money telling Segal they're "trying to wrap our heads around this." Notably, when Wikileaks faced a similar problem, it turned to Bitcoin -- a system of finance that isn't controlled by intermediaries that can pass this kind of judgment.
Private industry may wind up doing what lawmakers are constitutionally forbidden to do: killing an ugly information practice by both burying it in search results and cutting off its funding sources. If we're all on board with locking up the mugshot industry, it's great. But it's also a kind of scary display of the power of private industry to control speech on the Internet.
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970f2200e92ae39680c59c9908c2edba | https://www.forbes.com/sites/kashmirhill/2013/10/09/book-review-the-circle-will-make-you-laugh-andor-grimace-but-wont-convince-you-to-quit-facebook/ | Book Review: 'The Circle' Will Make You Laugh And/Or Grimace But Won't Convince You To Quit Facebook | Book Review: 'The Circle' Will Make You Laugh And/Or Grimace But Won't Convince You To Quit Facebook
'The Circle' advertising targets the San Francisco crowd. Posters in The Mission.
Step back, Evgeny Morozov: The notion of Internet-as-panacea has a prominent new critic in literary heavyweight Dave Eggers. His new novel, The Circle (Knopf), set in the near future, chronicles the rise of the titular corporation, which has subsumed Facebook, Google and Amazon to become the one company tracking everything we do and buy. Including our health, with sensors inside the body, of course. It’s all seen through the wide eyes of the company’s newest liberal arts grad employee, Mae Holland.
(A real world controversy has popped up around the novel with former Facebook employee -- and now Facebook critic -- Kate Losse claiming that the character and book rip off her memoir, Boy Kings. Eggers says he never heard of her or her book while writing his own. It's not surprising in a time when our friends sometimes seem more interested in Instagramming what they're doing than actually doing what they're doing that multiple authors would come up with books that criticize the digitalization of culture and the companies behind it.)
As someone who has quipped that 'if you're not on Facebook, you may not exist,' it wasn't hard for me to buy Eggers premise: that the world has become a place in which a "TruYou” Circle account is near mandatory for using the Internet. But in this future, everything done online is mediated through that account and thus is attached to a real identity, wiping out trolls and online crime. Sound familiar? The company’s three Wise Men founders who seem to take their personality cues from Mark Zuckerberg, Eric Schmidt and Jeff Bezos (the scary one), worship transparency like a religion, creating cheap and free products that allow millions to ‘go transparent,’ a feature Holland readily adapts by hanging a camera around her neck so her millions of Circle followers can watch, comment, and ‘Smile’ at her every encounter. (Don't worry; she gets three minutes of audio silence when she uses the bathroom.)
The Circle’s lollipop-sized, $59 “SeeChange” cameras provide real time surveillance of, well, everywhere. Politicians who cry antitrust suddenly become the targets of investigations themselves based on strange and criminal things ‘discovered’ on their computers.
Eggers isn't worried about the NSA; he's terrified of the power that FaceGoogleZon has to dictate societal norms. Unlike 1984, this book doesn't open in dystopia; instead, we witness a totalitarian future take shape with the full acquiescence of a transparency-obsessed populace. The privacy hold-outs alarmed by a cultish company with slogans like ‘Privacy is Theft’ and ‘All That Happens Must Be Known’ are doomed; in Eggers world, there is no ‘opt out’ button.
Broad but shallow (like the social media Eggers lampoons), The Circle is dark comedy for this moment in history. Will its warnings persuade readers to quit Facebook? Good luck with that.
Eggers’s amusing (if not wholly accurate) skewering of the tech industry and a society eager to sacrifice privacy for convenience takes products like Street View and practices such as crowd-sourcing criminal investigations to their logical and extreme conclusions. But like Super Sad True Love Story, Gary Shteyngart’s novel in the same vein released last year, which imagined a society in which people’s identities are constantly broadcast by smartphone-like devices, along with accumulated ratings for everything from credit scores to ‘fuckability,’ The Circle almost feels unambitious in its forecast of the future. Given what Google X is working on, these books may catch up to reality in months rather than decades.
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b330612125231713e2ecfedf4126b1be | https://www.forbes.com/sites/kashmirhill/2013/10/14/lavabits-legal-fight-appeal/ | Lavabit's Legal Fight: Should The Feds Have The Right To Break The Internet's Security System? | Lavabit's Legal Fight: Should The Feds Have The Right To Break The Internet's Security System?
Ladar Levison (via Facebook)
At the end of July, the government filed a sealed document with a court in Virginia that sought to portray Dallas, Texas, business owner Ladar Levison as an obstruction to an investigation of a not-publicly-named-individual (that we all know to be NSA leaker Edward Snowden). The FBI wanted to collect information about Snowden's use of Lavabit's secure email services, but had been told by Levison that his system was not designed in a way that allowed for easy capture of his customers' email activity. "On July 11, 2013, the U.S. Attorney's office issued a grand jury subpoena for Mr. Levison to testify... [and] to bring to the grand jury his encryption keys," wrote U.S. Attorney Neil MacBride in the July court filing [page. 99]. "The FBI attempted to serve the subpoena on Mr. Levison at his residence. After knocking on his door, the FBI Special Agents witnessed Mr. Levison exit his apartment from a back door, get in his car, and drive away."
"I don't have a back door," said Levison in an interview earlier this month. "I was just leaving my house."
When he then noticed a gray Escort following him, he freaked out. After weeks of going back and forth with the FBI who made it clear that he held sensitive data to which they wanted access, he was worried it could be "some foreign intelligence agent seeking to waterboard him for information." He made some abrupt turns to try to lose the tail, and planned to make his way to a police station. "I lost them before I got to police station, though," he says.
It's hard to imagine the man calmly sitting before me in a white shirt and tie, petting his tiny, pink-harnessed Italian greyhound (named Princess), unknowingly making evasive maneuvers to avoid the feds. They did eventually catch up with him. The FBI served him with the subpoena later that night, allaying his fears of potential torture. At least of the physical variety.
It is but one example of a failure by the government and Levison to see an investigation into one of Lavabit's over 400,000 email users from the same perspective. Levison, who says he has "been turned from a small business owner into a political activist overnight," has from the beginning been willing to hand over the information the government sought about the person (who we all know to be Ed Snowden) because it had the proper legal orders for that information. But the government wanted direct access to Lavabit's system with a pen trap device that would allow agents to collect intel about Snowden's email use in real time. The agents did install that device upstream -- making a run around Lavabit to install it with the company's Internet service provider, TierPoint -- allowing it to capture Lavabit customers' activity. But the design of Lavabit's system -- in which encryption is used liberally to protect users' accounts even from Lavabit itself -- thwarted the FBI's ability to decode that data, leading the government to try to find a way to defeat Lavabit's security system, a security system that protects not just Snowden but Lavabit's hundreds of thousands of other customers.
That culminated in 1. Levison handing over the encryption keys to his site, 2. Lavabit shutting down its email service in dramatic fashion, 3. A $10,000 contempt charge for Levison for stalling for two days before handing over the encryption keys digitally (after first handing them over printed out in tiny font on 11 pages), and 4. An appeal [PDF] to the Fourth Circuit, filed Thursday, that will ultimately determine whether it's unconstitutional for the government to ask a website to turn over the encryption keys that protect its activity from intruders (even when those intruders are federal agents).
Wired has called it a "landmark privacy case" in a post that features a prominent photo of Edward Snowden. But the Lavabit case isn't really about Snowden at all. Ladar Levison was willing to hand over whatever the government asked for when it came to Snowden (except for his password) -- and even offered to custom code a solution that would allow him to capture Snowden's activity and hand it over to the feds on a daily basis. (The feds turned that down. A judge later objected to "do[ing] it in a way that the government has to trust [Lavabit].") The government had the legal authority to get access to Snowden's information and Levison was willing to comply and hand it over, as he had done in the past when one of his users was accused of trafficking in child pornography. Where this investigation got screwy -- and the reason why Lavabit is fighting the government tooth and nail in court -- is that the government asked for something so much larger than Snowden: the technological keys to intercept not just Snowden's digital communications but those of all of Lavabit's more than 400,000 users. By handing over those keys, Levison subverted the selling point of his service: secure communication that could not be spied on by a third party, which is why he shut down his company.
"You can't run a secure website in the United States if you can be forced to hand over your SSL keys," says Levison, who has stopped using email since the Lavabit shut-down, and now communicates only by text, Facebook (funnily enough) and, when he needs to send sensitive information, Silent Circle, an encrypted communication provider that offers chat and text services. Since he went public with his fight, Levison says he's been contacted by other businesses that have also been ordered to turn over SSL keys, though they've never talked about it publicly.
"SSL keys are the security tool that underpins the Internet," says Levison. They are the way you prove that you are the person who runs a particular website, and the keys you use to see the private activity on that website. Levison did not want his to end up in an NSA databank, for use whenever the government might want to use them. The FBI argued to a judge that it would only use them for getting access to the unknown-person-otherwise-known-as-Snowden, but Levison thinks that there should be technological constraints on what the government can do, not just legal ones.
Lavabit's appeal to a federal court makes the argument that asking a business to hand over its encryption keys is an overbroad and unreasonable search, as well as a threat to a company's business. "It is unthinkable that Congress would have given the government the authority to seize keys that would make it possible to intercept all of Lavabit’s communications with all of its customers—communications that the customers have been told are private against exactly that kind of secret surveillance," write Lavabit lawyers in their opening brief. In fact, after the FBI's having Lavabit's keys was exposed, GoDaddy revoked them saying industry policies dictate they do so when they "become aware that the private key has been communicated to a 3rd-party and thus could be used by that party to intercept and decrypt communications."
"For a company built on secure email services to surrender its private keys to an untrusted third party is a truly dramatic act, akin to requiring a hotel to turn over a master key to all of its hotel rooms (or install clear glass doors on those rooms)—or, for that matter, commanding the City of Richmond to give the police a key to every house within the city limits," write Levison's lawyers in their brief to the court. "[T]o comply with the government’s subpoena would have either required Lavabit to perpetrate a fraud on its customer base or shut down entirely."
Levison recently traveled to Washington, D.C. to try to lobby lawmakers about the issue, but they "were more interested in their credit card bill," a.k.a. the federal debt, he says. Usually, a third party to a criminal complaint (which Lavabit is) wouldn't have the right to fight the government in court over the constitutionality of its investigation techniques after it had already handed over what the government wanted. That would be the job of Snowden's attorneys. Luckily, Levison has that contempt charge along with the $10,000 fine, which gives him something to fight against.
Levison may not have gotten lawmakers to sign onto his cause, but he does have public support. He's received over $200,000 in donations to his legal fund. Meanwhile, technologist Ed Felten of Princeton, who worked for a year for the Federal Trade Commission on tech and privacy issues, writes:
I was surprised that a court would go so far as to order Lavabit to turn over the security crown jewels. Turning over this information would have put Lavabit in a position of essentially lying to its users about security. While it’s true that Lavabit might have headed this off by being more cooperative earlier, when only the Snowden account was at issue, this chain of events only serves to undermine users’ trust in U.S.-based technology providers. Lavabit shut down rather than lie to its users, but that’s more than most providers would have done.
It will be an interesting case to watch, even if it's a specialized one given Lavabit's unique technical model.
"A business’ most closely guarded secrets may not be ransacked simply to gather a small amount of information about someone suspected of wrongdoing," argues the brief. We'll see if an appeals court agrees.
Related on Forbes:
Gallery: 10 Incredibly Simple Things You Can Do To Protect Your Privacy 10 images View gallery
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cd39a3ffab2887ec9adf9b8be2433e83 | https://www.forbes.com/sites/kashmirhill/2013/10/17/nsas-utah-data-center-suffers-new-round-of-electrical-problems/ | NSA's Utah Data Center Suffers New Round Of Electrical Problems | NSA's Utah Data Center Suffers New Round Of Electrical Problems
The NSA data center in Utah has had emergencies
The NSA's Utah data center is still struggling to get up and running. The Wall Street Journal reported earlier this month that the site slated to hold exabytes of NSA spy data has been suffering from lightning arcs and meltdowns that have destroyed hundreds of thousands of dollars worth of equipment and prevented the NSA from using the center for its intended purpose: massive data storage and mining. The WSJ reported there had been ten incidents thus far. A source familiar with the project says the center underwent yet another shutdown over the weekend after electrical problems on Thursday and Friday.
The data center was shut down through Tuesday. The source says there aren't "arcs and fires anymore" but that the experts on the site still haven't figured out what's causing the problems. They have figured out how to prevent flashes of lightning, though.
"They’re seeing a pattern of where it gets to the meltdown point and they stop it before it blows again," says the source. The source says that contractors have been injured and taken to the hospital due to electrocution, but not in the most recent shutdown.
NSA spokesperson Vanee Vines provided a statement about the problems at the site that had previously been provided: "The failures that occurred during testing have been mitigated. A project of this magnitude requires stringent management, oversight, and testing before the government accepts any building.”
"As we've said, acceptance testing is underway," she added.
The facility's headaches are not limited to what's happening inside the building. A protest group, Restore The Fourth, has adopted the highway in front of the data center.
"The group plans to carry picket signs as it picks up litter," reports the Salt Lake Tribune. According to a Facebook event posting, the group is planning its first highway cleanup/mass surveillance protest on Saturday, October 26. With the electrical problems plaguing the billion-dollar data center, rendering it inoperable, the group might prefer protesting government waste rather than spying.
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c51291f0d7986aeb382a890e3229ba0f | https://www.forbes.com/sites/kashmirhill/2013/10/29/the-very-first-time-facebooks-mark-zuckerberg-publicly-uttered-the-word-privacy/ | The Very First Time Facebook's Mark Zuckerberg Publicly Uttered The Word 'Privacy' | The Very First Time Facebook's Mark Zuckerberg Publicly Uttered The Word 'Privacy'
Mark Zuckerberg just got archived
On Friday information scholar Michael Zimmer released something called "The Zuckerberg Files." It's a scholarly archive hosted by the University of Wisconsin - Milwaukee that attempts to collect every public utterance ever made by Facebook's CEO.
Zimmer doesn't want to make it too easy to stalk the Zuck; only researchers will have full access to the password-protected transcripts of Zuck's letters, appearances and interviews. The researchers would ostensibly want that access to better understand the fundamental ways that Facebook and its CEO are leading us into "a dystopian future where humanity's sole purpose is to create a data trail for giant corporations to scoop up and mine for profitable patterns," in the words of Adrian Chen (channeling Dave Eggers). The rest of us peons do, however, get to play the role of the NSA in that we have the right to trawl through the metadata of the site. So, I, of course, immediately did a search for the word "privacy" to see how often Mark Zuckerberg has mentioned the troublesome topic over the years, and how he approached it the very first time.
An interesting pattern sprung up in the form of a 'privacy' bell curve. He said it very little in the early years, then a lot, and then not very often. If the archive is truly comprehensive, he didn't say the word publicly at all in 2012, which is surprising because the company was fending off Al Franken at the time. It was also the year the company went public; Mark Zuckerberg's letter to investors unsurprisingly left the word 'privacy' unspoken.
Number of times Zuckerberg has uttered the word privacy in public, according to the Zuckerberg Files
He was saying "privacy" a lot in 2010, perhaps because that was following the company's insane December 2009 privacy setting overhaul that pushed lots of users' previously private information into the public eye. Mark Zuckerberg included. 2010 was also the year that The Social Network hit the big screen, thrusting Zuckerberg into the public eye, while looking a lot like Jesse Eisenberg.
The first time Mark Zuckerberg brought up privacy was to talk about how Facebook messed it up
According to the Files, Zuck first uttered the word "privacy" in 2006, in a September "open letter" that we can all access because it's available publicly. The post starts out, unsurprisingly, with "We really messed this one up."
You're surely wondering, "Which mess-up was that?" It dates back to when Facebook first launched News Feed, which broadcast the updates people made to their profiles to their friends. Some users hated it, finding the aggregation and broadcast of their profile tinkering to be invasive. Even though it didn't change who had access to information, it made it much easier to see. The digital pitchforks came out: Facebook News Feed Hate Groups were formed.
It was an important moment. Farhad Manjoo recently wrote, on News Feed's 7th anniversary, that it "changed everything":
Looking back, it’s clear that news feed is one of the most important, influential innovations in the recent history of the Web. News feed forever altered our relationship to personal data, turning everything we do online into a little message for friends or the world to consume.
It advanced the increasingly common feeling that we are all journalists, or pessimistically, that we are all our own PR agents.
Facebook rolled in 2006 the same way it does today when users are upset about something. It gave them an olive twig. Initially, people had no control over what kind of stories appeared in News Feed. So if you made the icky relationship status change from "In one" to "Depressed and Single," everyone heard about it. Facebook offered a little privacy clawback, with Zuck writing, "Somehow we missed this point with News Feed and Mini-Feed and we didn't build in the proper privacy controls right away." They coded "for two days" to give people more control over what stories wound up in their feeds.
Zuckerberg said "I'm sorry." But he had an answer to the hate groups: he invited people to check out a new Facebook group he created called "Free Flow of Information on the Internet." "Because that's what I believe in," he wrote, "helping people share information with the people they want to share it with."
He obviously still believes that, but the group he created is now defunct. These days, the CEO is more focused on Controlling The Flow Of Neighbors Around His House.
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6335cbbf34bd32f523b559f92132db97 | https://www.forbes.com/sites/kashmirhill/2013/10/30/lavabit-and-silent-circle-join-forces-to-make-all-email-surveillance-proof/ | Lavabit And Silent Circle Join Forces To Make All Email Surveillance-Proof | Lavabit And Silent Circle Join Forces To Make All Email Surveillance-Proof
The summer of Snowden gives birth to the Dark Mail Alliance
In recent months, Lavabit, based in Texas, and Silent Circle, based in Washington, D.C., both shuttered their encrypted email services. The companies said they couldn’t keep them running knowing they were vulnerable to surveillance if faced with a dedicated enough attacker… which for Lavabit came in the form of the federal government when it wanted access to NSA whistleblower Edward Snowden’s Lavabit account. Now the companies are teaming up with plans to offer an open-source tool that could make peer-to-peer, end-to-end encryption an easy add-on for any email service. The challenging part: they need to get other email providers – especially the heavyweights, Google, Yahoo, and Microsoft – to join them in offering the tool.
The easy part: the name, which sounds like a group of superheroes – or supervillains – depending on your perspective on monitoring and data-mining email. Lavabit and Silent Circle are the first two members of the “Dark Mail Alliance,” a group of email providers who will give users control over the privacy of their email so that it can’t be handed over to third parties, scanned for ads, or easily hijacked by an interceptor. “We’re taking our inspiration from the Rebel Alliance,” says Levison. “We’re the rebels who have decided privacy is too important to compromise on. We’re fighting to bring privacy back to the Internet.”
“We believe email is fundamentally broken in its current architecture,” says Silent Circle CEO Mike Janke, a former Navy SEAL. “This is an opportunity to create a new email service where the keys are created on the device and only the user can decrypt it.”
A very simple logo for a concept dreamed up within the last two months
The problem now is that – as the NSA leaks have made us painfully aware – almost all of us store our email with third parties and send it through a digital ether that has many stops along the way where it can be captured. On top of that, there’s the possibility of our email being hacked, or being scanned by advertisers, or just being opened by a snoopy ex who has your password. Google and others have tried to make email more secure with two-factor authentication, but that doesn’t solve that fact that the email sits “in the clear” on a server or in the cloud somewhere -- a vulnerability that hackers can take advantage of. According to a new report from the Washington Post, the NSA has taken advantage of that vulnerability by infiltrating the links to Yahoo's and Google's data centers. Lavabit and Silent Circle think email should be unreadable – decodable only by the sender and the recipient. While it’s possible to set-up encryption on your own, it’s a laborious process – I know from experience; the Dark Mail Alliance hopes to streamline it.
Lavabit founder Ladar Levison and Silent Circle CEO Mike Janke got to meet and swap tales of encryption woe during a privacy event in Seattle in September. Silent Circle’s impressive cryptography team had been working on a better email encryption system for some time, that wouldn’t leak metadata to the provider (or the NSA) nor depend on keys stored on a provider’s server. Levison meanwhile had been fighting the feds for months over their request to fundamentally break the security of his email service in order to get access to one of his users’ accounts. Levison, who has given up email since shutting Lavabit down, had downloaded Silent Circle’s encrypted text messaging service to have private bi-coastal conversations with his lawyer. He and Janke connected via Silent Circle and sat down in Seattle to talk about coming up with a new system together. Levison then flew to Silent Circle’s headquarters for a week-long project-crunching session with his former-competitor’s engineering team, including master cryptographers Phil Zimmermann and Jon Callas.
The “Dark Mail Alliance” plans to release a white paper about their tool, which relies on SMTP and XMPP. While still a work in progress, it will assign a private key to a particular user and populate it across their devices; put public keys and addresses into a public server; and store encrypted email for pick-up in the cloud. It’s not the first time technology of this sort has been deployed. What would make this different is that it, if successful, wouldn’t be sandboxed. If Google, Yahoo, Microsoft, Hushmail, and others signed on – and that is a big if – you’d be able to send an encrypted email from one service to another “easily.” Janke says the user interface is designed so that if you’re sending to an address that’s part of the system, it glows green, and if it’s not, it glows red.
“Features of PGP are built into the code itself so it can function like regular email,” says Levison. “We want to make it easy enough for your grandma to use.”
“We want community participation on the protocols,” says Silent Circle cryptographer Jon Callas. “But we are not going to be sitting around, waiting for permission to do it. We’re going ahead with it even if it’s just the two of us.”
“We’re going to try to get as many people involved as possible,” says Janke. Levison announced the formation of “the Alliance” Wednesday at Inbox Love, a conference at Microsoft’s Mountain View campus for, as you’d expect, mail geeks. “All of the major email service providers will be there,” says Levison.
But will they want to join the Alliance? Given Lavabit’s dramatic shutdown and the Snowden revelations about the extent of monitoring of our digital communications, there’s momentum right now for the cause of more private email. And Lavabit and Silent Circle certainly have the industry’s attention. “Everyone knows now that email is broken and has to be fixed,” says Callas. But is that enough to get established providers to join their crew?
“We want to get the Googles, the Yahoos and the Microsofts to stand tall,” says Janke. “But it will be an interesting friction point. These companies make money by mining their free email.”
The dark mail tool would prevent scans of emails to deliver ads. Another potential downside from a provider perspective is that not being able to scan all emails will make it harder to root out spam, says Levison. But they hope that the fact that all email would be signed with particular keys will make it possible to develop a trust system around identity.
Intelligence and law enforcement agencies meanwhile, who have been complaining for years (perhaps disingenuously) about the Internet “going dark,” might be the most frustrated with the Alliance. It would make it much harder to monitor people’s emails or to read what they have stored in the cloud. I asked Lavabit – who is already fighting a court battle with the FBI – and Silent Circle whether they worried about the government reaction to their plan.
Levison says he does worry about criminals – terrorists and child pornographers – using the tool. “But I balance that with the need to speak privately as a fundamental part of any democracy,” says Levison. “Government has brought this on themselves, where this kind of security became a necessity.”
“That horse has left the barn. If law enforcement wants that data, they’ll have to subpoena an individual [rather than their email provider],” says Janke. “ I worry more about the big data processors. Google and Microsoft rely on data mining to make their profits. I worry more about them collectively because there is money on the line. I worry about that more than the nation states.”
The Alliance is not just focused on the big dogs. They’re also hoping to enlist smaller providers that want to offer more private and secure email services. Levison will play crypto-prophet, with plans to rack up frequent flier miles to help providers and organizations get this up and running when they release the tool in 2014. “If we have to fly to Switzerland and South Africa, that’s what we’ll do,” says Janke.
“We think the world is ready to embrace a new system,” says Levison.
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6ced5eb1298c323c5016c3a2e2a4f0ed | https://www.forbes.com/sites/kashmirhill/2013/10/31/the-biggest-bitcoin-investment-so-far-circle-raises-9-million/ | The Biggest Bitcoin Investment So Far: Circle Raises $9 Million | The Biggest Bitcoin Investment So Far: Circle Raises $9 Million
The Wall Street Journal proclaimed the hibernation of Bitcoin venture capital a bit prematurely last week. Boston-based Circle Internet Financial Inc. came out of stealth mode Thursday announcing it has raised $9 million from Jim Breyer, Accel Partners and General Catalyst Partners. Founded by Jeremy Allaire, 42, who built and took video platform Brightcove public, Circle plans to offer payment acceptance tools for merchants and a place for consumers to buy, sell, receive, and store Bitcoins, setting it up to compete with BitPay and Coinbase.
The service is accepting sign-ups for when it launches in beta at circle.com. I asked Allaire how much state-backed currency it took to purchase that url. "It was expensive," he replied by phone from Dublin, where the company will have its international headquarters. "Getting the domain was a difficult process. A week after we settled it, someone asked me, 'Have you seen Dave Egger's new book?'"
Jeremy Allaire, co-founder of Circle (No, he's not a Dave Eggers character)
Allaire says he started learning about Bitcoin a year and a half ago, due to a flurry of articles in the media and "buzz and chatter" among people he knew.
"I’ve been building Internet platforms for 20 years.My work has always been focused on building things on top of the open standards of the Internet that transform industries," says Allaire. "When I looked at the ecosystem emerging around Bitcoin, it struck me that this was a global opportunity."
Circle's investors, who has also been involved in funding Brightcove, agreed. The Circle's entry into the market adds another business with serious funding and experience attempting to take the 4-year-old Bitcoin into the mainstream.
"The Bitcoin industry has undergone an incredible evolution in the last year," says Jacob Farber of Perkins Coie. "There's been a changing of guard from a small circle of early adopters to serious business people with funding, who see Bitcoin as a payment system and a way of building a business and are not just in it for purely philosophical reasons."
Allaire says the financing, which happened "some months ago," is going toward product development, compliance and regulatory affairs, and marketing -- in that order. The first person he and co-founder Sean Neville, the company's chief technology officer, hired was a compliance officer. The company is already registered with the Department of Treasury's FinCen as a money services business, and is "engaged with multiple states and planning to be licensed in as many as we need to be to operate."
"When you look at Bitcoin world, people raising their series A need to get 47 money transmitter licenses [from different states]," said Adam Shapiro, a regulatory expert at Promontory Financial Group, LLC, at a recent conference about disruptive technologies. "Investors aren’t used to hearing that. They're used to start-ups growing and facing regulation later."
As noted by Coindesk, Circle's Series A is the largest yet in the industry: "To put this in perspective, bitcoin wallet service and payment processor Coinbase received $6.11m in Series A funding led by Union Square Ventures, and BitPay have received around $2.5m to date from Founders Fund and various angels."
“I’m confident you will see major worldwide retailers adopting systems built on bitcoin,” said investor Jim Breyer to the New York Times. Breyer was an early Facebook investor. Many in Silicon Valley see Bitcoin holding the same pay-off potential as social networks did last decade.
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6f249aa0e2dc090b43d854b767c3816b | https://www.forbes.com/sites/kashmirhill/2013/11/13/sanitizing-bitcoin-coin-validation/ | Sanitizing Bitcoin: This Company Wants To Track 'Clean' Bitcoin Accounts | Sanitizing Bitcoin: This Company Wants To Track 'Clean' Bitcoin Accounts
Alex Waters, Matt Mellon, and Yifu Guo, of Coin Validation
You can add Matt Mellon, descendant of the famed banking family, to the ranks of the Bitcoin believers. The 49-year-old former chairman for the New York Republican Party’s Finance Committee decided in April that he wanted to get in on the Bitcoin frenzy and called the Winklevoss twins for advice. They linked him up with Alex Waters, a former core Bitcoin developer and the then chief technology officer of Bitinstant, the currently-defunct exchange into which the twins invested $1.5 million. Waters instructed Mellon to buy a new Apple laptop, buy his Bitcoin and then put them into cold storage on USB drives kept at various locations around the States. Mellon says he got the “Bitcoin bug,” losing hours of sleep each night pondering Bitcoin’s possibilities. He and Waters started a conversation about how to make Bitcoin more legitimate in the eyes of banks and the government, so that it can take off and become the hundreds-billion market that investors such as the Winklevoss twins predict.
That conversation also involved Yifu Guo, another 20-something like Waters, who became a “Bitcoin millionaire” selling computing equipment dedicated to “Bitcoin mining” though his company Avalon. Now the unlikely trio of two technologists and a Wharton grad is launching Coin Validation, a due diligence service for Bitcoin businesses that they hope will help set regulators' minds at ease.
It's a tracking system for Bitcoin ownership that would theoretically weed out ‘bad actors’ – like the Dread Pirate Roberts – from the legitimate Bitcoin business world. Their plan is to compile a database of the known identities associated with Bitcoin addresses in the hope that Coin Validation will become the one-stop-identity shop for law enforcement when trying to find out who’s doing something nefarious with Bitcoin, while providing a red-flag system for businesses who have customers trying to use Bitcoin that’s associated with illicit use.
“Essentially, we’ve been working with regulators for a structured approach for Bitcoin customers to be compliant," says Waters. "We set up an API to work with their systems and we supply reporting tools they need for their databases. Which bitcoin addresses belong to a person? That’s the problem we’re solving.”
It's a well-timed announcement, even if the details of how it will work are still vague. The nation’s capital is suddenly paying a lot of attention to the cryptocurrency as its value climbs to new highs. The same month the FEC considered approving Bitcoin for campaign contributions – as long as it’s immediately cashed in for U.S. dollars – the Senate Homeland Security Committee is putting it in the hot seat during a hearing Monday on the digital currency and its uses “beyond Silk Road.” The cryptocurrency has become a darling of the investor community with its promise of disrupting payment systems, but has lawmakers and regulators spooked by the possibility of its also disrupting law enforcement and taxation systems. Waters, Guo and Mellon think Coin Validation could be the answer regulators are looking for, but the first step in their plan requires a big leap of faith and data: they need Bitcoin businesses to sign up, connect with their API, and share information about their clients to start building an identity database.
One business is already committed: Guo's Bitcoin mining equipment maker, Avalon. A big question is whether they can get others to sign on as they’ll need a network effect to make the database useful.
On a Monday afternoon in Manhattan, Mellon is showing a bit of his real world sway. The “power room” at the Four Seasons Restaurant on 52nd Street has kept its kitchen open an hour beyond its usual closing time for lunch to accommodate the Coin Validation founders' team.
“We’re not in this to make money, we’re in it to get it sorted with Congress," says Mellon, who eschews the dessert menu for a bowl of fresh raspberries. "Cash and credit cards are doomed. The future of payment is international and on the smartphone. I want to break this myth that Bitcoin is only associated with drug dealers and money launderers.”
“This needs to exist for regulators to approve of use of Bitcoin in the U.S.," says Waters. “We don’t want to be the sheriff of the Bitcoin community. We just want to create an ecosystem of clean addresses.”
The Forbes E-book On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or legal tender.
In the short term, they talk about a limited database that keeps track only of registered identities and their activities with participating companies, but it’s obvious that their ambitions are grander and that a longer term prospect is to take advantage of the transparency of the Bitcoin system to keep track of which Bitcoin is tainted by associations with black markets. Waters says that the development of that aspect will depend on "community feedback."
“People say Bitcoin is anonymous, but it’s also completely traceable,” says Guo. “Because the blockchain is already public, your privacy is limited, but a lot of people probably aren’t aware that they are being tracked," adds Waters.
Sarah Meicklejohn an academic who recently co-authored a paper on linking Bitcoin addresses to Silk Road activity says that a number of companies have approached her about ways to analyze the Bitcoin blockchain for tainted transactions. She says there are a number of challenges -- including false negatives and false positives, and the difficulty of identifying associations when black market service changes wallets -- but she was intrigued by the idea of building a database of "clean" addresses.
"No one knows the full ground truth of the Bitcoin network," she says. "But this could be good for flagging and generating suspicious activity reports, as long as it doesn’t come with an absurdly high punishment for accounts that may have been incorrectly flagged."
Waters expects tensions. Bitcoin’s appeal to many early adopters after all was the freedom that came from its statelessness, its anonymity, and its decentralization. With Coin Validation, he’s proposing a centralized tracking system that he knows won’t sit well with some hardliners in the community.
The Forbes E-book On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or legal tender.
"The existing Bitcoin community will find this very controversial from a privacy perspective. But it’s simple, straightforward and opt in," says Waters. Bitcoin businesses will opt in to the system, and customers that don't want to be in the database would need to not use those businesses.
But what about Bitcoin laundering services and wallets designed specifically to make observation and tracking challenging?
"The average user is not sophisticated enough to launder Bitcoin," says Guo.
“Typically people doing money laundering will reuse addresses or claim an address has lots of different identities," says Waters. "This is a first step, not the silver bullet to end money laundering with Bitcoin."
Waters says there are a few million Bitcoin addresses with positive balances. "If 10% of those were clean addresses, it would substantially improve the regulatory landscape state-side," he says. He predicts in the future that every user will have at least one address that’s self identified, "or at least every user who wants to do business in the U.S.”
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219b5ca1c8f6d27a88a9434c6a020def | https://www.forbes.com/sites/kashmirhill/2013/12/23/the-biggest-privacy-stories-of-2013/ | The Biggest Privacy Stories of 2013 | The Biggest Privacy Stories of 2013
The biggest privacy stories of 2013
Forget "twerking" and "selfies." Dictionary.com dubbed "privacy" the word of the year in 2013. Here at The Not-So Private Parts, it feels a little like the unknown indie band we've been obsessed with for years just won best album at the Grammys. So why did the plight of our personal data achieve Arcade Fire-level fame this year?
A previously unknown technologist named Edward Snowden had a whole lot to do with it, leading more people to express concern about civil liberties than about terrorism for the first time in the history of Pew Research polling. There has long been a debate about whether privacy is more imperiled by government or corporate actors. This year the two converged as it became clear just how far the hands of intelligence agencies can reach into the data collected by private companies, thanks to the Snowden leaks -- which themselves showed how difficult it is even for an incredibly secret agency like the NSA to preserve its privacy.
It wasn't all spy agencies on info-binging diets. There were the usual stories of people compromising their own privacy with unwise sharing of information on public forums -- or the surprising opposite: people who ceased sharing who were mistakenly assumed to be dead. It is not a new phenomenon that technology makes information about us easier to collect, store, search, share, and lose control over, but it was a phenomenon that got a lot of attention this year. Here are the stories that transformed privacy from a Hannah Montana sideshow into a show-stealing, tongue-lolling, twerkirrific spotlight stealer.
1. This list could start and end with the surveillance odd couple of Edward Snowden and the NSA. The countless documents gathered by Snowden caused his former employer which had been known until then as "No Such Agency" and "Never Say Anything" to become the regular subject of press releases from a newly-launched Tumblr from the Director of National Intelligence. The leaks led to revelations of dragnet phone metadata surveillance, the same for email until 2011, subversion of encryption technology, spying on porn habits of persons of interest, monitoring of the phone calls of world leaders, hacking of tech companies, and on and on. On a more personal level, some NSA employees used their surveillance superpowers to stalk loved ones instead of terrorists. Conspiracy theorists everywhere suddenly got to drop "conspiracy" from their titles. Some of what the NSA was doing was known or suspected, but Snowden added a face, a conscience and, importantly, PowerPoints to the story.
2. Privacy actually hurt the bottom line for corporations. Cisco said the NSA revelations hurt its business in China. Analysts say the cloud industry may lose billions over the next three years. Executives from Google and Facebook said the government defending the NSA by saying they only snooped on foreigners wasn't helping them in conducting business abroad. The tech companies have put pressure on the government to reform the NSA, with Zynga founder Mark Pincus reportedly going so far as to ask President Obama to pardon Snowden. Tech companies also reacted by being more transparent about what they hand over to the government -- at least what they hand over that they're allowed to talk about. Even the traditionally close-lipped telecoms AT&T and Verizon announced that they'll start issuing transparency reports about how often they hand data to the gov. Meanwhile, encrypted email service Lavabit shut down after the feds came after its most famous user, Ed Snowden.
3. An industry report from Swedish tech company Ericsson estimates that 50 billion devices will be networked by 2020 into an “Internet of Things," meaning your car, lights, toilet, thermometer, and baby monitor will be online. And as we know, what's online can be hacked. In fact, all of those things already have been (check the links). As the inevitable march towards complete connectivity continues, companies will need to make sure security settings keep up. It's not just about criminal intruders, though. Thanks to more and more of our belongings being “smart” — or “tethered” as Jonathan Zittrain calls them — they’re constantly capturing data about us and reporting back to the companies that made them how we’re using them. So Tesla can throw data from a critical journalist's test ride back at him and Xbox might track every person in the room and watch their facial expressions to decide which ads to show them. Take it in a dystopic direction, bring in John Carpenter and you have the makings for a new sci-fi horror film called The Things.
4. Google Glass. Google gave us a tiny glimpse of a world where everyone wears a tiny camera on their face, with ubiquitous facial recognition a real possibility and any noteworthy moment a wink away from going viral. People freaked out. Others were willing to pay out the nose to put a smartphone on their face. Tech pundits have been known to be wrong, but Wired's Mat Honan, who spent all of 2013 testing Glass out, predicts that "in a few years, we may all be Glassholes."
5. This story had its start in 2012: Teens in Steubenville did very bad things during a night of alcohol and partying, and shared the evidence via social media. Without Instagram and Twitter, the sexual assault of a young girl might have gone undocumented and likely would not have come to the wider attention of the world -- which then put pressure on a small Ohio town to make sure justice was served. A trial by social media preceded that in a court of law this summer. If parents weren't already NSAing their kids via social media, this was the rallying cry for them to start.
6. Speaking of teens and privacy, it's long been said they don't care about it. The rise of Snapchat this year suggests otherwise: millions of users -- many of them presumably teens -- and a reported $3-billion acquisition offer from Facebook (leaked to the WSJ). The self-destructing messaging app is undeniably popular and part of the appeal is privacy through ephemerality. What you don't save forever can't hurt you.... Hopefully. Snapchat isn't a sureproof method. This year also saw rising tides for other privacy businesses -- DuckDuckGo, Silent Circle, Wickr, and Disconnect, to name a few -- as people became more interested in protecting their information flows.
7. Revenge porn has been around for years. But scorned exes punishing former loved ones by putting intimate photos of them online finally caught the attention of lawmakers. In October, California joined New Jersey in putting an anti-revenge porn law on its books. Those not in the Garden or Golden States should remember that thing about taking photos that self-destruct.
8. Silk Road's promise of an anonymous marketplace to buy drugs out of the reach of the long arm of the law proved to be a false one. Privacy-enhancing technologies Bitcoin and Tor were not enough to keep the feds at bay.
9. Data brokers would be under scrutiny if they weren't so inscrutable. The invisible $156 billion industry is premised on collecting and selling information about us, and helping media companies like Facebook and Twitter connect advertisers with specific users. The industry -- which is made up of a bunch of companies you've likely never heard of that have potentially heard a lot about you -- was not helped by the discovery of one advertising lists of rape victims. The FTC wants the data brokers to tell us more about what they know about us. Acxiom ponied up with a public-facing site called About The Data promising to reveal what "data says about you and how it is used." Apparently, the data makes a lot of mistakes.
10. Two young men with homemade bombs and guns brought homegrown terror to the city of Boston, and managed to essentially shut down one of America's largest cities. Wanting to do more than simply gawk at the Boston bombings as the story spread in real time through traditional news outlets and social media, many took to the Internet to gather evidence and source material in the name of vigilantism and amateur Sherlocking. Crowdsourced fact-finding and mob justice are now the norm when tragedy strikes in the form of school shootings, natural disasters, rogue police officers, or when a high enough profile person runs afoul of societal norms. The wisdom of the crowd is not infallible. Mistakes get made. In the case of Boston, the crowd pointed the finger at innocents, and narratives involving the wrongfully accused went viral.
Sorry, drones didn't make the cut. While there was a lot excitement about consumer uses and dismay over their use for assassinations abroad, the spying potential of drones -- whether by peeping toms or Big Brother -- hasn't fully taken flight yet.
Gallery: 10 Incredibly Simple Things You Can Do To Protect Your Privacy 10 images View gallery
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68b5d93a6dde165dea510c17983f0122 | https://www.forbes.com/sites/kashmirhill/2014/03/03/why-the-tsa-hassled-a-traveler-with-bitcoin-in-his-bag/ | Why The TSA Hassled A Traveler 'With Bitcoin In His Bag' | Why The TSA Hassled A Traveler 'With Bitcoin In His Bag'
Last month, a Bitcoin-packing traveler got some enhanced scrutiny going through airport security in Manchester, New Hampshire. In a lengthy write-up, Davi Barker of publicity firm Bitcoin not Bombs said plains-clothed TSA agents stopped him after his bag was swabbed for explosives (irony alert). They said, "We saw Bitcoin in your bag and need to check."
This is funny, of course, because how does one "see" a digital cryptocurrency in one's bag? Writes Barker:
"[My traveling companion] chimed in and told the agent that what he was saying was impossible because Bitcoin is digital and doesn’t have have any physical manifestation. You can’t “see” Bitcoin. The orange shirt[ed TSA agent] said they looked like medallions or tokens. I said I didn’t understand what he was talking about, and he simply repeated, in a child like way, that Bitcoins are like metal tokens."
Bitcoin is a new technology and many people are still wrapping their heads around what it is and how it works. The "token" images that often accompany stories are novelty coins on which Bitcoin code has been printed, and are almost as misleading as chocolate chip "cookies" attached to the stories about digital tracking. Barker surmised that the agents saw him wearing a "bitcoin" sweatshirt and then mistook approximately 200 sheriff-style metal pins in his bag -- that he'd brought to hand out at a conference -- for Bitcoin "tokens." Business Insider wrote that this is a "gross misunderstanding of what Bitcoin is" but I think it's kind of understandable for an altcoin noobie who's only seen articles about Bitcoin with an image like this attached.
The agents clarified for Barker that their big concern was that he might be carrying more than $10,000 in Bitcoin, but they lost interest when Barker's companions said he was not traveling internationally. I inquired about the incident with the TSA. I was told they don't have any special interest in Bitcoin. They gave me the standard statement that they give when asked whether they search peoples' bags for marijuana: "TSA’s focus is on terrorism and security threats to the aircraft and its passengers. TSA’s screening procedures are focused on security and are designed to detect potential threats to aviation and passengers."
The spokesperson also sent along a link to this TSA blog post about why people carrying around large amounts of cash get extra attention from the agency.
"TSA officers routinely come across evidence of criminal activity at the airport checkpoint. Examples include evidence of illegal drug trafficking, money laundering, and violations of currency reporting requirements prior to international trips," wrote Francine Kerner, TSA’s Chief Counsel. "When presented with a passenger carrying a large sum of money through the screening checkpoint, the TSA officer will frequently engage in dialog with the passenger to determine whether a referral to law-enforcement authorities is warranted."
So the TSA agents made the mistake of thinking a bunch of metal pins were "Bitcoins" -- a cryptocurrency rookie mistake -- and thought Barker might be trying to smuggle some money out of New Hampshire. With Bitcoin's notorious association with Silk Road, they may have thought they'd hooked a big time criminal of some sort.
What's funny about the whole thing, beyond thinking it's possible to "see Bitcoin in someone's bag" is that Bitcoin's very existence makes this kind of money smuggling obsolete. There's no need to strap cash to your body Wolf-of-Wall-Street style before a big flight abroad when you can just send it through the blockchain with a click. Of course, Bitcoin is one big public ledger, so agents from a different three-letter agency could come sniffing around digitally if illegal money transmission is suspected and try to figure out who is on either side of that transaction.
Practical takeaway: Feel free to wear your Bitcoin t-shirt through airport security, but be prepared for extra questions if your bag is (weirdly) filled with Bitcoin novelty coins.
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d3e3b1df01c358f6888097584c7f0f0f | https://www.forbes.com/sites/kashmirhill/2014/03/12/apple-keeps-turning-bluetooth-on-when-you-update-your-iphone/ | Apple Keeps Turning Bluetooth On When You Update Your iPhone | Apple Keeps Turning Bluetooth On When You Update Your iPhone
The last few times iPhone users updated their operating systems per Apple's prompting, they may have noticed something weird. Those of us who keep Bluetooth turned off for battery and privacy/security reasons suddenly had Bluetooth turned on by default after the update. There are scattered complaints about it in the Apple support forum. "It's new to iOS7," is the standard response from other users. Apple did not respond to emailed inquiries about the change to users' settings. (Siri wasn't very helpful either.)
Greg Sterling, a senior analyst for Opus Research who organizes a conference about location marketing, had no knowledge of Apple turning Bluetooth on by default, but was impressed if it's true. "It's a critical piece here," he says. "Without Bluetooth, iBeacons won’t work."
A plausible reason why Apple may be turning on Bluetooth is to bolster the use of iBeacon, a new technology from the smartphone giant that turns your phone into a homing beacon, helping retailers sense and communicate with phone-toting consumers in their vicinity. A person working in the geo-marketing space grew very excited when I called to ask about the implications of Apple turning Bluetooth on by default. "That's a huge deal," he said. "The 7.1 iOS makes a big push in what iBeacon can do, but Bluetooth has to be turned on."
iBeacons communicate via low-energy Bluetooth to awaken apps so that they can send messages or coupons to a person's phone, or send information about the person via the app. There's a nice explainer via beacon-maker Estimote on the uses here, which notes at the end that business owners get better quantitative location data about customers.
“It’s interesting to see how iBeacons are becoming a much more significant part of the Apple experience. The most recent iOS update extends the ability of an app to get location even if the app is not open," says Jules Polonetsky of the Future of Privacy Forum. Polonetsky notes that Apple has emphasized that the new Bluetooth is lower-powered so that it's less of a drain on the battery.
"iBeacon now works when the app is closed," said a celebratory headline from one trade blog. A person in the industry said it just works better with Apple's recent updates, so that an iBeacon communicates with a person's smartphone instantly rather than with a delay of several minutes -- minutes that are crucial in real-time marketing, as the target could then be blocks past the American Eagle store that wanted to send her a deal.
What would be Apple's motivation in forcing iBeacon on users by turning their Bluetooth on?
iBeacon is one of many technologies that retailers can use to track consumers in stores, or airports, or fill-in-location-of-your-choice, says Opus Research's Sterling. There's also acoustic or sonic tracking technologies, LED lighting, magnetic energy, Wi-Fi, cameras... "Public wi-fi is the most widely deployed technology but it's less accurate in tracking exactly where the person is," says Sterling. "iBeacon has emerged as a supplemental or alternate technology to provide better accuracy. It’s got the buzz and early lead among these other technologies."
He says one of the advantages is how cheap iBeacons are and how easy they are to stick up on the walls. "It doesn't require much IT knowledge," he says. The technical part is configuring the beacons to work with your particular app.
"There’s a lot of excitement and a lot of momentum around building location sensing technologies out," says Sterling. "The superficial angle is that retailers want lots of data about consumers, as if retailers are the NSA. The deeper reasoning is that retailers want to provide better experiences to customers, new tools for finding things in stores and helping them get more information about products.The challenge is to not screw it up by being too aggressive or too ham-handed in your implementation. You have to be respectful of privacy and permissions.”
What Sterling finds interesting is who is going to profit from this. It's the real-world equivalent of Google selling ads based on what people are searching for online. If you're in a Best Buy's appliance area with your smartphone, GE, LE and Samsung might all want to compete to target you with ads, says Sterling. "Who's going to get to charge for that access to the consumers?" he asks.
As to why Apple might want to get iPhone users to keep their Bluetooth turned on, Sterling says it could help Apple become dominant in the real-time location marketing space.
"This extends their whole ecosystem. If iBeacon becomes dominant or standard, it expands their reach and reinforces Apple and iOS usage," says Sterling. "There’s also the idea that they may get into payments, which we're seeing with Passbook. With their hundreds of millions of users, and iTunes having credit cards, they could turn all that on, and iBeacon could be used for payment in stores rather than swiping credit cards. I don’t think there’s necessarily a massive plan or conspiracy, but I do think they have a number of ideas about how the technology could be used and they see advantages in getting the technology out there and people using it."
In the meanwhile, if you don't like all this, make sure to turn off Bluetooth after you update your phone. And you should update your iPhone's software if you haven't recently, as there was a major security problem that recently got fixed.
Also on Forbes:
Gallery: The Evolution Of Apple 15 images View gallery
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6718a0d05d0592f944e2208116caa866 | https://www.forbes.com/sites/kashmirhill/2014/04/08/beyond-bitcoin-crypto-ownership-companies-hope-youre-ready-to-decentralize-everything-on-the-internet/ | Beyond Bitcoin: Crypto-Ownership Companies Hope You're Ready To Decentralize Everything On The Internet | Beyond Bitcoin: Crypto-Ownership Companies Hope You're Ready To Decentralize Everything On The Internet
David Irvine lives in a tiny beach town called Troon on the West Coast of Scotland. He describes it as a place where old people go to retire, with a population of 15,000, a thriving golf community and views of the cliffs of Ireland on a clear day. It's a surprising place from which to launch a product that he hopes will transform the way the Internet works.
Irvine is a mechanical engineer who taught himself about computers when he "realized they would be big." He went on to manage oil company Saudi Aramco's computer network before founding his own network consulting company, Alba, in the UK. After realizing that "the way the Internet is designed is insane," he unplugged and started sailing, eventually becoming a yachtmaster who would pick up newly bought boats, say in the south of France, and sail them home to their owners in the UK. In 2006, he moved to a place where no English was spoken (so he could concentrate) to write the white paper for "MaidSafe": a network for crypto-ownership and storage that does for data what Bitcoin does for value. Over the last eight years, he's gotten $5 million in funding from family and friends to hire 14 people and try to make his product a reality. This month, the company is doing its first public funding round. Highly non-traditional, it plans to raise funds by issuing "Safecoins" on a cryptocurrency protocol called Mastercoin, which itself is built on top of Bitcoin.
Confused yet? Welcome to the age of crypto-ownership, where any kind of data can be encrypted and managed by a decentralized network of computers. It's a concept that's been around for years as readers of sci-fi authors like Neal Stephenson know, but now that Bitcoin has managed to permeate the public consciousness and introduce people to the concept of a decentralized, crypto-managed network in a tangible, money-generating way, other crypto-entrepeneurs are hoping to move beyond just decentralizing payment. Their models look a lot like Bitcoin, but instead of eliminating banks and the Federal Reserve, they have other service providers in their targets. A company called Ethereum headed by a lanky Canadian named Vitalik Buterin, 20, wants to decentralize contracts, allowing deeds, car titles, or even something like Social Security numbers to be stored in a network, where one person crypto-owns the contract with a private key until they choose to pass it along to someone else (like you would pass along a Bitcoin). "It's the sharing economy for your hard drive," he says.
Bitshares and MasterCoin want to decentralize the stock market and the IPO process, so that a company can issue shares or raise money on a decentralized network by issuing crypto-tokens that investors can later cash in, trade, or use to participate in a company's services. (This idea is already geeting a close look from the SEC, which has voiced concerns about bitcoin stock exchanges.) And MaidSafe wants a network of user who will download software that will cause their computers to give up to 90% of the unused storage, CPU and bandwidth on their computers to help maintain a decentralized storage network. It's like a botnet, but one where the bots get paid for their troubles. The leasing of their computer power will result in the generation of SafeCoins, just like Bitcoin "miners" who keep track of the Bitcoin network get rewarded with the generation of Bitcoin, except Irvine calls his participants "farmers."
The Forbes E-book On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or more traditional currencies.
MaidSafe will start with a network of just 60 computers. Their Mastercoin fundraiser on April 22 will release over 400 million Safecoins (with a plan to cap the total at 4.3 billion, and save 5% of them their initial investors); they hope to raise $8 million. A person who gives them 1 Bitcoin (or $450) will get approximately 17,000 Safecoins. They plan to use the funds to support their work over the next 3 years, buy more computing nodes, and start creating applications on the Safemaid network such as a decentralized Dropbox app. It would work by splitting a file into "encrypted shards" with many copies distributed over the network (so if one person turns their computer off, you're not out of luck in retrieving the document). They hope a thriving ecosystem will develop on Maidsafe; they're setting aside 10% of all Safecoins to go to people who build open source apps. App creators will get paid out according to how widely used their apps are.
Irvine talks like a sci-fi book, but with a Scottish accent. "The Internet was supposed to be a place where anyone could talk to anyone else unencumbered and unrestricted," but third-party controllers of the networks now "spy on you, mine your data, and control your behavior. We want to remove big technology companies from the network the way Bitcoin can remove banks from trade."
Irvine has been thinking about this for 8 years now, but said he needed Bitcoin to come along to more easily explain to people what it is and how it works. "Not that the question of how we explain what a cryptocurrency is is take care of. People can understand that the Bitcoin blockchain is a protocol design that can apply to anything. We're Netscape at the beginning of the Web."
We'll see; there's still a lot of people who don't understand Bitcoin. One high-up at a Bitcoin company was skeptical of these post-Bitcoin companies, saying they've arrived before most people are ready for them. "It's like it's 1914 and we just invented the car," he said. "And now these people are saying, 'Holy sh**, let's build a space shuttle!'"
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b82dafda839cf77da78d56b8fac17fc9 | https://www.forbes.com/sites/kashmirhill/2014/04/11/weev-freed-but-court-punts-on-bigger-ipad-hacking-questions/ | Weev Freed, But Court Punts On Bigger 'Hacking vs. Security Research' Question | Weev Freed, But Court Punts On Bigger 'Hacking vs. Security Research' Question
Andrew "Weev" Auernheimer was famously sentenced to three years in jail for exposing an AT&T security flaw that let a technically-savvy person get the email address of early owners of the Apple iPad. His lawyers argued that the sentence be overturned for many good reasons, the critical one being that people shouldn't be punished for pointing out flaws in Internet security as this ultimately leads to the Internet being a safer place for us all. They argued that the case was an abuse of an anti-hacking law (the CFAA, or Computer Fraud and Abuse Act) -- a controversial law that was also at the center of the tragic Aaron Swartz case -- which results in hefty penalties for "unauthorized access" to computer systems.
At the end of the day, the appeals court didn't care much about that. All they cared about was where the alleged crime actually occurred. It took place in Arkansas (where Auernheimer was when he told a Gawker reporter about the flaw and gave him a list of over 114,000 email addresses that he and his "co-conspirator" had been able to get because of it); California (where his "co-conspirator" was when he discovered he could ping AT&T's site to get email addresses); and Texas and Georgia (where the AT&T servers that gave up the email addys were when 'pinged' by Auernheimer and his co-conspirator). No person or machine relevant to the case was in New Jersey, where the case was tried. The court did not care that 4,500 of the email-exposed "victims" lived in the Garden State.
weev (Photo credit: pinguino)
"Although this appeal raises a number of complex and novel issues that are of great public importance in our increasingly interconnected age, we find it necessary to reach only one that has been fundamental since our country’s founding: venue," write the judges in their opinion. While the judges didn't address the legality of the hacking itself, they do make an important point about physical location still being important in an age of prosecuting cybercrime, and warning the government against going after people in whatever jurisdiction they think will be most favorable to throwing someone in jail.
"The ever increasing ubiquity of the Internet only amplifies this concern. As we progress technologically, we must remain mindful that cybercrimes do not happen in some metaphysical location that justifies disregarding constitutional limits on venue," they write. "People and computers still exist in identifiable places in the physical world."
Many people who thought the prosecution was ill-advised will be happy about the conviction being overturned but the opinion doesn't answer larger questions about the difference between illegal "hacking" and legal "security research." And that's an important question in this era of Heartbleed, when we rely on independent technologists to point out when something has gone horribly wrong with online security. That said, it's worth noting, as EFF lawyer Kurt Opsahl does, that a footnote in the opinion indicates the judges were skeptical of the hacking question as well.
"[T]o be guilty of accessing 'without authorization, or in excess of authorization' under New Jersey law, the Government needed to prove that Auernheimer or Spitler circumvented a code- or password-based barrier to access. Although we need not resolve whether Auernheimer’s conduct involved such a breach, no evidence was advanced at trial that the account slurper ever breached any password gate or other code-based barrier," they write. "The account slurper simply accessed the publicly facing portion of the login screen and scraped information that AT&T unintentionally published."
As you might note from that excerpt alone, the opinion reflects a technological fluency often lacking from the black-robed ones. These judges definitely *got* the technology involved here, a promising development from the judicial world.
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837c8abf55d3952c9ba1dd25ced51267 | https://www.forbes.com/sites/kashmirhill/2014/04/15/how-i-paid-my-bitcoin-taxes/ | How I Paid My Bitcoin Taxes | How I Paid My Bitcoin Taxes
Tax day is usually not very complicated for me. I've used an accountant for years and simply meet with him annually to make my financial confession. It typically takes an hour. This year, though, was a bit different. We had to talk Bitcoin.
On March 25, I sent my accountant a link to the new IRS guidance on Bitcoin. With the price of Bitcoin soaring from $13 to $1,100 in 2013, people who got in low and sold high made real money off of it, and the government wants in on the proceeds, with the IRS declaring just weeks before the dreaded April 15th deadline that virtual currencies be treated like stocks. I let my accountant know it was going to make my taxes more "interesting" this year. Almost exactly a year prior, I had bought 7 Bitcoin for just under $900 and then spent a week living on them. I made the address of my Bitcoin wallet public. I spent almost 5 Bitcoin on food, shelter, a bike rental and a surprise crash diet. Over the course of the week, I (awkwardly) received over $1,000 (or approximately 15 Bitcoin) from 86 strangers who were excited about my experiment. That was an ethical quandary for me, and I took care of it by blowing it on a dinner for a bunch of Bitcoin enthusiasts (a.k.a. randos rounded up from Reddit's Bitcoin page) at a BTC-accepting sushi restaurant. That was the most "interesting" situation come tax-time.
The IRS guidance isn't actually that complicated, but the record-keeping it makes necessary is. You have to keep track of how expensive your Bitcoin is when acquired -- whether you bought it or "mined" it by making your computer a slave to the Bitcoin network -- and then declare capital gains or losses based on the increase or decrease of its value when cashed in or spent. Luckily for me, I used Coinbase and Blockchain for my Bitcoin spending, not Mt. Gox. The Tokyo-based exchange MtGox imploded this year, "and no one has been able to access their trade history," laments Bitcointaxes.info, advising people "to file an extension and hope that MtGox gives access to their historical records before October 2014." Even if Coinbase and Blockchain went the way of Gox, I had made a detailed expense report that included what I spent on Bitcoin that week and its value when I spent it. And I'm glad I did, because Coinbase doesn't track Bitcoin's value at the time it's transferred (though Blockchain does).
The Forbes eBook On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or more traditional currencies.
My record-keeping made my accountant's job much easier, but there were multiple entries as we calculated my gains and losses on each day of spending. Like the day I spent .59 BTC or $56 on mini-cupcakes: Bitcoin was worth $96 that day; I'd bought it at $125, so I took a $17 capital loss. As I bombarded him with numbers (Bitcoin's value when I bought it, the date I spent it, how much I spent, and the underlying value at the time), he muttered, "The government's going to kill Bitcoin by taxing it to death."
He declared the Bitcoin "tips" as income, and claimed the Bitcoin sushi blow-out as a business expense. Because the value of Bitcoin was pretty constant that week, shifting only from $90 to $135, and because I kept such good records, this was not as hard for me as it will be for other people. There were a few Bitcoin events not captured by my Forbes spreadsheet, though, which gave me a glimpse of the pain for others. After the experiment was over, I still had around 7 Bitcoin, that I held onto planning to repeat the week this year, with a few exceptions. At the end of May, I spent .5 Bitcoin for a ride to San Jose for the first big Bitcoin conference. When I was in Berlin in October, I dropped some Bitcoin for a beer and a hamburger at Room 77, a bar in the famous "Kreuzberg," a hipster neighborhood with a handful of establishments taking Bitcoin thanks to the evangelistic efforts of the Bitcoinberg's unofficial mayor, Room 77-owner Joerg Platzer. And when the price of Bitcoin soared to over $1000 in December, I sold .19 Bitcoin for $194 to see how fast it would take Coinbase to process the order, and to have an interesting taxable event; I had bought Bitcoin when it was valued at $125 and sold .19 of it when it was valued at $1,021 for a $175 capital gain. Those were easily documented in the apps from Coinbase and Blockchain that I use to move Bitcoin. The nice thing about a digital currency come tax time is that it leaves lots of digital records.
Some services have sprung up to take advantage of that and to help people who don't want to hire accountants. They include Coinreporting.com (which claims 11,238 new users over the last year) and Bitcointaxes.info which launched in February. Both allow you to import your transactions from third party Bitcoin exchanges -- which is great unless your exchange was Mt. Gox -- or to enter them manually. The latter was a little easier to navigate in my experience. But they are both still clunky and both say in their Terms of Service that their websites are for "informational purposes only" and "do not constitute financial, tax or legal advice." In other words, use at your own risk.
Unlike people who bought in when Bitcoin was in the teens at the beginning of the year, and who cashed it out for Grover Clevelands, I did not make Bitcoin bank last year -- as I shouldn't ethically since I write about it regularly. I had $134 in short term capital gains from Bitcoin in 2013, mainly because of the .19 Bitcoin I cashed in at Bitcoin's peak.
Life may be more complicated for other Bitcoin types, such as high-frequency Bitcoin traders (whose list of Bitcoin transactions will be much longer than mine) and especially for any Americans running a mining pool; those are the guys that rope a bunch of people's computers together for a Bitcoin botnet and split the Bitcoin pay-out between the "miners" (who should really be called "accountants") for doing the tracking of transactions that makes the network work. According to University of Florida tax professor Omri Marian, the IRS requires the guys running those pools to report the money they're handing out, as they're essentially acting as an employer. They need to either "identify their participants by name (rather than by anonymous address), a result that the Bitcoin community is all but certain to dislike," he writes on Taxprofblog, or do tax withholding on the Bitcoin mined, which "would probably drive Bitcoin miners to mining pools operated by non-U.S. taxpayers."
Good luck, Bitcoiners. And say goodbye to your obscurity. The Internal Revenue System will now have a record of everyone interested in Bitcoin -- or at least everyone interested in being above board about Bitcoin.
Gallery: The Naughty And Nice Places To Spend Your Bitcoin 11 images View gallery
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acf17d3fd8b2622fc95fabab850a152e | https://www.forbes.com/sites/kashmirhill/2014/05/22/facebook-wants-to-listen-in-on-what-youre-doing/ | Facebook Wants To Listen In On What You're Doing | Facebook Wants To Listen In On What You're Doing
Facebook had two big announcements this week that show the company's wildly divergent takes on the nature of privacy. One announcement is that the company is encouraging new users to initially share only with their "friends" rather than with the general public, the previous default. And for existing users, the company plans to break out the old "privacy dinosaur" to do a "check-up" to remind people of how they're sharing. Facebook employees say that using an extinct creature as a symbol for privacy isn't subtle messaging, but simply an icon to which their users respond well. Meanwhile, Facebook's second announcement indicated just how comfortable they think their users are in sharing every little thing happening in their lives. Facebook is rolling out a new feature for its smartphone app that can turn on users' microphones and listen to what's happening around them to identify songs playing or television being watched. The pay-off for users in allowing Facebook to microphone-lurk is that the social giant will be able to add a little tag to their status update that says they're watching an episode of Games of Thrones as they sound off on their happiness (or despair) about the rise in background sex on TV these days.
Facebook's animal of choice to represent privacy is an extinct one
"The aim was to remove every last bit of friction from the way we reference bits of pop culture on the social network," writes Ryan Tate of Wired. Depending on how you feel about informational privacy and/or your friends' taste in pop culture, that statement is either exhilarating or terrifying.
The feature is an optional one, something the company emphasizes in its announcement. The tech giant does seem well-aware that in these days of Snowden surveillance revelations, people might not be too keen for Facebook to take control of their smartphone's mic and start listening in on them by default. It's only rolling out the feature in the U.S. and a product PR person emphasized repeatedly that no recording is being stored, only "code." "We’re not recording audio or sound and sending it to Facebook or its servers," says Facebook spokesperson Momo Zhou. "We turn the audio it hears into a code -- code that is not reversible into audio -- and then we match it against a database of code."
The blue bars, at left, will tell you the phone is listening in
If a Facebooker opts in, the feature is only activated when he or she is composing an update. When the smartphone's listening in -- something it can only do through the iOS and Android apps, not through Facebook on a browser -- tiny blue bars will appear to announce the mic has been activated. Facebook says the microphone will not otherwise be collecting data. When it's listening, it tells you it is "matching," rather than how I might put it, "eavesdropping* on your entertainment of choice."
It reminds me of GPS-tagging an update, but with cultural context rather than location deets. While you decide whether to add the match to a given Facebook update, Facebook gets information about what you were listening to or watching regardless, though it won't be associated with your profile. "If you don't choose to post and the feature detects a match, we don’t store match information except in an anonymized form that is not associated with you," says Zhou. Depending on how many people turn the feature on, it will be a nice store of information about what Facebook users are watching and listening to, even in anonymized form.
Sure, we're used to features like this thanks to existing apps that will recognize a song for us. But usually when you activate those apps, you're explicitly doing so to find out the name of a song. Facebook is hoping to make that process a background activity to composing a status update -- a frictionless share that just happens, the real-world version of linking your Spotify account to your social media account allowing playlists to leak through. Facebook spent a year honing its audio sampling and developing a catalog of content -- millions of songs and 160 television stations -- to match against. It's obvious that it wants to displace Twitter as the go-to place for real-time commenting on sporting events, awards shows, and other communal television watching. "With TV shows, we’ll actually know the exact season and episode number you’re watching," says Zhou. "We built that to prevent spoilers."
So the question now is whether people are willing to give Facebook listening powers in exchange for a little Shazam.
* I originally used the word eavesdropping three times in this piece, but have revised given that Facebook isn't "secretly" listening, but rather doing so with the permission of users. This post has gotten a lot of attention on Reddit and on Hacker News, leading Facebook to provide more information about the feature on its original blog post, refuting "myths" about how it works. "Myth: Facebook is storing the information from this feature indefinitely," Facebook writes in the blog post, explaining, "If we find a match and you don’t post, we log that a particular song or TV show was matched, but we don’t connect this with your profile in any way. We use this to keep a chart of the most watched and listened to songs and TV shows." So the information is stored indefinitely, it's just not associated with your profile.
Also on Forbes:
Gallery: The Evolution Of Facebook 15 images View gallery
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e72bd9da8fd9e1be6bcaa7979b9d046e | https://www.forbes.com/sites/kashmirhill/2014/06/12/the-free-state-project-a-libertarian-testing-ground-for-bitcoin-3d-printers-and-drones/ | The Free State Project: A Libertarian Testing Ground For Bitcoin, 3D Printers, and Drones | The Free State Project: A Libertarian Testing Ground For Bitcoin, 3D Printers, and Drones
Long before billionaire venture capitalist Peter Thiel dreamed up the idea of a floating libertarian island nation, a 24-year-old Yale grad student named Jason Sorens proposed a far more down-to-earth experiment for those who wanted to live the limited government lifestyle: that a critical mass of "freedom-loving people... establish residence in a small state and take over the state government." The "Free State Project" call to action was in 2001. By 2003, five thousand people agreed to take part and they held a vote to decide which low-population state would be the staging ground for the libertarianvasion, which would be triggered when 20,000 people signed on. New Hampshire (population: 1.3 million) won -- narrowly beating out Wyoming (population: 576,000) -- and early movers began trickling in to help the state fully realize its "Live Free or Die" motto.
Thirteen years later, there are over 2,000 Free Staters scattered around New Hampshire and the petition is now 4,000 signatures short of triggering the full move. The concentration of Free Staters is highest in New Hampshire twice a year, during the group's two annual gatherings: a Bacchanalian free-market festival called "PorcFest" which is held in the woods in the summertime and an academic-spirited conference called the Liberty Forum, held at a hotel in the wintertime. I was invited to snowy New Hampshire this February to speak at the latter because Free Staters were interested in two things I write about: Bitcoin and corporate privacy practices. I discovered that this isolated group has fully adopted Bitcoin, and that it's extremely enthusiastic about other "freedom-enhancing" technologies such as 3D-printers and encryption. Everyone I met in the Project owned Bitcoin and was willing to accept it for goods and services. Of the couple thousand people living there, at least seven own 3D-printers. Though the idea originally was to get a critical mass to influence the political process, many in the movement now feel that the freedoms they want may be better realized through technology that routes around the government rather than engaging it directly.
The Forbes eBook On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or more traditional currencies.
When I arrived at the airport, the organizers had arranged for me to be picked up by a Bitcoin-accepting driver in a winter-assaulted red Prius. I buckled up but my driver, Riaz, simply ignored the car's annoying, insistent beep that he put his seatbelt on until it finally stopped. New Hampshire is the only state without a mandatory seatbelt law, and the Free Staters will do their best to keep it that way. Riaz had moved from Orlando six months earlier, led to the movement through his support of the libertarian presidential candidate Ron Paul. "It’s amazing here, living with all of these people who hold the same beliefs as you," he says. "We want to push back against bad laws, decriminalize marijuana, push for more liberal gun and knife laws, keep a ban on license plate readers. We want to eliminate regulations, taxes and licenses. Within our community a lot of us ignore that, and so we only work with other Free Staters." While not all Free Staters are flouting the law, if one is ignoring regulations and taxes, Bitcoin is a good currency to do it in, as there's no need to set up an account with a bank which entails paperwork and financial monitoring.
Erik Voorhees, a Bitcoin entrepreneur who recently made headlines for settling a suit with the SEC over selling shares in Bitcoin businesses for Bitcoin, moved to New Hampshire in May 2011 to join the Free State Project. It was there that he first heard about Bitcoin after someone posted about it in the Free State Facebook group. "Very few Free Staters knew about about it at that point. They don't like using government money, but they were more into gold and silver than virtual currency," he says. "I went down the rabbit hole and couldn’t stop talking about it, and then warmed other Free Staters up to it." Voorhees notes that Roger Ver, a Bitcoin entrepreneur who lives in Tokyo, was also an early signer of the Free State petition, and bought Bitcoin ads on Free Talk Live, a libertarian radio station associated with the project.
Nine months after moving to New Hampshire, Voorhees moved to New York to go work for BitInstant, an early Bitcoin exchange that's since shut down, its founder facing criminal charges, but other Free Staters took on the Bitcoin mantle. Zach and Josh Harvey moved to New Hampshire from Israel in 2011 to join the Free State Project, frustrated by the "bureaucracy and regulation in Tel Aviv." They decided to start a Bitcoin ATM company called Lamassu that's now sold hundreds of the machines around the world. A Lamassu Bitcoin ATM was heavily used at the Liberty Forum, but no one has set one up permanently in New Hampshire yet, says Harvey.
"Most people in the Free State Project are technology-oriented, and many come from a programming or computer background. The libertarian way of thinking is pretty common among technologists," says Lamassu's Zach Harvey, 35. "They want to teach themselves as much as they can in order to be free, and you have to use technology these days to be free. Bitcoin is the perfect fit for this group, a government-free currency with freedom programmed in."
When I got to the Crowne Plaza in Nashua where the Forum was held, I started seeing a significant number of handguns; this group is strongly in support of the Second Amendment. "The first year they came to the hotel we were scared. I saw a guy carrying a baby wearing a machete on one hip and a gun on the other," said a manicurist in the hotel salon. "We know people can carry guns but hadn’t seen people so openly doing it before." I also saw my first 3D-printed gun that weekend. A member of the Free State movement, Bill Domenico, printed the second-ever Liberator after Defense Distributed's Cody Wilson first made it a reality in Texas last year. Domenico, an electrical engineer, has lived in New Hampshire for 30 years, and joined the Free State Project in 2008. He has a 3D printer that he built himself as well as a commercial one. He has printed two guns with it so far, but only for himself. "It would be illegal for me to print guns for other people," he says. "I haven't used it heavily beyond that. Lately, I've been making memorabilia for PorcFest: Liberator earrings and porcupine trinkets."
The porcupine is the mascot of the Free State movement. "It's a cute creature until you step on it," explained one Free Stater.
At the Liberty Forum, Bill Domenico, gray-haired and glasses-wearing, introduces Cody Wilson, bearded, wearing a puffy vest and a wrist cast, for a talk on building the Liberator. Wilson, a 26-year-old law school drop-out who lives in Austin, is a rock star here, for both creating a way to distribute guns that's outside of government control and for his work on Dark Wallet, a Bitcoin service that is supposed to make the digital currency less traceable, and thus, again, freer from government control. Wilson talks about being scared the first time he shot the Liberator after having been warned for months A Christmas Story-style that "he would shoot his eye out," and about the Arms Control Export Act and being contacted by the State Department to take down the blueprints for the Liberator. "We live in a state of unfreedom," he says to a very sympathetic audience.
When I speak to Wilson months later by phone, he compares the Free State Project in New Hampshire with Silicon Valley; both places have libertarian-leaning techies trying to make disruptive technologies popular. "Silicon Valley is more capitalized and less about practical liberty than the Free State community, which has a better stake in the freedom at the heart of these technologies," he says. "It’s the hotbed of libertarian activism in the country."
Non-Free State New Hampshire has certainly noticed. A local politician called the movement "the single greatest threat" to the state. When the city of Concord applied for a $250,000 grant from the Department of Homeland Security for an armored military vehicle, it explained that it needed it for the domestic terrorist threat represented by "Sovereign Citizens, Free Staters and Occupy New Hampshire." Despite a protest of the Bearcat and war gear flowing to local police departments across the country, Concord will get one this summer, according to its police department.
Bill Domenico says another popular technology within the movement is the "Green Beam," a laser projector he built for campaigning for Ron Paul that now gets used to warn people about police checkpoints or to stage public protests, as when "Bearcat Equals Tyranny" and "City Council Sucks" were projected on a building in Concord. It's the evolution of protest signage, but an evolution that must take place at night.
The nearby college town of Keene got an armored Bearcat more than a year ago. Keene has attracted Free State's more radical element, such as the Robin Hooders, who follow meter maids around and put coins in expired parking meters to deprive the government of the revenue it would otherwise get from parking tickets. "They are not just skeptical that the current government can work," wrote Dave Weigel about the "Free Keene" branch of the Free State Project in Slate in 2011. "They think government can never work."
Many Free Staters are advocates of equalizing surveillance. Robin Hooders often film their parking-protection activity and especially their interactions with police. “We’re in a different age, a post-privacy reality. If you’re outside, you can be documented,” said one Robin Hooder at the Liberty Forum. “Cameras are like guns. It’s not good that the government has guns. But it’s good we have them as an equalizer.” Carla Gericke, president of the Free State Project, which is the organizing committee that helps get people to New Hampshire, recently won a lawsuit against the city of Weare, New Hampshire for charging her with wiretapping for filming police officers during a traffic stop. She was awarded $57,000 dollars.
While there's discussion at the Liberty Forum of decentralized mesh-networking for Internet service and "counterveillance" through encryption and Tor, the talk is mainly aspirational; those technologies don't seem heavily used by the group yet. There's literacy but not adoption. "The Tor browser is slow. Encryption tools are clunky," says Darren Tapp, a technologist who works for a company called "SnoopWall," a service that prevents your smartphone from being turned into a spying device. "Being a tech savvy group, they know about and can access those tools. Once they’re very convenient, I think they’ll be in widespread use here."
Most of the community organizing is still done through the not-especially-privacy-enhancing platform that is Facebook. "We’re a pretty big movement, so we have the techies who know all and are early adopters of everything, and then people like me who are newbies," says Gericke, a bubbly, black-haired woman who moved to New Hampshire in 2008. For all her talk of not being an early adopter, she bought her first Bitcoin when it was worth $6. (Most people didn't hear of it until years when it was worth 100 times that.) Gericke says the Free State Project doesn't try to push any particular technologies on the group, that tech adoption is organic. "I call my job herding cats," she says. "It’s a challenge dealing with people who are individualists above and beyond anything else. For the most part, we have people working within the system – running for office, getting on school boards, working on budgets. Others are protesters. Others are free marketeers, starting businesses. It’s not an issue of saying one way is right and one way is wrong. There are many paths to liberty."
Of course, technology is complicated: something freeing can also be oppressive. Adam Sloan, who moved from Gainesville, Florida, to New Hampshire in 2010 to join the Free Staters, has been disappointed at the reception of his technology business: BirdsEyeView Aerobotics, a company he founded in 2012 that makes 5-foot wide, 8-pound drones, though he prefers to call them "aerobots." "The liberty movement isn’t that friendly toward drones, because of the military and surveillance use by government. I've lost friends in the Free State Project because of it," he says. "Drones are what brought me to the liberty message, ironically."
Sloan was frustrated by government regulation around development of drone technology in the U.S. "It felt like the FAA was trying to strangle it to death, and make government the only potential customer," he says. He was hoping the community would be excited about potential uses of drones for activism, reverse surveillance, and delivery services -- it's a private alternative to post offices, a use Amazon's Jeff Bezos hopes to embrace. "They’re a powerful tool to watch the watchmen. I think that there are parallels between the gun argument and the drone argument," says Sloan. "It’s a technology that’s threatening to some people, but there’s no reason that only government should have access to it."
Jason Sorens, the grad student who started it all, is now a floppy-haired, youthful-looking university professor at Dartmouth. The 38-year-old only moved to New Hampshire with his wife and child a year ago, in 2013. “It was difficult to find an academic job in New Hampshire," he explains. "It was definitely one of the things critics leveraged at the movement: 'Even your founder hasn’t moved.'"
Sorens still hopes the movement can influence the political climate in New Hampshire through voting and lobbying. But he does see technology as central to movement in that it wouldn’t have worked before the Internet. "The whole concept of 'I’ll move if you do' only works if you exert global peer pressure. There's lots of digital recruiting, exchange of ideas and meeting online," he says. “The biggest source of recruits used to be Free Talk Live, a libertarian radio station. Now it’s Facebook and Twitter."
“We believe in privacy and civil liberties," says Sorens. "The idea that we are a potential terrorist group is absurd.”
Follow @kashhill
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4c47044dc6c94a076d3467dfe346c34d | https://www.forbes.com/sites/kashmirhill/2014/06/13/facebook-web-app-tracking-for-ads/ | Facebook Will Use Your Browsing and Apps History For Ads (Despite Saying It Wouldn't 3 Years Ago) | Facebook Will Use Your Browsing and Apps History For Ads (Despite Saying It Wouldn't 3 Years Ago)
Facebook's big blue hand is reaching out to scoop up more of your data for monetization. The dossier giant has rivaled Beyonce in spreading itself around the world, except it exhorts websites and apps to "put a Facebook button on it" instead of a ring. It has steadily colonized the Web and app-o-sphere with "Like buttons," "conversion pixels," and Facebook log-in options, which all feed information back to Facebook about what its users are up to when they're not on Facebook. Now Facebook is planning to start using some of that data flow to pepper its users with targeted ads. Facebook announced this week that it is going to start tracking the websites Facebook users visit and their activity on smartphone apps in order to target them with "better" ads. Of particular interest to me in the media coverage around the robust, new tracktastic ads, is seeing Facebook walk back previous promises not to do exactly what it's about to do.
The best technical description of how Facebook is doing the tracking is over at AdAge. On smartphones, any apps that use Facebook log-in or have Facebook "Likes" in their apps will send information back to Facebook for advertising purposes. If the Open Table app, for example, has a Facebook log-in, and you are looking at Mexican restaurants all the time, you'll start seeing ads for chips and salsa on Facebook. When it comes to desktop surfing, Facebook is using "conversion pixels" to track users. This is a bit of code that companies that are advertising on Facebook can throw onto their websites to track whether their Facebook ads are working. So if Beyonce were advertising her latest album on Facebook, she could throw that code onto her site, which then tells Facebook which users have visited Beyonce.com, and then Facebook can check its own records to see how many of the users who visited Beyonce.com actually saw her album ad on Facebook, and then relay that back to Beyonce. It's a brilliant coup by Facebook. In exchange for giving advertisers a dubious measurement of how effective their Facebook ads are, Facebook gets to invisibly track users around the Web. Beyonce and other advertisers who stop advertising with Facebook but who forget to remove that code keep feeding information to the social giant about users' movements.
You can opt out, but you do need to do so on both your smartphone and on this website, and you will have to re-opt out every time you do a privacy douche on your computer. Gizmodo explains.
Okay, now on to the part about Facebook reversing its previous privacy stance. Facebook has "Like" buttons all around the Web that track users' movements; while it's going to start using data from "Likes" in mobile apps for advertising, it's not planning to use the desktop ones just yet. Though it's in the plans, says Facebook's VP-ads product marketing Brian Boland to AdAge, something a Facebook spokesperson reiterated to me when I inquired.
That's interesting because three years ago, when a blogger noted that Facebook Likes were tracking users all over the Internet even when we were logged out, it caused a huge controversy. People flipped out about the idea of being tracked around the Web, logged in or not. Facebook calmed everyone down by saying, essentially, 'Chill out, dudes. We don't use 'Likes' to target people with ads and we never will.'
Here's the Facebook spokesperson in 2011: "No information we receive when you see social plugins is used to target ads; we delete or anonymize this information within 90 days, and we never sell your information."
Facebook in 2014: Information we receive when you see social plugins in mobile apps will be used to target ads, and it's in the works for the same thing to happen when you see them when you're browsing on your computer.
Back in 2011, Emil Protalinski at Znet pointed to the relevant part of Facebook's Help Center talking about how Facebook wouldn't use Like buttons all around the Web to target ads. It said at the time:
We do not share or sell the information we see when you visit a website with a Facebook social plugin to third parties and we do not use it to deliver ads to you. In addition, we will delete the data (i.e. data we receive when you see social plugins) associated with users in 90 days.
Now that same Help Center page -- titled "What information does Facebook get when I visit a site with the Like button or another social plugin?" -- has changed. There's no mention of not using the info to deliver ads.
I asked Facebook whether it will be able to track users for advertising purposes who are logged out of Facebook as they surf the Web or use apps.
"At this time, we’re only looking at information when people are logged into Facebook. We’re not getting information from people who are logged out," said the spokesperson.
"At this time." Clever girl.*
That's the thing about data collection. Once you collect it, it's like a pint of ice cream sitting in the freezer, impossible to resist. Except it's ice cream that turns into money when you eat it, which is even more tempting.
*Facebook spokesperson here was actually a man.
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81633bc6d28d98f8b4de61e909002fa1 | https://www.forbes.com/sites/kashmirhill/2014/06/19/smartphones-are-evolving-into-more-perfect-spying-devices/ | With Amazon Fire's Six Cameras, Smartphones Are Evolving Into More Perfect Spying Devices | With Amazon Fire's Six Cameras, Smartphones Are Evolving Into More Perfect Spying Devices
Amazon announced this week that it's launching its very own smartphone called Fire. It will have six cameras. Six. That's to make it easier to do a 3D-scan of the world around you and buy the things you see. It out-innovates Apple's incredible decision to put two cameras on a phone to make selfies more effortless. But if you decide to set your phone on Fire, now you're carrying around a device that has six (!) cameras -- five on the front and one on the back. So if you set it down on its back, its view won't be limited to the ceiling. The phone will also have a built in feature, Firefly, that listens (at your behest, I hope) to what's going on around the phone to identify the music and TV that's on -- as popularized by Shazam and made infamous by Facebook. That's at the same time as the world is freaking out about how much information is being collected about us and how it might be used. And so the fierce competition is waged between our desire to more easily connect, communicate and capture the world around us, and our desire not to have a little smartphone camera watching us at night from our bedside table.
Our phones are potentially powerful spies, empowered with microphones, cameras, location tracking, motion sensors, and even heart monitors. Increasingly, it seems like the competitive advantage in smartphone design is to throw more sensors and data collectors onto the device to make it more useful. So a smartphone's spy powers are only going to increase. And we're completely addicted to them, carrying them everywhere with us, to sensitive work meetings, on dates, during bathroom visits, and into our bedrooms. They are almost always on us. And if they are turned against us, with a hacker's malware or by an overly intrusive company's app or spying software planted by a suspicious significant other or by a rogue government, they can capture an incredibly amount of embarrassing or compromising material, or competitive intelligence. (Six cameras!)
At what point will there be a backlash as people seek to cut off their phone's ability to play James Bond? Edward Snowden famously made visitors put their phones in his refrigerator. An artist in Berlin runs workshops to help people build Faraday pouches that block signals to and from the phone. He calls the project KillYourPhone.com. There are also Faraday pouches for phones on the market -- even somewhat fashionable ones -- but their effectiveness varies. They're most often used by law enforcement to preserve a phone as evidence once it's seized -- and to prevent its owner from remotely wiping any incriminating contents. A researcher at Purdue put a bunch of pouches to the test in 2010 to see which ones actually work. The problem with a (working) Faraday pouch though is that when your phone is in it, all signals are blocked, meaning you can't get phone calls and texts -- which used to be the primary reason most of us had phones. So there's a real need for smartphone "privacy" cases that block sensors, mikes and cameras from surreptitiously gathering intel on us, but still let you use the phone for calls and texting. A start-up called Vysk has been making the rounds with a privacy case prototype. But it costs $229, because in addition to jamming the smartphone's mike (electronically) and blocking cameras (with a manual shutter), it encrypts phone calls that are made, a bit of extra tech that significantly ups the price of the case.
The other solution of course is just to shut the smartphone down. But just as many an action flick has intimated, even that's not foolproof. Word on the leak-street is that the NSA, for one, can still gain access to your phone even when it's powered off.
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02e807fee3bd9ba55187c1dccf483241 | https://www.forbes.com/sites/kashmirhill/2014/07/14/are-child-sex-robots-inevitable/ | Are Child Sex-Robots Inevitable? | Are Child Sex-Robots Inevitable?
With every new technology comes a way to use that technology for sex. Porn dominated the early Internet. Smartphones became the mailing service for scandalous selfies. Google Glass has already been used to make (and watch) an immersive XXX film starring that James Deen. So, it’s not surprising that when academics get together to talk about robots, their potential erotic use comes up. Rosie won’t just be doing the Jetsons’ housework, wrote a business professor and a futurist a couple years back, she’ll be working the corner as a robot prostitute. They argued robot sex workers would eliminate human exploitation, ensure a disease-free experience (as long as the robots were hosed down after), and could be enjoyed in places where prostitution is illegal. It may sound weird, but think about the intimate relationship you have with your iPhone. You’ve taken it to bed multiple times already; imagine if Siri could actually massage you.
“We’ve had sex toys for as long as mankind, and womankind, have been around,” said Ron Arkin, Georgia Tech’s Mobile Robot Lab director, while speaking on a robot ethics panel at Berkeley on Friday. “But how will we deal with robot intimacy? Will we consider it beastiality? Could we use it to treat sex offenders?” Once we start creating sex-robots, what will be the limits we put on them? It’s not a human being so you should theoretically be able to rock your human-like Rumba however you want, but there may be some situations that create moral panics even if the Cylon-victim involved is just a bundle of algorithms and plastic. I asked the panel how society would deal ethically and legally with a hypothetical company that starts producing child sex-robots to satisfy deviant sexual desires.
Arkin said that while he doesn't approve of child sex bots for recreational use, he’d like to see them used for research purposes. “Child-like robots could be used for pedophiles the way methadone is used to treat drug addicts,” said Arkin. He said research should be done to test the effectiveness of such a treatment. “There are no presumptions that this will assuredly yield positive results - I only believe it is worth investigating in a controlled way to possibly provide better protection to society from recidivism in sex offenders," he said. "If we can save some children, I think it’s a worthwhile project."
He added that he did worry about the possible creation of a black market that would offer the robots outside of a clinical setting. This isn’t the first time Arkin has broached the indelicate subject. After he made a comment about it in the press years ago, he says he got a call from a clinician who works with sex offenders who wanted to do the research. However, prepubescent sex bots don’t exist yet (at least that we know about). There are bot-like babies: People in the “reborner movement” buy incredibly human-looking baby dolls for as much as $4,000 -- sometimes outfitted with heartbeats and chests that rise and fall -- though they want the babies to protect and nurture, not to exploit sexually. If an entrepreneur started up KidSexBots-R-Us, would it be legal?
Ryan Calo, a law professor at the University of Washington, thinks it might be, based on the Supreme Court’s treatment of child pornography. “What appears to be child porn, but isn’t, is not illegal,” said Calo. Making or possessing child pornography results in severe legal penalties; those who watch child porn sometimes get longer sentences than people convicted of actually molesting children. However, in 2002, the Supreme Court drew a line between child porn and “virtual child porn” where the "child" is actually a young-looking adult or a computer-rendered image. It said images that are wholly faked, no matter how realistic they were, are legal. So the law might see sex with a “virtual child” the same way. At least in the U.S.
If you’re a Canadian, the hypothetical KidSexBots-R-Us could get you in trouble. Last year, a 48-year-old Canadian man ordered a 4-foot, 2-inch school-uniform-wearing sex doll made of "foam-like material." For some reason, it was intercepted and unboxed by Canada Border Services agents at Toronto airport. They arrested the doll fan and charged him with child pornography. According to local media, child sex dolls are illegal in Canada, which doesn’t bode well for child sex bots in the Great White North. The man has pleaded not guilty and faces a trial this month. It will be a test case for virtual sexual freedom.
We likely have quite a few years before an autonomous robot that looks and acts like a child will be on the scene. But I’m sure that many people would be horrified at the idea of that robot being molested and do their best to shut down such a company even if the law embraces it. “It’s a decision for society to make,” said robot expert Noel Sharkey, adding that people could circumvent the question by saying their sex robots were just “short adult robots.”
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73294a5ccb38622231a52d6a5fee15af | https://www.forbes.com/sites/kashmirhill/2014/07/30/cloudflare-protection/ | The Company Keeping Your Favorite (And Least Favorite) Websites Online | The Company Keeping Your Favorite (And Least Favorite) Websites Online
"The only thing I have in common with Justin Timberlake is that we've both been 'SWAT-ed,' " says CloudFlare CEO Matthew Prince. In 2012 an armed rescue team stormed his company's downtown San Francisco office ready to defuse a hostage situation called in by a prankster. It was the first of many visits from the SWAT team and Maggie the bomb-sniffing dog. Prince is used to unwanted attention. Federal agents occasionally show up at his offices with court orders rather than guns, demanding to know who's been sending Web traffic over CloudFlare's servers.
All the attention is a result of what CloudFlare has built: a cheap, dependable service for bouncing malicious traffic away from its customers' websites and apps. Instead of the traditional approach of selling firewall or intrusion-prevention hardware, which customers have to install locally, CloudFlare offers cheap (and often free) protection in the cloud. Its routers and servers are in 28 data centers around the world and reroute its customers' visitors to the closest CloudFlare server. Traffic deemed a threat is turned away. The heavyweight in the business is Akamai, a 16-year-old content-delivery network with $1.6 billion in yearly revenue and huge customers like Facebook and Microsoft that depend on it to make their websites load faster. Like Akamai, CloudFlare speeds up websites, but from the beginning it emphasized protection against "malicious botnets."
CloudFlare, founded five years ago by Prince, his Harvard Business School classmate Michelle Zatlyn and engineer Lee Holloway, initially went after customers that were too small for Akamai to care about, but it has steadily worked its way up to big customers such as Nasdaq, Yelp, Zendesk, OkCupid and the federal government. CloudFlare's rise parallels that of distributed denial of service (DDoS) attacks, which have grown in size tenfold since 2009. DDoS attackers barrage a site with data requests until it shuts down or can be hacked. The perpetrators can be pranksters, competitors playing dirty, political opposition or extortionists. The FBI is reportedly investigating DDoS-for-ransom attacks on Meetup, Evernote, Vimeo, Move and Basecamp, among others.
The majority of the 2 million websites CloudFlare guards take advantage of its free basic offering. Prince doesn't mind because CloudFlare's protection algorithm learns from all the traffic it sees. Some 4% to 5% of its customers opt to pay between $20 and $5,000 per month for enhanced features such as encryption, firewalls and stronger DDoS mitigation, with some paying more than $1 million per year. CloudFlare has raised more than $72 million in funding, with a $50 million round in 2012, valuing the company at $1 billion. That last slug of equity is still in the bank, says Prince; the company says it just had its first cash-flow-positive quarter with revenue, estimated to be around $40 million by year-end, growing 450% year over year.
Prince describes himself as a recovering lawyer, but that shortchanges his background. He’s equal parts computer geek, law professor and businessman, all of which coalesce when he's near a whiteboard and seizes the magic marker opportunity to sketch the architecture of the Internet and the place in it where CloudFlare's servers sit like a digital bouncer at a website's door. Prince is a free speech believer who thinks any site with an idea should have the right to express it. Defending unpopular sites or ones that attackers really want to take down and can't makes the company and its employees frequent targets. Two years ago Prince's Gmail was hacked by a 15-year-old who bought his Social Security number off a Russian website. Employees' last names were scrubbed from CloudFlare's site after a hacker tried to ruin the Google reputation of one, writing in forums that he was a pedophile. "We never press charges because we see ourselves as soldiers, and soldiers don't complain about being shot at," says Prince.
CloudFlare has been criticized for protecting controversial operators, including DDoS-for-hire sites that are its own nemeses. In 2011, a site called LulzSecurity.com registered for CloudFlare an hour before publishing 3.5 million usernames and passwords allegedly stolen from Sony. Sometimes CloudFlare is right in the middle of two parties who literally fire at each other: Two years ago CloudFlare was protecting the websites of both the Israel Defense Forces and the Al-Quds Brigades pro-Palestinian military group in the Gaza Strip.
“They stand in front of so many bullets on the Internet,” says OkCupid chief technology officer Mike Maxim. Earlier this year, the IAC-owned tryst shop realized it needed better DDoS protection after love-seeking members of Reddit complained in April that the site was down. “Speed was of the essence to us so we could get this going as fast as possible with as little a capital expenditure as possible. Other services wanted us to add equipment to our data centers,” says Maxim. All he has sacrificed are minor “bumps and blips” in service since its traffic now goes through CloudFlare.
Prince has struck the right balance between discretion and transparency. CloudFlare sees all of its customers' traffic but makes its data logs ephemeral so they can't be subpoenaed. In February it published its first transparency report disclosing government requests for its data, saying it has yet to turn over a customer's encryption keys to law enforcement agencies that would allow the government to "wiretap" a site's traffic -- which was a controversial request made to encrypted email provider Lavabit. CloudFlare also signaled that it may have received a National Security Letter, which would allow the government to make a massive data grab about visitors to a particular site. "All I can say is that our policy would be to challenge an NSL if we received one," he says. "We have fought not to have hardware installed on our network and have not altered software to make it easier."
"CloudFlare is transparent," says Chris Soghoian, a privacy advocate at the American Civil Liberties Union. "In contrast, Akamai is a black hole. It's night and day between [CloudFlare] and everyone else in the content-delivery industry."
From CloudFlare's transparency report. Soghoian calls this a warrant canary: if CloudFlare doesn't... [+] make the same assurances in future reports, it reveals that one of these things has happened even if CloudFlare is gagged from talking about it by law enforcement.
Prince’s principled approach to protecting free speech and privacy through technology was forged at a young age. He grew up in Park City, Utah. When he was 7 he got an Apple II Plus for Christmas and spent that summer at computer camp, programming. In the early 90s, he went to Trinity College, home to the first online-only magazine. “I couldn’t get anyone on campus to read it,” says Prince. “I got an email from someone in Japan reading it, but I couldn’t get the cute girl I wanted to go on a date with to use a browser.”
The bruising experience led him to write his college thesis on, “Why the Internet is a fad.” (Whoops. He’s since destroyed all but one copy.) He instead went the legal route, getting a law degree from the University of Chicago. Working as a summer associate for Latham & Watkins in 1999 in San Francisco, he kicked himself each time he was brought in as the young tech-savvy guy to help partners take start-up after start-up public. After graduation, he stayed in Chicago to work at an online insurance business called GroupWorks, walking away with a “comfortable” amount from his stock options when the company sold. “It wasn’t F.U. money but it was enough to screw around,” he says.
While teaching cyberlaw at John Marshall, a question he posed in an exam gave him the idea for his first company: Unspam Technologies, a “do-not-email” service used by state governments to help people avoid ‘vice’ marketing. “Then I got sued by the porn industry,” says Prince. Pornsters alleged Unspam was aiding government infringement of their First Amendment rights. Prince knew the suit could drag on for years. Sitting in his apartment with a bottle of wine, he decided to head back to school again and wound up at Harvard. There, in the shadow of Akamai, the giant it hoped to challenge, CloudFlare’s business plan was born and anointed with an HBS competition win. After graduation in 2009, he, Zatlyn and Holloway moved operations to California, opening an office in Palo Alto above a nail salon. It thrived enough to move into a converted coffee-roasting warehouse in San Francisco’s South of Market district in February 2011. They plan to move somewhere bigger soon.
One of CloudFlare's early venture backers told Prince he loved the business but wanted to know what he would do when the death threats came. "When you start something like this you don't realize what the endgame will be if you're successful," says Prince.
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ee7a1dfad0b0ad7da5f3d1ce7c1b9341 | https://www.forbes.com/sites/kashmirhill/2014/08/13/so-many-pwns/ | Thousands Of People Oblivious To Fact That Anyone On The Internet Can Access Their Computers | Thousands Of People Oblivious To Fact That Anyone On The Internet Can Access Their Computers
There are technologists who specialize in "scanning the Internet." They are like a search team making its way through a neighborhood, but instead of checking the knob of every door, they check Internet entrances to online devices to see which ones are open. These people have been screaming for some time that there is a lot of stuff exposed on the Internet that shouldn't be: medical devices, power plants, surveillance cameras, street lights, home monitoring systems, and on and on. But incredibly, their message doesn't seem to get through, because their scans keep on picking up new devices.
While talking about the issue at hacker conference Defcon on Sunday, security engineer Paul McMillan sent his winged monkey scanners out looking for computers that have remote access software on them, but no password. In just that short hour, the results came pouring in: thousands of computers on port 5900 using a program called VNC for remote access. The total number is likely over 30,000. Those using the program failed to password-protect it, meaning anyone who comes looking can see what they're doing, and manipulate their computers. McMillan set a scanner to take a screenshot of every exposed computer it came across. I went through the screens captured Sunday and saw people checking Facebook, playing video games, watching Ender's Game, reading Reddit, Skyping, reviewing surveillance cameras, shopping on Amazon, reading email, editing price lists and bills, and, of course, watching porn. I saw access screens for pharmacies, point of sale systems, power companies, gas stations, tech and media companies, a cattle-tracking company, and hundreds of cabs in Korea. This isn't just about watching people use their computers; the fact that the scanner got in means anyone could manipulate the devices, changing the power company's settings, pausing the porn stream, going through a company's records, or reviewing the prescriptions for a pharmacy's patients.
There is no need for hackers to go to great lengths to compromise these computers; their owners have built in backdoors with no locks. "It's like leaving your computer open, unlocked and ready to rock in a crowded bus terminal and walking away," says security engineer Dan Tentler, who presented with McMillan. Increasingly, everything is connected to the Internet, and unfortunately, people don't always know how to connect their things securely.
"It's important to remember that this scan only scratches the very surface of the problem," says McMillan. "We can't legally scan for default passwords, but I'm certain if we did, the results would be orders of magnitude worse."
I contacted people whose Facebook and email inboxes appeared in shots I saw -- including someone employed by a name brand technology company -- but have not heard back. When I spotted the computer screen for a pharmacy in Hollywood, I called the pharmacy to let it know before reporters from TMZ discovered the breach. “This is really alarming," said the pharmacist when I described what I could see. He immediately contacted his software vendor who was shocked to discover there was a way around the firewall, and immediately turned off the VNC settings on the drug terminals.
In many screenshots, it was obvious that other people had started accessing the machines. There were attempts to gain "root" access, script on the computers saying "You got owned," and one message left behind in the form of a Google search for, "You might want to put a password on your VNC software."
Those who got access to these devices could mess with settings or perform massive pranks. It appears that the ad-displaying screens in hundreds of Korean taxicabs are vulnerable to the remote access. "Imagine changing every taxi operating in Korea at once to something like, 'North Korea surrenders!'" says Tentler. There are also important systems -- a power company in Italy, critical infrastructure and medical devices -- being caught by the scan, the kinds of systems the Department of Homeland Security worries about being hacked. And they're sitting there unguarded by a password.
In another Defcon presentation, Shawn Merdinger and Scott Erven discussed the hackability of medical devices thanks to their being on the open Internet. "People think medical devices are firewalled, but they are misinformed," said Merdinger, who did an Internet scan for devices exposed through a different vulnerability and found thousands of medical systems exposed online, from payroll records to pacemakers. Merdinger has even found fetal monitors exposed to the Internet. "You should have the opportunity to be born before you get hacked," he said.
Whether malicious hackers have taken advantage of the exposures of medical devices is unclear, but Erven did cite a case where a gunshot victim hacked into his own morphine drip to increase his dosage, so there is certainly an interest in hacking them, sometimes by the patients on the devices themselves.
So what do we do? For one, if you recognize one of the screens above, or are using VNC bare back, change that practice immediately. Practice safe computing and wrap that thing in a password.
Paul McMillan says there's no entity tasked with finding these exposures and notifying people, so the solution is always a one-off. Me, for example, calling a pharmacy and letting them know their computer system is on the public Internet. "The problem is, it keeps coming back," says McMillan. "The results from this scan are very different from when I did this 8 months ago. The Hydroelectric systems I found then aren't in these results, but it looks like I may have found at least one new one. The pharmacies are different ones, but with the exact same problem. The multitude of consumer devices are probably unfixable. But we can ask manufacturers (especially the companies who make HMI panels) to stop providing this service, especially with no (or default) password. Unfortunately, it will take 20 years for the trickle down effect to update most of these systems."
"The worst part of this problem is that the affected individuals usually have no idea," he continued. "The economics don't add up for home and small business users to get professional level security audits. We do what we can to deal with the worst problems, and hope no bad guys notice them first."
Follow @kashhill
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1e827d12f1fca25b1925574903ab4102 | https://www.forbes.com/sites/kashmirhill/2014/09/03/were-less-nasty-about-stolen-celeb-naked-photos/ | We're Less Nasty: Social Norms Have Changed Around Stolen Naked Photos | We're Less Nasty: Social Norms Have Changed Around Stolen Naked Photos
In 2011, when Scarlett Johansson's nude photos were stolen by an email hacker and posted online, celeb blogger Perez Hilton's site quickly and gleefully posted them, with the headline "Scarlett Johansson Nude Photo LEAK!" and a comment about "expecting her to be a little smarter than this." It only took them down after threats from Johansson's legal team. "Photos removed by request," reads the post now; underneath it are many comments, mostly about Johansson's body, with just one decrying the fact that Hilton would post the stolen images. Three years later, when Jennifer Lawrence's nude photos were similarly stolen and posted online, Hilton again published the "leak." But then he thought better of it and censored the photos' naughty bits. Then he decided to take the post down all together. And he apologized.
"I took them down because of you. A lot of you let me know that my actions were wrong. I didn't even stop to think about my actions. I work in celebrity news and work as quickly as possible," said Hilton in a YouTube video. "People are calling me a rapist and a sex offender. I may not agree with that but I need to take a moment and let that sink in.... Going forward, I will not post intimate photos. I think it's the right thing to do to not perpetuate that."
Yes, Hilton, who took his pseudonym from a woman who became famous for a leaked sex tape -- "A Night in Paris" -- is no longer down with publicizing intimate material.
Put together a list of tips for celebs after latest leaks: 1. Don't take nude selfies 2. Don't take nude selfies 3. Don't take nude selfies — Nick Bilton (@nickbilton) September 1, 2014
Hilton's evolution reflects a larger societal one, a change in our attitude toward nude photos and their getting hacked. In 2011, after the Johansson/Christina Aguilera/Vanessa Hudgens hack, this headline was typical: "When will celebrities learn?" The advice, "Just don't take scandalous selfies," was applauded in that deafening way that any obvious edict that everyone agrees with is. Now the same advice will get you severely hate-tweeted. Around the same time I implored people to stop preaching sext abstinence, New York Times technology columnist Nick Bilton tweeted "three" tips for celebs, which consisted of one tip: "Don't take nude selfies." Instead of garnering him the hundreds of retweets he likely expected from his 230,000 followers, he was bombarded with angry responses, accusing him of being callous, blaming the victims, and censoring people's behavior.
@nickbilton Tip for being a human being: 1. Don't victim-blame female victims of sex crimes — Ronen V (@RonenV) September 1, 2014
@nickbilton Would you tweet - Tips for kidnapped reporters: Don't go to dangerous countries. No, because that's a dick move. — pourmecoffee (@pourmecoffee) September 1, 2014
@nickbilton @JamBerube oh and women shouldn't dress so provocatively or be out alone at night! That's another good one — Tyler McCall (@eiffeltyler) September 1, 2014
@nickbilton did your account get hacked too? Otherwise this seems like a real dick move. — Matt Haughey (@mathowie) September 1, 2014
He apologized in a follow up tweet, "My earlier tweet wasn't meant as victim blame in any way, but a larger point about state of the Web and insecurity. (I'm sorry.)" Meanwhile, a suggestion from Bilton's colleague at the NYT, Farhad Manjoo, that we treat nude photo hack victims more like financial ones got nearly 7,000 retweets.
I’ve never heard anyone respond to financial hacking by saying, Just don’t use online banking. That’s what you get for using credit cards. — Farhad Manjoo (@fmanjoo) September 1, 2014
Anecdotally, it seems that fewer media outlets are doing what used to be typical: posting barely-redacted copies of the naked photos while claiming to be horrified. The photos were not linked as frequently in stories, leading one friend of mine to complain that he couldn't find them. (Sigh.) The nature of the advice that followed changed. People were less likely to shame the celebrities and more likely to shame their tech provider -- Apple in this case -- for letting them down. "Blame Apple," wrote David Auerbach at Slate. Numerous writers, including one for Playboy [SFW], said they were refraining from looking at the photos -- despite a great desire to see them -- and encouraged others to do the same. What happened to sexual schadenfreude?
It's hard to measure societal norms, but my impression based on what I've seen in the media and on various social media platforms is that we're far more sympathetic to the nude photo victims of 2014 than those of 2011. I have some theories as to why this shift -- if my perception is accurate -- has happened, which I ran by thinkers I respect. Some agreed. Some disagreed. But here's why we're (maybe) less nasty than we used to be.
First, I think it reflects the fact that more people sext now, so they have greater empathy as well as the fear of something similar happening to them. Rather than scaring people away from taking nude photos, every celebrity exposure seems to be an endorsement for the practice.
Calling leaked celebrity nude pics a sex crime is another way of saying "I lack the ability to think about things on a sophisticated level." — Susannah Breslin (@susannahbreslin) September 3, 2014
"There's a kind of there-but-for-the-grace-of-God-go-I element to stolen nude photos that didn't exist previously," says Susannah Breslin, a fantastic writer who has reported extensively on the porn industry. She chastised those who said looking at the photos is tantamount to rape. "The birth of this sort of thing is really the Pam Anderson and Tommy Lee sex tape. But at that time, it felt like something that happened to someone else -- celebrities. Now everyone's a porn star, and that includes those who take nude selfies."
Another factor may be the many activists in the "end revenge porn" space, who have helped to stigmatize non-consensual pornography and tried to get people to understand how traumatic it can be for victims. Daniel Solove, a law professor who has been writing about privacy for over a decade, says that he's seen a shift in opinion. "Back when I wrote The Future of Reputation (2007), the term 'revenge porn' hadn't yet been invented," he writes by email. He continues:
The general attitude on the Internet was more of laissez faire when it came to the distributors of the information. There was a near reverence for CDA 230 and the uninhibited freedom of the Internet to redistribute anything that others had posted. There was a sense that it was all the fault of the victim for creating the photos or posing for the photos in the first place. When victims of privacy violations tried to fight back, they were laughed at with people blaming them even more by saying that they were further publicizing the violation (what is called --and inaptly-named -- the Streisand effect). I thought that these views were quite wrong, and I'm glad to see that the reaction to this latest incident is that people are starting to think differently. The hacking of the photos is a digital sex crime. Disseminating the photos is akin to reveling in that crime. Claiming that one is just pointing to the photos that someone else hacked furthers the harm to a victim of a crime. More and more people are realizing that this is unethical. It is not newsworthy. It is not blameless behavior to link or repost. I even think that many are recognizing an ethical violation in even looking at the photos.
@neilmrichards and I wrote a piece on whether Perez Hilton should be liable for posting J. nude images w/o consent http://t.co/cilCLjgPvV — Danielle Citron (@daniellecitron) September 3, 2014
But academic Danielle Citron disagreed with me on this, saying sympathy is still lacking for the hoi polloi but is heightened here because we all loved Jennifer Lawrence so much in the Hunger Games and feel like Katniss is our bestie. "We tend to idealize stars and have the sense that we know them and are friends with them," said Citron, a law professor at University of Maryland and author of Hate Crimes in Cyberspace. "They are not strangers; we care about them. So our sympathy is triggered. But for ordinary people we see them as images, as things; our reactions are far less caring."
Do celebs like Jennifer Lawrence get more or less sympathy when they are nonconsensual porn victims?... [+] (Photo credit: Wikipedia)
Thirdly, as to the media choosing not to post photos, it may have to do with their ethical evolution ala Hilton, or a fuller understanding of the legal implications around nude photo theft. Scarlett Johansson's hacker, Chris Chaney, got a ten-year prison sentence, and her legal team threatened to rain litigation hell down on the media who reposted her photos. Her efforts may have helped protect future hacked celebs. "A lot of people (me included) posted w/ impunity then and before," tweeted Sam Biddle, editor of Gawker-owned Valleywag, who was speaking for himself and not for his employer. "But then we saw her hacker get 10 years in prison." (However, it hasn't stopped Gawker-owned Deadspin, which posted and linked to numerous photos stolen from model Kate Upton's boyfriend, Justin Verlander, a MLB pitcher.)
@kashhill right. a lot of people (me included) posted w/ impunity then, and before, but then we saw her hacker get 10 years in prison. — Sam Faulkner Biddle (@samfbiddle) September 2, 2014
Solove says courts are less sympathetic on the question of freedom of the press when it comes to nude photos. Courts "are less likely to find newsworthiness" in them, he says by email. "Additionally, there's copyright law that protects the 'selfies,' so media lawyers know that this can be an area where media could be held liable, and for quite a lot," he writes.
When Playgirl published paparazzi nudes of Brad Pitt that violated his privacy, a judge recalled the magazine. http://t.co/gxNTJYtTOF — Jillian C. York (@jilliancyork) September 3, 2014
Jillian York, director of free expression at civil liberties organization EFF, said she saw a shift in media coverage but doesn't think it applies to society at large. "I've been following comments on Facebook etc pretty closely and I think that your analysis of the shift applies to the media (which is great) and elites, but not to the average Joe (or, in some cases, the average Josephine)," wrote York in an email. "Ultimately though, I think that this is a good thing - if the media shames people enough for this behavior, it could have a strong effect not only on the prosecution of people who steal images but also on the opinions of the public at large."
fuck off RT @nickbilton: Put together a list of tips for celebs after latest leaks: 1. Don't take nude selfies — nathanjurgenson (@nathanjurgenson) September 2, 2014
Nathan Jurgenson, a digital sociologist, agreed with York that the shift was limited to the media. "Overall, [Nick Bilton's tweet] represents the majority -vast majority- opinion," writes Jurgenson by email. "This only comes from looking at search terms and replies to celebs tweets, but from what I can tell 'don't take nudes' has been the overwhelming response."
Jurgenson did agree that the media reaction has changed dramatically. "The critique of victim blaming has gone more mainstream, and I'm excited for that," he writes. "For many more people sexuality comes standard with sexting, so advising people not to sext is like advising people not to be sexual. Stories about sexting are increasingly written by, and for, people who participate. I really do think we're finally reaching the point where being constantly outraged and scandalized by sexting is coming to be seen, and felt, as counterproductive. If we maintain that having a nude out there will ruin your life, then it will ruin lives, those of our friends, children, people we'd like to be president, etc. By chilling out and instead focusing on the fuckers who violate women for sport, we're making our lives collectively easier, better, more fair. Here's hoping this shift in media message spreads more widely."
Follow @kashhill
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cd711d259bb1336333099143f58d2ee5 | https://www.forbes.com/sites/kashmirhill/2014/09/15/siri-lets-anyone-bypass-your-iphones-lockscreen-feature-or-bug/ | Siri Lets Anyone Bypass Your iPhone's Lockscreen -- Feature or Bug? | Siri Lets Anyone Bypass Your iPhone's Lockscreen -- Feature or Bug?
Much like beauty, secure design seems to be in the eye of the beholder.
Those who have gotten early access to Apple's next software release, iOS 8, have started playing around with it, and the security-minded among the previewers have started looking for flaws and bugs. Jose Rodriguez, a 37-year-old soldier based in Spain's Canary Islands, is known for finding "lockscreen bypass bugs" in iOS, or ways of circumventing the passcode Apple users put on their devices to keep strangers out. In playing around with an iPhone with iOS 8, Rodriquez quickly discovered what he saw as a bug: Apple's voice-activated assistant Siri acting like the worst bouncer ever. In iOS 8, he could activate Siri from the homescreen and she would let him circumvent the lockscreen to post to a person's Facebook page or look at their notes and call history. No passcode necessary. He posted demonstrations on YouTube.
But it turns out this is not new and not a bug. You can do it in iOS 7 as well. Most of my iPhone-using friends and colleagues were surprised when I showed them that I could take their locked iPhones and post a status of my choosing to their Facebook walls on their behalf, see the last 25 people they'd called, or look at recent notes they'd made to themselves. That means a snoopy significant other or a paranoid boss could see who you've been talking to. A frenemy could sabotage your Facebook wall. And voyeurs can see what you want your phone to remember. But this may be a tech deja vu moment for some of you as this has all been covered before.
"Pranksters, rejoice," wrote Digital Trends in September 2012 showing how you could nab a friend's iPhone and post an embarrassing Facebook status on their wall with iOS 6. And the Guardian hit it last year: "Siri flaw" in iOS 7 lets an attacker "bypass lockscreen to get full access to iPhone's phone app, contacts and call history, and send text messages and emails." Apple has made fixes to bugs in the past that allowed attackers to bypass the lockscreen by manipulating the emergency call function or the alarm clock feature, but when it comes to Siri, Apple wants users to be able to avoid typing in their passcode. This is a feature that the smartphone giant keeps incorporating despite security researchers pointing to it as a flaw.
There is a way to prevent terrible-bouncer Siri from slipping people into your phone's control system around your passcode. In Settings, you have to go to "Passcode," and take away Siri's ability to welcome strangers by turning off her "access when locked."
Why is Siri's right to bypass your lockscreen on by default? Because Apple's iOS developers apparently rate her convenience factor -- and your ability to easily update Facebook or see your call history without typing in a passcode -- as more important than making that information more difficult to access for a stranger. Apple didn't respond to an inquiry about this. "Apple probably doesn't want to castrate Siri's functionality," speculates Rodriguez.
It is always hard to gauge what privacy defaults should be -- as people's expectations of privacy vary dramatically -- but it is telling that iExperts and the media keep returning to this one and reporting it as a "bug." A popular YouTube reviewer of all things Apple spotted Rodriquez's video and called the feature an "iOS 8 Facebook Glitch."
That suggests that Apple should give people the option to let Siri bypass the lockscreen, but that it should be opt-in rather than the default. Or it could give them more granular control over exactly what Siri lets a person get up to when a phone is locked.
Good answer, Siri.
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1f51e36bb1c1aab82240cef356a60ce0 | https://www.forbes.com/sites/kashmirhill/2014/09/23/ftc-butterfly-labs-paypal/ | Bitcoin Bruiser: Feds Shut Down Butterfly Labs As PayPal Realizes It Shouldn't Work With Companies Like That | Bitcoin Bruiser: Feds Shut Down Butterfly Labs As PayPal Realizes It Shouldn't Work With Companies Like That
There have long been online complaints about Butterfly Labs, a Missouri-based maker of Bitcoin mining equipment that started operations in 2010. People complained in Bitcoin forums that the company charged them in advance for high-speed encryption machines that arrived months late, damaged, or not at all. Some angry customers sued, as documented by Ars Technica in an article that contained disturbing information about Butterfly Labs' cocoon. In the same year it was founded, one of the founders, Sonny Vleisides, pled guilty to mail fraud for his "involvement in an international, multi-million dollar lottery scam." So he was perhaps not the guy you want to send money to because he promises he'll send you a money-making machine in return. After getting hundreds of complaints about the company, the Federal Trade Commission investigated and announced Tuesday that it got a temporary restraining order from a federal court to shut the company down and freeze its assets. The FTC alleges that Butterfly Labs collected between $20 million and $50 million from customers, charging thousands of dollars for computing equipment that either never arrived or was useless by the time it did. Meanwhile, according to FTC attorney Helen Wong, the company's owners were using company credit cards for personal shopping outings at Nordstroms and Bed, Bath & Beyond; to get massages; go to saunas; and to buy guns. That last one could only be a business expense if the owners were preparing for customers descending on them with pitchforks.
In response, Butterfly Labs claims that its business is "very real," that it has shipped $33 million worth of equipment to customers and refunded $17 million worth, and that it looks forward to defending itself in court. The FTC claims Butterfly Labs put "Bitforce" mining machines up for sale on its website in June 2012 for $149 - nearly $30,000 each, promising an October 2012 delivery date. They should have been called Bitfarce machines. Over 20,000 customers ordered them but none had received them over a year later, according to the FTC complaint. In November 2013, Butterfly Labs claimed all the Bitforce machines had shipped but "consumers continued to file complaints about not receiving their prepaid BitForce mining machine," says the FTC. In August 2013, Butterfly offered up the Monarch machine and asked people to pay thousands for it upfront, promising delivery by April. "As of August 2014, Defendants had yet to ship a single Monarch machine," says the FTC.
The Forbes eBook On Bitcoin Secret Money: Living on Bitcoin in the Real World, by Forbes staff writer Kashmir Hill, can be bought in Bitcoin or more traditional currencies.
In many cases, the customers had paid for the machines with real money. "For all orders, [Butterfly Labs] required consumers to pay up-front by PayPal, Bitcoins, or bank wire transfer the entire amount of an order at the time the order is placed," says the complaint.
Moving forward, PayPal, for one, is going to make it harder for Bitcoin enthusiasts to be fleeced. The same day the FTC announced its crackdown on Butterfly Labs, PayPal announced plans to partner with Bitcoin payment processors Coinbase, Bitpay and GoCoin so that merchants using PayPal can start accepting Bitcoin... but only for digital goods such as ringtones and games. In its blog post about it, PayPal's senior director of corporate strategy Scott Ellison offhandedly mentioned news directly relevant to the Butterfly Labs crackdown:
For some time now, we’ve helped merchants selling Bitcoin mining equipment to accept PayPal payments. This will continue. But to safeguard customers, we’ve decided not to work with merchants who pre-sell these products.
Good decision! As first reported by Ars Technica, PayPal allegedly smelled something afoul at Butterfly Labs a while ago. According to the probation officer for the Butterfly Labs founder with the mail fraud conviction, "Chad Williams, a PayPal global asset protection officer, told her that as of September 2013, PayPal froze Butterfly Labs' account containing $11 million and that PayPal received 6,000 complaints in total." According to the officer, PayPal had banned Butterfly Labs from its platform by December 2013.
Via the PayPal post:
This is consistent with our approach to pre-sales of other goods; we hold off anytime we determine that pre-selling may not provide a good buyer experience. Pre-selling is when a business asks for money up-front for a product or service it will deliver in the future. Customers may not get their money back if the business goes out of business before the product is shipped but after a buyer protection period expires. Again, our decision not to support pre-sales is shaped by our desire to protect our customers.
If you try to order a product from Butterfly Labs now, the only payment option is Bitcoin, but an error message pops up if you try to place an order.
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b52e1cc5202793b711d14697612e9c0f | https://www.forbes.com/sites/kashmirhill/2014/09/29/whoops-new-corvettes-come-with-illegal-spying-feature/ | Whoops. 2015 Corvettes Come With Illegal Spying Feature. | Whoops. 2015 Corvettes Come With Illegal Spying Feature.
The pin-up page for the 2015 Corvette brags about the car's many features, including its "industry-exclusive Performance Data Recorder," which is like a Fitbit for the owners' driving, collecting stats about a particular drive as well as audio and video. And there's a bonus feature to the recorder, according to Chevrolet's website: a "nanny cam." "You can even capture video and data when someone else is driving the car with Valet Mode, giving you extra peace of mind."
Not exactly. Depending on which state the valet is, it might give the Corvette owner a criminal mind. While engineers may have thought a "baby monitor" for the car was a great idea, lawyers apparently didn't review the surreptitious recording feature closely. Last week, as first reported on Corvette Forum, car parent company GM sent out notices to dealerships and to new Corvette owners warning them not to use the feature, because it's a wee bit illegal in some states to record someone's expletives about how awesome driving your car is without their consent.
The memo tells the dealers to tell customers that they should inform people the car will record them, and get their consent before turning on "Valet Mode." "It is very important that you explain this to each customer at the time of delivery," says the memo. Otherwise, they could commit a crime. Via Ars Technica:
"In California, Connecticut, Delaware, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington, all parties involved in the recording must either consent to a recording or at least be aware that the recording is happening, depending on the state. So if a Corvette owner turns on Valet Mode in California and turns the car over to the unknowing attendant, that Corvette owner could be committing a felony."
GM issued a statement below about accidentally driving customers into a legal no-no zone, as well as sending its U.S. customers letters. "In the near future, we will be making a software update available to remedy this issue," says Monte Doran, a spokesperson for Corvette. "A number of alternatives are under consideration."
Doran says Corvette is "evaluating several scenarios for the software update – for example disabling the audio recording in Valet Mode, but keeping the video recording active."
"It's really the interior audio that triggers various wiretap laws," says Ryan Calo of the University of Washington School of Law. "But not if the owner warns, thereby defeating the expectation of privacy."
Thus, I invite Corvette owners to tack the sign I've fashioned above to their dashboards until GM comes up with a way to make the feature fully legal and put their minds at ease.... That is, if their minds can be truly at ease knowing that their cars have a built in mic. As Corvette's page on the feature explains, when PDR mode is on, "your breathless running commentary — plus any expletives uttered by your passenger — is recorded by a dedicated cabin microphone." (Hopefully that cursing passenger has given consent to the recording.) Once Corvette drivers turn on PDR, they've put their car into spy mode with the recording going onto an SD card reader in the glove box. The countdown starts now to the first time this gets used against a Corvette owner recording a thrilling drive that turns into an accident.
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e2f26103076b312319ebd21ea7b9f993 | https://www.forbes.com/sites/kashmirhill/2014/10/03/god-view-uber-allegedly-stalked-users-for-party-goers-viewing-pleasure/ | 'God View': Uber Allegedly Stalked Users For Party-Goers' Viewing Pleasure (Updated) | 'God View': Uber Allegedly Stalked Users For Party-Goers' Viewing Pleasure (Updated)
When Uber launches its black car and ride-sharing service in a new, large city, it likes to mark the occasion with a lavish launch party. The company invites the local tech glitterati for craft cocktails, canapes, and a presentation by Uber's brash CEO Travis Kalanick. One of the go-to Uber party tricks for the events is to treat the attendees to Uber's "God View," which lets them see all of the Ubers in a city and the silhouettes of waiting Uber users who have flagged cars. When it's anonymous, it's a cool trick. But Julia Allison, an attendee at a launch party in Chicago in September 2011, says Uber treated guests to Creepy Stalker View, showing them the whereabouts and movements of 30 Uber users in New York in real time. She recognized half of the people listed and texted one of them, entrepreneur Peter Sims, revealing that she knew his current whereabouts. He was pissed when he found out, eventually quitting the service because he felt like he could no longer trust it. His post about being publicly stalked by the company has now gone viral, but Uber refuses to comment, and another two other guests at the event says they don't remember it happening.
Attendees at Uber's Boston launch party enjoying 'God View' (Photos via Uber's Facebook page)
This was back in 2011, when a casual disregard for user privacy may still have been cool in some circles. The $18.2-billion car-ordering behemoth was still a scrappy start-up then trying to make a splash; was it desperate enough to chum the waters with its users' private information? Allison says her memory is "not photographic" but that she recalls that Uber showed the whereabouts of about 30 "notable" Uber riders in New York.
It was 9 p.m. Chicago time, so 10 p.m. in the city that never sleeps. "I recognized about half of the names," she says. She had recently met one of the tracked users, Sims, and thought it would be funny to text him. Sims got the text "from someone he hardly knew," he recalls in a Medium post, asking him if he was in an Uber car at 33rd Street and 5th Avenue. He was on his way to Penn Station to catch a train to D.C. "She continued to text with updates of my car’s whereabouts," he recalls, which freaked him out. When she revealed how she knew where he was and that it was being broadcast at an Uber party in Chicago, he was "outraged." Oddly, it took him three years to express that outrage publicly, but he's now demanding an explanation and an apology from Uber, in a Medium post and in a letter to Kalanick and co-founder Garrett Camp. "I am not a professional journalist," Sims tells me by email of the reason for the delay.
"I texted him because it was innovative and exciting, but he obviously didn’t agree," says Allison. She doesn't recall the other people whose locations were broadcast, but thinks there was at least one Uber employee in the bunch and other "tech celebs." Another attendee at the event, Harper Reed, the former chief technology officer for the Obama campaign, said he didn't remember this happening, tweeting that there were "usage visualizations" in Kalanick's presentation but that he doesn't remember "names or photos." He does add a caveat that he left the event early.
@markbao fwiw I was at that party, sitting next to said socialite (ugh) and don't remember this happening. But I left early. So ymmv — harper (@harper) September 29, 2014
@markbao I do not doubt that it happened in some regard. I don't remember a granular display. But there was usage visualizations — harper (@harper) September 29, 2014
@markbao I don't remember names or photos — harper (@harper) September 29, 2014
Update (10/6/14): Another attendee, Power of Reviews CEO Matt Moog, says he also doesn't recall seeing this.
@kashhill no I don't remember it happening and I was sitting right next to @harper if I recall — Matt Moog (@mattmoog) October 4, 2014
But Allison did know where Sims was in real time. Did Uber do it intentionally or was it a slip-up, revealing an Uber "More Powerful God View" admin screen? I followed back up with Allison after hearing from Moog. "In that this was 3 years ago, I don't remember the specifics," she says. "It was flashing between screens. I don't think it was during the main presentation."
Julia Allison at Uber's Chicago launch party in September 2011 (Via Uber's Facebook page)
“Some people get so bent out of shape over nothing. I see the potential for misuse but it’s not like they were going to release the information," Allison says. But they did release the information, to her and ostensibly to other people at the party, some of whom are included in this Facebook album from the event, spotted by a sharp-eyed Ashkan Soltani. (I've been unable to get accounts from other attendees besides Reed, though I would love to hear from them.) Those non-Uber employee partiers are all "third parties" in legal terms, and according to Uber's privacy policy, it won't release information about users and where they've traveled to third parties unless the po-po come calling, it's needed to stop something illegal, or because you've granted Uber permission to do so. Otherwise, it will only give third parties "non-personally identifiable information, such as aggregated user statistics and log data." Even that can be a lil creepy, as when it made a "Rides of Glory" post showing in which cities users most often get laid on the weekend. (It playfully called these users "RoGers;" they took Ubers at party-o-clock on Fridays and Saturdays, and then took a second ride from a point nearby the bar the next morning.)
The GPS party trick would be an illegal sharing of location information, with Uber breaching its contract with users like Sims. Uber still regularly trots out "God View" at launch parties, but a source familiar with the matter said 'Creepy Stalker View' is not a regular offering. Uber's press team did not respond to a request for comment.
"Much like Gcreep [ed note: the Google engineer who spied on teens' chats] or the OKCupid trends blog, this is another example of the ways individuals at these organizations can freely access and use consumers' personal information for their marketing (or in this case, entertainment) purposes," says Ashkan Soltani, a security technologist. "If a malicious employee at one of these companies wanted to stalk you or simply embarrass you or expose your romantic relationships, they could."
Sims, like many an Uber rider, loves the promise of ride-sharing companies like Uber and Lyft, but he sees the privacy violation as symptomatic of Uber's wider arrogance and dirty business practices, such as sabotaging Lyft and squeezing drivers' earnings. "I don’t expect that Travis Kalanick will ever apologize to me for using my Uber location data to promote his brand at a launch event without my permission, but I haven’t given up hope in the Uber board’s ability to step up and lead," writes Peter Sims. "Now is the time to act, before Uber disappoints the public markets at the IPO and after."
Allison still thinks it's weird that people are freaking out about the party trick from three years ago. "I can see the concern but people need to chill out."
GPS data being used as party confetti seems to be an anomaly, but it's a reminder of the creepiness that comes with a company having a "God View" into your travel patterns. With uber power comes uber responsibility. Users expect that companies won't be completely cavalier with their data. Uber may have (legal) fun offering up an aggregated and anonymous breakdown of which cities have the most users going out to bars and going home with a new friend, but that means Uber also has the power to build an internal list of its sluttiest users. Let's hope that never winds up on a screen at a party. Or at least hope that our names aren't on the list if it does.
* Updated with comment from Matt Moog and additional comment from Julia Allison.
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dbd8510c61d6e514a0c85659ee3db249 | https://www.forbes.com/sites/kashyapkompella/2020/03/19/a-call-to-action-to-ai-experts-join-the-fight-against-the-coronavirus/ | A Call To Action To AI Experts: Join The Fight Against The Coronavirus | A Call To Action To AI Experts: Join The Fight Against The Coronavirus
Coronaviruses comprise of a large group of viruses that can cause a variety of ailments, from common cold to Severe Acute Respiratory Syndrome (SARS). SARS-Cov-2 is the official name of the coronavirus strain behind the current global pandemic and Covid-19 is the official name of the disease it causes.
Many known unknowns about the coronavirus. Getty
Health workers and medical experts are working tirelessly on the front lines to diagnose, treat and provide care to Covid-19 patients. Governments across the globe are devising directives and coming up with interventions to beat back the coronavirus outbreak. We are at a crucial juncture now but there are a lot of known unknowns about the coronavirus and Covid-19. It is critical that healthcare experts and policy makers quickly gain a better understanding of the coronavirus.
There is a large body of published about the coronavirus family going back to several decades. A body of literature about SARS-Cov-2 and Covid-19 has also emerged as frontline medical researchers rapidly document their observations and experiences in the current outbreak. Medical and policy researchers should be able to query this body of knowledge and get answers to many pressing questions.
Synthesizing such vast amounts of data to generate useful insights is a good candidate to apply machine learning techniques. For example, there are more than 2000 papers published in 2020 itself and without the help of AI tools, it is practically impossible to keep track of all the research. But before we can apply AI, the data needs to be accessible and in a format that machines can read.
Towards this end, based on a request from the White House Office of Science and Technology Policy, prominent industry and academic research groups have compiled a dataset of scholarly literature about Covid-19, SARS-Cov-2 and coronaviruses and making it available freely to the public.
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The organizations involved in this initiative are:
Allen Institute for AI (AI2) Chang Zuckerberg Institute Georgetown University’s Center for Security and Emerging Technology Microsoft National Library of Medicine at the National Institutes of Health
COVID-19 Open Research Dataset (CORD-19) is a collection of research studies published in both peer-reviewed journals and non-peer-reviewed pre-print websites such as bioRxiv and medRxiv. Currently, it consists of over 13,000 full-text papers and abstracts for another 16,000 papers and is expected to be updated with new research as it becomes available.
Here is the call to action to AI experts, data scientists and technology professionals.
World Health Organization (WHO) and the National Academies of Sciences, Engineering and Medicine have identified the key scientific questions about Covid-19. Here is a high-level summary of these key questions.
Based on available literature, what do we know about:
Virus Transmission, Incubation And Stability, including seasonality, incubation period, asymptomatic transmission, persistence of virus on different surfaces and effectiveness of protective gear. Medical Care, including challenges, solutions and best practices related to management of surge capacity, addressing shortages, Telemedicine and home care Risk Factors And Effective Mitigation Measures such as impact of pre-existing diseases, impact of behavioral factors such as smoking and susceptibility of groups such as pregnant women and … Virus Origins, Genetics and Evolution, including variations of the virus over time and geography, the different strains that may be in circulation, animal hosts and livestock infections. Non-pharmaceutical Interventions, including methods and barriers to prevent community spread, impact assessment of measures such as school closures, travel bans, physical distancing and prohibition of large gatherings. Vaccines And Therapeutics, including effectiveness of drugs in development, clinical effectiveness studies, approaches to distribute new therapeutics. Diagnostics And Surveillance, including screening policies and protocols, early detection, sampling methods, guidance at national, state and local levels and the trade-offs involved in rapid testing between speed, accuracy and accessibility. Ethical Considerations, including norms of social science research, impact and needs of caregivers and identifying drivers of fear, stigma and misinformation during outbreaks. Information Sharing and Collaboration, including data-collection standards, communication methods, coordination of local and Federal, private, public, non-commercial and academic communities.
The dataset is available for download on AI2’s Semantic Scholar website. The machine learning and data science website Kaggle, a subsidiary of Google, has all the details about the specific pieces of the puzzle that AI experts can help put together.
The stakes have never been higher. Carpe Diem!
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3d4c201df4c89760955833cab5d716fd | https://www.forbes.com/sites/kateashford/2014/07/30/americans-in-collections/ | One In Three Americans Is Late On A Bill | One In Three Americans Is Late On A Bill
Here’s an alarming statistic: Of Americans who have credit files, fully 35% of them have debt in collections, according to a new study by the Urban Institute.
What does that mean? That means that one in three Americans with a credit file has been reported for nonpayment of a bill. So they didn’t pay a medical bill, a utility bill, a credit card bill, or even an overdue library fine. That’s worrisome, since collections debt has a variety of negative consequences. For instance, it can lower your credit score significantly, which can affect your employability, your ability to rent or buy a home, your insurance rates, and your access to loans in the future.
Collections debt is also a long-lasting smear on your credit. “Debts in collections will remain on a credit report for seven years, even after they’re paid,” says Gail Cunningham with the National Foundation for Credit Counseling. “That means it will be 2021 before the debts that are in collection today rotate off of your credit report.”
One in three Americans has debt in collections. (Photo credit: fairfaxcounty)
That may, in part, explain why the number of people in collections is where it is—it takes a long time to shake that mark on your file, even after you’ve paid those debts off. And at the very least, we’re not worse off than we were a decade ago, when some 36.5% of consumers with credit reports had debt in collections, according to Federal Reserve numbers.
Those with debt in collections owe about $5,178, on average, and many of them are in the South. Nevada leads the race, with nearly half (47%) of people with a credit file reporting collections debt. The state runners-up: South Carolina, Mississippi, Texas, Louisiana, and Georgia.
If you find yourself behind on a debt, don’t ignore the problem. “Many people with debts in collection resist opening their mail and answering the phone, knowing it will likely be a collector on the other end,” Cunningham says. “However, you definitely should speak with the collector.” It’s important that you’re truthful about your circumstances, what got you into this situation, and how you intend to repay the debt. (And if you can’t pay it right now, tell them so.)
Next, start tracking your spending so you can identify areas where you can plug the leaks. You should be spending money on needs, not wants—and that could mean canceling your cable, taking your lunch to work and skipping dinners out. “Stop all non-emergency charging, as adding new debt on top of old is throwing fuel on the flame,” Cunningham says. “Carving out $5 per day from your spending will equal an extra $150 per month to put toward debt repayment.” One trick: Put your credit cards in a drawer and use cash only—research shows that you'll spend less.
In addition to cutting back on expenses, you can also make efforts to bring in more income. “Consider getting a part-time job and dedicating each paycheck to debt repayment,” Cunningham says.
If you feel like you're in over your head, don't hesitate to contact a good credit counselor, who can help you create a get-out-of-debt plan and even assist you in negotiating with your creditors, if need be. Start with someone associated with the National Foundation for Credit Counseling.
If you haven’t checked your credit report in a while (or ever), now’s a good time to start. You may have debt in collections and not even realize it. “Some consumers report becoming aware of this debt only when they review their credit report,” the Urban Institute report states. You can get a free copy of your credit report from all three credit agencies at annualcreditreport.com. You should do this once a year to catch errors and fraudulent activity.
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638890a3b8d6aed4c6ae6a7bb7d3878f | https://www.forbes.com/sites/kateashford/2014/08/15/challenging-a-medical-bill/ | 8 Things You Should Know About Challenging A Medical Bill | 8 Things You Should Know About Challenging A Medical Bill
Imagine you’ve been denied employment because of something in your medical history. You and your doctor can’t figure it out, until you do a little digging into your paperwork. Turns out, someone in your doctor’s office transposed some digits on a billing code and accidentally billed you for leprosy.
Then there was the physician who wasn’t happy with the reimbursement he was receiving from Medicare, so he was billing for three visits per week even though he was only seeing the patient every Monday.
Another patient drove to the nearest hospital after being stung by a scorpion. There, she received two injections. Her bill: $58,000.
“It is absurd, and there are all kinds of crazy stories like that,” says Sharon Hollander, author of Medical Billing Horror Stories. “Sometimes a patient is charged $45 for one aspirin.”
Billing errors or overcharges that leave patients in the lurch could become a bigger problem in the future, as high-deductible plans make consumers responsible for more of their up-front medical costs. As healthcare costs increase, more than half of companies are introducing or expanding their high-deductible plan offerings, and nearly a third plan to offer only high-deductible health insurance options to employees in 2015, according to a recent survey from the National Business Group on Health.
(Data: National Business Group on Health)
“Before, patients weren’t paying too much attention because they knew they had insurance,” Hollander says. Now, with high-deductible health plans, patients are often responsible for thousands of dollars in medical costs before insurance kicks in. The average HDHP deductible in 2013 was more than $2,000, according to the Kaiser Family Foundation, and the average individual on an Obamacare bronze plan was responsible for a deductible of $5,081, according to a study by HealthPocket. So it’s worth your while to pay attention.
“All medical bills are negotiable,” Hollander says. At the very least, you may be able to work out a payment plan or land a lower fee if you can pay on the spot.
If you’re thinking of disputing a medical charge, here are some pointers:
Keep good notes. From the very first phone call, write down the date, time and the name of the person to whom you speak. “Often, with insurance companies especially, you can’t ever get back to the same person,” says Victoria Caras, founder of Aspen Medical Billing Advocates. “So you have to be able to say, ‘On August 12 I spoke to Debbie, who said XYZ.’”
Request the right bill. If you’re questioning hospital charges, you will want to ask for a bill that details every single charge individually. That may be called a line-item or detailed bill. “That would show every single thing you ever received, from every bottle of IV fluid to every procedure, large and small,” Caras says.
Start with a phone call. If you’re questioning a bill from a physician’s office, you may be able to ask the doctor herself about the charge, or you may have to start with someone in charge of billing who can work on it for you. Whatever you do, keep calling until you get the right person on the line. “Be both patient and persistent, because you’re going to have to go through several levels of challenging it,” Caras says. “The person who first picks up the phone doesn’t have the authority to adjust that bill.”
Follow up in writing. After your initial call, put your request in writing and mail it. Then fax it as well. “I think it garners more attention if you do it both ways,” Caras says.
Do your research. You can’t refuse to pay a charge just because it feels excessive to you. “When you make a challenge like that, you need some basis on which you think the amount is outrageous,” Caras says. In other words, you need some idea of what that procedure might cost elsewhere, or in general. Start with a site such as HealthcareBluebook.com, which can help you estimate prices for a procedure in your area. Alternatively, some insurers offer a way to price healthcare services, such as UnitedHealthcare’s myHealthcare Cost Estimator. If you know someone who’s had the same thing done and you know how much they were charged, that’s also a valid comparison.
Don’t worry about your doctor. Many people are afraid to question a charge because they feel they won’t get good treatment from the doctor or hospital afterward. “But in fact, most of the time a doctor doesn’t even know what the cost of their services are—they have outside billing agencies,” Caras says. “You shouldn’t be concerned that your doctor is going to compromise your quality of care if you challenge a bill. I have never seen that happen.”
…or your creditworthiness. The good news is that if you have medical debt on the books, it will no longer crater your credit. In a new FICO scoring system, medical collections debt will have less impact on your credit score—a welcome change for consumers struggling to pay bills from a serious illness or who aren’t even aware that they have a medical bill in collections.
Get help if you need it. If you’re really overwhelmed or facing an enormous amount of medical debt, consider talking to a medical billing advocate, who can help you locate errors in your bills and haggle with healthcare providers on your behalf. Billing advocates sometimes charge an hourly fee of $50 to $200 or take a percentage of whatever they save you, up to 35 percent. Look for someone who will offer an initial consult free of charge, and who has a proven track record and tough negotiation skills. “I had a patient the other day whose bill was $160,000 with no insurance,” Caras says. “He ended up getting a 50 percent discount on that bill. That’s a negotiated result that a patient, in all honesty, probably cannot get for themselves.”
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f7dc33359526b16ad7b18380cfd88440 | https://www.forbes.com/sites/kateashford/2014/09/26/deciding-not-to-get-married/ | 11 Things You Never Thought Of When You Decided Not To Get Married | 11 Things You Never Thought Of When You Decided Not To Get Married
You know that couple in your circle who have lived together forever, but refuse to tie the knot? They are trendsetters, apparently—Americans who have never married, and whose numbers are at an all-time high, according to a new report from the Pew Research Center. In 2012, some one in five adults ages 25 and older had never tied the knot. Compare that to 1960, when only 9% of 25-and-overs were never-marrieds. “Adults are marrying later in life, and the shares of adults cohabiting and raising children outside of marriage have increased significantly,” the report says.
Pew cites shifting public attitudes as one of the factors behind the shortage of wedding bells. For instance, half of all respondents agreed with a statement that society is just as well off if people have priorities other than marriage and children.
And while about half of never-married adults say they would like to walk down the aisle someday, half do not—and the number has declined since 2010, when six in 10 adults had eventual wedding plans. A third of never-married Americans aren’t sure whether they’d ever like to marry, and 13% are not into it at all.
Fewer people are opting to do this now. (Photo credit: Nick Ares)
If you just haven’t found the right person for you, that’s one thing. But if you’re planning to spend the rest of your life with someone and you’re still rejecting marriage, you should make sure you know what you’re turning down. For instance, in a recent Washington Post story, a 34-year-old named Melissa said she felt like a lot of people get married because it’s traditional. “My boyfriend and I are committed to each other,” she said in the article. “We just don’t feel the need to get married.”
But for a committed couple, marriage has a variety of financial and legal advantages over domestic partnership. “There are a lot of little nuances that people don’t think about until it’s too late,” says Allen Falke, a business, trust and estate attorney with Mirick O’Connell in Worcester, MA.
Here are a few things a marriage certificate will do for you:
You’ll qualify for an estate tax marital deduction. When one spouse dies, his or her estate passes to the surviving spouse, tax-free. That’s not true for domestic partners, and even though the federal exemption is fairly high—currently $5.34 million—the exemption in some states is low enough to catch even moderate estates.
You’ll qualify for the gift tax marital deduction. As long as your spouse is a U.S. citizen, you can make tax-free gifts of any amount to him or her. “Unmarried couples may be surprised to find out that they owe gift taxes as a result of making gifts or supporting each other,” says Paul Jacobs, a financial planner and chief investment officer of Palisades Hudson Financial Group in Atlanta. “The maximum annual tax-free gift that you can give someone is currently $14,000.”
You can roll over a deceased spouse’s IRA to the surviving spouse’s IRA. If your significant other dies with an IRA and you aren’t married, you’ll have to start taking distributions immediately, regardless of your age. “A surviving spouse has the option to roll over the IRA into his or her own IRA, which makes it possible for a younger surviving spouse to postpone minimum distributions until age 70 and a half,” says Susan Green, an associate financial advisor at Wescott Financial Advisory Group in Philadelphia.
You can contribute to a spousal IRA. If you are domestic partners and you don’t work, you can’t contribute to an IRA for retirement savings, since you have no earned income. However, “if you’re married and you have a working spouse and a non-working spouse, the non-working spouse can use the working spouse’s income to qualify for IRA contributions,” Falke says.
You can receive survivor’s benefits from a pension plan. If your spouse is lucky enough to have a pension, and they’ve elected to have survivor’s benefits, you will continue receiving pension benefits after he or she dies. “The benefits are the biggest thing,” says Ted Toal, a financial planner with Rockwood Wealth Management in Annapolis. “Especially for those who are older.”
You can receive Social Security benefits. “Spouses have the option of filing for a spousal benefit, which gives them the potential to collect up to 50% of the other spouse’s benefit amount,” says Michael Lynch, vice president of strategic markets for Hartford Funds in Radnor, PA. There is also the possibility for a larger benefit upon the death of a spouse, he says. Imagine, for instance, that you are collecting $1,000 a month in Social Security benefits and your spouse is collecting $1,200 a month. If your spouse dies, you could start collecting survivor benefits of $1,200—a $200-per-month increase. As a domestic partner, you have no such option.
You’ll save on health insurance. “Usually plans for one plus a spouse are cheaper than if you each have your own plan, even if it’s an employer sponsored plan,” Toal says. This is especially helpful if one of you doesn’t have access to insurance through your employer—if you’re self-employed, for instance.
You have an advantage if your spouse is incapacitated. If your significant other is in a car crash, you may have more difficulty seeing him or her at a hospital if you aren’t a blood relation or a legal spouse. And if a judge has to name someone to make healthcare or financial decisions on behalf of your partner, you may be overlooked in favor of a parent or sibling if you aren’t married. “What if the parents of the other person don’t like the significant other?” Toal says. “They will be in court battling for control of everything.”
You have more protection if your spouse dies. “If one passes away without a will, the state is going to dictate where your assets go,” Toal says. If your significant other still has parents and siblings in the equation when that happens, they may receive assets over a nonrelated boyfriend or girlfriend.
You have more legal rights. For instance, if your spouse is in a fatal accident, you can sue for wrongful death. “A romantic partner may not be able to recover damages,” says Michael Boulette, an attorney with Lindquist & Vennum in Minneapolis.
You have a leg up when buying a home. Two spouses have a combined income and a legal reason to stay together—and mortgage lenders like that. “A lot of companies don’t want two unrelated parties on a mortgage,” Toal says. “Some will do it, but it’s much more difficult and they might require a higher down payment, or you might have trouble finding a lender.”
There are other advantages of exchanging vows, but these are some of the biggies. Some of these issues can be handled with the right estate planning paperwork or an official domestic partnership in some states, but many can’t. Says Falke: “You are either married or you’re not.”
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8cb98aefbab41dd3aeac7a29ad751292 | https://www.forbes.com/sites/kateashford/2015/04/30/nothing-saved/ | You're Retirement Age With Nothing Saved For Retirement. Now What? | You're Retirement Age With Nothing Saved For Retirement. Now What?
Imagine that you’re 55 or 60 years old with nothing saved for your golden years. Oh wait, that’s roughly four out of 10 Baby Boomers now.
New research from the Insured Retirement Institute found that only 60% of Boomers have socked away any money for retirement, down from 80% in past years. And only one out of five Boomers has $250,000 or more saved.
The best part is that four out of 10 of those Boomers with less than $250,000 in savings think they’ll be able to handle all of their basic expenses in retirement—with room for travel and other hobbies. Here’s news: That’s not likely.
So what’s an almost-retiree to do? When you find yourself staring down the barrel of retirement and counting on nothing but Social Security, is there anything that can salvage the situation?
Here, a variety of financial experts weigh in:
Consider downsizing. “For those in their mid to late fifties with no financial savings, yesterday was the time to start downsizing and fully investing in a 401(k) and IRA, but today is the next best thing,” says Avani Ramnani, a financial planner in New York City. Could you get rid of the big family house and move into a smaller townhome or condo? The smaller your expenses are in retirement, the less money you’ll need.
Keep working. For a long time. If you can, plan to work until at least age 70, when you can collect the maximum amount of Social Security benefits. If you retire at 70, you’ll get 32% more than you would have at age 66, and 76% more than you’d collect at 62. So if your monthly Social Security check would be $1,000 at age 66, you’d collect $750 at age 62 and $1,320 at age 70, according to Peter Palion, a financial planner in East Meadow, NY. It’s worth the wait if you can make it.
This probably isn't you for a while. If ever. (Photo credit: Ken Teegardin)
In fact, just keep working indefinitely. For some people, reading a book on the beach is boring. If that’s you, why not just keep your day job? Even part-time income would supplement Social Security and keep you from spending any savings down. “I am finding that many people don’t mind working and not retiring if they get to do what they love to do,” says Victor Garza, a financial planner in Richardson, TX. “It’s a new retire-mentality.”
Delay Social Security. It may seem practical to start collecting money as soon as you can. But “the one thing people should definitely NOT do is claim Social Security benefits at 62,” says David Mendels, a New York City financial planner. Not only will your benefits be reduced for life (see above), but they’ll also be limited if you’re still earning income. Until you reach full retirement age, you’ll lose $1 in benefits for every $2 you earn over a certain amount ($15,720 in 2015).
Save your butt off. If you haven’t been saving until now, it might be because you truly don’t have the funds. But if you’ve just been suffering from a lack of momentum or know-how or sheer laziness, knock it off and start maxing out retirement accounts, stat. “For 2015, the maximum 401(k) contribution is $18,000,” says Niv Persaud, a financial planner in Atlanta. “If you’re 50 years or older, you have an additional $6,000 to contribute.”
Maximize HSA contributions. Now that an increasing number of people have high-deductible health plans, it’s possible that you do, too. That means you can sock away $3,350 for an individual and $6,650 for family coverage, with an extra $1,000 if you’re 55 or older. Future health costs are no joke, and being able to pay for them with pre-tax money is a win.
Trim your budget. “You need to eliminate all debt and extra spending to free up as much as you can to redirect toward saving money for retirement,” says Mark LaSpisa, a financial planner in South Barrington, IL. This has the added benefit of leaving you with a lightened lifestyle in retirement as well.
Get creative. What if you took in a roommate who rented the extra space you have over the garage? What if you took a shift at your local bookstore on weekends, or picked up extra freelance work in your field? What if you moved in retirement to a state with a lower cost of living and better tax advantages for seniors? Ideally you need to make more now, work longer or spend less later. Says Hurst, TX financial planner Patrick Wallace: “Our experience has been that the actual solution is a blend of all three.”
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a665b928c48594c69cc8f9a37597b2a7 | https://www.forbes.com/sites/kateashford/2015/06/30/working-mother/ | How The Children Of Working Moms Feel About Them Now | How The Children Of Working Moms Feel About Them Now
Working mothers are experiencing something of a heyday right now. One recent study from Harvard found that daughters who had working mothers grew up to accomplish more at work, earn more money and climb higher on the corporate ladder than the daughters of stay-at-home moms.
Not only that, but the sons of working mothers pitch in more at home, clocking almost twice as many hours on family and child care as men with stay-at-home moms. (Their spouses thank you, working moms.)
Another study last year found that the children of low-income families fared better in kindergarten if their moms went back to work when they were babies.
And this recent study found that social acceptance of working moms continues to climb, with Millennials significantly more accepting than older generations. “Compared to their predecessors, 12th graders in the 2010s were more likely to support equal roles for men and women,” the report reads. “In the 2010s, 70% of 12th graders believed working mothers could develop equally warm relationships with their children, compared to 53% in the 1970s.”
Given that other research has found that working moms cry once a week due to the stress of having it all, this seems like good news. But does all the data translate into how people really feel about having had working mothers? When asked how their working moms affected their lives as adults, people had the following things to say:
“I absolutely believe I’m more ambitious and successful because my mother worked. My mom was an HR exec at McDonald’s Corp and since my parents were divorced, a single mother. We moved every two to three years during elementary and middle school due to her promotions and relocations. As a result, I am extremely adaptable. Granted, there were sacrifices. My mom was never a PTA mom. I learned things later than my peers. But I wouldn’t have traded how my mom raised my brother and me.” – Kailei Carr, 39, Atlanta
“Watching my mother working as an adolescent was incredibly inspiring. I saw her put herself through a Masters and PhD program, all while maintaining a full time job and working as a single mother. She taught me how to be dedicated, to have a passion for my own personal education, and how to communicate well with others in and out of the work place. I am more successful because I saw my mother work.” –Blaire Knight-Graves, 25, Chicago
(Photo source: Alex)
“I definitely grew up with a work ethic, whether outside or inside the home. My mother emphasized staying productive and orderly. I’d say it contributed to my view on gender roles, from the perspective of ‘Everyone pitches in to get the job done,’ whatever the job may be. So I own a business, I direct a nonprofit, and I still have to clean the toilets on Saturdays before I get to go out and play.” –Christian Muntean, 41, Anchorage, AK
“I watched my mom earn her Master’s Degree while raising three kids pretty much solo. And when I ask her how she did it, she simply says, ‘You just do what you have to do.’ So even in my craziness days on my way to being an entrepreneur, I kept working, learning and pushing through.” –Cheryl Laughlin, 44, Lodi, CA
“My working mom inspired me to be my own boss, which has been the greatest achievement in my career. Because she started her own business and was self-employed the entire time she was raising me, I think this put the idea in my head that I could do the same thing.” –Michelle Garrett, 43, Columbus, OH
“Watching my mother work each day, especially as a single mother, made me more appreciative of what she did, not only while I was growing up, but also when I became an adult. Hearing how she often takes criticism and setbacks in stride, especially when she has done her very best, raises my respect for her to another level. I often ask myself if I could endure some of what she went through. Her dedication and persistence has made me a stronger advocate for women’s rights in the workforce to support working mothers.” –Philip Blackett, 30, Boston
“My mother worked three jobs while I was growing up. In my teens she started her own business. I have had a few businesses now myself. She gave me the drive, the determination, the ambition and the gumption to reach for my goals.” –Trisha Trixie, 45, Centennial, CO
“My mother began working full time soon after I was born, but she worked nights and weekends. Her working taught me accountability for my own schoolwork, and accountability for the tasks I was assigned to do while she was gone. It made me very independent and self-reliant. I also learned a lot of things from my dad that I probably would not have learned had my mother been home at night, such as working on cars.” –Emmy Gengler, 52
“My mother worked outside the home in C-level positions for as long as I can remember. I learned so much from watching her as a child. She drug my younger brother and me to many after-hours work events. I learned her incredible work ethic, business savviness, and most importantly, to always do the right thing. I was taught that men and women are equal and to not use being a woman as an excuse. I hope and pray I am teaching my daughter the same things my mom taught me.” –Jo Trizila, 44, Dallas
“As a female who studied physics and now works in a male-dominated field (aerospace/engineering), I think the fact that my mom also studied and worked in a male-dominated field (computer programming) somewhat normalized the abnormality of it for me. I was not only taught that I could do whatever I wanted as a career, even if I was a minority in the field, but shown it on a daily basis. I grew up knowing that I was capable of supporting myself and that having the ability was important. I inherited a strong conviction from my mom that women can and should choose their own career path and are just as mentally capable as men in all areas of life.” –Kathryn Handler, 25, Silver Spring, MD
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01620f626106a764f31e2ba632742068 | https://www.forbes.com/sites/kateashford/2016/03/31/tsa-precheck/ | 1 In 4 Flyers Have Never Heard Of The TSA Precheck | 1 In 4 Flyers Have Never Heard Of The TSA Precheck
In recent years, going through the security line at the airport hasn’t been anyone’s idea of a good time. It’s often a lengthy line and a tedious process, involving removing shoes and sweaters, emptying pockets, and digging electronics and liquids out of your carry-on luggage, only to have to re-dress yourself and re-pack your bag on the other side.
Gallery: The Best Airline Loyalty Programs 5 images View gallery
But in 2013, the Transportation Security Administration expanded the reach of the TSA Precheck, an expedited screening program that allows flyers to get pre-approved for security. Previously travelers could enroll in the program via a frequently flier program or another trusted traveler program, but three years ago consumers could simply apply online and visit an enrollment site.
What’s the advantage? Pre-approved travelers can often breeze right through security—shoes on, laptop snugged away, liquids still in luggage—sometimes in a different, shorter line. Plus, in some airports you get to stride right past the long lines of humanity still disrobing in the regular security queue, which can be satisfying on its own.
If one member of your family is enrolled in TSA Precheck and you’re all flying together, you all get to go through TSA Precheck line. (This is pretty great for people traveling with small children.) There’s also the benefit of sharing a security line with people who know what they’re doing—presumably, if you know enough to have the TSA Precheck, you probably have some air travel know-how.
A TSA Agent checks the ID's of passengers as they pass through a security checkpoint. (SAUL... [+] LOEB/AFP/Getty Images)
But three years later, and five years after the Precheck program began, nearly a quarter of fliers have never heard of the program or its cohort, the Global Entry program, according to a recent survey by Airfarewatchdog. (The Global Entry program allows pre-approved international travelers to experience expedited clearance through customs when they re-enter the United States.)
This survey finding comes at a time when the TSA Precheck program recently reached two million members. Is that surprising?
“Nothing surprises me anymore,” says George Hobica, president of Airfarewatchdog. “It just takes a long time for something to sink in.”
He points out that the TSA Precheck program doesn’t advertise. “It’s a word-of-mouth product,” he says. “You go to the airport and see the TSA Precheck sign. Maybe it’s a well-kept secret. Maybe they don’t want everyone to have it.”
It’s also interesting that 21% of fliers don’t find either program necessary.
Perhaps they aren’t aware of the recent study from the Global Business Travel Association (GBTA), which found that business travelers who have been approved for the TSA Precheck are much happier with their air travel than those who aren’t part of the program. About two-thirds of those with Precheck reported being satisfied with the airport security process, compared to 47% of travelers without Precheck.
If you’re interested in enrolling in the TSA Precheck program, it requires an application—which you can complete online or at an enrollment center—and a visit to an enrollment center to provide fingerprints, paperwork and payment, which is $85 and covers five years of membership.
Once you’re in, however, TSA Precheck lines are available at more than 150 airports nationwide. And take it from someone who just flew over spring break with the benefit of her spouse’s Precheck membership—it’s a nice perk.
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1f1cb5b9e0141ede1ec527e4ee07e67f | https://www.forbes.com/sites/kateashford/2016/06/30/millennials-credit-card/ | Millennials Are Big Credit Card Users After All | Millennials Are Big Credit Card Users After All
Much research over the past few years has led us to believe that Millennials are credit card averse, preferring cash or debit cards after watching their parents get mired in consumer debt. In fact, a recent Bankrate survey found that 63% of those between 18 and 29 have no credit card at all. It’s a number that’s been consistent for several years.
“Millennials are clearly falling short in terms of credit card usage compared to their elders,” said Mike Cetera, Bankrate’s personal loans and credit analyst, in a press release.
However, another recent survey has found the exact opposite to be true: 83% of Millennials age 25 to 34 use credit cards, according to research from FICO. In fact, about half of respondents have at least three cards, and one in five plan on using credit cards to buy big ticket items, such as a new car.
(Photo credit: Sean MacEntee)
“Millennials are very interested in obtaining and using credit cards as they remain a convenient mode of payment and source of credit,” said Joshua Schnoll, senior director for FICO, in a press release. “They are still maximizing their earning potential but also juggling numerous lifestyle costs, such as college loans, car and home ownership, as well as supporting young families.”
In other words, Millennials have a lot on their financial plates, and many have turned to credit cards to help them manage it. Thirty-one percent of Millennials carry a balance of $1,000 to $4,999 over each month on their credit cards, the survey found, while only 22% to 23% of other age groups are carrying the same debt. What’s more, 37% of those age 25 to 34 said they were “very likely” to apply for a new credit card over the next six months.
Gallery: 7 Ways To Improve Your Credit Score Fast 8 images View gallery
"Our hypothesis is that Millennials have a similar desire for the convenience of payment and access to credit that cards offer as other demographic groups," Schnoll says. "While we did see an uptick of self-reported credit card ownership for those 18 to 24 years old between late 2014 and late 2015, the rates for those 25 to 34 years old have been fairly consistent over time."
When it comes to features, Millennials value cards with no annual fee (75%) and cash back rewards (71%). They also favor cards that offer account notifications (56%) and enhanced security (53%). This comes as no surprise, based on another recent FICO survey that found that one in three Millennials has closed all bank accounts after a fraud incident—they think security is important.
But why might previous data show that Millennials not only don’t use credit cards, but that they don’t even own them? Perhaps it’s a consequence of serving up different age groups. Millennials in the FICO survey are considered to be those ages 25 to 34, while Bankrate’s Millennial numbers survey those ages 18 to 29. Since consumers under age 21 can’t even secure a credit card without a parent’s co-signature or proving an income of their own, that leaves a significant swath of that age group without access to credit.
"We feel the Card Act of 2009 is having its intended impact, reducing the number of people under the age of 21 that have a credit card," Schnoll says. "We did ask why consumers of all demographic groups have chosen not to have a credit card, and the responses are quite similar across all age ranges. They want to avoid debt and live within their means."
(Photo from Sean MacEntee on Flickr)
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140e7faaad8eba3d53be90ec488e8bc1 | https://www.forbes.com/sites/kateashford/2017/02/28/only-a-third-of-workers-making-this-key-retirement-move/ | Only A Third Of Workers Make This Key Retirement Move | Only A Third Of Workers Make This Key Retirement Move
The retirement numbers have just gotten worse. According to a new analysis by the U.S. Census Bureau, two-thirds of Americans aren’t contributing anything to a 401(k) or other employer-sponsored retirement account. That’s nothing at all. The Bureau looked at tax records—not a survey of workers themselves—which may be a more accurate picture of retirement savings activity.
And it’s not that employers aren’t offering the accounts, although when researchers looked at tax records of businesses, it appears that only 14% of all employers offer a 401(k) or similar plan to their employees. But since larger companies are more likely to offer 401(k) plans, and because more people are employed at big companies, the analysis suggests that nearly four out of five employees work somewhere that offers a 401(k) plan or something like it. But only 41% of workers at those firms are taking advantage of it.
The Census analysis suggests that employees making more money are more likely to contribute, but income isn’t the whole story. People who work part-time or who often change jobs may not be eligible for 401(k) plans at some companies.
(Shutterstock)
Stephen Gibson, for instance, often goes long periods without a regular paycheck. “Currently I’m working on music full time, funded in part by extra savings that might otherwise have been put in a 401(k),” Gibson says. “I need the cash now rather than later.”
Some workers started contributing to a 401(k) account early but later had to cash out or stop contributing due to financial circumstances. Dan Gudema and his wife, for instance, started saving in their 20s but had to tap 401(k)s to pay medical expenses. “We ran into difficult times, mainly because my son had Asperger’s, required therapy, and I did not have the coverage,” says Gudema, 52, who lives in Florida. He points to three reasons the family stopped saving: “One is medical, the second is 529 and college prepaid for my sons. Third, having to sleep at night with a big credit card debt. I would rather get rid of the debt.”
For others, it’s too much of a struggle to save money and make ends meet. Susan, who lives in Maine, put her ill husband on her employer’s health insurance plan last fall when she wasn’t sure what was going to happen with the Affordable Care Act. The result: $3,000 in additional premiums, deductibles and co-pays. Plus, they’re still paying off more than $20,000 in accumulated medical debt. “If we had access to universal health care, as many other countries offer, we may have been able to think ahead to retirement,” Susan says. “Right now, we are only focused on surviving.”
But for many, not contributing to a 401(k) is simply a matter of inertia: They haven’t started yet, and it’s hard to start. Or they’re not sure how to choose the right investments. Half of Americans lack confidence in their retirement planning, according to a recent 401(k) Wellness in the Workplace Survey by Fisher Investments.
So for those people—and for anyone who isn’t putting money away for the future—what are the best ways to get the 401(k) ball rolling? Here, financial experts weigh in:
Start small. Start with a 1% contribution level if that’s all you can handle. Then bump it up every quarter or six months until you’re at least getting a company match, and ideally until you’re putting 10% to 15% away. “If you’re not used to saving and start too big, you might find yourself frustrated with less take-home income and stop it altogether,” says Zach Abrams, a financial advisor in Shaker Heights, OH.
Use your raise. “For those employees who receive annual salary increases, the best way to begin is to dedicate one half of your salary increase to your 401(k) contribution,” says Kevin Gahagan, a financial planner in San Francisco. “You’ve not been used to making the increased salary, so saving a portion of it won’t be felt as readily.”
Talk to a professional. Does your company offer financial planning services? Take advantage. Or spend an hour with a fee-only financial planner. “Many participants just want a real person to talk with,” says Seth Priestle, a financial planner in West Chester, OH. “Spending a few minutes on financial and 401(k) education works wonders for increasing participation.”
Think of the money you’re leaving behind. If your company offers a 401(k) match, you’re literally giving up free cash by not contributing to the account. “If your employer offered you a pay raise, would you take it?” says Hubert Ross, a financial planner in Destin, FL. “You can get a raise without working any harder and without having to pay more in current taxes by contributing to your employer-sponsored retirement plan and getting the employer’s matching contributions.”
Do the math. “In our materials, we like to show that a mere $2.50 a day ($3 pre-tax) will grow to about $122,000 in 30 years at 7%,” says Leon LaBrecque, a financial planner in Troy, MI. “So for a couple of cups of snazzy coffee, or a beer, or some Powerball tickets, you can save an extra $244 thousand dollars. Under that strategy, you have a coffee shop instead of a cup of coffee.”
Break it down by paycheck. If you contribute 5% to your 401(k), how will that actually affect each paycheck? Try Bankrate’s 401k calculator to see how different contributions will hit your monthly pay. “Using percentages doesn’t answer, for most people, the question, ‘How much less will I have to spend each month?’” says Douglas Lyons, a financial planner in Red Bank, NJ.
Keep investments simple. “Too many choices can bog you down,” Abrams says. “Pick a target date fund and put it there to avoid decision fatigue.”
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3829cfad0edb4a141a192711ebeb5307 | https://www.forbes.com/sites/kateashford/2017/03/29/loans-spring-break/ | College Students Using Loans For Spring Break, Alcohol, Drugs | College Students Using Loans For Spring Break, Alcohol, Drugs
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In a poll of college students who are planning to go on spring break this year and who currently have student loan debt, nearly a third (30.60%) of them stated that they’re using student loan money to help pay for their spring break trip, according to research from LendEDU.
“Considering the severity of the student loan crisis in the United States right now, this number is severely disappointing,” writes the LendEDU report. “In a previous study, LendEDU found that 49.80% of college students incorrectly believed the government would forgive their federal student loan balance. This means that a number of college students are using government money to pay for spring break and are fully expecting the government to forgive their lavish expenditures.”
How else are college students spending their loans?
Almost a quarter (23.80%) of respondents said they’ve used student loans to pay for drinking alcohol 33.40% said they’ve used student loans to buy clothes and accessories 33.40% said they’ve used student loans to pay for restaurants and take-out 6.60% said they’ve used student loans to pay for drugs 5.60% said they’ve used student loans to pay for gambling or sports betting
Leaving aside the obvious issues of students using loans to pay for drugs and gambling, is it a big problem that they’re using the loans to pay for other living expenses, including vacations? That depends.
Student Loan Hero conducted a similar survey on this topic last year and found that 20% of students reported using their student loans for non-education related expenses. “So we conducted another survey to dig a bit deeper and find out the kinds of non-educational expenses students are spending their student loan money on,” says Andrew Josuweit, CEO of Student Loan Hero. “It found that students were more likely to use the money to pay for cell phone bills and car payments than for vacations and alcohol.”
Consider that the LendEDU survey polled 500 students who were already going on a spring break vacation, so the chances of them using student loan money to help out is probably higher than the percentage of non-spring-breakers asked the same question. And consider also that of respondents with student loan debt who are going on spring break, 70% of them still said they weren’t using loan money to buy vacation margaritas.
“The facts are that financial aid is designated for educational expenses only,” says Heather Jarvis, an attorney and student loan expert. “Federal student loans include strict borrowing limits for undergraduates. Available financial aid, including loans, fail to cover the expenses of higher education for many families.”
In other words, many students are struggling to cover the costs of college even with student loans, so the idea that they’re throwing their loan dollars at trips to Cancun probably isn’t entirely accurate. Financial aid is meant to help with regular living expenses, but it only goes so far.
“Many students need student loans to help pay for daily living expenses like cell phones and food, but it is never a good idea to use student loan money to fund vacations,” Josuweit says. "Depending on the interest of their loans, these students could be paying hundreds of dollars in interest on top of what the vacation cost them.”
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8051e427ed8d937a83b1d485867bdc7c | https://www.forbes.com/sites/kateashford/2017/03/31/stress-levels/ | 10 Ways To Lower Your Work Stress Levels | 10 Ways To Lower Your Work Stress Levels
More than 60% of workers say they feel stressed on three or more workdays per week, on average, according to a recent survey from payroll company Paychex. Seventy-three percent rated their stress levels at a three or higher on a scale of one to five, and more than half said that stressing over things less would help them feel happier.
What’s causing the stress? More than 80% of respondents said they’re stressed at work because they’re missing out on time at home, the survey found. Another 52% said they work overtime, and 47% said they work on non-required weekends. Other complaints run the gamut, from complicated work to long hours to tough deadlines.
What’s the answer to all the work stress? Here are suggestions from both experts and workers who have lowered their own stress levels:
Crank up the music. “When projects start to pile up and I panic about which one to start first, I take a break and open up Spotify,” says Megan Frisina, 26, who lives in Cleveland, OH. “I put my headphones on and listen to a song or two while sipping some coffee or tea and avoid my computer screen. Then I’m ready to start.”
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Find your inner Buddha. “Practicing mindfulness is a great way to help relieve stress,” says Maura Thomas, founder of RegainYourTime.com and author of Personal Productivity Secrets. “Buddhify is my favorite mindfulness app. The benefits of mindfulness meditation practices include improved decision making, relationships and creativity. Adding more moments of stillness to your day helps you feel calmer, more energized and less distracted.”
Take lunch. When’s the last time you ate lunch away from your desk? “Lunch means more than fueling ourselves for the rest of our hectic afternoon,” says Jacqueline Lewis, founder of the World Gratitude Map. “Done right, it can be a microcosm of our ideal day, a deliberate mix of pleasure, sustenance, engagement and rest.”
Enforce some boundaries. It’s easy to let work infringe on your personal time with email and constant digital check-ins. If you can, make a rule that you won’t check work email from home after 8 p.m. or that you won’t answer your work phone during dinner with your family, recommends the American Psychological Association.
Break for a hobby. “When I get stressed during the day, I play piano,” says Gene Caballero, co-founder of lawn care site GreenPal. “Playing any instrument has been scientifically proven to engage every area of the brain at once, so it gets my mental capacity going again and helps me through my afternoon. It’s like a mental full-body workout.”
Get moving. “I started learning Tai Chi about 12 years ago and have gotten progressively addicted over the years,” says Paige Arnof-Fenn, 51, who lives in Cambridge, MA. “It is a way to both relax and focus. You can do it anywhere and it requires no equipment at all. I have met some great people, it has helped my balance, improved my bone density and helped calm my mind. I just love it.”
Think of the good things. “Make a daily gratitude list by writing down 10 things you are grateful for,” says Kimberly Hershenson, a therapist in New York City. “Focusing on what is good in your life as opposed to ‘what is going wrong with your job’ helps relieve anxiety around work.”
Breathe. “Deep breathing is the most powerful exercise you can integrate daily into your workday,” says Michael Tamez, a lifestyle coach and wellness blogger. “The added benefits of deep breathing are that it allows you to inhale peace and tranquility and exhale stress and anxiety.”
Take your vacation. U.S. employees are letting an average of four vacation days sit unused each year, but mental breaks are important for your sanity. Make a point of using all of your vacation time and try, as much as possible, to disconnect from work when you’re away.
Reframe your stressors. Sometimes it’s all in how you think about it. Instead of focusing on the negatives, think of your stressors as “Let’s see what I can take on today,” suggests Srini Pillay, M.D., CEO of the NeuroBusiness Group and author of Tinker, Dabble, Doodle, Try: Unlock the Power of the Unfocused Mind. “You decrease your brand anxiety center activation and increase activation of the thinking brain.”
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a89a339c62ce53cdb5a4479fc90bc893 | https://www.forbes.com/sites/kateashford/2017/08/22/on-their-own/ | 63% Of Moms Say Adult Kids Aren't Prepared To Live On Their Own | 63% Of Moms Say Adult Kids Aren't Prepared To Live On Their Own
So much for a mother’s love. According to a recent survey of 1,000 mothers by The NHP Foundation, a not-for-profit provider of service-enriched affordable housing, nearly two-thirds believe their adult kids aren’t fully prepared to live on their own.
Further, only three in 10 moms say their adult children who live with them are actively looking for another place to live, and only four out of 10 say their kids pay rent.
"In our conversations with associates and others working in the housing industry, and even in my own experience as a parent, people want the succeeding generations to be as independent and self-sufficient as possible," says Richard F. Burns, trustee and chief executive officer of The NHP Foundation. "However, economic forces don’t always comply, and that sometimes means young adults do need more help from parents, but 63% is higher than we expected."
Even given that number, however, fully 36% of moms say they aren't prepared to help their adult children financially after they move out. This could be because parents feel that all their "help" so far is what has led to the current situation.
“As a parent myself, I haven’t done the best job in preparing our children for the real world, let alone the responsibilities that go along with it,” says Brett Anderson, a financial planner in Hudson, WI. “We’ve helped too much, I think that’s where we’ve gone wrong. Many children are not capable of thinking or problem-solving for themselves.”
If you have a child approaching adulthood or an adult child living at home, here are some strategies to help them successfully fly the coop:
Is your child ready to move out? (Shutterstock)
Help them create a budget. You can work with your adult children to construct a spending plan, and it’s helpful for a variety of reasons. “Talking through the various aspects of creating a budget will help both parents and children open up other valuable conversations as well,” says Cynthia Boman Thompson, a financial planner in Portland, OR. “These can include how much their son or daughter can afford for rent and ensuring that other expenses are also discussed, such as for laundry, groceries, phone, insurance and more.”
Be clear on costs. What do you expect your child to pay for if he’s living in your home? “Can your child stay on your cell phone plan or car insurance?” says Melissa Sotudeh, a financial planner in Rockville, MD. “Will the child be expected to buy groceries and prepare meals independently? Clear communication means fewer conflicts and misunderstandings.”
Make your home a test run. In other words, arrange for your child to live at home just like they would live in an apartment—they pay rent, a share of utilities and household items, and cover all of their discretionary expenses. “What the parents have them pay is typically pretty modest, but can be structured to be more or less depending on the adult child’s income level,” says Mychal Eagleson, a financial planner in Indianapolis. “Once implemented, this exercise prepares them for what they’ll face when they do leave the nest.”
Turn their “rent” into launch money. You can participate in the same exercise as above, but have them deposit their rent and utility payments into an interest-earning savings account. “It will get them used to living on a budget, and they will leave the nest with a savings account that they could access as an emergency fund,” says Paul Tramontozzi, a financial planner in New York City.
Encourage your child to continue living like a student. “Explain the value of living below your means,” Sotudeh says. “Having roommates and keeping expenses low should leave enough money to build an emergency savings account and contribute to a workplace retirement plan or IRA.”
Enlist help if you need it. “When parents and adult children cannot discuss personal finances without it becoming a volatile conversation, they might seek other alternatives, such as the help of a professional or encouraging their child to enroll in an educational financial class,” Thompson says. “Some employers offer financial wellness programs as well, which can provide a positive structure for supporting the successful launch of adult children.”
Keep talking. "We encourage everyone, not just parents, to become as financially literate as possible," Burns says. "And to talk about money from an early age. The only way to get comfortable and knowledgeable is through frank and open conversation. We offer courses on financial literacy at many of our properties through our affiliate program, Operation Pathways, and can see the benefits accruing from residents gaining a financial education."
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5c900515d840dc970b03b4111e75f8b5 | https://www.forbes.com/sites/kateashford/2017/08/30/paycheck/ | 9 Ways To Stop Living Paycheck To Paycheck | 9 Ways To Stop Living Paycheck To Paycheck
Nearly eight out of 10 workers (78%) live paycheck to paycheck, according to a new survey from CareerBuilder.com. That’s up from 75% last year, and it applies even to those making six figures: one in 10 workers making $100,000 or more say they live paycheck to paycheck.
“In working with many clients over the years, I have found that most people tend to spend their entire paycheck if it is available in their bank account, regardless of whether they are at a low/middle level or are highly compensated,” says Marc Kodomatsu, a financial planner in Lake Oswego, OR.
If you’re putting away adequate savings for your goals and you have a healthy emergency fund, living paycheck to paycheck isn’t necessarily a disaster. But a quarter of Americans have no money saved for an emergency, according to Bankrate, and 20% have less than three months of living expenses in the bank.
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“The events in Houston are a stark reminder of the perils of living paycheck to paycheck,” says Thomas Balcom, a financial planner in Lauderdale-by-the-Sea, FL. “For those folks who have flood insurance, they may not have the funds available to cover their deductible or tie them over until they return to work.”
Breaking the paycheck-to-paycheck cycle takes discipline and a plan. Here’s what top financial experts recommend as the best steps toward more financial independence:
Track your spending. Much of paycheck-to-paycheck spending is because you aren’t paying attention to your outflow of money. Take two to four weeks and document every purchase, whether it’s by credit card or cash. At the end of the period, you’ll be able to see where your dollars are going—and you’ll be more conscious of your overages. “Optimistically, performing the above process will change a person’s cash spending habits and make each paycheck go further, so there are actually funds still left when the next paycheck arrives,” says Sallie Mullins Thompson, a financial planner in New York City. “If this doesn’t help, a more drastic approach may be needed.”
Make savings automatic. If you plan to save “whatever’s left over” after you spend the rest of your paycheck, you’ll never put anything away. Whether you’re building up emergency savings or putting money away for retirement, that money should come out first, ahead of the rest of your spending. Set up an automatic transfer on paydays from your checking account to the savings account of your choice, or sign up for your company’s 401(k) plan to have retirement savings happen automatically. The more you can put on autopilot, the better.
Put savings elsewhere. If you’re managing to save, make sure you’re putting your dollars somewhere you can’t easily get to them. “If you can easily transfer funds same day from a savings account to a checking account at the same bank, those funds will often get spent,” Kodomatsu says. “Using an account that is not very accessible helps.” That means an interest-earning savings account or money market at another institution, if you can.
Take a hard look at your fixed expenses. Sometimes a paycheck-to-paycheck existence means you’ve locked yourself into a lifestyle you can’t really afford. “The general rule of thumb is that your monthly housing expenses should be 28% or less of your monthly gross income,” says Natalie Barber, a financial planner in Atlanta. “If you are outside of that range, you may want to consider moving to a less expensive neighborhood or downsizing or getting a roommate.” The same goes for that luxury car—how would it impact your budget if you sold it and purchased a more economy vehicle?
Then turn to your want-to-haves. Many of your expenses are necessary—mortgage, insurance, food—but what’s left over is more flexible. Try ranking your discretionary spending items from most important to least important. “If someone has a gym membership that costs $150 a month, could they sacrifice or compromise to a cheaper solution?” says Stephen Jordan, a financial planner in Peoria, IL. “If someone has a cable package that is $200 a month, could they get by with one that costs $50 a month?”
Save your raises. If you’re truly locked into a lifestyle with no wiggle room, make it your goal to use raises and bonuses to sock money away, suggests David Mendels, a financial planner in New York City. Whenever you receive a salary bump, tax return or bonus cash of any kind, use it to build up your emergency savings or bolster your retirement fund.
Choose someone to help you stay on track. “Working with someone to hold yourself accountable is probably the most important thing,” Jordan says. He recommends working with an advisor, relative, spouse or a trusted friend to increase your chances of success. “I compare this to working with a nutritionist or trainer to lose weight," he says. "It isn’t really something that can be done over the course of one meeting.”
Find your “why.” You must have a strong reason to change your habits. Are you saving toward a down payment on a second car that will make your family life easier? Or a down payment on a house so you can stop renting? “You must have a dream and a belief that you can make it come true,” says Dana Anspach, a financial planner in Scottsdale, AZ and author of Control Your Retirement Destiny. “Otherwise, why cut the cable TV? You have to believe that making a small change now will lead to a better life.”
Be patient with yourself. “Moving to a savings mind frame for someone who hasn’t saved is similar to moving to a healthy eating lifestyle for someone who eats mostly fast food and sweets,” Barber says. “It’s hard to break habitual spending habits and even harder to have clients reflect on their emotions and feelings toward money. This usually isn’t an easy fix.”
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976fc56ef12a22b2ae932848fe31424d | https://www.forbes.com/sites/kateashford/2017/09/28/4-out-of-10-millennials-would-sell-their-engagement-rings/ | 4 Out Of 10 Millennials Would Sell Their Engagement Rings | 4 Out Of 10 Millennials Would Sell Their Engagement Rings
It used to be that etiquette experts recommended spending twice your monthly income on an engagement ring. But that’s a big chunk of change, and today’s couples aren’t buying it—literally. Thirty-seven percent of Millennials say they’d sell an engagement ring to fund a major life purchase, such as a home, travel or higher education, according to a survey by WP Diamonds. That’s a bump up from older generations, in which only 23% would choose to hock the ring.
Millennials are also choosing to go with different kinds of engagement rings—simple gold bands and colored gemstones.
“On the surface it seems like Millennials are competitive, materialistic and flashy, especially as a result of their tight connection to social media,” says Andrew Brown, president of WP Diamonds. “However, we’ve seen through this survey, as well as a wide variety of other studies, that this generation is actually very smart about their purchases and dedicated to properly planning for the future.”
In fact, 55% of Millennials sold diamonds and other sentimental jewelry in 2016 to help prepare for the future, the survey found. And 69% of them would consider exploring alternative engagement rings in place of traditional white diamonds.
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“There will always be a market for extravagant engagement and wedding rings, as this is a custom that has existed for decades,” Brown says. “However, there has definitely been a clear shift toward alternative options that has affected the diamond industry and its growth. Even those who are looking for substantial rings are looking to the secondhand market to purchase at a more reasonable cost.”
Millennials chose the following as the most important use of their money:
House (62.7%) Higher education (58.8%) Travel (52.9%) Car (31.5%) Engagement Ring (25.5%)
“Millennials are informed, they know what things are worth and they value quality of life above all,” Brown says. “So trading in diamonds for experiences or adjusting their engagement ring choices for pieces that better suit their lifestyle and future makes more sense to them than wearing or holding on to something because they feel they’re supposed to.”
Want to sell your jewelry to fund something important? Here are some tips:
Understand what you have: Your grandmother’s ring may be worth a lot more to you than to someone on the street. Sentimental value doesn’t add actual value to your jewelry, unfortunately. Have your item appraised by someone from the American Society of Appraisers, the International Society of Appraisers or the National Association of Jewelry Appraisers.
Know your timeline. Do you need to sell it quickly, or do you have some time to research the best price? You’ll get more for your valuables if you have the time to find the right buyer, versus visiting a pawn shop and making an immediate sale.
Be cautious selling online. Finding a legit buyer for your jewelry online is tricky—and fraud is rampant. But there are a few specialty sites, such as TheRealReal, SnobSwap, and IDoNowIDont.com, a site that came about because its founder wanted to sell a diamond ring after a broken engagement. Sites such as WP Diamonds and Diamond Buyers International are also options—and both are accredited by the Better Business Bureau. Do your research before committing.
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ff84f9834312f56f0b86f2157027dcff | https://www.forbes.com/sites/kateashford/2017/09/29/fafsa/ | 7 Things You Should Know Before Filing Your FAFSA | 7 Things You Should Know Before Filing Your FAFSA
It’s that time again—time to start thinking about college and financial aid. And it’s time to prepare to file your FAFSA, or Free Application for Federal Student Aid. Like last year, the form can be submitted starting October 1. “A lot of people are still used to the New Year opening date, so it’s important to really remind students that [October 1st] is when it opens,” says Jasmine Hicks, national field director at Young Invincibles, a Millennial research and advocacy group.
Here’s what you should know about this year’s FAFSA:
It pays to file early. You can submit as early as October 1, which is this Sunday. And the earlier you submit, the better, since FAFSA money can be a first come, first served kind of pool at some schools. If funding is limited and your application arrives at the end of the process, you could be out of luck.
Online is king. Sure, you can get a paper copy of the FAFSA—but why would you want to? The online version will skip questions that aren’t applicable to you and will catch common errors, much like online tax software.
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You’ll need an FSA ID. This is not scary. Just click here to create your FSA ID, which you’ll use to confirm your identity on some financial aid forms. It’s possible that you may have to wait up to three days before you can use your FSA ID, so you should do this sooner rather than later. And guess what? Dependent students will need the electronic signature of one of their legal parents, so the parents will need an FSA ID also. (You can't both use the same one.)
The tax part is easier now. It used to be that you had to estimate the previous year’s taxes and go back later to submit the correct data. Now there’s the ability to use the site’s IRS Data Retrieval Tool, which will automatically fill your form with the correct info. This year’s data will come from the 2016 tax returned that was filed.
Everyone should file it. You might think you or your parents earn too much income to qualify for any financial aid, but you might be surprised. And the FAFSA is used to determine your eligibility for a variety of things, from federal grants and loans to work-study programs. Federal loans are more borrower-friendly than private loans, so it’s worth your while to fill out the form.
Understand what counts. If the student in the family has a non-529 college savings fund—or a bank account with money they plan to use for college supplies—you should know that the FAFSA counts student assets at a higher rate than parent assets: 20% versus up to 5.64%. (So each $1,000 in a student’s name would decrease his need-based age eligibility by $200, while $1,000 in a parent’s name could bump it down by $56.40.) If you can, go ahead and purchase some things the student needs for school before filing the FAFSA.
Report the right money. When it comes to listing assets, college savings plans and brokerage accounts and bank accounts are considered reportable assets. But retirement accounts, life insurance policies, home equity and personal possessions are not—so don’t list them.
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ffc8157541676d51f49158bac716215d | https://www.forbes.com/sites/kateashford/2018/03/31/tax-experts-you-might-be-missing-these-tax-deductions/ | Tax Experts: You Might Be Missing These Tax Deductions | Tax Experts: You Might Be Missing These Tax Deductions
When it comes to taxes, Americans aren’t too keen. Thirty-seven percent of people would move to a different country for a tax-free future, according to a recent survey from WalletHub. Half would rather have jury duty than do their taxes, and 19% would rather talk to their kids about sex.
So, it’s possible that at tax time, some people are trying to get through the process as quickly as possible. But in doing so, they may be missing some valuable deductions—some of which will no longer be available to taxpayers after 2017 filing.
“Maybe it’s something you’re doing in the evening and you’re kind of stressed and you just want to get it done,” says Steven Trytten, a tax and trusts and estates lawyer and certified CPA with Anglin, Flewelling, Rasmussen, Campbell & Trytten in Los Angeles. “You may not remember all the things throughout the year [that you can deduct] or know what questions to ask. It’s human nature.”
The best way to ensure you’re claiming all the tax benefits you qualify for is to maintain accurate and organized tax records. “These are essential for both DIY tax filers and those who work with a qualified tax professional,” says Brian Wainscoat, CPA and tax specialist at Personal Capital.
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Make sure you aren’t overlooking these deductions this year:
State and local taxes paid. Sometimes, when you’re working on your return, you have a balance due on a state or local income tax return. “A lot of people forget to add that into their deductions,” Trytten says. The rules are very different in 2018 on this, so take the deduction now if you have it.
State sales taxes. If you itemize tax deductions and live in a state with no income tax, like Florida or Texas, remember to claim a deduction for state sales taxes paid, says Jim Brown, a CPA and personal finance expert in New York City.
It might also be that in certain circumstances, your sales tax paid exceeds the amount of state and local income taxes paid. "One example is in a year that you make a big purchase, such as a car," says Howard Hook, a CFP and CPA with EKS Associates in Princeton, NJ. "Or maybe in a year where you renovated your home and spent some money on furnishings or appliances. It can be a pain to keep receipts of all the items you paid sales tax on during the year, which is why many people miss the deduction."
Self-employed health insurance. Self-employed people can deduct the cost of health insurance premiums “above the line,” says Paul Herman, a CPA in White Plains, NY. “But many older self-employeds don’t know that they can deduct the cost of Medicare premiums and supplemental insurance as self-employed health insurance above the line. That’s better than taking as an itemized medical expense on Schedule A, which is limited to an amount that exceeds 7.5% of adjusted gross income.”
Self-employed travel. As a business owner, work-related travel expenses are 100% deductible. “Consider all of your travels last year that may have involved a meeting with a client, a vendor, a training meeting, a tour of a competitor’s facility, your annual board of directors, manager or member meeting, or a conference with retreat,” Kohler says. “It just doesn’t make sense for any business owner to not have some travel expenses.”
Self-employed dining and entertainment. Consider all the meals you had last year where you discussed business with a partner, potential client, vendor or strategic alliance. “You don’t need a receipt if it was less than $75, but you should be able to substantiate if necessary with a credit card or bank statement and the purpose of the meeting,” Kohler says.
Self-employed mileage. “The IRS allows anyone that operates a home office or people that work for themselves to take a tax deduction of $0.545 per qualifying mile, or $0.535 per mile in 2017,” says Aaron Lesher, a CPA and head of customer success at Hurdlr. Qualifying trips include a drive from your home office to a client, but not your regular commute. “Over the course of a year, though, the mileage deduction can add up to thousands of dollars,” he says.
Excess capital losses. These can be carried over and deducted in future years. “Many tax softwares will keep track of these losses for you and automatically enter them,” says Michael Eckstein, an Enrolled Agent and owner of Eckstein Tax Services. “But sometimes these carryovers get lost when changing accountants or DIY software. When changing accountants, always bring a copy of your previous year’s tax return, and when changing software, make sure you enter your carryovers.”
Investment advisory fees. These can be deducted as an itemized deduction. “And 2017 will be the last year for this itemized deduction because the standard deduction is doubling,” says Bishop Toups, a tax attorney in Venice, FL.
Student loan interest. Students—and graduates—don’t always realize that the interest they pay on student loans is deductible. “Filers can receive up to $625 for claiming this deduction,” says Mark Kohler, CPA and senior tax advisor at TaxSlayer. “To qualify, your adjusted gross income must be $160,000 or less if filing jointly, or $80,000 or less for single filers.”
Educational credits. “Certain eligible students with incomes that are low can get a couple thousand dollars of tax credit against their education expenses,” Trytten says. Check out the Lifetime Learning Credit and the American Opportunity Credit for more details.
One-time deductions. “Most people know about annual deductions, such as state income and local real estate taxes, because they happen every year,” says Benjamin Sullivan, a certified financial planner and enrolled agent with Palisades Hudson Financial Group in Austin, TX. “But less frequent deductions can be valuable.” For instance, if you’ve experienced theft, fire or another loss, you may be eligible for the casualty, disaster and theft loss deduction. Homeowners who made qualified energy-efficient improvements like adding insulation or installing energy-efficient exterior windows may be able to claim a credit for 10% of the associated costs. There are also deductions associated with job hunting costs and with adoption.
Itemized deductions in general. People often underestimate their itemized deductions, and without big ticket items—like mortgage interest or state sales tax—it’s hard to reach the required amount for federal taxes. But even if it doesn’t work for your federal return, it might be a different story on your state taxes, even if all you have is charitable contributions. “Of itemized deductions, the ones I come across most often that people are unaware of are church tithes and contributions to religious organizations, or that they can deduct their tax preparation costs from the previous year,” says Tawny Fernandez, chief marketing officer and head tax preparer with Newsome’s Tax & Accounting in Kennesaw, GA. “Last year I had a client who gave over $3,000 in tithes and didn’t want to claim them as a deduction because she felt it was just her duty as a member of the church.”
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dd458577dc6b255112fe3db23b53b2e5 | https://www.forbes.com/sites/katecooper/2019/05/23/what-can-leaders-do-to-fix-capitalism/ | What Can Leaders Do To Fix Capitalism? | What Can Leaders Do To Fix Capitalism?
Charging Bull Of Capitalism robert cicchetti, via Shutterstock
The current hierarchical form of capitalism is relatively new. We need to try and work through a process of evolution.
Customers… employees… suppliers. If anyone in that chain is taken advantage of – or outright exploited – then something isn’t working. Something is broken.
While we look to our governments to set up regulatory frameworks that mandate ethical behavior, it’s in the relationships between people that morality is created.
And a growing body of evidence suggests that inequalities between social groups are undermining not just the chain between commercial stakeholders, but public faith in the morality of the system on which the world relies: capitalism.
This month, UK think tank the Institute for Fiscal Studies published Inequalities in the 21st Century. The report warns that only one in six people think capitalism is currently working well in Britain – and that more young people favor socialism.
The report also warns that “ some question whether inequality may pose a threat not just to capitalism but also to our democratic system.”
Economist Angus Deaton, who coordinated the report, commented: “…we need to think about repairs for democratic capitalism, either by fixing what is broken, or by making changes to head off the threats.”
Deaton and the IFS are not the only ones with this conundrum on their minds.
Another is management philosopher and Institute of Leadership & Management Companion Charles Hampden-Turner, who – with professors Fons Trompenaars and Linda O’Riordan – has penned the forthcoming book Capitalism in Crisis: What’s Gone Wrong and How We Can Fix It.
Capitalism, the authors assert, “is not ‘freedom’ assured by some divine, global mechanism but a set of suppositions and rules we have constructed for better or for worse.”
As such, they note, a crisis in capitalism “gives us a chance to reconceive. We need to ask what an economy is for, and this means being ‘radical’, [by] going to the roots of what it means to create wealth. We need a moral science of economic development around which whole nations and regions can cohere.”
What might such a new moral science encompass?
A stakeholder ethos
At last year’s Global Peter Drucker Forum, former Unilever boss Paul Polman called for a greater connection between people’s pension pots and where they are invested.
We are so removed from pension investment funds, which are among capitalism’s most fervent supporters. But if employees had more choice and say over the causes to which their pension contributions are put, we may raise a different sort of consciousness that would spur changes in investors’ behaviour.
A local outlook
An interesting finding that emerged from soon-to-be-published ethical research we’ve carried out at the Institute was how difficult large corporations find it to properly engage with the communities in which they work – particularly in terms of sourcing materials locally.
But in the UK, we are seeing a movement against that – particularly among supermarkets such as Morrisons, which pride themselves on selling products that have been grown or sourced locally. Organizations that are taking these sorts of ethical positions, and bringing their customers with them, are going to make the biggest changes to capitalism.
A fairer rewards system
Vastly skewed pay ratios between organizations’ lowest and highest earners are difficult to justify.
The Institute recognises the multi-dimensional nature of leadership, and one of its recognised dimensions is that of Achievement. It is beholden upon leaders to deliver results – and they should be rewarded purely on the strength of those results. And only after a significant timeframe for measurement has passed.
Broader delegation of leadership
Anthropologists who studied hunter-gatherers of 200,000 years ago believe that they lived in mobile, collaborative groups, and that leadership within those groups was distributed.
So the hierarchical form of capitalism we are familiar with is relatively new. In the grand scheme of things, we are trying to work through a process of evolution. All being well, we will arrive at a system that works.
We tend to forget that we learn by trial and error. Capitalism is a young form of organizing economies – and other forms have also not been as successful as the visionaries who championed them may have hoped. So there will always be adjustments.
But for me, rewarding the people who create value is fundamental not only to how organizations should be run – but how they will survive. Invest in the long term. Think about sustainability. Be inclusive.
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f619d2be56f0c5dcb786a274e0a743be | https://www.forbes.com/sites/katecooper/2019/06/06/what-can-organizations-learn-from-jacinda-arderns-well-being-budget/ | What Can Organizations Learn From Jacinda Ardern's Well-being Budget? | What Can Organizations Learn From Jacinda Ardern's Well-being Budget?
New Zealand's Prime Minister Jacinda Ardern Alexandros Michailidis, via Shutterstock
Any “single measure” approach to accounting for a complex body of data is going to be a crude one… a blunt instrument.
That’s especially true if the measure happens to be GDP and the body of data is a nation – or, indeed, a planet.
GDP excludes unpaid work. It makes no distinction between labor that’s had to be carried out because something’s gone wrong and has to be put right. It offers no insight into quality, or indeed ethics, and is more suited to a pre-digital era.
So it was exciting on 30 May to see New Zealand’s Prime Minister Jacinda Ardern launch her country’s long-awaited Well-being Budget. The Kiwi fiscal program for 2019 essentially argues that GDP is not enough by itself to sustain a country’s stability and morale.
As such, it sets out five, priority areas that the government will address through generous public spending: the mental well-being of all New Zealanders, chi There is a broad spectrum of dissenting voices that are challenging the whole notion of growth as a totemic ideal. ld poverty, Maori career prospects, digital innovation and the transition to a sustainable economy.
Ardern explained: “New Zealand has had strong growth for a number of years, all the while experiencing some of the highest rates of suicide, unacceptable homelessness and shameful rates of family violence and child poverty.
“Growth alone does not lead to a great country. So it’s time to focus on those things that do.”
Ardern’s unconventional Budget quickly drew criticism. Kiwi commentator Rita Panahi even dismissed it as “kooky.” But the type of thinking from which the program sprung has been around for years.
In the 1950s, businessman and philosopher George Armin Goyder spearheaded the “social audit” movement, which argued that if the private sector doesn’t account for the social and environmental impacts of its activities, then its performance figures are never going to accurately reflect where society is at.
In 2005, the UK’s Atkinson Review explored the scope for developing more detailed ways of measuring government outputs, and the resulting social outcomes.
Over the past few weeks, environmental campaigners have said that if industrial nations are to stand any chance of meeting their carbon-emissions targets, we’ll have to sacrifice economic growth – as measured by GDP.
On top of all those examples, Francis Fukuyama’s recent book Identity: The Demand For Dignity And The Politics Of Resentment has flagged up a direct link between populism and the rise of identity politics, highlighting the willingness of some social groups to sacrifice economic gains for other values they consider more important.
So there is a really broad spectrum of dissenting voices that are challenging not just the dominant orthodoxy around GDP as a metric, but the whole notion of growth as something that all economies should aspire to as a totemic ideal.
Workforce experts around the world acknowledge that, thanks to automation, the number of days in the working week will continue to decline. According to various estimates, in the UK alone, by 2050 workers will have an available surplus of between 2.6 and 26.6 billion hours to use for unpaid activities.
People may choose to occupy themselves with non-work related tasks, such as charitable or caring responsibilities. GDP will be an increasingly inadequate means of encapsulating and measuring the relevant efforts.
With her Budget, Jacinda Ardern is saying: “These five areas are the most important measures for the people of New Zealand.” If we look at how that may be echoed within organizations, leadership teams could ask: “Which measures are most important to us?”
We may find – just as Fukuyama argues – that while there is a continuing recognition of the importance of profitability, there are plenty of other measures that our people would value.
These may include job security, well-being, flexible working – or a true calculation of an organization’s environmental impact. One way or another, though, it’s undoubtedly the case that a single measure of success and growth is inadequate for shaping the sort of society we want to live in.
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9648959bb06c191c13692e925798e0b3 | https://www.forbes.com/sites/katecooper/2020/12/02/yes-some-collaborative-working-works-better-remotely/ | Yes, Some Collaborative Working Works Better Remotely | Yes, Some Collaborative Working Works Better Remotely
Physical distance can lead to emotional proximity DangBen for Shutterstock
Don’t get me wrong. I miss people. Meeting and greeting colleagues, clients and suppliers is part of the joyful flow of business. When the world is a safer place, I’ll be quick to arrange real meetings with real people, share the same physical space, hear the warmth of their voices, and pick up those important non-verbal communications cues that the computer screen, as yet, is unable to convey terribly well.
Yet, as this column has long held, there will be no return to the nine-to-five and nor should there be. Some tasks are better in the solitude of one’s own space; others are collaborative and enriched by personal contact. But there is a third category too: collegiate working that is enhanced by being physically apart.
It’s AGM and conference season across much of the United States and Europe. The fear was that virtual conferencing would be a flop: people would rapidly lose interest if they were no longer able to engage in the most enjoyable and informative aspect of such events – the coffee break.
Yet the reverse has proved true. Research from DF King shows that virtual and hybrid AGMs have triggered an increase in shareholder engagement. The report General Meeting Season Review – A Year Like No Other found that FTSE 100 corporates have seen their AGM participation levels rise by 1.7% this year to reach 76% of issued share capital, after flatlining at 74.3% over the previous two years. AGM proposals have also passed with high levels of shareholder support, averaging almost 97%.
DF King director Alison Owers said that despite initial doubts over virtual AGMs, proper governance and shareholder access has been maintained and the format has resulted in greater levels of engagement.
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While many peer-to-peer meetings are going to be more interesting and creative in person, remote formats can work brilliantly for larger groups. This year’s Global Peter Drucker Forum was staged online – and was a triumph. Audience interaction was much increased on previous years. The experience was wholly more democratic –speakers felt closer to hand on a laptop screen than from the traditional elevated stage. And, because participants could throw out questions in real-time, the relationship between those presenting and those watching was more visceral and interactive.
In its pre-pandemic incarnation, the Drucker Forum took place in the splendid, opulent surroundings of Vienna’s Imperial Palace. The speakers were high up on a stage, far removed from the assembled delegates. That gave a more hierarchical experience than everyone being together on a screen. The level of debate and challenge this year was far greater than before coronavirus struck.
Of course, we all missed Vienna – who wouldn’t? The thousands of informal interactions made in person on the fringes of the conference, at coffee time, or at drinks in the evenings, sometimes led to new ways of thinking; the foundation of interesting partnerships; or constructive challenges that changed the way we do business.
There is a happy middle ground somewhere. The risk is that firms become so accomplished at staging online AGMs – which, of course, have the organizational attraction of huge cost savings – that they end up reasserting all the old hierarchies that physical formats once embedded. That would be to create the worst of all possible worlds: simulating the weaknesses of physical conferencing while jettisoning the assets.
So be aware of that specter rising. But fear it not. The virtuality of modern conferencing is a radical change – and mostly one for the better. The future conference should mine the benefits of virtual debate and interaction and couple them with the joys of being around real people from time to time.
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f3a8673fcdc1c7c009850c1ace2ae205 | https://www.forbes.com/sites/katecooper/2021/01/12/has-covid-19-sparked-an-increase-in-prejudice-from-our-home-office/?ss=leadership-strategy | Has Covid-19 Sparked An Increase In Prejudice From Our Home Office? | Has Covid-19 Sparked An Increase In Prejudice From Our Home Office?
Offices foster interactions and - it seems - integration Shutterstock
What role do offices play? It’s the sort of question that has exercised the minds of leaders since Covid-19 began. Some are desperate to get back behind the desk; others would rather abandon it entirely.
Most of the focus has been on the direct impact offices have on people’s working day: Are they better for collaboration, or worse? Do they lead to more productivity, or less? Do they enhance creativity, or limit it? There has been precious little debate on the wider effect office life has on people’s wider lives – their whole being.
Like any physical meeting place, offices foster interactions and – it seems –integration. By contrast, homeworking triggered by the Covid-19 pandemic could spark an increase in prejudice and racism, according to interfaith research body the Woolf Institute at Cambridge University.
The office acts as a real-life melting pot: bringing together people of different creeds, colors and cultures who wouldn’t otherwise meet, according to Woolf’s new report How We Get Along: The Diversity Study of England and Wales
It found that three-quarters of residents in the two studied countries worked in an ethnically diverse setting. It added that those without work were up to twice as likely than those in work to lack any friends from outside their own ethnic, national or religious group.
Workspaces, the researchers wrote, “provide opportunities for integration and meeting points to create shared goals, break down stereotypes and foster positive attitudes towards one another.”
Suffice to say, people don’t encounter – less still interact with such a heterogenous group when marooned in their own living room, home office or garden shed. Most of the people they meet each day are in their own families. The opportunities for socializing with fellow humans from other countries, races and religions are limited.
In the understandable panic that ensued when the pandemic broke out, few stopped to consider the impacts on diversity and integration of abandoning the office. Yet remove people from the very place they mix and mingle, and those impacts can be profound.
So what to do? Woolf Institute founder Dr Ed Kessler warned that the pandemic is disrupting cohesion: as a result of working apart throughout the crisis, workers have been prevented from engaging in the everyday social mixing between different cultures that is a feature of the physical workplace. “Friendships break down prejudice,” he said. “Workplaces are places not just of work but of meeting, encounter and friendships. As people are forced to work from home during Covid, there is a risk that they go back into isolated silos. Creating new opportunities for friendships should be a key ingredient of public policy.”
Yet while Kessler’s diagnosis is astute, his remedy seems misguided. It is not the job of governments to create new opportunities for friendships. It is the role of leaders and organizations to foster an environment in which interaction engenders integration. The organizational – and societal – benefits are massive. The alternative is destructive.
The vaccine is here, and the end of the pandemic in sight, yet remote working will endure. The attendant risks to diversity and inclusion will be present long after the world is inoculated.
One hazard of the remote-working culture is that it becomes a monoculture – lacking the constructive challenges, informal meetings and cross-cultural interactions of real life. Yet this isn’t a given – diverse, challenging and inclusive remote-working is eminently possible, provided leaders embrace it as an opportunity rather than counter it as a threat.
I recall a disabled woman who was struggling to find work despite her credentials, because most companies wanted someone in the office for much of the working week. That all changed during the pandemic, where almost nobody could be expected to attend in person. The playing field was suddenly leveled up. No longer did those with the wherewithal to reach the office command an unfair advantage. Ability – as it should – trumped proximity.
The widening of the labor pool – to those previous disadvantaged by disability, geography or personal circumstances – is a boon delivered by the remote-working revolution. It is possible to foresee a future whereby compensation is assessed not by hours per week but by tasks per week: the final rationalization of a labor market that had been slowly – too slowly – tending towards a quantification of output over an evaluation of input.
Yet beyond the science, there remains an art. Remote interaction is more convoluted than its real-life counterpart: it takes much more thought, and effort. As meetings, like work itself, increasingly become a thing that we do rather than somewhere where we go, leaders have to strive to make them events where inclusivity and diversity thrive, where people from different backgrounds, with different ideas, can interact whether or not that interaction is applicable to the job in hand. After all, much of real-life meetings are ‘wasted’ (not wasted!) on the informal, trivial conversations that make life fun, and cause people to bond.
Are your online meetings a series of tasks? Do your colleagues consult their watches when people start chatting about something ‘irrelevant’? Is deviating from the agenda frowned upon in your organization? Chatting and deviation, often damned as inefficient, can be effective boundary breakers. Friendships and ideas flow from them.
Isolation, meanwhile, is the enemy of integration and the friend of mistrust. Online meetings should not be utilitarian checklists when they are the only meeting place we have – nor even, when they aren’t.
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b06c264577adfcba3003bcd5e62750c0 | https://www.forbes.com/sites/katedingwall/2020/03/12/the-new-guard-of-spirits-marketers-are-on-instagram/?sh=3341e72512dd | The New Guard Of Spirits Marketers Are On Instagram | The New Guard Of Spirits Marketers Are On Instagram
Gorgeous drinks have infiltrated our Instagram feeds. There are frothy sours, meticulously-placed garnishes and perfectly frosted highballs, made not for sipping, but for the thirsty eyes of scrollers.
Welcome to the world of drinkstagramming.
These micro-market influencers lead a million-dollar industry. Their accounts command TV-scale reach and hold a faithful following of drinks lovers.
Influencers aren’t new, but in the beverage space, they have become prevalent—often as a growth strategy for new product launches or stale brands needing an image refresh.
They act as part brand ambassador, part trusted source, part content creator. For a fraction of the cost of a big-budget marketing campaign (with arguably a far higher ROI), they conjure authentic buzz for brands and bars, complete with compelling visual imagery.
Artisan or craft brands without a vast budget or an army of PR and advertising folk can woo influencers—often, its as easy as sending samples and letting the liquid speak for itself—to help the product gain traction.
A cocktail by Jordan Hughes @HighProofPreacher
Cheers to Happy Hour’s Brenton Mowforth plays pied piper to drinkers, leading them to new spirits or bars through engaging images with a knack for virality.
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If ‘influencer’ makes you think of curated feeds and clever copy, well, he does far more than that: He’s a one-man marketing band; styling, photographing and copywriting his own posts, yes, but also acting as a hired-gun brand strategist and activation specialist.
“[Brenton] has been wonderful working on our brands, including Hendrick’s, Monkey Shoulder, Glenfiddich, Tullamore Dew and Drambuie,” explains Beth-Anne Perry of William Grant & Sons’s Canadian arm, PMA. “His beautiful photos, eye for detail, recipes for exquisitely crafted and curated cocktails from prominent cocktail hot spots and bartenders has been fabulous for us to partner with.”
But the market is getting crowded. There are many content creators who look solely for virality: opting for asinine garnishes and vapid recipes that would prompt scoffs from real bartenders.
Mowforth isn’t trying to replace bartenders. Instead, top-tier drinkstagrammers are acting as industry advocates and connectors; amplifying not just their own recipes but the work and knowledge of stalwart bartenders. They are storytellers, spreading knowledge of the industry and connecting authentically with consumers in a way a magazine ad just doesn’t anymore.
A selection of cocktails from CheerstoHappyHour's Brenton Mowforth Brenton Mowforth, @CheerstoHappyHour
For years, Jordan Hughes, behind High Proof Preacher, was a preacher. But Instagram opened the door for Hughes to become one of the most regarded cocktail photographers in the industry.
It started as a pastime. “I thought Instagramming would be a fun combination of two of my hobbies: photography & cocktails. I’ve never worked at a bar, but living amidst Portland’s happening cocktail scene, the bar & spirits world fascinated me.”
He went down a hole, reading through cocktail books and grilling bartenders on techniques and tools. As the account grew, brands started seeking him out.
Now, Hughes works with brands on social strategy and management. He’s on a photography retainer with beverage companies and restaurant groups. His photography has taken him to Belize, Scotland, Mexico and beyond. On the side, he pens pieces and creates recipes for VinePair, Chilled Magazine, thirsty., and Imbibe Magazine.
Why influencers? A big draw is the pre-installed audience of liquor lovers.
“A brand could easily tap a lifestyle influencer with a much larger following than me,” explains Hughes, “but they won’t know if any portion of their following even cares about spirits. Since I have a more niche focus, I’ve been able to build an engaged audience that genuinely cares about cocktails & bar culture. These followers generally trust and seek out my opinion.”
Cocktails were once a hyper-niche fandom, who met in cult bars around the globe, but now, the conversation has burst open. Online, Mowforth is able to interact 24/7 with his audience.
They let him know their thoughts on a drink or product, good or bad. “Everyone is really critical—it makes you constantly step up your game.”
He tailors his content voraciously to meet online trends. “I look through the feedback, analytics and common denominators—I can understand why a post performs well or why it doesn’t.” He can understand what his followers are looking for. (For example, he knows his audience hates dramatic lighting.)
“Tracking our success is far easier than traditional marketing,” explains Mowforth. For him, someone who cut his teeth on traditional marketing, social media offers an expanse of benefits.
“Unlike an out-of-home ad, I can tell you how many people see each post and how many times they’ve seen it. I can tell you where they’re from.” He gives the example of a Scotch ad on the subway. “Half the people who see it may not drink, while a further half of that audience may prefer gin.”
While people will flip past ads in magazines and on YouTube, Mowforth knows his following actively seeks out his content. “I know that I am publishing content for people who love cocktails.”
A frothy whiskey sour made with Cooper's Craft Bourbon by High Proof Preacher Jordan Hughes
The job is far more than snapping a picture. “For the average sponsored post, I’m spending at least 2-3 hours setting up, styling & shooting the content using professional lighting equipment & camera gear,” explains Hughes.
“There's the prep time for taste testing, & developing a cocktail recipe, editing and retouching the final images, writing copy for the post, creating Instagram stories to support the in-feed post, and more. It’s usually at least 6-8 hours per sponsored post when it’s all said & done.”
It’s Hughes’ scrupulous nature that keeps brands in his orbit.
“It’s a double-edged sword,” explains Hughes. “If I start doing too many paid posts; well no one wants to follow an account full of ads. I’d like to think that I’ve gained a certain amount of trust with my followers, so I’m pretty choosy about who I partner with & what products I promote.”
Hughes promises himself sponsored posts will never be his base income. He doesn’t want to rely on it—it will cloud his authenticity. “If my account somehow disappeared tomorrow, while it’d be a huge bummer, I’d be okay.”
Mowforth rounds out his Instagram by acting as a marketing consultant to brands. It’s in his blood—before Instagram, he was a digital marketer and a regular in Toronto’s bar scene. He started an Instagram to learn more about classic cocktails. It snowballed from there.
Now, he offers a variety of services for brands—he can make recipes, run competitions, help get products on back bars or provide analyses and insights to help a brand gain more traction on social platforms.
A range of cocktails by Brenton Mowforth, of Cheers to Happy Hour. Brenton Mowforth
One of the big appeals of Instagrammers is they can help a brand traverse the confines of Tied House Law, a marketing rule in the United States that bans producers from providing anything of value (including advertising and social media promotion) to retailers—including promoting cocktails at on-premise locations or events sponsored by the brand (though brand ambassadors can carry the torch on the latter).
But brands can partner with influencers to promote events and cocktails where brands can’t. Instagrammers can direct drinkers to prominent accounts, building and strengthening relationships with key accounts.
But the simplest benefit of influencers?
People drink with their eyes.
Mowforth remembers a particular campaign with Hendrick’s. He had a bartender make a fluffy, ivory-white Ramos Gin Fizz, a drink that requires anywhere from ten to twelve minutes of shaking.
“The cocktail went viral: everyone started re-sharing it.”
To the bartender’s dismay, “People were buying three at a time.” The bar was slammed.
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21cae59a942c8505e830934a34c76d05 | https://www.forbes.com/sites/katedingwall/2020/03/18/the-restaurant-and-bar-industry-is-petitioning-the-government-for-help/ | ‘We Are In Danger Of Losing It All’: The Restaurant And Bar Industry Is Petitioning The Government For Help | ‘We Are In Danger Of Losing It All’: The Restaurant And Bar Industry Is Petitioning The Government For Help
TORONTO, March 17, 2020 -- A notice of a fast-food restaurant is seen in Toronto of Ontario, Canada, ... [+] March 17, 2020. (Photo by Zou Zheng/Xinhua via Getty) (Xinhua/Zou Zheng via Getty Images) Xinhua News Agency/Getty Images
In the midst of the pandemic, restaurants and bars are in danger. Many are closed, or running with skeleton crews and minimal orders. Hundreds of thousands of hospitality workers are without a job, and many without healthcare.
The pandemic is felt by everyone, from local pubs to industry stalwarts—even Danny Meyer’s Union Square Hospitality Group has laid off 3,000 people.
Industry workers are calling on state and federal governments for help (the capitol switchboard is reachable at 202-224-3121, they urge).
“To put it bluntly,” says Brandon Thrash, former head bartender at Chicago’s Bad Hunter, “an overwhelming number of independent restaurants and bars will not survive this closure without immediate, decisive action from the government.”
A petition, backed by names like Alice Waters, Will Guidara, Tim Hollingsworth, Hugh Acheson, Alon Shaya and Curtis Stone, has gained momentum, amassing 50,000 signatures in the last 24 hours alone. Backers are calling for action from the federal government, providing the list of policy suggestions and demands:
Emergency unemployment benefits for all furloughed employees, both hourly and salary Endorsing rent and loan abatement for all affected by closures Waive payroll tax Work with state liquor authorities to enable restaurants offering takeout and delivery to also sell/deliver beer, wine and cocktails by the bottle Waive zoning or permit restrictions to allow restaurants to temporarily use their spaces as boutique food and beverage markets, offering an alternative to overcrowded supermarkets, keeping staff paid and farmers and suppliers supported
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“Many individuals live from paycheck to paycheck, so do restaurants and bars,” the petition begs. “There’s no nest egg. No reserve fund. No glass to break in case of emergency. We cannot work from home, and even if we temporarily convert to delivery and carry-out, we lose most of our revenue and the tips our employees depend upon to survive.”
Businesses are doing all they can. Curbside pick-up. Delivery. Peddling merchandise and gift cards—essentially microloans. Cocktail bars are collecting GoFundMe tips and wine bars are selling off their cellars. Sommeliers are delivering the bottles.
This helps, but it won’t keep doors open. What restaurants need is far more than cash cushioning from customers. They need government help.
“I am calling on our city, state, and federal leadership to step in with a full emergency relief package for restaurant and bar workers,” says Meyer in a statement.
“Both employees and businesses are in dire need,” says famed chef and restaurateur Daniel Boulud. “The government should be supporting the restaurant industry by covering the cost of health insurance, temporarily suspending rent or mortgage payments, and increasing unemployment benefits.”
Juan Correa, owner of New York City’s Llama San and Brooklyn’s Llama Inn knows, “our employees need protection. The government, both state and federal, needs to act now.” He had to lay off non-managerial employees, and is advocating for rent and utility waiving and the expansion and acceleration of unemployment benefits.
Jeffrey Bank, CEO of Alicart Restaurant Group (owner of the Carmine’s and Virgil’s restaurants), points out, “The airline industry has not been forced to shut down and is still given billions of dollars, yet they used 96% of their cash to buy back their own stock. Where is the plan to pay for 500,000 terminated employees?”
Bars and restaurants that have laid off staff are trying. Llama Inn and Llama San have a pantry fund for their employees, replenished constantly with 100% of gift card sales and tips from pick-up orders. Lost Lake is collecting tips in exchange for cocktail how-to newsletters and priority seating passes for when the bar opens up again. Some bartenders, like Toronto’s anonymous Dolly Trolly, have taken to delivering batched cocktails. But workers need more.
“If there’s no rent abatement or financial assistance for restaurants, the majority of restaurants will vanish,” explains Henry Rich, owner of New York’s Oberon Group (Rhodora, June, Rucola, Purslane Catering). “But if we don’t enhance unemployment benefits while staff are out of work, there will be no one left to work in restaurants.”
Governor Cuomo has waived the seven-day waiting period for unemployment insurance, but the system is overwhelmed. Last Tuesday, they received 2,000 calls. This week: 21,000. They’ve enabled a system whereby claimants sign up on a day that corresponds with their name.
A huge piece of the problem is the inherent flaws in the industry: employer-provided healthcare, paid time off, maternity leave and retirement benefits are almost unheard of, and a large portion of employees live paycheck to paycheck with no safety net and no benefits. “This has become a very professional industry that is lacking the protectionism of other professions,” says Llama San’s Lynnette Marrero. “That needs to change.”
But the biggest hurdle right now is the unknown. No one can predict if restaurants will be closed for weeks or months. “No one has a clue what is going on,” describes Michael Sinensky, founder of Simple Venue. “No one has jobs, income or a clue about the future. Every hour is another rumor we spin our wheels.”
Bailout plans are beginning to roll out from state and federal governments, but to many questions—what are the conditions? Will they pay minimum wage to workers, or merely a percentage? Are there benefits? Healthcare? The answers will change from state to state.
The White House had a call to discuss the future for the restaurant industry. Domino’s Pizza, Chick-fil-A, McDonald’s and Papa Johns were among the brands chosen to participate. Not a single independent operator was included.
Leyenda is an independently-owned, Brooklyn-based cocktail spot. It has been dubbed one of the best cocktail bars in America by Thrillist. It has been nominated for a range of top Tales of the Cocktail Awards, and for a James Beard Outstanding Bar Program award. But accolades can’t keep away the storm cloud. “If businesses like mine (25 employees, 55 seats) do not receive aid from the government ASAP we will shut down,” says owner Ivy Mix. Not even corporate bars and restaurants can stay open, she points out. “Restaurants run LEAN. We won't have anything.”
What does government support look like to her? “It's not a LOAN, it's just money—money in our pockets to pay our staff, our due invoices, our bills and will keep us afloat,” says Mix. “Small businesses—especially those with tipped employees—need to have suspended payroll taxes, abated rent for employees AND establishments.”
Sinensky points out that business loss insurers are already claiming that viruses are not covered. “We need every debt and bill moved forward for 60-90 days to give us breathing room.”
“There needs to be some element of rent forgiveness or alternatively, an elimination of rent for two to three months with the term of the lease increased,” says Eric Silverstein, Founder of Austin’s Peached Tortilla. “Most restaurants have a 2-3 week runway right now. After that, as sad as it sounds, it is game over.”
New Orleans has pushed back the payment of sales tax, “but asking for it in a few months when we’re all deep in recovery-mode will not ultimately help the industry,” says Philip Moseley, partner of Blue Oak BBQ. When restaurants are starting to get back on their feet, delayed payments will deliver another blow.
“Understandably the government’s priority has been on slowing the spread of the disease, saving lives, and protecting the most vulnerable New Yorkers,” recognizes Oberon Group’s Rich. “But in order for New York to recover and be recognizable, we can’t lay off every single food service worker and not help them through this crisis financially.”
There is hope in Philadelphia: the Pennsylvania Restaurant and Lodging Association has a full-time lobbyist who is on the ground, advocating for the industry.
“Her work and the organization’s influence and access is more critical than ever as we all look for answers to the question, ‘How do we survive?’” explains Tyler Akin, Board Member of the PRLA and Owner of Philadelphia’s Stock and Res Ipsa Cafe. “We are seeking tax moratoriums, expedited unemployment compensation entry for employees who have been laid off by necessity, commercial rent abatement and access to low or zero interest loan programs for small- and medium-sized businesses.”
But to make an industry-wide safety net, government intervention is needed. The economic stimulus bill going into play may hold answers, but time will tell.
Mix sighs, “Small businesses, bars and restaurants are the heart of our communities. We are in danger of losing it all. When all this ends, salaried employees working from home right now may have no place to go.”
Full coverage and live updates on the Coronavirus
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ceee1781e554b549dc32e1606db2e0ee | https://www.forbes.com/sites/katedingwall/2020/04/14/sales-of-status-spirits-continue-to-climb/?sh=5dca494a3cb8 | ‘Status Spirits’ Sales Are Outpacing The Rest Of The Industry | ‘Status Spirits’ Sales Are Outpacing The Rest Of The Industry
A 12-year-old Highland Single Malt whisky is tested in the tasting room at Deanston Distillery in ... [+] Doune. (Photo by Jane Barlow/PA Images via Getty Images) PA Images via Getty Images
Though the full impacts of COVID-19 are still unknown, the IWSR Drinks Market Analysis has unveiled that ‘status’ spirits (brands retailing US$100 or more) are growing faster than the total spirits market.
The current value of the status spirits market is $8.3-billion (not including the baijiu category).
The category has been increasing at a value compound annual growth rate of 7% (2014-2018), far outpacing the total global spirits market growth at 2% CAGR.
Overall, findings showed that status spirits are outgrowing lower-end options. Cognac and Scotch, two established categories of status-driven spirits, are a strong driving force of this growth.
But smaller categories in the luxury market are gaining momentum—US whiskey and tequila are seeing fast growth and becoming major categories to watch, while Irish whiskey and rum are slowly building their presence in the high-end sphere.
Importance of Accessible Offerings
The study breaks status spirits into categories: “affordable luxury”, encompassing spirits in the $100 to $1,000 range, and “ultra-prestige”, counting bottles that price upwards of $1,000. The most value sits in the $100-250 bracket, the IWSR reports, though the $250 to $1,000 segment is expected to see quick growth on the horizon.
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The study noted that the affordable luxury range acts as a gateway category. Those who are picking up the $150 bottles today, will be the ones purchasing the $1,500+ bottles in the future. Brands that cater to a wide range of price points are building brand loyalty, attracting younger drinkers who will move up through brand’s price points and the expressions as they age. (The study particularly recommends higher-end brands offering sample-size bottles of luxury expressions.)
The ultra-prestige category is largely made up of products designed to create a brand halo: these expressions are often released as high-end, collectible releases, many that utilize unique decanters, display cases and authenticity certificates. This category thrives on exclusivity and rarity—releases are limited, covetable, and often hard (and pricey) to get hands on.
“Though the status spirits market is relatively small in size, these are highly coveted and often very rare and allocated products that appeal to affluent and aspirational spirits aficionados and collectors, and yes, sometimes to people only seeking that badge value,” says Mark Meek, CEO at IWSR Drinks Market Analysis. “It’s a unique and nuanced sector which has definitely benefited from the general trend towards premiumization, and also by the younger generation who continue to seek out luxury and find it in high-end spirits.” (Vinexpo Paris found supporting trends, expecting the premium and super-premium categories to grow the fastest at 4.7% CAGR between 2018 and 2024).
Turning back to Scotch and Cognac, leaders in the status spirits market, the Cognac category has found success in individual expressions (the IWSR notes Louis XIII and Hennessy as strong examples in the ultra-prestige sector). Scotch finds success in offering a series of products. In particular, Macallen, Laphroiag and Bruichladdich have generated hundreds of millions through annual and limited releases.
The sale of individual casks (currently estimated at $40-million) is growing in the Scotch world. This trend is predicted to trickle into other categories, including bourbon, rum and whiskey.
Will COVID-19 Affect Growth?
“Though we conducted our study prior to the current COVID-19 situation, when we look at similar past events, such as SARS and the 2008 financial crisis, luxury goods and status spirits in particular have always recovered to previous levels,” says Meek.
The luxury market also leans heavily on the Chinese consumer and on global travel retail. According to 2018 IWSR figures, travel retail counts for 1.5% of global spirits volume (excluding baijiu). China consumers about 23% of all alcohol in the world. How these markets rebuild post-pandemic will play into the future of the status spirits category.
The IWSR underlines the resilience of luxury spirits in the aftermath of economic downturns—during the 2008 and 2012 periods, global prestige-plus spirits (accounting for spirits $100+) grew 82% in volume, and almost reaching 230% in value.
Part of the category’s ability to weather uncertain times is the distribution channel. Status spirits are mainly sold in fine wine and spirits retail stores or via e-commerce, less so in bars and restaurants. “This bodes well for these products in this current climate,” notes Meek. Masters of Malt, an online spirits retailer with broad selection of high-end whiskeys, saw sales soar 200% over the last week of March.
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2d471c782d1f2a854ede5b4453e06e7e | https://www.forbes.com/sites/katedingwall/2020/06/24/this-automated-restaurant-launched-mid-pandemic-is-this-the-future-of-restaurants/?sh=6acfd3c47186 | This Automated Restaurant Launched Mid-Pandemic. Is This The Future Of Restaurants? | This Automated Restaurant Launched Mid-Pandemic. Is This The Future Of Restaurants?
Canadian entrepreneur Mohamad Fakih came up with the concept for Box'd before Covid-19 hit. "It was ... [+] like a crystal ball." Box'd
We saw the rise and fall of automated restaurants a few years ago with the openings and subsequent closure of Eatsa.
Now, in the era of social distancing, is it time for a revival of the automat? One Toronto businessman is betting so, opening his new venture: an automated restaurant dubbed Box’d.
If that conjures the idea of robotic chefs and Jetsons-esque technology, well, not quite. The restaurant is fully-automated—customers order via a branded app or Box’d’s website and pick up their meals from an electronic cubby fueled by Givex technology. But founder Mohamad Fakih has worked in human touchpoints that bridge the gap between hospitality and technology, a chasm that has caused the downfall of other automats.
A concierge greets customers, helping them navigate ordering systems and enforcing social distancing regulations.
Food is prepared by real chefs, not machines. A glass window into the kitchen allows customers to watch chefs prepping, cutting and preparing dishes. “Since we set up the window, everyone walking by is taking photos. It serves very well in today’s Instagram-savvy market,” says Fakih.
The automat may sound like the perfect antidote to the crisis Covid-19 has created in the restaurant industry, but the idea came about long before the pandemic took hold.
“It’s like I had a crystal ball,” laughs Fakih. When the pandemic hit, he simply tweaked some features to accommodate sanitation and physical distancing.
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Once meals are prepared, chefs pop the dishes into digitized cubbies—18 in total—able to accommodate 18 orders every three to four minutes. Screens throughout the restaurant direct customers to their awaiting meals. Customers use QR codes on phones to open the cubbies and boxes are sanitized after every use.
In many ways, Box’d pays homage to the automats popular across Europe, the ones that peddle food for drunk patrons in the wee hours, or convenience snacks in train stations. The idea for the automat was born in Germany, spreading like wildfire across the globe in the ‘50s. But it faded into nostalgia; its relevance commandeered by fast food and fast casual concepts.
In a recent visit to Europe, Fakih found most automats hadn’t developed past adding credit card capabilities to archaic 1950’s-era designs. “I saw a few concepts, but they all had outdated technology.”
Why not create an automated product that addresses major issues the high-traffic, fast-casual restaurants scene faces. “Food courts are busy. There are lineups,” he describes. “Even when customers order online, in-person customers and kiosk orders create bottleneck delays.”
These issues are particularly glaring in the time of physical distancing, when face-to-face interactions are dangerous.
So he rejigged the automat concept, adding features that would resonate with a workplace crowd, who place value in quick service and fresh food.
He knows he’s competing with delivery apps, but at Box’d, he describes, food is picked up hot and fresh, unlike meals that undergo the rigmarole of arriving via courier.
Box’d’s interface sends orders to chefs ten minutes before customers arrive. On average, meals take seven to eight minutes to prepare, leaving a two minute buffer period to ensure that delayed orders will not cause a backlog or crowds.
The menu spans lunch-friendly Lebanese cuisine. Think hummus (including truffle, beetroot and Scotch Bonnet), along with customizable fattoush, tabbouleh, and truffle-scented mujadara options.
Customers pickup food via digitized cubbies. Box'd
One of the major backlashes around automats (and self-checkouts) is they require less employed labor and take away jobs away from hospitality professionals.
“With Box’d, we’re actually hiring more people, just in different positions,” describes Fakih. “In a regular restaurant, you hire two people in the back and two in the front. We hire one person in the front and five people in the back.”
Fakih laughs, “we believe more cooks in the kitchen is a good thing.”
The ease of service with the cubby system that generates more sales and allows them to hire more staff. “The only way you save on labor percentage in the food industry is by raising and increasing sales per hour. The cubby system increases our orders, that increases our sales.”
Salads and hot dishes from Box'd, Toronto's new automated restaurant. Box'd
In 2006, after emigrating from Lebanon to Toronto, Fakih founded Paramount Fine Foods: a fledgling falafel shop in Mississauga, Ontario. It blew up, snowballing into the fastest-growing Middle Eastern chain in North America. There are now 76 franchises of Paramount Fine Foods.
Fakih is eyeing expansion in the future for Box’d, but for now, the brand will take over space in current Paramount Fine Foods.
“Right away, some of our bigger Paramount Foods will be turned into shop-in-shops, as our sales have been impacted due to Covid-19. We already own or pay rent on these spaces, so we’re going to split the expenses—half of it for Box’d, and half of it for Paramount.”
As the climate becomes less dire, the brand will expand into universities, hospitals and sports arenas.
But why go through with launching a business in this climate?
For him, it’s a message of love.
“I lived through the [Lebanese] civil war, and I will never forget this one moment,” he describes. “We had to live in bunkers for periods of time. One time, when I came out of the bunker with my dad, I asked him, ‘What’s going on? Why are you smiling? We just lived in a stinky bunker.’”
“He said, look, Mohamad, some people will never see the light. But the light will come again. We will rebuild the country. We will hire more people again, and we will open more businesses.”
(Fakih has been incredibly supportive of both the Canadian restaurant industry and the Middle Eastern community as a whole. Last year, he won a $2.5 million lawsuit against a mayoral candidate who made Islamophobic comments towards Fakih. In 2019, when a Toronto restaurant run by Syrian refugees was hit with racist threats, Fakih publicly offered his support. He raised $1.5 million for the families of Canadian victims killed in the Iranian plane crash in early 2020.)
“When you open a business,” Fakih continues, “It sends a beautiful message. It says you care about the community and you want to help in rebuilding. That’s exactly what is happening here. There is nothing normal about what happened to us in our life or in our business, but we’re trying to say that we as an industry can bounce back.”
He notes that the restaurant industry is incredibly resilient. “We’re entrepreneurs in the industry. We’re known to be innovative and to take things in our hands to resolve them. “
Though Box’d is fortuitously timed, it isn’t the first instance of automat restaurants upgrading to cater to a current consumer. Fast-casual restaurant Eatsa sprung onto the San Francisco scene, later expanding to New York and Washington, D.C.).
It was touted as the ‘poster child for innovative new ideas’. But they closed last year, and rebranded as a restaurant customer growth platform named Brightloom.
What went wrong?
Some hypothesized that customers weren’t open to the change—they liked their restaurants just as they were, thanks.
But in the time of Covid-19, change seems to be the only option. Restaurants have pivoted to bottle shops, take-out, or pseudo-bodegas.
Where Eatsa failed before, it may have been an instance of timing: Box’d may be poised to thrive in this brave new post-Covid-19 world.
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8d069d3a2ad3b48cfd318d2b4226f602 | https://www.forbes.com/sites/katedingwall/2020/06/26/these-are-the-most-popular-spirits-of-the-pandemic-according-to-drizly/?sh=19938a641e25 | These Are The Best-Selling Spirits Of The Pandemic, According To Drizly | These Are The Best-Selling Spirits Of The Pandemic, According To Drizly
Tito’s Vodka is a best seller across all categories, selling on average a bottle every five minutes ... [+] over a 24-hour period. Tito's
With a globe sheltered in place, many are taking to liquid ways to pass the time. But what exactly have drinkers been pouring in their glasses?
According to Drizly, an alcohol e-commerce platform, the best-selling spirit of the pandemic is Tito’s Vodka. The independently-owned Texas brand continues to outperform brands like Smirnoff, who has the force of beverage powerhouse Diageo behind it.
Minibar Delivery, another major spirits delivery service corroborates Tito’s top standing. Minibar Delivery CEO Lindsey Andrews noted that Tito’s Vodka is a best seller across all categories, selling on average a bottle every five minutes over a 24-hour period.
Casamigos took second place as one of the best-selling spirit on Drizly during the pandemic. The celebrity cosign helps. The brand is founded by George Clooney and Rande Gerber—the duo wanted to create a hangover-free tequila (the idea was sparked by a night out of reveling).
In 2017, the duo sold Casamigos to Diageo for a reported one billion dollars, with potential for another $300 million based on sales performance over the next decade. In 2018, Casamigos expanded the portfolio with the brand’s first mezcal.
The third best-selling spirit on the e-commerce platform is Bulleit, with Jameson following up behind in fourth place. The latter isn’t a huge surprise—over the last three decades, the Irish whiskey industry has boomed, growing into the fastest-growing whiskey category in the world. But the impact the pandemic has on the industry will cause a road bump in sales and the future of the Irish Whiskey renaissance is unclear.
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Jack Daniel’s took fifth place, despite being the beloved shooter of choice in (now closed) bars across the world. New initiatives like a just-launched canned cocktail and a $5-million diversity initiative help the brand maintain its popularity.
From there, tequila took over: Espolón is the sixth best-selling spirit on Drizly, Don Julio is seventh and Patron is eighth. Tequila is hugely poplar among consumers: global agave-based spirits volume increased +5.5% in 2019, according to drinks market analysis firm IWSR. In the US, agave-based sales grew +8.5% over the course of last year. Noted figures like Dwayne “The Rock” Johnson and Bryan Cranston have recently thrown their hats in the ring, launching their own agave spirit brands.
Smaller brands in the category are benefiting from this momentum—Ghost Tequila is up +47% in volume this year, compared to the same time last year. Actor Chris Noth’s Ambhar Tequila posted +69% growth in total global volume over 2019.
Johnnie Walker is the ninth best-selling spirit, and Smirnoff, tenth.
SEATTLE, WA - NOVEMBER 5: The side of a delivery truck features a billboard promoting George Clooney ... [+] and Rande Gerber's new Casamigos Tequila on November 5, 2015, in Seattle, Washington. Seattle, located in King County, is the largest city in the Pacific Northwest, and is experiencing an economic boom as a result of its European and Asian global business connections. (Photo by George Rose/Getty Images) Getty Images
Despite the success of the above brands on Drizly, this list doesn’t reflect the looming short and long-term effects the pandemic will have on the spirits industry. On-premise channels ceased almost entirely for the span of at least three months. Visitor centers at distilleries are, for the most part, closed. Some distilleries ceased operations entirely, pivoting to making hand sanitizer.
In 2019, total global alcohol consumption grew +0.1% in volume and +3.6% in value across 2019. But the IWSR expects double-digit declines in 2020, as production, supply chain and retail channels continue to cause hiccups for spirits brands.
Looking to the success of overall spirits category during the pandemic, vodka has thrived as the top-selling category.
Bourbon is in second place, while silver/blanco tequila is the third best-selling category over the pandemic period.
Scotch is the fourth top-performing category.
The overarching category of liqueurs, cordials and schnapps took fifth place—a category that encompasses everything from Aperol to Bailey’s to Jägermeister.
Reposado tequila is the sixth best-selling category on Drizly during the pandemic, while London Dry Gin (specifically London Dry) is seventh—drinkers have been stocking up on Beefeater and Tanqueray.
Irish Whiskey, flavored vodka and Cognac took up eighth, ninth and tenth spots, respectively
Bottles of Jameson at the distillery. On Friday, March 10, 2017, in Smithfield, Dublin, Ireland. ... [+] (Photo by Artur Widak/NurPhoto via Getty Images) NurPhoto via Getty Images
E-commerce has become a crucial channel during the pandemic. Alcohol brands that did not have an online presence before March 15th were forced to pivot to maintain relevance. The proof is in the numbers. New Drizly users spiked by 1700% in spring 2020.
(The aforementioned Ghost Tequila did so particularly successfully—the brand went from selling 70% of volume on-premise to 90% off-premise in just 60 days when the pandemic took hold.)
According to Drizly’s 2020 consumer report, 71% of current Drizly users and 50% of non-Drizly users anticipate at least 50% of their alcohol shopping will be done online. 70% of the survey’s respondents said they would be continuing to drink in-house, while 30% plan to drink even more at home through 2020.
(An interesting anecdote: last Spring, Drizly’s research noted that a whopping 45% of consumers weren’t aware that buying alcohol online was even legal.)
It’s clear house-bound drinkers are taking the time to experiment with cocktail culture. 52% of the respondents to the consumer report said they had been making more cocktails than ever. 54% plan to continue stirring and shaking up their nightly libations this summer and beyond.
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b3122a8a863b0247aea33b57d7103ca6 | https://www.forbes.com/sites/katedingwall/2020/07/08/what-was-everyone-drinking-this-fourth-of-july-weekend/ | What Were The Top Selling Spirits Of The Fourth Of July Weekend? | What Were The Top Selling Spirits Of The Fourth Of July Weekend?
LOS ALAMITOS, CA - JULY 4, 2020: Southern California residents sit on the roofs of their vehicles to ... [+] watch the fireworks during the Drive-Up 4th of July Spectacular at the Los Alamitos Joint Forces Training Base on July 4, 2020 in Los Alamitos, California. (Gina Ferazzi / Los Angeles Times via Getty Images) Los Angeles Times via Getty Images
What were thirsty revelers filling their glasses with this Fourth of July?
According to top booze delivery platforms, the result may be surprising. Both Minibar Delivery and Drizly—the two most prominent alcohol commerce platforms—noticed that consumer drinking habits have shifted over the pandemic period, particularly over the Fourth of July weekend in comparison to years prior.
One of the most interesting insights across both platforms? Customers were using the occasion to spend a little more, opting for higher-end, celebratory bottles to sip. Minibar Delivery counted Veuve Clicquot as one of the top-selling bottles across all categories. After months in quarantine under shelter-in-place restrictions, customers were find any occasion they could to add a little sparkle to their glasses.
Minibar Delivery also noted that customers were reaching for pricier bottles over the weekend. “Over July 4th, people were spending over 3% more per bottle,” says Minibar Delivery CEO Lindsey Andrews.
Tito’s was the top-selling drink by both sales and volume over the course of the July 4th on Minibar Delivery. While this isn’t particularly surprising as the spirit has dominated in sales, tequila has made a vie for a close second.
Don Julio was the second best-selling spirit over the weekend, with Casamigos in sixth, Espolòn in seventh and Clase Azul in eighth.
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“Much like the cooking craze, we’re seeing people jump aboard the cocktail craze. People aren’t going to their favorite bars and restaurants so they’re mixing up their favorite cocktails at home,” says Andrews.
At Minibar Delivery, tequila is thriving in year-over-year sales on the July 4th weekend, accounting for 27% of liquor sales in comparison to 19% of liquor sales in the year prior. Of note, tequila average bottle costs have soared over the past year, now hitting an average of $50 a bottle in 2020 in comparison to $43 last year. Scotch average prices went up as well, at an average of $64 in comparison to $59 a bottle in 2019.
Interestingly, drinkers are gaining a big interest in brandy. Sales for the category were up 36% over the weekend on Minibar Delivery versus June 2020, with Hennessy ruling the category.
Brandy has also been capturing a larger percentage of market share, accounting for 7% of liquor share in comparison to 5% year prior.
Vodka, despite its overall popularity over the pandemic, fell in sales over the holiday weekend, accounting for 22% of liquor sales in comparison to 31% of liquor sales over the 2019 Fourth of July weekend.
Over in Drizly’s camp, the e-commerce alcohol platform noted that this Fourth of July looked drastically different than in prior years.
Sales over the Fourth of July weekend grew 435% versus the same holiday weekend in 2019, unsurprising considering shelter-in-place restrictions are still keeping drinkers house-bound many parts of the country.
Tito’s remained the king of spirits sales, as the top-selling spirits brand of both this year and last on Drizly.
Drizly also found tequila thriving: Casamigos was second, up from fourth place last year, while Don Julio was third.
Of note, last year Bulleit Bourbon had ranked second, with Smirnoff trailing in third place.
This year over the Fourth of July holiday, Bulleit was fourth in sales, High Noon Hard Seltzer in fifth and Hennessy was sixth (again, brandy is thriving). Jack Daniels took up seventh place while Jameson placed ninth. With tequila still thriving, Espolòn and Patron ranked eighth and tenth, respectively.
In the beer realm, Bud Light has surpassed Corona as the top-selling beer on the platform. Coors Light holds third place.
But while those brands prevailed, it wasn’t beer that was crowned number one in the beer category for the platform: it was hard seltzer.
Hard seltzer accounted for 25% of the category, up a whopping 17% from last year, when hard seltzer was second to light lagers. For specifics, Bon Viv is dropping in popularity (2% in 2020 compared to 12% in 2019) while Truly is gaining (21% in 2020, compared to 19% in 2019).
Hard seltzers have been thriving in the American market. According to the IWSR, the category contributed more than double the value growth to the industry than wine in 2019. The growth is largely fueled by innovation—new brands are hitting the market with hosts of new flavors (in addition to the convenience of cracking a can on a hot summer day). Last year the category grew 200% in volume.
Despite it being rosé season, Drizly noticed a slight decrease in the sale of the blush-hued wine in comparison to 2019.
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ec184aa253240917fe9e84f5012f7e83 | https://www.forbes.com/sites/katedingwall/2020/07/13/what-will-the-post-covid-world-look-like-for-restaurant-workers/ | What Will The Post-Covid World Look Like For Restaurant Workers? | What Will The Post-Covid World Look Like For Restaurant Workers?
A waiter wears face mask and shield at a bar in Sao Paulo, Brazil, on July 6, 2020 as the city bars, ... [+] restaurants, and beauty salons reopened after more than three months of lockdown to fight the COVID-19 coronavirus pandemic. (Photo by NELSON ALMEIDA / AFP) (Photo by NELSON ALMEIDA/AFP via Getty Images) AFP via Getty Images
In the pandemic era, the future of restaurants is incredibly uncertain. Owners are plagued with concern over whether bailouts will continue to support them and if the virus will subside long enough to find restaurants reopening (and staying open).
It’s been almost four months since the virus hit, and an entire industry has been forced to rethink how it operates. Wine bars are now bottle shops. Hallowed cocktail bars are selling Sazeracs in plastic cups and Michelin-starred tasting menus now come in Tupperware containers.
As restaurants are forced to completely rethink how they operate, will they rethink their employee structure?
The pandemic has shone a glaring spotlight on many inherent flaws in the industry: lack of employer-provided healthcare and no paid time off. Maternity leave and retirement benefits are almost unheard of, and a large portion of employees live paycheck to paycheck with no safety net and no benefits.
On top of these regular conditions, after four months of unemployment many restaurant staff are forced back into work, facing the risk of falling catastrophically ill to make ends meet.
Eater’s Ryan Sutton put it best. “For me, the low risk of sending a single uninsured waiter to an ICU bed, someone who isn’t really there by choice, in exchange for the pitcher of frozen margaritas you happen to be craving in the late afternoon, is a morally indefensible transaction.”
“The restaurant industry has long had a reputation of staff working while sick,” agrees restaurant and hospitality analyst Mary King.
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Will the new world of restaurants include health benefits and bigger compensation?
Michael Lennox, the founder of Atlanta’s Electric Hospitality group and founder of pandemic-driven industry nonprofit ATLFAMILYMEAL) hopes so, but he has his doubts.
“There was already so much work to be done prior to the dawn of Covid-19,” he says. “Short term, it is hard to be optimistic about the compensation and benefits getting better for restaurant workers. Many restaurants will see widespread pay reductions for salaried managers and loss of benefits as restaurants look everywhere for ways to cut costs.”
King agrees with this. “We won’t see a huge uptick in restaurants offering health benefits but it’s not because restaurants think health insurance is unimportant. Most restaurant owners would love to offer health insurance to their employees; it is just too expensive.” Margins for the industry are notoriously slim, and many employers don’t have the extra cashflow to afford benefits. Now with capacity restrictions in place, profit margins are only set to get smaller.
The current climate is making it incredibly tough for changes that need to happen to go into motion. Staff on unemployment have to determine whether the restaurant will have enough business to make coming off unemployment worth it.
(Interestingly, restaurants that had a strong staff culture pre-pandemic are having no issue rehiring.)
“We already offer our employees’ health plans, 401k, vacation, sick time, benefits, etc.,” says Sam Marvin, founder of Las Vegas’ Bottega Louie and owner/executive chef of Echo & Rig. “Maybe the deadbeat employers will be forced to change,” he muses.
But with the entire industry basically out of work, the labor pool is massive, and jobs are limited. To get hired, employees have to offer up a range of skills.
“Can you cook, clean, perform basic plumbing and be polished with guests in person and on the phone? Are you good with websites and email marketing? Do you have a clean driving record and car insurance so that you can make dedicated deliveries? Ideally, all of the above!” says Lennox.
Bo Peabody, co-founder of rewards platform Seated continues. “Will people who were great servers in a polished casual indoor environment be great in a more casual outdoor environment? Will a cook who once made a great arctic char be just as good at making fish and chips? Will a mixologist who used to handcraft cocktails be happy and successful batching pre-made cocktails?”
Lennox describes, “Because traditionally specialized positions in restaurants are going to be less valuable for the foreseeable future, this will force restaurants to explore and experiment with different compensation models. While recognizing that razor-thin margins have only gotten thinner, it is incumbent on restaurants to be creative and rethink the paradigm for compensation. “
Why is the system so broken? Many lawmakers consider restaurant work a gateway job, one people get to make ends meet when times are tough or students working their way through school. (Look at the movie depictions of waitresses: dead-end jobs for down-on-their-luck workers.)
Jobs are treated as temporary or part-time, and labor considered unskilled. Compensation and benefits are structured accordingly.
“I think it has become apparent that the way the industry is structured does not create healthy stable work environments that are able to absorb disruptions and quickly adapt to changes,” says Guillermo Vidal, owner of Cincinnati’s MashedRoots.
He’s starting to change the way he operates through a four-pillar plan; Vidal is educating employees on financial planning, requiring benefits plans (including retirement and health) and improving vacation hours. He’s also pushing a change in salary structures, “to include shared tip pools”.
The practice of open-book finances (both Tanner Agar of Rye and Ezequiel Vázquez-Ger of the award-winning Seven Reasons practice this) seems particularly fitting for the new restaurant world.
Agar has watched his peers, many of whom were “previously bulletproof and secretive restaurant owners,” opening their books to their employees to help crowd source ideas on how the restaurant can survive.
Why was the industry set up like this?
“There has been a long culture of secrecy in the restaurant world, he describes. “This culture keeps major choices and all financial data away in order to suppress wages and discourage competition.”
Tides are changing as Covid-19 ushers in a new normal for restaurants. Will old-guard employee treatment remain, or will this momentum spur minimum standards for employee benefits?
“I believe over time things will change,” says Lennox, “This will be one step backwards that forces us to take two or more steps forward as small businesses, and ideally us as a country, by finding new and creative ways—through a combination of innovation in the private sector and through new legislation at the state/federal level—to provide a stronger and more holistic baseline support system for restaurant workers so that wages can ultimately improve to levels of livability for all positions, and health insurance can become more universal.”
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c415dedbe78fbafb3ea7082bb8b8bcf0 | https://www.forbes.com/sites/katedingwall/2020/07/21/how-can-you-tell-if-there-are-unnatural-additives-in-your-tequila/?sh=aae262b661af | How Do You Tell If Your Tequila Has Additives? | How Do You Tell If Your Tequila Has Additives?
JALISCO STATE, MEXICO - 2015/09/10: Glass of tequila and lemon, alcoholic drink, Mexico. (Photo by ... [+] Ricardo Beliel/Brazil Photos/LightRocket via Getty Images) LightRocket via Getty Images
When you drop a few bills on a bottle of pricey, 100% agave tequila, are you sure that’s what you’re really getting?
A new additive-free tequila verification program by Tequila Matchmaker is identifying bottles dosed with unnatural additives; flagging brands that don’t use additives to artificially provide and doctor aromas, flavors and sweetness.
Using the platform, users can scroll through brands and identify whether a brand skips additives.
This is the first independent, additive-free verification service in the spirits world.
“We put together a program that verifies production claims for any brand that says they do not have additives,” says co-founder Grover Sanschagrin. “We go in and verify that independently.”
The verification program lives on the Tequila Matchmaker app, an 80,000 member-strong consumer database on all things tequila.
“Questions would come up in tastings we hold,” explains co-founder Scarlet Sanschagrin. “Why does the sample smell like vanilla or gin? We would explain that additives are allowed under 1%, but they are extremely powerful.”
These additives aren’t illegal, per se. Additives are allowed if they account for under 1% of the total liquid.
There are four total categories of additives according to the Consejo Regulador del Tequila (CRT): glycerin (“for mouthfeel,” says Scarlet), oak extract, caramel coloring, and sugar-based syrup.
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Initially, these additives served a legitimate purpose. “They were for rectification,” explains Grover. “For example, if one bottle of añejo is slightly lighter or darker than another.”
Innovations in the industry have progressed additives to the point where they are extremely potent and heavily alter the flavor of a tequila. “We’ve moved into a time where additives are very powerful and maybe those rules are a little old, explains Grover. “20 years ago, 1% was probably the right number.”
Scarlet adds, “There’s a type of aspartame-sweetener that is 8000% sweeter than sugar, so you can imagine how little it takes to impact the tequila. If you’re using a super-efficient production process where you speed things up and don’t let the agave bestow all the aromas and flavors you can shortcut the process by putting in additives at the end.”
The Tequila Matchmaker is an independent mobile app and website used by 79,000 tequila aficionados ... [+] around the world. Tequila Matchmaker
So the duo, both certified ‘catadores’ tequila tasters, went about creating an independent program that verifies production claims in tequila distilleries, with the aim to push transparency in the industry.
“We make a personal visit to the distillery and we take an advanced, behind-the-scenes tour of everything,” Grover explains. “We’ll look at their production records—which can be kind of invasive. We look at their CRT profiles, we login to their computer system and look at records there that keep a log of everything. We’ll look at chemical analysis reports and side-by-side comparisons of the batches out of the still, barrel, and testigo samples with retail-purchased bottles to ensure the profile is still the same.”
“If anything along the way indicates a radical change of flavor, that’s a sign that additives,” says Grover.
They check-in throughout the year to ensure sure batches are consistent and do a full analysis on an annual basis.
Brands need to opt into the verification process and give Tequila Matchmaker full access to production records. (Of note, “We sign NDAs, so there is a level of safety there that we’re not going to give away trade secrets,” Grover ensures.)
As soon as the program was announced, Grover and Scarlet were contacted by a range of distilleries who wanted to opt-in.
130 products across eight distilleries have since received additive-free verification. Among them, Tequila Patrón, Tequila Fortaleza, Cascahuín, Don Fulano, El Tequileño, ArteNOM Seleccíon, Gran Dovejo, Suave Tequila, and Tequila G4.
Patron may come to a surprise as many—the massive brand commands a huge share of the market.
“That was a surprise to us that such a large brand would agree to this, but they did,” says Grover. “It took us two days to get through them because they are so huge and have so many batches. They were extremely transparent; way more than some of the little brands!”
“I think people presume that the big brands are more industrialized,” says Scarlet. “But Patron is kind of a one-off in the sense that their process is replicating a small traditional process.”
Tequila Patron's distilling process was verified as additive-free by Tequila Matchmaker Dave Krugman
Part of the conceit of the verification process is educating consumers on the fact that additives aren’t a necessary process of tequila production. “There’s an unrealistic expectation that because of consistency, additives are an added function,” Grover adds.
Agave spirits are a natural product. Batches should vary based on the terroir; everything from rainfall to agave growth can impact the final flavors of the spirit. “Exact consistency should not be expected,” says Scarlet.
The additive industry is hitting a fever pitch with the advent of big-dollar brands. “The most popular additive you see right now, and particularly in celebrity tequilas, is this intense, cake-batter, sugary-sweet profile,” Grover elaborates. “Especially for people with no experience with what tequila should taste like, they now believe this is what tequila should taste like.”
“Most people who start a tequila brand don’t see the production as the most important part,” he says. “They see the type of bottle, logo, the name, the type of marketing. This type of tequila is just a commodity in a bottle.”
“Tequila is the largest diversity category in terms of aromas and flavors,” Scarlet continues. “But tequila with additives are less diverse than natural tequilas.”
“Agave is trying to give us a gift in its complexity, subtlety, and variation. We’re not always respecting that with additives,” Grover concludes.
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9f861e0cf357cd486ce1e06755bedfcd | https://www.forbes.com/sites/katedingwall/2020/08/10/as-social-distancing-continues-home-drinker-are-becoming-their-own-bartenders/?sh=3f08517b42c4 | As Social Distancing Continues, Home Drinkers Are Becoming Their Own Bartenders | As Social Distancing Continues, Home Drinkers Are Becoming Their Own Bartenders
Bartender pouring fresh alcoholic drink into the glasses with ice cubes on the bar counter getty
As bars continue to be in various states of closures, what are drinkers up to during the pandemic? Becoming their own bartenders, it seems.
Looking at statistics pulled from brands, e-commerce websites and industry analysis websites, it’s clear drinkers are purchasing more mixers and liqueurs, all with the intention of learning to build their own cocktails.
A survey held by Bacardi—the world’s largest privately-held spirits company—found 90% of drinkers have completely changed how they consume alcohol and what they drink. With bars closed, imbibers are missing cocktails. So many are brushing off their bar tools and learning to mix up their favorite drinks in their own homes—35% of respondents noted they are purchasing ingredients and making cocktails for their social bubble.
Cointreau also commissioned a research study on how home consumers are interacting with cocktails over the pandemic period. The findings revealed that 70% of respondents have adopted cocktail hours (note: not happy hour, specifically cocktails) into their weekly routine.
Why are we gravitating towards cocktails?
“Quarantine has made me appreciate the art of making cocktails,” says one avid home drinker, Elisa Moczulski. “I’ve been learning to make Black Russians!”
Notable drinks writer Clay Whittaker has been finding a similar draw towards shaking and stirring. “I definitely feel like I'm putting more time into my drinks since quarantine started. Because I'm traveling less, I've also been batching drinks and giving time and effort to things like syrups.”
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Whittaker noted that because he’s house-bound, he has more time and energy to invest in the process. “Time is really the biggest factor—if something takes a day or two to make, that's not really a hurdle so much as it's something to look forward to.”
“There's a sort of trickle-down effect at work here,” he continues. “Everybody jumped on the sourdough wagon, And it takes a couple of days to make a loaf of bread. Well, it also takes a few days to make something like orgeat, so why not?”
Drizly, a major e-commerce drinks platform, found in their 2020 consumer report that 52% of the respondents said they had been making more cocktails than ever. 54% plan to continue stirring and shaking up their nightly libations this summer and beyond.
Another major spirits e-commerce platform, Minibar Delivery, has found a huge surge in sales of the mixers category, with the category bursting over 200% over the pandemic period.
To dive into specifics, Canada Dry Club Soda has been Minibar Delivery’s top-selling mixer by volume. Limes, Canada Dry tonic, Jose Cuervo margarita mix, and diet coke are also in the top five mixers by volume.
Looking into Minibar Delivery’s top-selling mixers by sales, Jose Cuervo dominated. The margarita mix (one liter) was the top-selling mixer (by sales) over the pandemic period. Canada Dry club soda was second. Jose Cuervo margarita mix took up third and fourth place, with 1.75 L and 750mL options, respectively. Gosling’s ginger beer six-packs (12-ounce cans) were in fifth. The company predicts that this DIY cocktail culture will continue to soar as bars start to reopen.
One reason behind the new cocktail movement is that with on-premise locations shut, liquor brands are pushing marketing efforts to the home consumer to make up for the loss in bar customers.
The virtual happy hour is now the norm and liquor brands are rushing to boost their online e-commerce presence to meet these new consumer needs.
Another thing to consider is with everyone learning to make their Old Fashioneds at home, will consumers continue to pay upwards of $15 for a cocktail? Many say no—particularly with simple serves like Negronis, Old Fashioneds and Martinis. With consumers being forced to purchase and make these cocktails at home, they are more aware of the real price of the cocktail and the amount of effort required.
Pre-pandemic drink prices feels expensive.
This also works two-folds: home bartenders attempting orgeats and infusions at home are more aware of the labor that goes into these cocktails. Hopefully, they will gain a newfound appreciation of a complicated cocktail.
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8ee0676da88d03ebd6dd3bce1004731e | https://www.forbes.com/sites/katedingwall/2020/09/04/investment-app-rally-is-offering-shares-of-some-of-the-worlds-finest-wines/?sh=77881e153eba | Investment App Rally Is Offering Shares Of Some Of The World’s Finest Wines | Investment App Rally Is Offering Shares Of Some Of The World’s Finest Wines
There’s the Domaine De La Romanee-Conti 2014,” describes Petrozo. “12 bottles at a $54,000 at $54 a ... [+] share. (Photo credit should read FRANCOIS GUILLOT/AFP via Getty Images) AFP via Getty Images
Can’t afford to fill your cellar with Domaine de la Romanée Conti?
Today, alternative investment platform Rally is opening up a wine vertical, letting consumers buy shares of some of the world’s rarest bottles—think buying and trading baller bottles just as you would blue-chip stocks.
Despite this being the app’s first foray into the wine realm, the vintages offered are no beginner’s bottle. Rally is starting off with 2005 Chateau Latour, a 2014 Domaine de la Romanée Conti Assortment, 2016 Chateau Petrus and a 2016 Screaming Eagle. The combined value of the wines are $148,000 with shares starting at as low as $5.
How does this work? Rally purchases cases of cult-loved bottles then slices them into shares, offering up the shares for investment à la standard stock exchange. “It’s similar to how you buy or sell any publicly traded stock, whether it's Apple AAPL or Tesla TSLA , etc,” describes co-founder Rob Petrozzo.
Rally was founded by Petrozzo, along with Max Niederste-Ostholt and Christopher Bruno, in June 2016. The trio worked alongside the SEC to find a regulatory pathway—using provisions of the 2012 Jobs Act—to legally turn luxury items, like cars, watches, and now, fine wines, into SEC-registered securities (think mini-IPOs).
Wine offerings opened at 12:00 PM EST on Friday, September 4.
“As soon as our members saw the wine offerings, the wait list for the Chateau Latour was the longest we’ve ever seen,” Petrozzo says.
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Three wine IPOs are hitting the app today. First, A 2005 Chateau Latour: a 12-bottle case of first-growth Bordeaux. It’s a $98,000, 1000-share offering selling at $9.80/share. “There’s also the Domaine de la Romanée Conti 2014,” describes Petrozzo. “12 bottles, worth $54,000, at $54 a share. And the Screaming Eagle 2016, a $39,000 3-bottle cases. 1,000 shares at $39 a share.”
All, are respected vintages from some of the most prestigious houses in the wine world.
(The latter earned a 100 from Robert Parker’s Wine Advocate for the way the wine “leaps from the glass with bright, exuberant blackberries, kirsch and warm blackcurrants scents plus touches of lavender, roses, tilled black loam, wild sage and dark chocolate with wafts of yeast extract, underbrush and crushed rocks.”)
Rally members will be able to view information on the wine’s rarity, scoring, history of the vineyard and historical pricing data right on the app. In 2021, the company hopes to have video surveillance (Covid-19 pending) in place so investors can view their bottles in real-time, right on the platform’s interface.
The platform built its investment base by offering luxury handbags, rare cars and sports memorabilia as assets. Through this unique model of investing, Rally purchases cult-loved and high-value assets, secures them, splits them into shares, then offers said shares as equity investments.
(Rally makes money by charging the original asset owner a listing fee of between 2% and 5% of the asset’s value. Trading is free for users.)
“We started with classic cars, the 50s-era Ferraris and the Lamborghinis,” says Petrozzo. “We moved into categories that fit most closely with those classic cars—things like watches, vintage luxury and wine. The latter, more so than anything.”
But the wine investment field is a tough one to navigate.
A big issue in the fine wine collecting sphere has been the advent of indistinguishable forgeries (the 2016 documentary Sour Grapes brought this issue to the forefront).
Unlike collecting bottles, Rally (as well as other apps that offer controlled wine investments) removes the variables with aging wines. “We work with [notable wine investment group] Cult Wines out of the U.K. to make sure the provenance is what it says it is,” explains Petrozzo.
No bottles are purchased from private collections. Wines are kept in temperature-controlled storage and insured to protect against fraud. “We try and stay away from any of those trappings that lend any credence to what could go wrong,” Petrozzo adds. “We make sure everything is bonded and stamped before it gets to our platform.”
“We also ensure all assets at the last traded price, so in the event, anything material happens, ever investor is made whole. 10% of the asset is owned by us, the company, and we pay the same price as everyone else. Then we can’t sell our shares until our entire asset sells off-platform.“
What’s particularly appealing about the platform is it offers low-risk, lower-priced investments in luxury items, giving the app an opportunity to reach out to investors of all income levels and investing experience.
Take the young Millennial for example: a consumer who is gaining interest in wine and understands the prestige of a DRC bottle, but doesn’t have the funds to start building a cellar. Rally offers a stepping stone into the world of wine investment.
It also protects the nascent wine investor from the tempestuous wine world. The $5-billion dollar resale market is unfriendly to those without deep wine knowledge and monetary resources—there are broker fees and auction house commissions for authenticating wines. With an investment app that holds the hand of a greener consumer but also offers tempting assets for an established investor, wine lovers of all income brackets have a chance to dip their toe into the market without battling the cutthroat resale and investing market.
This Millennial appeal feels like a particularly savvy move considering that the demographic will overtake Gen Xers as the biggest fine wine drinking population by 2026. According to Wine Opinions, 48% of high-frequency wine consumers reported an increase in their weekly consumption (Millennials reported the greatest increase).
But right now, the generation is still looking to cheaper options. As this consumer grows and their income and knowledge increases, the app has the opportunity to retain this nascent consumer.
This latter point is something to consider particularly in the pandemic environment. Without bars to go to, wine drinkers are shopping for their own bottle; researching terroir, grapes, labels, houses and regions. Wine lovers of all levels are educating themselves.
“The fact that our investor base—who invests in Birkin bags and vintage watches—is so well versed in the wine category really speaks to the trend of the education that’s happening right now,” says Petrozzo.
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9ad99b07e0c2e082709949421fceb378 | https://www.forbes.com/sites/katedingwall/2020/10/08/how-fine-wine-distribution-is-changing-over-2020/?sh=62ad766e3378 | How Fine Wine Distribution Is Changing Over 2020 | How Fine Wine Distribution Is Changing Over 2020
With on-premise dried up and wine e-commerce hitting its stride, how is the fine wine industry ... [+] adapting to 2020? getty
2020 has not been easy for the wine world. To list off a few hurdles: a globe of bars shut down. A global pandemic. Climate change. California and Oregon facing the most destructive wildfire season in history.
“2020 is supposed to relate clarity; ideal sight. This year is anything but,” says Chris Towt, owner of Durell Vineyards and co-founder of VineSpring. “Locals in Sonoma and Napa joke, ‘what's next, earthquakes and locusts?’ Unfortunately, neither is a far fetched thought.”
Total loss of wine sales for the year is predicted at $5.94 billion, according to the California Wine Institute. (On the bright side, at least e-commerce is thriving.)
So how are the players of the fine wine field regarding 2020?
“2020 has been an incredibly difficult year for fine wine,” says Jordan Salcito, founder of RAMONA and former sommelier at Momofuku and Eleven Madison Park. She cites tariffs as a big threat, while other industry members list off fires, new distribution channels and emerging regions as the cause of major plate shifts.
Let’s take a look at the numbers first: Globally, according to the IWSR total fine wine (USD $50+ a bottle for still wine and USD $100+ for Champagne) was up +0.8% in volume in 2019. Total value of wine in that price category was up +2.9% in 2019, with a forecasted CAGR 2019-2024 of +0.4%.
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Looking to the future, still fine wine is forecasted to grow +0.2% compound annual growth rate volume 2019-2024. Sparkling fine wine specifically saw an expected CAGR growth between 2019 and 2024 of +0.9%. But the numbers aren’t indicative of the storm the industry is trying to ride out.
Liv-Ex noted that 50% of wine buyers are buying direct from producers, mainly due to price and provenance—going direct to vineyards takes out the middleman. 26% of buyers prefer buying from professional wine sellers, but they note that this method comes with risks and squeezes.
Interestingly, buying at auction was the least preferred channel of buying due to the high variance in prices and concerns about provenance, according to Liv-Ex.
A study from the global wine marketplace also revealed that 70% of buyers expect the number of DTC sales to increase in the next 5 years, creating more competition between brands.
Sommelier Zack Musick, the beverage director at Merriman’s Hawaii, noted that e-commerce and DTC is affecting restaurant prices—a tough blow given the pandemic’s crippling affect on the on-premise industry. “These tariffs, combined with a global pandemic, created a huge spike in online sales in various digital channels. Once people realized that they could skip the middleman and get the wine they want at a slightly more affordable price they stopped going to stores and stopped ordering as much wine from restaurants. I plan to see more people bringing in corkage than ever before.”
Towt argues that while some consumers are going direct, others are supporting their favorite restaurants. “As local governments relaxed the rules regarding alcohol sales, some restaurants pivoted quickly to making their wine cellars available to the public. Not only are customers buying more directly from the producer, but now locals could more easily buy from the restaurant down the street,” he says.
On the flipside to that though, many restaurants were forced to sell off deep cellars of rare wines to keep doors open. (A heartbreaking blow, as restaurants spend years curating and collecting wines.) Later this month, wine auction Zachys is auctioning off £3.2 million worth of wine from 3-Michelin star Florentine restaurant Enoteca Pinchiorri.
Andrew Pattison, the beverage director of Los Angeles’ Sushi Note, notes that with restaurants operating on limited budgets (or none at all), wine makers are looking to place limited allocations elsewhere. “Overall, demand is down in the on-premise sector, which will force winemakers to look to other more stable markets like Asia.”
Some off-premise retailers are finding a silver lining in this. “We don't buy direct, but we're getting some great deals on luxury wines since many hotels and restaurants haven't been taking their allotments,” says Howie Rubin, the general manager of Bauer Wine & Spirits. “We're quick to pounce on those opportunities to enhance our portfolio.”
Pattison notes that this has fine wine being purchased in never-before-seen places. “I recently saw wines from distributors that would normally never be caught dead in a supermarket in my local Whole Foods,” he describes. “This is a signal that Covid-19 has decreased on-premise sales to the point where companies are rethinking business strategies in order to remain competitive.”
“Like all markets, the fine wine sector is navigating an unknown path, with some of the longer-term effects of the pandemic still to be bedded in,” muses Tom Gearing, the CEO of wine investment heavy-hitter Cult Wines. “Clearly the pandemic has caused much distress in the overall hospitality sector worldwide of which we are part of that chain.”
“However, we have found, as an investment firm, that many investors have come to us because fine wine is a ‘safe haven’ in times of turbulence due to the correlation factors against the main equity markets,” Gearing says. “The whole alternative investment sector, of which fine wine is a leading asset class, is now being looked at by more people to balance their portfolios.”
In the next few weeks over a series of articles, I’ll be speaking with members of the fine wine industry on how 2020 is changing the landscape of luxury wines, from shifting tariffs to new distribution channels.
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a35c049379a1165e2331cf5607889970 | https://www.forbes.com/sites/katedingwall/2020/10/20/wine-experts-on-how-2020-is-highlighting-new-wine-regions/?sh=7dabfcd477a4 | Wine Experts On How 2020 Is Highlighting New Wine Regions | Wine Experts On How 2020 Is Highlighting New Wine Regions
vinyage winery in Chile getty
2020 has not been easy for the wine world. To list off a few hurdles: a globe of bars shut down. A global pandemic. Climate change. California and Oregon facing the most destructive wildfire season in history.
In this ongoing series, we’re speaking with major players in the fine wine world to understand how the year is affecting the luxury wine industry.
One of the biggest shifts in the fine wine world is the changing roster of prized terroirs. Yes, Grand Crus will continue to demand top dollar. But with new tariffs, fires and a new wave of wine collectors, wine drinker’s eyes are drifting away from France and California.
“In the last decade, wine collectors have started to discover a range of exciting winemakers crafting tomorrow’s nectar in new terroirs of the world. These pioneers are also joined by long-established wine dynasties bringing their expertise to create world-class vineyards,” describes Tom Gearing, CEO of Cult Wines, one of the world’s foremost fine wine investment company. “Regions such as Chile, Argentina, Spain and to a lesser extent the US offer strong relative value and diversification benefits for wine investors as well as new experiences for curious wine lovers. Whilst ten years ago, wines produced from these combined countries accounted for 0.5% of trade share, measured by value on Liv-ex, they now represent 6.2%. As the locus of future demand continues to shift to these frontier regions we have identified the biggest growth opportunities in the Emerging Markets for fine wine.”
Chile’s performance, particularly wines from Almaviva and Sena, have been incredibly strong—wines from Argentina and Chile are receiving critic scores like never before. Gearing points to Chile, Spain, Australia and Argentina as areas with the most potential, based on a CAGR% analysis between 2015 and 2020.
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Wineries to monitor include Chile’s Almaviva, Mondavi and Chadwick, Sena; Spain’s Vega Sicilia, Unco and Pingus; Australia’s Henschke, Hill of Grace, Penfolds and Grange; and Argentina’s Cheval Andres.
Thanks to the expanding distribution channels we dug into last week, the fine wine consumer is being increasingly exposed to emerging wine regions. “In the last decade, wine collectors have started to discover a range of exciting winemakers crafting tomorrow’s nectar in new terroirs of the world. These pioneers are also joined by long-established wine dynasties bringing their expertise to create world-class vineyards,” says Cult Wine’s Gearing.
Another draw of the new terroirs is with skyrocketing prices in the famed wine regions of Bordeaux and beyond, savvy oenophiles are looking for new regions to get more bang for their buck.
Particularly to drink: “With the run-up in prices, many are now looking at their cellars as an investment rather than something to be shared with friends,” says wine collector Heidi Pozzo. “I regularly hear, I can’t justify drinking that. Why drink a DRC, Coche Dury or Rosseau that was purchased for $100 when it can be sold for thousands?”
For sommelier Zack Musick, the beverage director at Merriman’s Hawaii, new regions are what appeals to his customer, if only by price point. “It all started out with the worries surrounding the tariffs, which started in 2019. Working at a fine dining restaurant in a slightly more affluent neighborhood on Maui, I carry a lot of premier wines from various parts of the world. A 25% tariff on wines that are already at the $400-$500 price point, places them outside of what many people want to spend on a bottle of wine at dinner. It's caused me to pivot on the program I've been designing over the past 4 years—I've thinned down my Burgundy, Bordeaux, Piedmont and Tuscany options and started focusing on more obscure regions where the wines still have great quality but don't get the recognition and demand they deserve. That helps to keep the price relatively low.”
Andy Myers, wine director at José Andrés' ThinkFoodGroup, has adopted a similar tactic. “From a restaurant perspective, I can tell you that it is an incredibly difficult time for wine. Tariffs have increased the price of most wines, which has changed the dynamic of what can be bought for different categories. ‘By the glass’ range wines have often increased a few dollars, taking them out of the "by the glass" price range entirely. We have shifted some of our ‘by the glass’ offerings to lesser-known regions in order to stay competitively priced. High-end European wines have gone up as well, but it’s really at the $8-$15 range that we are seeing the real effect of the tariffs.”
The rising prices ripple through to affect the oenophiles in all roles. “This trickles down to a new generation of sommeliers and collectors,” continues Pizzo. “The younger crowd who are now somms or work in wineries have never tasted the solid-to-great producers. The price is a barrier and they look to other regions.”
But one of the most devastating and drastic changes to the wine map of the world is the west coast fires.
“The fires are devastating especially to the 2020 red wine production because many of these grapes have sat through the smoke and are most likely tainted,” says Chris Towt, the owner of Durell Vineyards and Co-founder of VineSpring. “Many white and rosé wines were harvested just before or as the fires were starting. Fortunately, the previous few vintages (2018, 2019) were banner years with high-quality fruit and wines, so the hope is many wineries heavily impacted by this year's fires will be able to sustain sales on these previous vintages.
“That said,” he continues. “Too many wineries have been destroyed or damaged in this year's fires. Many, many more are rejecting grapes due to smoke taint. Vineyards with a majority of red wine grapes have historic losses, and many don't have crop insurance. Laboratories that have chemical analysis tests for smoke taint of micro-ferments are backed up to the point some wineries are sending juice to Australia. It's a disastrous year for the wine industry.”
“Not only the loss of life and devastation throughout California…” says Ted Rink, the beverage director at the award-winning BLVD Steakhouse in Chicago. “We are losing swaths of raw wine products. When all is said and done, the impact on the California wine industry is going to be harsh. If tariffs helped stir wine drinkers to their own backyard, COVID and now fires took that potential back. The California wine industry is really getting kicked when they are down. The producers that have viable crops will be much more limited. I'm leary to pick up 2020 vintage California wine due to smoke taint concerns.”
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8c6ab29fff92da58656bf8cdd6172315 | https://www.forbes.com/sites/katedingwall/2020/11/02/americas-farm-distilling-scene-was-just-hitting-its-stride-but-2020-set-up-new-hurdles/?sh=5f7b8e6a7a39 | America’s Farm Distilling Scene Was Just Hitting Its Stride, But 2020 Set Up New Hurdles | America’s Farm Distilling Scene Was Just Hitting Its Stride, But 2020 Set Up New Hurdles
Colby Frey, a distiller between farm bourbon distillery Frey Ranch, surveying the fields. Jeff Dow
‘Grain-to-glass’ has been a catchphrase for many liquor distillers trying to ride the sustainability wave. But few do ‘grain-to-glass’ like farm distillers, a small subset of distillers who not only distill and age on-site, but grow all grains (or potatoes, sugar cane, or raw materials) needed for the final product by hand.
Over the pandemic these distillers faced a unique predicament: not only did they have the same hurdles a craft distillers faced (closure of tasting rooms and looming tariffs being particularly chilling difficulties), but they had to grow and harvest all materials in a pandemic setting.
“As a small distillery, we live and die off our tasting room,” describes Richard Kneipper, the CEO and manager of Shady Knoll Distillery, a farm distillery in New York. Kneipper and team conjure 126 different varieties of apples into uniquely New York apple brandies, pommeaus and whiskeys. “But I was just doing the numbers, and we’re now down 60% of our visitors from this year—and 50% of our profits come from a tasting room.”
Just like small distilleries across the U.S., farm distillers are particularly hit during 2020. “We're just a small little industry—Everybody in this craft is trying to make a career out of thoughtfully crafted spirits,” says Kniepper. “Something like the pandemic is truly painful because craft distillers have our life savings tied up in this. A lot of us aren’t going to make it.” (America’s distillers have been begging the government for help amidst lack of support and incoming tariffs.)
Unlike a standard distillery who can outsource grains or work with contract distilleries, every single step is controlled by the maker. A growing number of distillers in North America are adopting this labor-of-love process that produces spirits with a true sense of terroir—Willibald Farm out of Ontario, Canada produces exceptional gin, while Frey Ranch is crafting cult-loved bourbons.
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But these small producers are facing big hurdles in 2020.
“Our primary concern for the craft spirits industry is that the federal government extends the Federal Excise Tax Reform Act to help so many small and mid-sized distilleries that have been devastated by the effects of the pandemic,” describes Colby Frey, the CEO, co-founder and “Whiskey Farmer” at Frey Ranch. “As farmers we can't just shut down operations; we have to continue tending to our fields and growing our crops. Each year nature gives us exactly one opportunity to plant and one opportunity to harvest. If we miss this opportunity, we won't have corn, wheat, rye or barley for our distillery and that would mean no Frey Ranch Whiskies five years from now.”
Distribution is particularly tricky. The rigmarole of navigating the antiquated three-tier system makes it incredibly difficult for independent distillers to get product in the hands of consumers. And as a small-scale distillery, Kneipper doesn’t have the backing of a major spirits group to help him navigate state-by-state laws. “Distribution roles are coalesced into a small number of very large players. And they’re not interested in anything that doesn’t sell full skids, ” explains Kneipper.
“But we’re never going to be a high-volume distiller. They don’t even want to talk to us.” So Kneipper is left to drive around with the product in the back of his truck, bringing the juice to retailers and letting the quality speak for itself. “We never had a problem selling it that way, but now, with the pandemic, it’s hard to do.”
Frey agrees that distribution has been a struggle in this new landscape.
“The biggest impact has been dealing with bars and restaurants being shut down to varying degrees throughout the pandemic, since our initial channel strategy was centered around introducing Frey Ranch Straight Bourbon to consumers through on-premise. Essentially, we had to completely change our launch strategy within a matter of weeks, pivoting to reach consumers in liquor and grocery stores.”
These distillers marketing efforts are being forced to change along with the shifting distribution channels.
“We were also forced to find new and innovative ways to get our message out to consumers,” says Frey, “which included a shift away from in-person events—because they simply weren't happening—and instead finding opportunities to reach consumers through digital opportunities, including virtual tastings and virtual tours of our farm and distillery.”
“At first these felt a bit clunky and awkward, but now that we've gotten the hang of it we're having fun with them and enjoy consumers virtually inviting us into their homes almost every week.”
The barrel house at Frey Ranch, one of America's leading farm distillers Jeff Dow
By the American Distilling Institute definition, “Farm distilleries typically produce spirits from grain, potatoes, fruit or sugarcane grown on their farm or brought from local farms. Many of these distilleries not only grow their own ingredients, they also harvest, store and grind them – all in preparation for their final product.” ‘Grain-to-glass’ in the truest of senses.
“At Frey Ranch we have total control of our process from start to finish,” says Frey. “We specially select seed varieties to plant with the intention they are destined to be bourbon. For example, we sacrifice yields and quantity to achieve a higher quality grain. These bourbon-specific grains are distilled into a cleaner, purer spirit, and we believe, a more flavorful bourbon. With better inputs we end up with better outputs.”
Farming was basically the only options for distillers before prohibition. But with the 1933 repeal, the costs for operating both a farm and distillery sky-rocketed, to prices so prohibitive that distillers started sourcing raw materials elsewhere.
Now, a group of zealous craft distillers are bringing back the laborious traditions of farm distilling.
“When I started Shady Knoll 20 years ago, there were only five farm distillers in the United States, and no one was making Apple Brandy. If you go back in the history books of American Apples and American farm distillers, Brandy was one of the mainstays in early Colonial drinking,” describes Kneipper. (And American bartending—a peek back into the cocktail books of the late 1800s and early 1900s call for brandy over whisky in recipes like the Sazerac and Old Fashioned.)
But prohibition-era laws that make up the three-tier system make it difficult for craft and farm distillers to thrive. “It’s back to my earlier point,” says Kniepper. “We want to get treated like wine. We should be able to have our stuff shipped intra- and inter-state.”
“The classic level playing field would make a giant difference, but that said, states like New York have done a really good job of helping craft distilleries.”
The reemergence of farm distilleries like Shady Knoll and Frey Ranch reflect a huge change in consumer interests, one towards transparency and community.
“There are so many craft distilleries in the States, and a lot of them are people who are buying products and putting a brand on it,” Kneipper explains. “We’re seeing a number of studies saying that more and more people are interested in sustainability, and really understanding where their food and drink comes from. But most people don’t read the label on the bottle.”
Many brands tout being ‘grain-to-glass’, weaving romantic stories of hand-crafted spirits born from local ingredients. But often these tales are merely a product of great marketing, with grains coming from Europe and distilling handled by a third-party contractor. That’s no snub to the quality of the liquid, but it’s not the local experience the bottle suggests.
“I love the word terroir,” says Kneipper. “But when people come to the countryside, we’re starting to understand that people don’t really understand terroir in the craft distilling industry.” While the concept of ‘terroir’ (the three-dimensional impact of soil, topography, and microclimate on a spirit and/or plant) is a driving force of the natural wine movement, the term feels decidedly absent from the American distilling scene’s vernacular. But farm distillers are trying to revive the authentic, grain-to-glass narrative.
Frey continues, “As a farmer and distiller, I have to act as a mechanic, equipment operator, problem solver, optimist, electrician, plumber, engineer, supply chain planner, scientist and weatherman! If you taste our bourbon—and hopefully enjoy it—you're experiencing this entire production process in each sip.”
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ac52b2ff4bf403937df7690da338c3ea | https://www.forbes.com/sites/katedingwall/2020/11/06/according-to-drizly-alcohol-sales-surged-election-night-as-americans-filled-their-glasses/?sh=56cf559b64f1 | According To Drizly, Alcohol Sales Surged Election Night As Americans Filled Their Glasses | According To Drizly, Alcohol Sales Surged Election Night As Americans Filled Their Glasses
Alcohol sales surged on election night as drinkers waited out results. getty
As results unfolded over election night (and the days following), most of the country was, well, reaching for a drink. Election watch parties may have been scrapped, but that doesn’t mean drinkers weren’t filling their glasses—according to alcohol e-commerce giant Drizly, sales jumped almost 58% (in comparison to an average of the last four Tuesdays).
Sales were Drizly’s year-over-year growth—219% higher to be exact. These jumps were industry-wide—Google GOOG reported searches for ‘alcoholic drinks’ had never been higher.
New York City saw alcohol sales spiked a whopping 110.4%, while D.C.—the epicenter of election happenings—saw a 132.57% increase in alcohol sales.
While this is all interesting, what’s particularly fascinating is the sales breakdown between red, blue and swing states. Blue states purchased more wine, while red states headed towards something stronger.
Sales in blues states (Drizly is present in California, Oregon, Washington, Illinois, Massachusetts, Rhode Island, Connecticut, New Jersey, New York, Maryland, and D.C.) were up 75.32% (again, versus prior four Tuesdays). Broken down categorically in blue states, wine accounted for 45.34% of sales, while liquor accounted for 38.81%, and beer, 13.94%.
Sales in red states were only 33% higher than normal. (Drizly ships to Indiana, Wyoming, Oklahoma, Missouri, Louisiana, Tennessee, and Kentucky.)
Interestingly, red states skipped the wine and beer and went for something stronger: liquor accounted for 43.89% of sales while wine only accounted for 39.41%. Beer took 14.23% of sales.
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Swing states experienced sales 54.84% higher than average. These battleground states were also reaching for higher-proof libations: liquor accounted for 45.84% of sales, while wine, just 35.31%. Beer took up 16.22% of sales.
Let’s look at a whole-country breakdown of sales by category. Wine dominated, accounting for 42.38% of sales, while hard liquor took 40.84% and beer took 14.67%—drinkers clearly needed something stronger than suds.
Red wine accounted for 45.88% of wine shares (+3.56 points compared to the last month of Tuesdays) while white wine took 25.98% of wine share, (-3.83 percentage points) though the increasingly chilly weather may be to blame for that decline. Unlike this summer, rosé was not the drink of choice—the subcategory accounted for 5.49% of wine share (-0.82 points).
In the spirits world, bourbon dominated, taking 18.97% of liquor share (+1.53 points). Vodka accounted for 18.29% of liquor share (-.77 points, again compared to an average of the last four Tuesdays). Rye followed far behind at 3.72% of liquor share.
In the beer category, hard seltzer continued to reign, accounting for 18.87% of all beer shares, followed by light lager, at 13.80%. Cider and Hazy IPAs gained a small percentage of shares as well, at 6.24% and 5.49% of beer subcategory shares, respectively.
(Funny, because Minibar, another beverage alcohol delivery sales platform, had a good night for beer: sales were up 82%, the most of any segment on election day.)
While the sales are impressive, given this election, it’s no surprise America needed a drink.
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a43434ae13ca4fe25ba9063f8d083564 | https://www.forbes.com/sites/katedingwall/2020/11/17/the-three-tier-system-is-crippling-the-craft-spirits-industry-this-company-is-trying-to-help/?sh=2eb7e342418d | The Three-Tier System Is Crippling The Craft Spirits Industry. This Company Is Trying To Help | The Three-Tier System Is Crippling The Craft Spirits Industry. This Company Is Trying To Help
Josh Jacobs founded Speakeasy, an online platform designed to help small brands navigate the ... [+] three-tier system. Speakeasy Co
When it comes to purchasing alcohol, the United States relies on a complicated series of Prohibition-era drinking laws. To reach a consumer, a bottle must pass through several levels of distribution, getting stamped with taxes along each stop.
These laws were put in place to increase public safety, collect tax revenue and stamp out tied-house plays, but in the digital world that Covid-19 has bred, the three-tier system is more glaringly outdated than ever.
One company is looking to help small brands navigate the complicated regulations of the three tier system.
Speakeasy Co offers integrated solutions for beverage brands—including front and back-end technology, customer service, order fulfillment, warehousing, website store design, Google Analytics and customer service—while smartly integrating itself into the three-tier system.
Founder and CEO Josh Jacobs crafted Speakeasy Co almost by chance. In 2015 during the subscription box boom, Jacobs began putting together cocktail boxes and selling them to friends and family.
His near and dear would pay $40 a month for a box packed with all the fixings for a new cocktail, plus spirits from local craft distilleries.
“It blew up, doubling the second month, then the third,” describes Jacobs.
As the subscription grew, Jacobs and co-founder and COO Michael Bowen started picturing the next chapter: a craft liquid store. But as this idea took form, the duo realized how many hurdles and constraints American craft distillers faced in the retail world.
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“The first partner we pitched it to said, rather than a page on our website, why don’t you build us an entire website?”
Now, Speakeasy builds out a complete online presence for alcohol brands, quietly housing the shopping arm on Speakeasy to remain three-tier compliant. (It’s done so seamlessly that an average consumer would have no clue they ever left the brand’s website.)
While Speakeasy filled a white space in the market pre-Covid, the pandemic has created the perfect environment for the company. With restaurants and bars shuttered, consumers are buying alcohol online more than ever. Brands without an online presence are clamoring to get digital.
Jacobs jumped to joining Speakeasy full-time in February—fortuitous considering the flux of online ordering that Covid-19 would bring. “We were already working to scream from the rooftops about direct-to-consumer.”
But on other spirited e-commerce platforms like Drizly and Minibar, brands have little control of how their bottles are perceived. They are merely a photo and a short description on a website.
Jacobs pointed out that while these e-commerce solutions move impressive sales (particularly in 2020), these websites are designed to sell products, not specifically your product. “There’s little consumer loyalty,” says Jacobs. “Our distribution remains three-tier compliant, but because it’s on our website, there are no other distractions.” No bottle sales or specials to woo drinkers away from your brand.
“We also have, and share, access to Facebook, cart insights, abandonment emails—all the data.” Valuable intel that brands can use to further focus marketing and distribution efforts. “They can truly control their own growth and own their destiny, as opposed to relying upon distributors, restaurants, or liquor stores to do all the sales.”
Since the start of the pandemic, “We’ve seen our growth expand from 40 brands at the beginning of the year to almost 150 now.”
The company now counts 10th Mountain, Slow and Low Rye, AMASS, Beau Joie Champagne, Desert Door Sotol, Gem and Bolt Mezcal, Tromba Tequila, Westward Whiskey, Siempre Tequila, and, most recently, Tesla Tequila among them. “It was also really exciting as we’re seeing the brands themselves drive really significant sales.”
The Three-Tier System
Why does the three-tier system pose such a problem to small distillers?
The system is over 80 years old—first instilled with Prohibition-era ideologies and the hopes to crack down on reckless drinking by dividing the industry into three separate tiers: producers, importers/distributors, and retailers.
At each level, taxes are added and prices spike. So said, if a winery sells a bottle for $10, the distributor marks it to $20, and retailers place it at $30. A restaurant will then mark it up anywhere between two and five times what the distributor paid.
This bludgeons local producers. Why would a restaurant or consumer pay that mark-up when they can buy a higher-end bottle from Europe, or a bottle from a massive American producer, for that price?
It’s particularly fist-clenching for small distilleries. With tasting rooms shuttered, distillers just want to get their liquid in the hands of thirsty Americans.
Under the three tier system, the United States operates as 50 different markets, rather than one. Each state controls its distribution, putting hurdles in front of distillers who want to ship out-of-state and causing huge disparities across the country in terms of selection, availability, and pricing.
In order to expand, a small distiller has to work with each state to meet distribution requirements and find retailers. Then, the brand has to go about building a presence with consumers and bartenders in each market. The onerous process often isn’t worth the effort for a small brand.
The system also favors major producers who have the finances to easily navigate the complexities of the system. Many small producers simply can’t produce the volume needed to sign with a distributor, which leaves them struggling to get product in stores (a few weeks ago I spoke about how Richard Kneipper of Shady Knoll Distillery drives across the country to meet with distributors with product in the back of his truck).
If small brands do get picked up by major distributors, they often get lost in a portfolio filled with better-known products.
“A lot of the brands realize they need direct-to-consumer, and some are willing to dip their toes in, but we have to work with them to really carve out significant budgets,” says Jacob. “If your website is outdated or you never invest resources into your website, you won’t drive traffic and you won’t see the throughput—it’s a chicken and egg game.”
Especially right now, when funds are limited with a lack of on-premise sales—it’s hard for brands to justify spending more. “Brands are terrified they will need to lay people off,” Jacobs continues. “They’re just trying to stay afloat and we’re asking them to make an additional investment.”
But in an age when drinkers are shopping more online than ever, it’s an investment that could get small brands in front of a whole new crowd of digital drinkers.
“I would say there are a couple of different elements of why brands truly value our platform. The first is owning that experience end-to-end: we integrate the shopping cart into their website so there are no clunky hand-offs to a retailer. It means the messaging is consistent, and brands can make changes on the fly. There are no other brands or distractions present so they can own that conversation.” No major brands or bottle sales to distract a potential costumer.
“And they can continue the conversation.” The Speakeasy back-end allows customers to sign up for newsletters, letting brands nurture connections with consumers. “That’s what presents so much scalability. There may be upfront costs, but you’re finding, educating, and indoctrinating a new potential customer.”
Amidst a distribution system that is intentionally inefficient, the digital age, and solutions like Speakeasy, are allowing small producers to weather, and thrive, amidst the storm that 2020 has brought.
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a4f41c94eccf5952f9a3111757fbf877 | https://www.forbes.com/sites/katedingwall/2020/12/16/glassware-virtuoso-kurt-zalto-has-quietly-released-his-masterpiece-wine-glass/?sh=71b2a0e74035 | Glassware Virtuoso Kurt Zalto Has Quietly Released His Masterpiece Wine Glass | Glassware Virtuoso Kurt Zalto Has Quietly Released His Masterpiece Wine Glass
“I made the compromise of accepting foreign investors into my company. I was pushed out and they ... [+] kept the “Zalto” name.” Josephinenhütte
There are certain traditions that happen when a nice bottle of wine is opened. The flick of a wine opener, the swirl of a decanter. Oenophiles ceremoniously pouring wine into their carefully cared for ‘good glasses’: pricey, whisper-thin glasses blown by hand.
Chances are, these glasses were made by Kurt Josef Zalto.
He’s the Austrian glassware prodigy responsible for inventing Zalto’s lithe, singular signature glasses—limited-production, hand-blown glasses coveted by a globe of sommeliers.
But the last few years have been tough for Kurt Zalto. He was pushed out of the company that bears his name. His designs, potentially stolen by a competitor.
Now, Kurt Zalto is ready for his second act, with new designs, a new company, and a story to tell.
Kurt Zalto's new line of whisper-thin glasses. Josephinenhutte
Kurt’s family needs little introduction in the glassware world. Their glassware dynasty goes back six generations, with roots that date back to the Venetian crystal scene.
“I was born with a passion for glass,” he explains. “As a 4-year-old boy, I was in and out of my father's studio. The heat of the fire, the red-hot glasses from the wooden forms and the concentrate, precise craftsmanship has always fascinated me.”
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Just like his father and grandfather, Kurt grew up in the Zalto studios in Neunagelberg, carefully learning the craft. “Our Zalto glass family tradition goes back well into the 18th century to Veneto, Italy. In 1770, my ancestors emigrated to Austria. I learned the art of glass from my father and later refined it at the glass school in Kramsach and at the Nachtmann company in Germany.”
By eleven, he was drawing his own designs and in the year 2000, he released his first glass under the Zalto label. “That was the first light and thin-walled series that ever came onto the market. It became a success very quickly because it was something new.”
His designs quickly became industry standard and Zalto, the moniker for quality. “Zaltos feel so delicate that you feel at one with the wine,” Jancis Robinson once said.
“But in order to be able to grow faster,” explains Zalto, “I made the compromise of accepting foreign investors into my company.”
But Kurt was far more of an artist than a businessman. “My way of making glasses, my love of detail and craftsmanship was quickly overshadowed by financial interests. I was pushed out and they kept the “Zalto” name.”
He was on his own. Generations of family history were left to new owners and his inventions, filling the pockets of foreign investors.
Fate aligned him with his current business partners, who were looking to use Silesian glassware techniques to develop a new line glasses while resurrecting the Josephinenhütte brand (a historic glassware studio founded by Count Leopold in 1842). Under this brand, Zalto has been quietly working in an ecologically-sustainable glassware hut in the Waldviertel region of Austria.
It’s here he’s developing his masterpiece.
Under the name Josephinenhütte, Kurt Zalto has released four glasses. Josephinenhütte
And masterpiece it most certainly is. Kurt Zalto has completely rethought the teardrop-shaped wine glass as we know it, opting instead for undulating curves and kinks with a conical bottom. Under the Josephinenhütte studio, Zalto has released four wine glasses: a Champagne glass, with a gently sloping angle and a slender bowl. A red wine glass with voluptuous curves to amplify Burgundian reds. A narrow white wine glass and a universal glass for all occasions, plus a series of water glasses in a rainbow of hues.
All wine glasses share a conical base and slight ripple in the design. “The design ensures that part of the wine is refracted on its way to the rim and flows back into the glass in a spiral movement, this way it absorbs a great deal of oxygen and can develop perfectly.” Plus, a delicate, wafer-thin rim. “The distance between wine and those who drink it is barely existent.”
"I often hear from the winemakers that the wine develops faster and more intensely than they have ... [+] ever experienced before.” Josephinenhutte
“The Josephine glasses follows a fundamentally new concept,” he explains. “Due to the characteristic break, the oxygen rises and is then returned directly to the wine. The wine unfolds much more intensely and faster. Especially with the large, heavy wines like Bordeaux and Burgundy—I often hear from the winemakers that the wine develops faster and more intensely than they have ever experienced before.”
“It’s the best glass ever,” swears Christian Rainer, a sommelier at Peter Brunel group’s Arco, and formerly of the three-Michelin-starred St. Hubertus. The kink, though divisive on public forums, “makes a lot of sense,” according to Billy Wagner, a sommelier at Berlin’s Michelin-starred Nobelhart & Schmutzig.
Though against conventions, the wine glass truly does make a difference—the glassware equivalent of an opera singer performing at La Scala. The curves perfectly provide wine the stage it needs to sing, letting nuanced aromas come through. (I’ve tried the glasses for myself multiple times and they really do wonders at acting as part-decanter to amplify the sensory experience.)
But years after launching his new glasses, Kurt saw a photo on Instagram of the head of a major glassware brand holding his new glass.
“I thought it was interesting he was congratulating us on the new glass but then I realized, he hadn’t given us credit.”
Six months later, the same glassware brand rolled out a similar style of glasses, with a flat bottom and a familiar, undulating kink inspired by the wings of a plane, the brand declared. Zalto had held a design patent since November of 2018.
Friends beckoned Zalto to do something.
“I didn’t want to believe it. I am still old school and copying a design from a competitor would not match with the ethos of Austrian trade of glassmakers.”
At this juncture, the controversy sits in courts, with Zalto’s lawyers vying to protect his name and design.
Until then, Zalto will continue to work his magic, quietly sitting by his oven in the Waldviertel, hand blowing each stem, and shaping each bowl by hand. “With these glasses, there are more lines, more contours. They’re very honest, authentic. They have something sensual to them.”
The glasses are acting as his swan song, his way of continuing his family legacy. A fresh start and a clean slate for the acclaimed artisan.
From the man who championed fine glassware, “The Josephine is by far the best glass I have ever made.”
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77745d1af27a82f612f6ea4f6bdf8033 | https://www.forbes.com/sites/katedingwall/2020/12/17/travis-scott-enters-the-booming-hard-seltzer-market-with-agave-spiked-seltzer/?sh=1952daf711d9 | Travis Scott Has Launched A Hard Seltzer | Travis Scott Has Launched A Hard Seltzer
The hip hop mogul is entering the fray of the $3 billion hard seltzer sector. CACTI
After dropping hints to the release late last month in our cover story, Travis Scott has officially announced his hard seltzer line CACTI.
Made in partnership with beverage giant Anheuser-Busch, CACTI agave spiked seltzers will be hitting shelves in the spring of 2021.
Drawing inspiration from the multi-hyphenate's love of tequila, CACTI is made with 100% premium blue weber agave and sits at 7% ABV. It will be available in a range of flavors—lime, pineapple and strawberry among them. The product will be sold in 12-ounce, 16-ounce and 25-ounce cans.
“CACTI is something I’m really proud of and have put a ton of work into. Me and the team really went in, not only on getting the flavor right, but on thousands of creative protos on everything from the actual beverage, to the can concept, to the packaging and how it is presented to the world,” says Scott in an official statement. “We always try to convey a feeling in our products. I’m a big fan of tequila so I came at it from that angle, too. I’m really excited to put this out in 2021 and see other people be able to enjoy it.”
With this announcement, Scott is officially entering the fray of the booming $3-billion hard seltzer industry, joining brands like White Claw and Truly who have won over a globe of drinkers.
Over 2020, hard seltzer and the RTD category saw unprecedented growth. Drinks market analysis firm IWSR noted that over the last few years the hard seltzer sector has boomed, growing by 346% in 2017, 246% in 2018, and 214% in 2019. The category is expected to grow 157% in 2020, with the IWSR expecting total volume consumption of RTDs (led by hard seltzer) in the US to surpass that of spirits consumption this year.
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Grand View Research expects the category to be worth $14.5 billion by 2027, showing a 16.6% CAGR growth between now and then.
When the hard seltzer craze first took hold, brands like Truly and White Claw led the pack—White Claw sold 27.5 million nine-liter cases over 2019.
But the craft segment of the industry is looking to overshadow the major players—Drizly noted in their year-end retail report that a third of retailers are looking to fast-proliferating craft entries to keep the category thriving.
Hard seltzer has morphed beyond a beverage category—the cans have quickly became part of the cultural lexicon, finding their way into the hands of college drinkers, yoga moms and seemingly everyone in between. Including beer drinkers: In August of 2020, White Claw, Truly, and Bon & Viv outsold the top six beer brands (Budweiser, Bud Light, Coors, Coors Light, Miller and Miller Lite) combined.
Over the last three years, the category has been expanding at a breakneck clip to account for increasing consumer demands for new flavors, more craft brands, and more premium products. Beverage giants are clamoring to release their own iterations to capitalize on demand: Coca-Cola KO has a boozy Topo Chico hitting the market next year, while Bud Light and Coors both launched hard seltzers.
CACTI t will be sold in 12-ounce, 16-ounce and 25-ounces cans. CACTI
And just like hard seltzer, Scott is heavily ingrained in the zeitgeist. His recent McDonald's collaboration was so popular restaurants couldn’t keep up with inventory. “Travis is a cultural icon,” says Jennifer Healan, vice president of U.S. marketing for McDonald’s to Forbes.
He pocketed $5 million from the original endorsement, and an additional $15 million from merchandise sales, including boxer shorts and a McNugget-shaped body pillow. This year Scott has also partnered with General Mills, Hot Wheels, and PlayStation.
Though Anheuser-Busch already has Bud Light’s hard seltzer, this partnership will position the company to really compete in the hard seltzer sector.
"We are all about delivering what consumers want, and as a culture-shaping artist, Scott is incredibly connected to his fans and what's new and next in culture," said Fabricio Zonzini, President of Beyond Beer at Anheuser-Busch.
Between Scott’s success as a brand whisperer and the hard seltzer category’s global dominance, CACTI is certainly poised for success.
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046381e778f3bc52876b114fb388c042 | https://www.forbes.com/sites/katedingwall/2021/01/06/nomadica-is-carving-a-natural-niche-in-the-canned-wine-category/ | Nomadica Is Carving A Natural Niche In The Canned Wine Category | Nomadica Is Carving A Natural Niche In The Canned Wine Category
The female-led wine brand is one of a new guard of brands reviving the canned wine category. Jonathan Garduno
We’re entering the golden age of canned wine.
Up until recently, canned wine had the reputation of being overly saccharine, viscous juice—a category mentally maligned with boxed wine.
But a wave of new players in the canned wine world has burst the category open, with innovative (and delicious) new options. There are stellar Nouveau riffs out of Oregon (thanks, Underwood), sommelier-crafted single-serving spritzers (re: Ramona), and Vinny, a brand putting New York state’s finest bubbles in can format. Babe Wine produces breezy, chuggable rosés for the Instagram set while Sans Wine is vintage-dating canned wine.
One of the most notable brands of the new guard is Nomadica. Founded by a former Snapchat bigwig and a noted sommelier, the brand’s modus operandi is crafting a rainbow of sustainably-crafted canned wines that supports the California wine community.
You could say the brand checks a lot of boxes for the Millennial drinker: it’s female and LGBTQ+ led. Wines are low-intervention, vegan, and produced from sustainably-grown grapes from small farms on the West Coast. Cans are recyclable and wines have no residual sugar. Labels are designed in collaboration with a rotating set of visual artists.
But the wine is also just plain great. Not ‘good for a canned wine,’ but genuinely quaffable: the duo produces bright, effervescent bubblies, bone-dry rosés, and high-acid, low-tannin reds that offer none of the tinniness of most canned reds.
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Brands like Nomadica, Underwood, Sans and Vinny are marking a big moment for the canned wine category.
Since 2012, sales of canned wines have jumped from $2 million to $183.6 million in the 52-week period ending July 11, 2020. Nielsen has noted that sales of canned wine grew 79.2% over 2019, while wine sales increased just 1.4% over the same period. The category is expected to be worth $155.1 billion by 2027, with a CAGR of 10.4% over that period.
The draw of the canned category is obvious. Similar to hard seltzer’s adjacent success, single-serving wine offers convenience and portion control—with an average serving size of 250mL, canned wines offer single-serving alternatives to 750mL bottles of wine.
Major wine industry players have launched iterations—E. & J. Gallo has Barefoot’s spritzer, Constellation Brands STZ has Kim Crawford’s canned Sauvignon Blanc. But small brands like Underwood, Nomadica, Ramona, and Vinny are pushing innovation, translating top-quality wine into compact formats.
Nomadica's core line of canned wines, including two sparkling, a red blend, and a rosé Nomadica
The idea for Nomadica first sparked when Emma Toshack started pouring nice bottles of wine into empty sparkling water cans to get around her building’s no-alcohol rules—she just wanted a glass of wine while she lay by the pool.
Her MacGyver’ed canned wine was convenient and delicious. So why didn’t something like this exist?
When Toshack approached co-founder Kristin Olszewski with the idea, “I will admit, as a fine dining sommelier, I was incredibly resistant at first. I had never had the experience I seek out in wine in a can. So Emma canned a tiny amount of Josh Klapper’s Pinot Noir and brought it back to me to taste. I admittedly let it sit in my cabinet for about a month but one night, when I didn’t feel like opening an entire bottle, I gave it a try.”
“A lightbulb went off and that’s when Nomadica was truly born; we then began our journey to create premium canned wine.”
Toshack formerly served as the growths program manager at Snapchat, while Olszewski cut her teeth as a sommelier at Saison, Husk, and Osteria Mozza. She is currently the wine director of Gigi’s in Hollywood.
Olszewski now serves as the brand’s wine director, sourcing wines from her favorite winemakers in the state rather than growing grapes themselves. “I like to compare us to negociants (winemakers who buy grapes from other farmers), only, instead of buying grapes, we buy already-finished wine.” This keeps overhead low—no need to manage a vineyard—while supporting local producers.
She focuses her selections on crowd-pleasing blends that appeal to a broad spectrum of drinkers. “After working in restaurants for years, I have a theory that there are certain flavor profiles that everyone enjoys. Whether you’re a sommelier or an occasional wine drinker, we source in that vein—bright wines with fresh fruit. Wines that sing in the can,” says Olszewski.
Currently, Nomadica offers a red blend of Sangiovese, Grenache, and Zinfandel; Rosé made from Pinot Noir, Syrah, Cinsault, and Grenache; and a sparkling Pinot Noir Rosé. There’s also a sparkling white with a Malvasia and a Chardonnay base, plus a limited-run, entirely-organic Chardonnay.
Nomadica's sparkling white blend, made with Chardonnay and Malvasia grapes grown in California Jonathan Garduno
Canning wine while retaining the quality is no easy feat. Aluminum is volatile, and canned improperly, the alloy can easily impart a metallic taste to the liquid. Some winemakers now add a protective lining, while others, test out wines that will keep their flavor through the canning process—Olszewski opts for low-acid varietals with minimal sulphur.
The duo also sources thoughtfully, curating wines from local small producers. “Great wine is made in the vineyard, not the cellar,” says Olszewski. “Our first priority is working with people who have responsible farming methods and don’t use pesticides. Winemakers are first and foremost farmers and stewards of the earth—we consider ourselves lucky to be able to support such incredible humans.”
Nomadica's first certified organic option: a Chardonnay Nomadica
In that frame of mind, Nomadica recently released a limited-edition release of certified organic Chardonnay, intending to shift the entire line to entirely organic processes. “We’re excited to bring more wines like that into our collection,” Olszewski explains.
The environmental ethos stretches beyond the juice. “Cans themselves are so much more sustainable than glass. They use much less energy to recycle and because cans are so much lighter they reduce shipping emissions by up to 80%.”
Customers have been incredibly receptive to this approach. “Our customers are wine drinkers; they are used to drinking premium wine, they have developed palates and they routinely choose us. We have a huge percentage of repeat buyers - I don’t think there’s a higher compliment than that. We all know canned wine is great for hikes, the beach, the pool, etc, but our consumers also choose us for their nights at home when they don’t want to open an entire bottle, or when they want multiple varietals throughout the evening.”
Just like hard seltzer, the convenience of canned wine is drawing the masses. And thanks to a broad spectrum of wines and producers like Nomadica, canned wine is elevating itself beyond fad status.
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d865e7e65cdc553a58422d44af21ba68 | https://www.forbes.com/sites/katehardcastle/2020/11/27/closing-call-sir-philip-greens-retail-empire-could-collapse-imminently/ | Closing Call? Sir Philip Green’s Retail Empire Could Collapse Imminently | Closing Call? Sir Philip Green’s Retail Empire Could Collapse Imminently
Sir Philip Green, owner of the Arcadia Group which reported a pre-tax loss of £93.4 million year ... [+] 2018 - 2019, pictured with once collaborator -Beyonce (Photo by Jim Spellman/WireImage) WireImage
Breaking news reported by Sky News today suggests that the Arcadia group may be on the brink of collapse.
Arcadia, owned by billionaire businessman Sir Philip Green, is focussing blame on the recent lockdowns and business disruption due to the Covid-19 pandemic which it claims has “had a material impact on trading across our business.”
Retail analysts suggest Sir Philip’s problems started long before 2020, with many years of “underinvestment” in the group and its brands.
The collapse of Arcadia would put over 13,000 jobs at risk, and leave a question mark hanging over the future of a 500 store-network across the UK.
Whilst it is likely that there will be many interested bidders for the Group’s legacy brands, particularly Topshop, it is possible that a potential buyer will focus future strategy for the brand online only.
Coronavirus has impacted fashion and apparel sales across the globe, as consumer demand has shrunk due to curtailment of events, holidays and socialisation.
Statista reports that in Europe’s clothing sector (compared year on year to 2019) production fell by 37.4 percent in the period April - June 2020. Retail sales of clothing products fell by 43.5 percent as lockdown saw consumer demand for furniture, technology and home exercise equipment surge.
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The BBC reports that Sir Phillip was said to be seeking support from lenders, looking for £30 million to get the business through Christmas, but that talks have failed and administrators could be appointed as soon as Monday 30th November.
Brands within the Arcadia group include Burton, Dorothy Perkins, Evans, Miss Selfridge, Outfit, Wallis, Topshop and Topman.
All operate within the fast fashion marketplace, which has seen huge disruption over recent years with the growth of Inditex-owned, Zara, value-led store Primark - and pureplay e-tailers including ASOS and the Boohoo Group.
Whilst other brands have invested significantly in their online channel and in building relationships with consumers through social media, Arcadia have been slow to invest in the evolvement of its retail offer to a highly mobile consumer audience.
Steve Coogan at a special screening of Greed - the Michael Winterbottom directed film about ... [+] businessman Sir Richard McCreadie - owner of a troubled retail empire, the character rumoured to be based on Sir Philip Green (Photo by Dia Dipasupil/WireImage) WireImage
Sir Philip, rumoured to be the inspiration for the film Greed, featuring Steve Coogan as a self-made billionaire - Sir Richard McCreadie, whose retail empire is in crisis, and who spends excessive time and money coveting celebrities - has faced years of controversy himself. In 2004 an ambitious Green pulled together a combined £10billion from investors to make an offer for Marks & Spencer. Chairman at the time, Sir Stuart Rose, was said to be grabbed by the lapels by Sir Philip during his second unsuccessful takeover bid:
“There was a fairly physical occasion one morning, yes. I think tension had got quite high during the bid and Philip got upset about something” Sir Stuart said in an interview with Profile magazine.
In 2005, the Guardian reported Sir Philip’s company famously paid his wife, Cristina at £1.2 billion dividend, as the owner of Arcadia. As she is a resident of Monaco, no tax was paid in the UK.
In 2015, the BBC covered the selling of BHS to ex racing driver Dominic Chappell for £1, resulted in the business going bust with 11,000 jobs lost, a pension deficit of £571 million, and this year Chappell was sentenced to six years in prison for tax evasion relating to the sale.
In 2016, the House of Commons approved a measure ask the Honours Forfeiture Committee to strip Green of his knighthood for his part in the downfall of BHS ad highlighted in The Telegraph.
In 2019, The Daily Telegraph reported that Sir Philip allegedly subjected people working within the Group to abuse, that was at times, physical, racial and sexual.
Sir Philip is widely quoted as saying that ‘nobody can be a clairvoyant’ - whatever Monday and the next few critical weeks have in store for the brand, it is clear this was a ‘Black Friday’ in more ways than one.
In a statement to Forbes in advance of the Sky News story an Arcadia spokesperson said that stores would open again next week: “We are aware of the recent media speculation surrounding the future of Arcadia,” adding “The brands continue to trade and our stores will be opening again in England and ROI [Republic of Ireland] as soon as the Government Covid-19 restrictions are lifted next week. The forced closure of our stores for sustained periods as a result of the Covid-19 pandemic has had a material impact on trading across our businesses … the Arcadia boards have been working on a number of contingency options to secure the future of the Group’s brands.”
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4d5e32d5f871f2502d67529b0d58a371 | https://www.forbes.com/sites/katehardcastle/2021/01/13/let-key-workers-serve-without-fearsupermarkets-step-up-safety-but-is-it-enough/ | Let Key Workers ‘Serve Without Fear:’ Supermarkets Step Up Safety, But Is It Enough? | Let Key Workers ‘Serve Without Fear:’ Supermarkets Step Up Safety, But Is It Enough?
Supermarkets are stepping up safety measures once more in store. Masks will now be compulsory unless ... [+] and security in supermarkets is on the increase. Yet some say that supermarkets are not doing enough at this critical point to keep staff and customers safe and the pandemic at bay. And with attacks towards shop workers at a high, will it all fall on the shoulders on the key-workers in store under the most pressure (Photo by Chris J Ratcliffe/Getty Images) Getty Images
Morrisons were first off the block in supermarkets to ban all shoppers who refuse to wear face coverings from its stores as of Monday this week.
David Potts, CEO of Morrisons said in a statement to the BBC “From today we are further strengthening our policy on masks. Those who are offered a face covering and decline to wear one won't be allowed to shop at Morrisons unless they are medically exempt. Our store colleagues are working hard to feed you and your family, please be kind.”
The plea from the supermarket comes amidst heightened concerns about the U.K.’s critical status with Covid-19 cases and hospital admissions. The U.K. is at Level five - the highest level of alert, meaning there is a “material rise of healthcare services being overwhelmed.” The latest government figures highlight that the number of patients admitted to hospital with Covid-19 is up 34.8% (as of January 7, 2021) and there were 6898 deaths recorded* in the last 7 days (data from January 12, 2021).
Once Morrisons had made the statement, other supermarkets were quick to follow suit. Sainsbury’s said there would be challenges made to non mask-wearing shoppers and those buying groceries in groups, the supermarket chain also will be placing security guards at the front of stores to prevent those without masks entering.
Tesco confirmed it was limiting customer numbers in each store, as well as prompting mask wearing and Asda summarised its measures in a release last week that includes: doubling the hours of its Covid-19 safety marshals, installing further sanitisation stations at the front of stores and increasing the cleaning protocol for regular ‘touch points’ such as baskets, trollies, checkouts and fridge and freezer handles.
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Yet with so much focus on the supermarkets essential duty to continue “to feed the nation” at this critical phase of the pandemic, are supermarkets doing enough?
Andrew Busby thinks not. In an open letter to the retailers on behalf of his organisation SafePrem, which offers technology based solutions and PPE, Mr Busby highlights there is more to be done in the stores that are a lifeline to shoppers: “Yes your customers have a responsibility but this must be reciprocal, and it is clear that so much more could and should be done in order to ensure the safety of your staff and customers alike. Perspex screens and one way systems do not in themselves ensure a safe premises.” The letter goes on to suggest that queuing systems, store occupancy management, cleaner air measures are ways in which supermarkets could immediately improve safety and indeed ensure to stay open in a time when restrictions are becoming increasingly tighter.
The Valley Group UK, are also urging the use of technology to help keep the in store environment safer for shoppers. They install retail point of sale, including Tap and Scan, an application-free technology solution which encourages shoppers to engage with products and displays via their smartphone thus minimising the need for consumers to over-handle products and store fittings.
With millions already invested by the big grocery chains to remain operational at this time, it is unknown what appetite there will be for further measures.
The Evening Standard reported in September 2020 that Morrisons costs relating to ensuring stores and staff complied with Covid-19 safety measures cost £155 million, and its competitors have highlighted spend at similar figures.
In 2020, The Grocer conducted an in-store safety survey of U.K. supermarkets with Shepper. The spot-check on 500 supermarkets audited stores for floor markings, guidance, signage, disinfectant for trollies and baskets, hand sanitiser for customers, one way systems and what measures were in place for vulnerable shoppers. Asda came out on top, but the survey highlighted that all grocery brands audited had a ‘distinct lack of measures’ for the clinically vulnerable.
Whilst many communities in the UK have celebrated Keyworkers such as medical workers, and ... [+] supermarket workers - attacks against supermarket front-line workers are at a high including union USDAW(Photo credit should read Matthew Chattle/Barcroft Media via Getty Images) Barcroft Media via Getty Images
The pressure for the staff at the frontline in supermarkets to enforce a lot of the new change comes at a time when retail union USDAW revealed 42% of violent incidents in stores now relate to rows over face coverings.
The union also reported that abusive incidents toward shop workers had doubled since March 2020.
U.K. essential store workers are classed as key-workers, and have rallied to ensure stores stay open for the public during the pandemic.
In November 2020, Aldi announced it was rewarding 35,000 front-line employees with a ten percent bonus in recognition for their efforts in dealing with the increased demand for products during the pandemic. “This bonus is a gesture of our appreciation for our amazing Aldi staff who have shown incredible resilience and dedication throughout the year,” explained CEO Giles Hurley.
Morrisons announced today that it is increasing its minimum pay for up to its 96,000 colleagues from £9.20 to £10. Joanne McGuiness from USDAW which helped to negotiate the increase said “It’s been a tough time for food retail staff who have worked throughout the pandemic in difficult circumstances. They provide the essential service of keeping the nation fed and deserve our support, respect and appreciation.”
In 2020, Morrisons CEO David Potts described that we were having a “renaissance of British supermarkets” relating to the outpouring of appreciation from the public.
But with things at such a crucial point for the U.K., and Covid-19 cases soaring, the way the grocery brands financially support stores and workers through the next few weeks are critical. With competition rising and disruptors like Amazon AMZN entering the marketplace more significantly, it is essential that if the big supermarkets want to stay popular with the public they ensure that their key workers are safe to do their work and serve without fear.
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e0e6cde3835e3254d191e6b3f57a01bb | https://www.forbes.com/sites/kateharrison/2012/06/20/banking-benjamin-franklins-advice-for-entrepreneurs/?sh=21730346289f | Banking Benjamin Franklin's Advice For Entrepreneurs | Banking Benjamin Franklin's Advice For Entrepreneurs
“Wise men don't need advice. Fools won't take it.”
- Benjamin Franklin
Benjamin Franklin is as famous for his inventions as he is for his role in American history. But Franklin was also an entrepreneur, with a passion for showing others The Way To Wealth. While many of his maxims are about self-determination and hard work (“Little strokes fell great oaks”), he also stressed the importance of obtaining sound advice for achieving success.
In today’s world it is easy to access the answers to many basic questions online, and there are good “how to” book on almost every subject. However, there is no substitute for a personal recommendation, nor can a book can give you nuanced advice about the direction of your company.
According to a recent study by the Kaufman Foundation, only 73% of entrepreneurs report that their professional networks are important to the success of their businesses — and only 62% felt the same way about their personal networks. I would argue that leaves somewhere between 27% and 38% of entrepreneurs under-utilizing an essential tool for their success.
In times of personal challenge, most people have a short list of friends and relatives they call on for advice. When starting a new company, you face challenges every day, from the routine and mundane (“How do we file our corporate taxes?”) to the existential (“Should we merge or pivot at this point?”). In these times of need, a robust Rolodex of mentors and advisors is essential.
To round out your roster, I suggest you cultivate relationships in the following categories.
Peers – Join founders group, tech meet-ups, and other organized entrepreneurial groups in your community. C-Level employees in non- competitive fields can answer basic questions for you about operations, marketing, consulting firms, etc. If you do the same, this group will refer new business your way, and will alert you to new technologies, platforms and events going on in your field. Mentors – These individuals could be strategic new members of your board if you want their on-going counsel or connections, part of a formal advisory board or part of an informal set of advisors. I created a Google group for Green Bride Guide of smart people I have met along the way, and send them regular updates about the company. I usually include a general question for the group as well (“Does anyone know a good design firm we could use for this project?”) and always get great suggestions. When I have a specific question that someone on the list has direct expertise in, I email them personally or set up a call. This is a great way to build a community around what you are doing, and to leverage all of the connections you make over time. Investors. This list includes both current investors and potential future investors who have agreed to join your update list. Investors in your company usually have more than a financial stake in what you are doing — they want you to succeed for personal reasons as well. Most investors put money into projects they have some background or interest in, which means many of them have connections that can accelerate your growth. LinkedIn is one of the best tools I have seen in this arena, as it allows you to find a target at another company and work backwards through your network to get an introduction. Especially in the Internet Age when our inboxes are flooded with email, nothing beats a personal introduction. Strategic Partners/Potential Acquirers. While often feared by entreprenuers as “the competition,” large companies working in your space can provide you with important information about your industry and can help shape the course of your business for exit. It is important to remember that corporations are just collections of people. Finding someone who is interested in what you are doing personally and is willing to talk openly with you about your idea and how it fits into their company/ the larger landscape of your industry can provide you with game changing information and advice.
One of my favorite Benjamin Franklin quotes is, “An investment in knowledge pays the best interest.” All of the people discussed above are giving gold away for free. Why not collect? In addition to offering business advice, a strong network can also provide important emotional support, and can make the journey of entrepreneurship more enjoyable.
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97bc74b7701888b388214b22ad80722b | https://www.forbes.com/sites/kateharrison/2013/02/07/10-ways-to-green-your-business-and-save-money/ | 10 Ways to Green Your Business and Save Money | 10 Ways to Green Your Business and Save Money
With so many products and services to choose from, it has never been more important to differentiate yourself from the competition. Going green is a great way to stand out, but even if your actions don't land you on Newsweek's Greenest Companies list, going green can help your bottom line. The following are some simple steps you and your company can take today to save money and decrease its impact on the planet.
Green thumb from www.exchangemyphone.com
1. Switch to post-consumer waste (PCW) paper, paper products, and packaging. Whenever possible, skip paper entirely, but if you have to print, make sure you are using eco-friendly paper. Well-intentioned businesses may look for a recycling symbol on a box of paper, but this is an unregulated designation. Only PCW paper is made entirely from the paper we place in our recycling bins each day. Making PCW recycled paper uses 45% less energy and creates half the waste of the traditional papermaking process. Purchasing products labeled as 100% PCW ensures you are using papers with the least impact. If 100% is not available, look for options with as much PCW content as possible, and don’t forget to recycle all your paper scraps instead of sending them to the landfill.
2. Use biodegradable cleaners. Using natural, biodegradable cleaning products reduces your exposure to harsh toxins and other chemicals, and reduces the introduction of these substances into the environment. The next time you run out of soap, shampoo or laundry detergent, swap in a greener option. Many stores sell green products in bulk.
3. Green Your Beauty Routine. The Environmental Working Group’s Skin Deep Database is an amazing resource for finding non-toxic options for ever part of your personal routine. Most green products cost the same or less than their toxic counterparts and are better for your health and the environment.
4. Use compact-fluorescent (CFL) or LED lights. Though CFL and LED lights both have a higher purchase price than standard incandescent bulbs, they last significantly longer and use much less energy. CFL and LED bulbs can replace standard bulbs in most fixtures and can save you up to $200 per bulb over time. This calculator is a great way to see how quickly simply changing out your bulbs can add up!
Image from http://www.eeginfo.com
5. Replace outdated appliances with their greener counterparts. Energy Star appliances have labels helping you asses their energy (and cash) requirements over time. Look for the yellow tags when you buy your next appliance, and splurge up front for the long term economic and environmental savings.
6. Get an energy audit and make simple changes around your office and house. According to he department of energy, sealing leaks and cracks in your home can cut up to 20% off the costs of your heating and cooling bills. Many states will perform free energy audits, and will pay for some or all of the repairs! (Google free energy audit and the name of your state for leads).
7. Power your office with alternative energy. In many areas of the country you can sign up to purchase “green power” from your current utility provider. Green power is generated from renewable energy sources, such as wind and solar power, geothermal, hydropower and plant matter. Purchasing green power increases your electric bill by a small percentage, which is used to purchase clean energy that is fed into the electrical grid. To see if this is possible in your state visit Is my business in the Green Power Network?
Energy audit image from solar.environment.unlv.edu/
8. Use public transportation, drive an alternative fuel or hybrid vehicles, or bike. Any of these three methods of transportation will reduce the carbon footprint of your business and highlight your environmental commitment. All will save you money over time.
9. Recycle outside the box. In addition to recycling everything that can be recycled, think green when buying or replacing items. Consider purchasing used or vintage office furniture instead of brand new pieces. You can find great deals on barely used office furniture on eBay and Craigslist.
10. Utilize green web hosting. Green web hosts are companies that take part in a variety of activities, such as using renewable energy, planting trees, or buying carbon offsets and renewable energy certificates to reduce or mitigate the environmental cost of running their servers and infrastructure. Most green companies cost the same or less than companies running servers using fossil fuels.
By following the simple tips above you can cut thousands of dollars off your bills and make yourself more attractive to eco-conscious consumers. No matter which of these steps you have taken, make sure to tell clients about what you are doing by creating an environmental mission statement or green practices section of your website, and by including any badges or certificates you earn on your site as well.
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eff03935b4c14e25bd5a85928f4e3548 | https://www.forbes.com/sites/kateharrison/2013/06/28/how-to-approach-bloggers-without-offending-them/ | How To Approach Bloggers Without Offending Them | How To Approach Bloggers Without Offending Them
Everyone hears about multi-million dollar bloggers, but the truth is that for small brands in particular, going after the biggest fish in even a niche pond can be unaffordable. However, not all bloggers charge, and if you have some money to spend, working with smaller blogs can give you more bang (credibility, SEO juice, and sales) for your buck than being featured on larger blogs.
That said, there is a common misperception that bloggers can and should provide free media, and if you approach them with this mindset you can offend some of your best potential partners and create ill will for your brand before you get it off the ground.
To find out more about the best practices for contacting bloggers, I reached out to Sheila Bernus Dowd from the Clever Girls Collective. Clever Girls is a Social Media agency that offers content marketing services and native advertising products at scale.
Sheila Bernus Dowd
What prompted you to found Clever Girls Collective?
I began blogging early on at my personal blog www.xiaolinmama.com and at Silicon Valley Moms Blog. I quickly realized that brands were trying to leverage the incredible influence women were wielding online, but also that they weren’t set up to do so. Old PR models didn’t work with bloggers - the reason we’re influential is because we make it personal, so don’t spam us with unrelated and silly press releases. As the opportunities grew because brands began clamoring to get in front of bloggers and more and more women were recognizing they could share their voice online, the business opportunity presented itself. We knew that we could serve as a bridge between the two worlds, since my partners and I at Clever Girls Collective come from both.
What does Clever Girls do?
Clever Girls Collective works directly with the top Fortune 500 brands to develop campaign goals, messaging and editorial guidelines for each specific social media channel. These channels include blogs, Instagram, Pinterest, Twitter, Facebook, and video. Clever Girls then accesses their network of 8,000 pre-vetted, contracted social media influencers and selects the most influential women, in each of the desired channels, to participate in the brand campaign. The network members then create and publish unique, branded content and native advertising in a way that has broad reach but is brand secure.
What are the advantages of working with bloggers over other forms of advertising?
Bloggers and online influencers are real people with real voices and real opinions. Women follow a blogger (or bloggers) because they relate to her, they find common ground in her story and the experiences she’s sharing. They trust her. So, when someone they read and trust recommends a product or service, they’re paying attention -- just like they would when one of their girlfriends shares info about an amazing new app, or moisturizer, or party idea. Bloggers have an ability to share real-life stories about products/services that banners or videos or glossy print ads can’t do.
Important to note: brands are NOT paying bloggers to say good things about them. They are paying bloggers to share their experience and tell their stories authentically. Sponsored posts are always disclosed, and readers understand.
Is it best to reach out to a small number of large blogs or a large number of small blogs?
We have never believed that going after “the biggest bloggers!” is the only way to go, or even the most effective. That’s often like a brand that spends its entire yearly marketing budget on one Super Bowl Ad. Numbers-wise, you can reach your metrics goals with more influencers who have smaller audiences than with one or two “big” bloggers -- but end up with more content, across more channels, reaching a more diverse audience of engaged readers.
If you’re just beginning influencer outreach, start with your existing fans. Ask your Twitter or FB audience if they have blogs, and if so, if they’d like to work with you. Use your existing customers, who will be natural advocates, rather than starting cold with someone who may be ambivalent about your brand.
Do bloggers mostly work in networks or alone?
Most bloggers who are looking to monetize their content join networks in some form or another, and there are many to choose from. If a brand approaches a blogger, she will let you know what her affiliations are, if they’re not clearly posted to her blog already.
Working with a network can get you scale, but there are times when working with 5 key bloggers will help you accomplish your goal of solid reviews or going deeper within a specific demographic.
If you are planning to approach an individual blogger about your product or service, what is the best way to do it?
Do’s:
Read her blog first. Really read it. You should know why you’re pitching her in the first place. Customize your outreach. “Dear Blogger” won’t cut it. Be specific in your requests. Do you want a product review? A blog entry with more neutral content “brought to you by” your brand? When do you want it? One post or more? Do you expect amplification through other channels (Twitter, Facebook, etc.)? If you send a blogger something without spelling out your expectations, you will likely be disappointed in the returns. Understand that you’re asking to enter into a professional arrangement with the blogger, and compensate accordingly. Compensation doesn’t always have to be cash (product may suffice), but your offer should absolutely have some monetary value. You are effectively hiring the blogger as an extension of your marketing/PR efforts. Have the blogger sign a contract with you.
Don’ts:
Do not try to pay bloggers with promises of “traffic” or “exposure.” That’s asking for free work, and it can (and will) backfire. Don’t be too markety. You’re hiring bloggers because they are authentic and talented and will tell your brand story in a compelling way. Don’t try to control what she writes, or tell her what to say, or force her to link to 16 million things, or use dumb key phrases. Bloggers won’t like it, and readers won’t go NEAR it. Don’t be afraid to work with bloggers! If you treat the relationship respectfully, bloggers are fantastic brand partners and, if you put in the effort to build a long-term relationship, will be ongoing brand champions.
Are giveaways and samples effective?
Depends on the context within which they are distributed and the overall marketing goals.
What about affiliate programs? Does this make posting more enticing?
It depends on the blogger and her monetization model, but mostly this is ineffective - and here’s why: People do not go to blogs to purchase things, and blogs aren’t e-commerce sites. Affiliate models assume immediate conversions. Blogs are great for boosting brand recognition, improving SEO, and providing fantastic information to potential customers doing online research before purchasing an item. Have you ever bought something from a blog?
If you are willing to pay, but would rather not, how do you figure out what a blogger wants without putting everything on the table at once?
Ask! Lay out your request and requirements, and ask the blogger what she’d need to be compensated to perform the assignment; many bloggers have media kits that include this information anyway.
Is it okay to ask for backlinks on specific words as part of a post?
It is, but this should be part of the package you’re presenting to the blogger up-front, so the blogger knows what she’s agreeing to and can decide if she’s willing to do it. And please -- for everyone’s sake -- keep these types of things to a minimum. The more engineered the blog post, the less authentic it becomes, the less impact it will have. (And in these cases, it’s the brand that looks silly, not the blogger.)
If you use a network, what can you expect?
If you are a Brand who wants to contract with a network then you should expect to partner with the team to help you achieve your predetermined goals and metrics in social media - sales, conversions, brand awareness or product feedback. It’s not about just “playing on Twitter or Instagram”. Network rates vary greatly from those who are simply networks and pass along opportunities to those like Clever Girls who have a full service agency powering it.
Is there any other advice you have for people approaching bloggers?
In addition to working with bloggers and online influencers, there has been much discussion about Native advertising. It may be the new online advertising bandwagon, but our content marketing solution produces native advertising across a network of 8,000 influential women, reaching more than 55 million unique visitors each month.
Everyone is talking about native advertising as an ad unit but at Clever Girls we define it differently. The content that our publishers create for our client - whether on their blogs, Instagram feed, Vine videos, or Pinterest boards -- has always been native advertising. It’s ineffective for brands to work with individual publishers one-by-one to develop and place native content.
We have a solution for content marketing that activates hundreds of publishers at once to create volumes of native, brand-safe and original content. We can scale hundreds of pieces of content across multiple social media platforms far more effectively than a traditional native ad unit. Plus, we can measure that activity in real-time while reaching millions of targeted customers.
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911d2a1effaa3ecac32111d17639fd07 | https://www.forbes.com/sites/kateharrison/2013/08/28/10-lessons-from-a-first-time-trade-show-exhibitor/ | 10 Lessons From A First-Time Trade Show Exhibitor | 10 Lessons From A First-Time Trade Show Exhibitor
Last week I wrote about three companies showcasing their products at the New York Gift Show. All three were first time exhibitors, and all three considered the show a success. I failed to mention that I was at the gift show helping my brother man his booth for the first time, and that the reason I had time to interview three other companies was that it was slow going. Painfully slow at times.
Kate Harrison and Max Boehlke at the Dust Panda booth
Despite my personal feelings of failure as his "booth bunny," he considered the show a success. I thought it would be interesting to find out why and to dig deeper on what he learned from the experience. Here is what he shared with me:
What I Learned from Attending the NYNOW Gift Expo
by H Alex Harrison, CEO of OMG, CUTE and creator of Dust Panda
It's expensive to attend but incredibly valuable market testing. For $5000 (booth, banner, postcards, t-shirts, and travel accommodations) I had four full days of exposure to 35,000 retail buyers from around the country and across the globe! I quickly learned that my product (Dust Panda) was not fully formed yet. I was sad to learn that I would not be recouping the cost of the show, but I realized that this was the perfect place to solicit feedback from the retail industry’s front line. Alex buying a huge panda to fill out his booth for the show Buyers give excellent advice. Buyers who attend the NYNOW gift show are professional retail sellers. They know best when it comes to what sells and why. At first, I was resistant to their “constructive criticism,” but I quickly stopped taking the feedback personally and realized that these professionals were telling me what I can do to make my product more attractive to buyers! Exactly the feedback I needed. Buyers aren’t the only ones who attend these shows. Many business consultants, product developers, and national representatives come to the show looking for new products or lines to promote. For someone looking for national distribution, finding a rep at one of these shows could make all the difference. Keep in mind that every relationship will likely come with a price, but there are people out there who can help spread the word, and who will often work on commission or shared profits. Network! Network! Network! Buyers and agents aren’t the only ones willing to help! There are thousands of exhibitors at these shows looking to connect with like-minded individuals and are willing to talk for free. Many of the distributors and manufacturers I spoke with were solo designers/artists, eager to share their experiences about what it took to get to where they are. Not only did I meet amazing people with incredible ideas, but they were more than happy to provide feedback about how to make my product better and share their tricks of the trade. Product development is costly, time-intensive, and rarely pays off. Speaking to a product launcher, who was at the show selling his über-successful kids accessory item, he said that he has launched 15 products in 10 years, only three of which have hit it big. Four out of five of his products have failed. And he’s one of the successful ones! Another designer I spoke with has been seeing moderate success with his novelty Valentine’s Day teddy bear which he has been manufacturing and selling for 10 years. It pays the bills, but his product has yet to go mainstream, and therefore he spends his nights and weekends sewing and silkscreening satin heart pillows. Every night. For a decade. Get ready to go into it for the long haul. Think Marathon not 100m Dash. Most of the developers I met at the show have been doing this on average for five years. Some broke even by year three. Hardly any were profitable before year five. When polled, most designers sunk anywhere from $25,000-$150,000 into a product line before seeing returns! Just creating a plastic mold costs $10,000 in the US. Perhaps less overseas, but then you’re working with a middleman (not for free), you have to import your goods, and you’re dealing with massive order quantities. Consider attending with a collective. Paying for a 10x10 booth all for myself was important to me before attending, but next year I will try attending the show with a group. Having the purchasing power for a larger space allows for more flexibility and also spreads the cost across a group. Not every exhibitor knows what they’re doing. I certainly didn’t! Then it became clear to me that there were numerous exhibitors trying to sell ill-conceived products with no clear road to profitability. Some had already sunk $50,000 into inventory and had yet to come up with a way to sell their products, and had not done any market testing! Consider exhibiting at a trade show before going to production. It’s weird attending a show with three prototypes and no inventory, but it cost less than buying the inventory and I’m glad I exhibited first. My product will be better when I do go to production, and I learned a lot about the art of exhibiting which I’m glad I learned before trying to seriously market my product. When I told fellow exhibitors that I hadn’t “gone to press” yet, many of them were jealous! I am grateful that I waited to print my first batch of products since I realize now that I’m only half way there. Alex launched Dust Panda on Kickstarter earlier this year Know when to hold ‘em, know when to fold ‘em, and know when to walk away. It’s important to accept that our brilliant ideas may not make for brilliantly successful products. Knowing when to quit is just as important as knowing when to persevere, and you can save yourself a lot of time and tens of thousands of dollars by quitting while you’re ahead. I have not internalized this lesson quite yet, but it’s out there. For now, I’m thrilled to continue developing Dust Panda given the overwhelmingly positive response and the experience I had at the gift show.
Do you have advice to share with Alex or others? Leave your comments below or email him directly.
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ac505437651466107702edd03091a45f | https://www.forbes.com/sites/kateharrison/2014/02/26/sign-of-the-times-digital-document-signing-is-finally-easy-and-free/ | Sign Of The Times: Digital Document Signing Is Finally Easy (And Free) | Sign Of The Times: Digital Document Signing Is Finally Easy (And Free)
Chris Hawkins has always been fascinated with signatures. Before he founded SignNow in 2011 (purchased by Barracuda in 2013), he wrote a book called The History of Signatures and was involved with getting legislation passed in the State of Virginia to make online notarization legal. SignNow was the first company in the world to offer online notarization, which was impressive, but I really fell in love when I discovered their simple, elegant and free document signing software earlier this year.
As an entrepreneur and environmentalist, I send and receive dozens of contracts each month and always look for ways to reduce paper waste. One strategy I have employed is to send the signature page of contracts separately so the receiver can easily print and send back just a single page. While this has reduced the footprint of my company, it is not as ideal or cost effective as going fully paperless. Despite hours of Googling and playing with hacks – using a mix of Photoshop™, Adobe™ and MicrosoftWord™ - I couldn’t develop a system easy enough for my 83-year-old father to use (he is my gold standard for solutions that work) until I found SignNow.
SignNow allows users to add signature and text fields anywhere on a page so there is no need to print, ever. It also saves all of the documents they’ve uploaded in a personal archive which they can refer back to at any time. Unlike the competition, SignNow works on mobile and desktop with equal ease. The company is supported by 10,000 paying business customers, which means the basic product is free for everyday users who now number in the millions.
When I asked how they decided on the freemium business model, Chris explained that of the $300 million dollar market “very close to zero percent is being spent by consumers. Most consumers are very price sensitive. They might pay 99 cents per document or something like that, maybe, but probably not very many of them, so it wouldn’t contribute a lot to our bottom line. So, our preference is to use general consumer accounts as free marketing. If consumers love it and tell their friends, then they get our foot in the door with companies that really need our services, and you get to leverage that and get them on board to adopt.”
A Brief History Of Electronic Signatures
Given Chris’s long history with the topic, I wondered why this product was not available sooner. It turns out that the case law on digital signatures goes back to the invention of the telegraph because that was the first time that people electronically agreeing to anything. The invention of the Fax machine led to another mass of cases defining what was — and was not — legally acceptable in the digital signature realm. Then, in 1999 and 2000, the US federal government passed the ESIGN Act and UETA laws, which required the government to accept electronic signatures.
“That was about 14 years ago, “ says Chris, “At that, the technology to do it was pretty complicated.” More then a decade later, Chris was still unsatisfied with the solutions offered by the competition (primarily DocuSign and EchoSign). “We saw a gap in the market. We wanted to make it really, really easy and build something that would look great on mobile devices. None of the major players were making anything on mobile at that time.” Mobile ease was his first advantage, but Chris says that with the acquisition by Barracuda, YouSign has also been much more focused on security.
Chris and his team when they were acquired April 30th, 2013
Forthcoming features? “We’re really improving our Android App so I think everybody will be able to see that. The better security features and private cloud-based versions will be more important to our business customers. I’ll be spending a fair amount of my time on those.”
Handwriting Options
One feature that I love with SignNow is that you can sign documents with your own signature (you write your name with your finger) or you can write your name with one of their pre-made handwriting fonts. For someone with incredibly messy handwriting like yours truly, this tool is a real win, but I was curious about its legality. Chris explained, “the common law is that if you intended to sign it, you actually signed.” However, he noted that while the law requires the government to accept any type of signature, private companies or organizations could make up whatever rules they want, even if it is “hop on one foot while you’re signing.” That said, most companies are now following the federal government’s lead because they realize a digital trail is actually better proof than paper.
I confessed to Chris that I felt like the font I selected was like a better version of my own handwriting – similar but nicer – and I asked how he chose which scripts to include. “We got as many signature samples as we could from our friends and families and tried to group them by category,” he explained. “I don’t remember what the categories were, but we were like ‘these are flowery ones, these people are vertical and spiky, these people are horizontal’, etc. Then we got a huge list of handwriting fonts and everybody voted on their favorites for each type. The hope was that with that many potential signatures, there’d be at least one that looked pretty close to your own signature. It worked — and nobody’s ever really complained about them. We hadn’t added to them for at least a year or more.”
Creating your own signature on SignNow's IPad interface
Advice For Entrepreneurs
I ended the interview by asking Chris if he had any take aways he wanted to share with other entrepreneurs.
“At the highest level,” he said, “I learned that legal changes don’t always predict the timeliness of a business opportunity. The signature laws took effect 15 years ago, but it’s really only in the last three years that companies have had real success with electronic signatures. DocuSign was founded in 2003, EchoSign in 2006 and then we started up in 2011. So there’s a pretty big lag there. I just think that it takes a certain amount of time in many cases between when a law changes and figuring out the right business model to take advantage of it. We are excited about the notary law, but will have to wait and see what impact it will have.”
As I drove to the Denver airport last week, past some of the first recreational marijuana dispensaries in the country, Chris’s observation rang true. First to market does not necessarily mean more successful. It can take a while to work out the kinks in a new market. Sometimes incremental improvements on an established business model can be the key to fast success.
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ebcdccccd6cf1cfcfb47c00a43ad6666 | https://www.forbes.com/sites/kateharrison/2014/05/23/5-ways-to-use-instagram-to-promote-ecommerce/ | 5 Ways To Use Instagram To Promote eCommerce | 5 Ways To Use Instagram To Promote eCommerce
Facebook’s declining reach has set off a mad scramble of brands seeking the next social goldmine. Many brands are rushing into Instagram, staking their claim to a corner of the richly visual social site that Forrester Research recently pegged as one of the most effective social marketing tools. Instagram has such huge commercial potential, that Forbes contributor Lydia Dishman, among others, called it “The World’s Most Powerful Selling Tool.”
However, the ground rules of selling on Instagram are different. It is not a place to publish links to your eCommerce site, pump products through advertorial copy, or push sales. It is a place to harness the pure power of the photo. Here are five ways to wring the most value out of Instagram for your business:
1. “Raw” Photos Rule
Instagram’s enormous upside is it is a purely visual platform. At the same time, Instagram’s challenge is it is a purely visual platform. As Jim Squires, Instagram’s director of market operations, recently told Business Insider, this forces brands to ask themselves, “For your next campaign, if you could use no copy at all, how would you do it?”
Squires is talking about Instagram advertising, but the same applies to brand’s Instagram efforts in general. Each photo must be worth 1,000 words.
Instagram followers reward the art of photos. And brands that respond with beautiful, emotion-filled photos of their products and their customers truly unlock the visual and emotional power of Instagram, and in turn drive the desire to purchase.
Case in point: Two of the most successful Instagram feeds, Starbucks and Nike. They connect with followers through backlit skateboarders boosting off of ramps, sprinters poised in the starting blocks, or two Frappaccinos being clinked together in a toast, their neon green straws crossing like glowing Light sabers.
Their content is relatable, captivating and inspiring.
2. Unlock the Full Potential of Hashtags
Instagram’s marketing challenge is its lack of links. Unlike Facebook and Twitter , which reward links, Instagram cuts out the clutter by refusing to hyperlink URLs in descriptions and comments (links do work in profile bios). Instagram, however, encourages hashtags. This puts even more weight on hashtags to connect Instagram followers to the brand’s larger marketing strategy.
First, gain new followers and larger reach by tapping into popular hashtags like #instagood, #latergram or #throwbackthursdays. Then, use hashtags as a crucial connection between consumer and brand. Hashtags have the power to aggregate photos submitted as part of a marketing campaign, generate more photo submissions, and get an Instagram user to go from submitting a photo to buying a product.
Aggregate photo submissions on a microsite or embed them to your website to create a visually stunning gallery of filtered and themed photos from your fans. Find and re-post hashtagged content using a free Instagram search tool like WEBSTA. There are many paid options available as well.
3. Give Participants Purchasing Power
Of course it’s not enough to simply post or gather Instagram content. Respond to users who submit a photo using your branded hashtag or by tagging your brand to keep the relationships between consumer and brand authentic, but also to plant the shopping seed.
Brands can do this by setting up a triggered response that shows up as a comment on the photo. Brands like L’Oreal monitor Instagram for user content and send a triggered response to the content that leads to a purchase point or participation opportunity.
Or you can can monitor profile tags and hashtags using a real-time platform like Keyhole and manually respond.
Make sure the response is not spammy or generic; reward participation with a deal, discount, or something of value. Use the response opportunity to give them a reason to follow-through with a purchase.
4. Ditch Models for Real People
Post Instagram content tying to someone or something that your audience loves as an online sales tool. Instead of a professional model or popular celebrity, consider crowdsourcing content from your Instagram followers and portraying a relatable brand image filled with real consumers. This authentic approach to Instagram lets your followers see that achieving that fashion look is within their reach.
Here, American Eagle has enlisted two fashion bloggers’ photos in the brand’s outfits, and directed their audience to a site to view and purchase. Instead of stock photos, they used real people, included a hashtag and directed their followers to a purchase point. The bloggers can influence purchase decisions because of their online notoriety, but most anyone following the account will be able to look at this photo and relate to it or be able to copy the look.
5. Connect Instagram Galleries to eCommerce
Extend the impact of consumer Instagram content by connecting consumers to relevant product purchase suggestions in the display gallery or microsite.
For instance, a female participant that posted about her new dress using a campaign hashtag or submission site may love to see the spring or summer collection. Brands can build product suggestions right into UGC galleries and make purchasing a breeze for anyone. Lilly Pulitzer used Offerpop’s Commerce to help suggest relevant products in their line to those that interacted with their #SummerinLilly social campaign on Instagram.
As you can see, it’s essential that brands remain authentic on Instagram, and the single best way to do that is to design efforts around users’ photos. Authenticity is the reason Instagram is a powerful social network, and brands that encourage their Instagram followers to submit real photos of honest uses of a product will unlock the sales potential of the photo- and video-sharing site.
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aae7a3da97551958cb0d997995e4d727 | https://www.forbes.com/sites/kateharrison/2015/08/13/10-healthcare-technology-disruptors-to-watch-all-led-by-women/ | 10 Healthcare Technology Disruptors To Watch (All Led By Women) | 10 Healthcare Technology Disruptors To Watch (All Led By Women)
Many women cite their company's outdated maternity leave policies, lack of flexible work arrangements or salaries that are inadequate to cover the costs of childcare as their main reasons for exiting the tech industry. But not all sectors of tech are experiencing a female exodus. Women seem to be flourishing in healthcare technology. A study recently released by XX in Health, a national organization fostering female leadership in healthcare, found that women make up 78% of the healthcare workforce, and that firms with female leadership yield greater returns for investors.
“Not only have we seen an increase in female leadership in the Health Tech industry, but there has been an increase in technologies aimed at helping women,” said Ann Fyfe, President and CEO of Fogarty Institute for Innovation (FII). Founded by cardiovascular surgeon Thomas Fogarty to spearhead innovation in medical technology, FII had two of their female CEOs recognized by Forbes in the “30 Under 30” list for shaping healthcare in 2013 and 2014: Surbhi Sarna, founder and CEO of nVision Medical, and Jessie Becker, co-founder and CEO of InPress.
Given the above, investors may want to keep an eye on some of these women-led healthcare tech disruptors. Here are ten to watch in 2015:
Wellthie - This healthcare tech company, based in New York City, is making it easier for consumers and small businesses to explore their health insurance options in a simple way. It is led by female CEO, Sally Poblete, an 18 year veteran of the health insurance industry. The make-up of Wellthie's leadership team is 75% female.
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Naya Health - This San Francisco-based health startup was created by entrepreneur and visionary, Janica Alvarez, to save parents time and worry by providing the world's first smart breast pump. The new technology was invented when Janica had her first child, and quickly learned how frustrating the experience of pumping was.
Caremerge is an award-winning healthcare tech company based in Chicago that is revolutionizing care coordination and communication for seniors by providing a HIPAA-compliant web-based and mobile platform that allows family members to communicate in real time with doctors and health care providers caring for their loved ones. Women make up 70% of their workforce, and most of their leadership team is female.
Humetrix has developed health risk appraisals, chronic care management software, and consumer-friendly mobile device-based solutions that gives consumers their own health IT systems. President and CEO Dr. Bettina Experton is also known for transforming Medicare’s Blue Button text file into a user-friendly iBlueButton app, which allows VA members to download their medical information from anywhere.
Cohero Health is developing an Apple Watch app so asthmatics can better track their medication protocol adherence and lung function. The company currently makes a medical device that captures important respiratory performance metrics that sync with its AsthmaHero mobile app. The New York-based healthcare tech company is led by CEO Melissa Manice. Manice is not only the founder and CEO of the company, but also the inventor of the product.
Force Therapeutics, based in New York City, is a recovery platform that enables patients and providers to help support post-acute rehab. The company employs 50% women and is led by founder and female CEO Bronwyn Spira, an entrepreneur and 20-year veteran with clinical and managerial experience in several healthcare settings.
Flextronics is a $26 billion a year company with a strong footprint in biotech and 200,000 employees in 30 countries. The company is led by Jeannine Sargent, President of Innovation and New Ventures at Flextronics .
Maven Clinic offers a tele-health platform that creates video appointments with healthcare providers for convenient quality care with a more human experience. A majority of the providers are women who offer counseling around pre-natal, postpartum and pediatric care. CEO Katherine Ryder, a former early stage investor with Index Ventures in London, noticed the gender discrepancy in the current landscape of healthcare, as well as a lack of female executives in the space. Maven Clinic was designed to fill this void.
AbilTo (pronounced “able to”) is a digital behavioral change therapy company that partners with health plans to offer behavioral change therapy programs over the phone and/or by secure video. The C-suite is comprised largely of women and 80% of the corporate leadership is women.
MMJ Labs was founded by CEO Dr. Amy Baxter, the award-winning inventor of Buzzy, a drug-free, palm-sized needle pain blocker for both adults and children aged 4 and above. Buzzy is FDA cleared to control pain from injections, IVs, phlebotomy and cosmetic injections, as well as for relief of musculoskeletal pain from a variety of conditions.
Have another women-led health tech company to watch? Add it to the comments!
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522e2563c39e5fd0b399d2be853f8691 | https://www.forbes.com/sites/kateharrison/2015/11/16/forget-amazon-and-google-the-workhorsae-truck-could-be-first-to-use-drones-to-deliver-packages/ | Forget Amazon And Google, The Workhorse Truck Could Be First To Use Drones To Deliver Packages | Forget Amazon And Google, The Workhorse Truck Could Be First To Use Drones To Deliver Packages
Steve Burns has a big vision: he wants all of our mail and packages to be delivered by electric trucks with drone capabilities. As co-founder and CEO of Workhorse Group Inc., he’s well on the road to bringing his vision to life, and because of the FAA’s current “line of sight” requirement for using drones, his company could be the first actually delivering packages by air.
A lifelong innovator, Burns previously founded technology companies developing mobile photo and video sharing, speech recognition software, and more. In 2007, he helped create Workhorse (then known as AMP Electric Vehicles), as a developmental-stage vehicle electrification company. Initially they experimented with adding battery-electric power to two-seat roadsters. By 2010, he’d pivoted away from passenger vehicles and began focusing on electrifying commercial vehicles. AMP acquired the Workhorse brand (WKHS) and their assembly plant in Indiana in March 2013. They formally changed the company name to Workhorse in April 2015.
The Workhorse Truck Could Be First To Use Drones To Deliver Packages
What makes Workhorse’s trucks so special? Patent-pending and EPA-approved, the E-GEN trucks are propelled by an electric motor/generator built with nearly 6,000 Panasonic lithium-ion cells — the same type of cells used in Tesla’s electric cars. It is powerful enough to eliminate the need for a transmission and, if the battery state-of-charge falls below a predetermined level, a small internal combustion engine automatically turns on and powers the motor to recharge the battery to its required level when the vehicle is in park. No need for the driver to look for the nearest recharging station while making deliveries!
“Our goal isn’t to reinvent the wheel — it’s to power it differently,” quips Burns. “We are committed to finding the best solutions for both energy efficiency and emissions, and we believe our electric trucks can be part of the answer. If we can help delivery companies reduce their fuel costs while maintaining or improving their service, we’ve done our job.”
The company has already sold 125 Workhorse E-GEN vehicles to UPS. These deliver a 400 percent increase in fuel economy over gasoline-powered delivery trucks — and are expected to be deployed in seven states during the first half of 2016. In October, UPS announced it had purchased an additional 18 Workhorse trucks to be deployed in the Houston-Galveston area in Texas as the result of a partnership with the U.S. Department of Energy, local governments and non-profits. Now, Workhorse is one of 15 companies competing for the Next Generation Delivery Vehicle acquisition program to replace the USPS’ aging fleet of 180,000 mail trucks.
But Workhorse is not just leveraging electric vehicle technology. The company is also poised to be a pioneer in the drone delivery business — potentially giving USPS and delivery companies an edge there as well.
Workhorse is developing its own UAV — an “octocopter” called HorseFly™ — with a 10-pound payload capacity, which can be used in conjunction with their vehicles. “Given a package and a delivery destination, it lifts off from the vehicle roof, navigates to an address using GPS, and is guided down safely by a human pilot in a remote location. It then returns to the truck roof for recharging,” Burns explains. In July, Workhorse filed an exemption with the Federal Aviation Administration, requesting approval to be the first company to deliver packages with a truck-based drone. “We hope to begin testing the delivery of packages via HorseFly outside of our test area in Ohio by the end of 2015,” Burns says.
This is exciting news for drone enthusiasts. “Nobody has yet developed a truck-launched drone that meets the current line-of-sight restriction set by the FAA,” Burns notes. “From what we can surmise, Amazon and Google will have to wait until the FAA relaxes the line-of-sight rule to accommodate their drones, while we at Workhorse are already able to conform with current regulations. In the future, when we can get past the line-of-sight restriction and when the FAA is comfortable, then the flying of our drones could be overseen by someone in a control center.”
So: will we see drones dropping off mail in the near future? That will depend a lot on the FAA, but with Workhorse vehicles, even the post office may be jumping into the drone delivery game sooner than we think. This development could give Amazon and Google a flight for their money.
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84e5339332d597238baa3937307a0ad4 | https://www.forbes.com/sites/kateharrison/2015/12/11/the-clamor-for-retro-style-holiday-products-pushes-demand-for-sustainable-wood/ | The Clamor For Retro-Style Holiday Products Pushes Demand For Sustainable Wood | The Clamor For Retro-Style Holiday Products Pushes Demand For Sustainable Wood
Perhaps consumers have wised up to the toxicity of plastics, or maybe they are finally sick of having cheap disposable items break within days of being purchased, but when it comes to holiday gifts this year, wood products are making a comeback — and not just for kid’s toys!
This season, eco-minded companies are offering everything from high tech gadgets to kitchen products made from wood. However, not all wood is eco-friendly, even though it is a “natural” material. Some of the problems with traditionally-sourced wood products include deforestation, species loss, heavy pesticide use, and harm to indigenous peoples and habitats.
The good news is that the demand for sustainably sourced products has been growing rapidly. Today, the Forest Stewardship Council issues more than ten times as many business certificates as it did in 2002, and there are 158 million acres of FSC-certified forests in North America alone. In addition to sourcing FSC-certified wood for their products, green companies are also using reclaimed wood and upcycled wood composites to craft beautiful, durable and attractive products with a story. Here are some of the best finds for everyone on your list this holiday season.
FOR HIM
The Barrel Watch
Classic gifts for men include whiskey and watches, and Original Grain blends these two ideas together by making wood watches from reclaimed whiskey barrels. The company raised nearly $400,000 in 30 days on Kickstarter two years ago (becoming the third most popular fashion brand in kickstarter history). Their original designs were made from exotic hardwoods, but trying to become more sustainable, the company launched The Barrel this year. As the founders note, “Using exotic hardwoods in our watches is what we’re known for, but finding a way to use 100% reclaimed wood was a high priority. This American Oak reclaimed from Whiskey Barrels not only looks beautiful but sets the standard for us going forward!” You can see the video where they explain the design and history of the watch here.
Wood Bow Tie
The perfect gift for your hipster friends, Fredy Lopez and his brother make stylish bow ties from reclaimed exotic hardwoods in Florida. Each comes with a matching pocket square. Their collection retails for $45 and is available at tvheadclothing.com.
Gourmet Salt Set
If it is good enough for Oprah, you know it is really good. The Aloha Salt Collection from The Spice Lab includes 11 of the best tasting Hawaiian salts presented in affordable, portable, and sustainable wood packages, perfect for adding decorative and culinary flair to any kitchen countertop. The gift set even comes with reference cards with detailed descriptions and suggestions on which salts go with which dishes, making it easy to create the perfect combination of flavors. The Spice Lab was ranked #549 on the 2015 INC 5000 list of fastest growing private companies, achieving 843% growth from 2011 to 2014. Because demand for this set had grown so quickly, the company now buys trailer loads of reclaimed Colorado pine. “It is beautifully grained wood from pine trees killed by the Colorado pine beetle,” the founder explains. “Using reclaimed wood makes each individual Collection like no other and the wood grain adds to the aesthetic of the presentation.” Retails for $49.95.
FOR HER
Wooden Sunglasses
Stylish and sustainable, Shwood makes beautiful sunglasses in their shop in Portland, Oregon, using sustainably harvested wood. Their designs are available at retailers such as Nordstrom , Saks Fifth Ave and the Sunglass Hut, as well as on their website and on Amazon starting at $149. The video on their homepage is also a great example of how the format can be used to share a behind-the-scenes manufacturing process in a compelling way.
Olive Wood Earrings
Ten Thousand Villages is one of the world's largest fair trade organizations and a founding member of the World Fair Trade Organization (WFTO). The company strives to improve the livelihood of disadvantaged artisans in 38 countries by helping to pay for food, education, healthcare and housing. This season they are working with artists in the West Bank using sustainably pruned olive wood (the tree of peace) to make stylish earrings, bowls and nativity scenes. These Chevron Earrings are on sale for $12.
Wood Phone Cover
Toast, a company based in Portland, OR creates covers for phones, laptops, tablets and gaming consoles from real wood veneers from responsibly managed forests. Their products can be custom engraved with text or logos for an added personal touch. Phone cover backs start at $34.
FOR MOM & DAD
Artisan Composter
Want to help your parents turn over a green leaf? Maybe a gorgeous sustainable wood countertop composter would help. This bin is made from urban salvaged lumber and is a true work of art. Retails for $165 with free shipping on Amazon.
Cork Golf Grips
When you think about sustainable wood, cork may not come to mind, but the material is harvested from the bark of the cork oak tree and is a renewable resource (harvested every 9 years). Salty Grips makes customizable golf club handles from sustainable cork from Portugal, hand finished in Virginia and starting at just $29.99. Note: their grips should be installed by an experienced member of the golf industry, a retailer, PGA professional, or club fitter using a stabilized gripping station.
Sustainable Picture Frames
When you are not sure what to get your parents, a nice family photo in a frame is a sure win. Alibi Interiors collects old wood from local demolitions (fences, barns, boats, and other exciting wooden paraphernalia) and re-purposes it into gorgeous, and very reasonably priced one-of-a-kind wood frames. The collection starts at $18 and can be found on their website. The company has grown more than 100% every year for the last four years entirely by word-of-mouth, partly because of their sustainable ethos.
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BABIES & KIDS
Wood Puzzles & Games
BeginAgain of Fort Collins, Colorado makes eco-friendly wood puzzles and toys that teach through play. “Our goal is to move kids from oil to soil!” they explain. Many of their beautiful wood games retail for less than $30, including their latest Don’t Dump Dumpty game that blends Jenga-like skills with counting and color play. Note: These toys are recommended for ages 2 and up. For older kids, Paper Culture makes a memory game from your family photos printed on FSC-certified cardboard that makes the perfect stocking stuffer.
Abiie's Beyond Junior Y Highchair
One highchair to rule them all: This one-time purchase highchair design was a Gold Medal Winner in the 2015 National Parenting Publication Awards. The Abiie converts from an infant seat to an adult chair in less than 20 seconds and is crafted from sustainable beech wood. Plus, it is very stylish and easy-to-clean, making it a practical gift as well as a great addition to your family table. Each chair comes with free shipping and a three-year warranty that can be extended for another three years when you purchase the product on the company’s website.
PlanWood Toys
PBS Kids and Wholefoods have teamed up to create a line of gifts that give lots of pleasure and also give back, made from responsibly-sourced materials, including PlanWood, which is high density fiber-composite wood from rubber trees, organic color pigment, and rubber wood. Several work on land or in the tub, and all are super cute! Shop the collection, starting at $12.99 on the PBS website.
TEENS
Snurfer Board
The Snurfer was the precursor of the snowboard and thrived from 1965 to the late 1970s before fading away as snowboarding took over. Snurfer Boards has brought this fun toy back to give kids (of all ages) a simple way of sliding sideways and enjoying winter in their own backyards. Made with American Maple veneers in the USA. Boards start at $99 and can be bought through Amazon Prime .
FiftyThree Pencil Digital Stylus
There is something so compelling about hi-tech devices that are made from wood, and Pencil, an award-winning digital stylus, is carved from a solid piece of Wisconsin-grown, FSC-certified Walnut. Pencil has many cool features including a built-in battery that charges via USB, easy Bluetooth pairing, an “eraser” when you flip the pencil over, and compatibility with any touchscreen device, as well as the company’s app Paper, a digital notebook and sketchpad that saves trees. Available from Amazon for $39.99.
Bongo
Bongo from Otis and Eleanor is an adorable portable speaker system made from bamboo that is controlled wirelessly through bluetooth. "We used bamboo because it's one of the world's most sustainable materials, has a great look, and is also super durable,"they note. "Natural material also resonates to create a warmer sound than metal or plastic could." The battery lasts up to 15 hours of playtime before needing to be recharged. The design is light, portable and retro-chic. The best part for parents is probably the 30-foot range, which will ensure your kids keep this system close. On sale at this weekend's Creed's Collective in NYC's Meatpacking District and online between now and Christmas on the company’s website for $112 including shipping.
As you can see, savvy companies are differentiating their brands and building value by creating unique products from sustainable wood for all ages. For the sake of the forests, let's hope this is a trend that is here to stay!
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9bdd57f0a7c1c9238710a43183343b99 | https://www.forbes.com/sites/kateharrison/2016/04/14/how-to-make-sure-your-headshot-matches-your-brand/?sh=60812ca84d41 | Make Sure Your Headshot Matches Your Brand | Make Sure Your Headshot Matches Your Brand
A 2012 report from eMarketer found that 82% of consumers trust a company more — and 77 % are more likely to buy from a company — if the founder uses social media. Whether for a social profile or your company’s website, the quality and style of your headshot conveys a lot about you as a person and signals how you conduct business. An outdoor shot in casual attire conveys a very different sense than a portrait in a business suit against a solid color backdrop. The type of photo that’s right for your business is a branding decision, but regardless of the business you are in, a blurry or poorly cropped picture conveys a sense a sloppiness and a lack of attention to detail that carries over to your organization’s reputation.
Mark Liflander, Co-Owner of LJ Studios Photography in Harrison, NY. (Image: James Samela)
It can be hard to carve out the time needed to take a quality headshot, but it should be on every founder’s top “to-do” list. A good portrait photographer can work with you to get the perfect shot and guarantee that you will finish the session with high quality results you can use in a wide variety of sizes and formats moving forward.
Mark Liflander, Co-Owner and Principal Photographer at LJ Studios Photography in Harrison, NY, has a background in education and offers classes in his studio on everything from Photography Basics to Image Management. He recently ran a headshot event for members of the Specialty Advertising Association of New York and shared his top tips with Forbes for creating the best headshot results every time. Here are his five top tips for taking your headshot “UP” a notch:
Stay UP-To-Date.
Aging is hard, especially as most American adults gain about a pound a year, or 35 additional pounds by age 60. However, Liflander notes, “It is still important to have a recent photo for social media and press use. While you might be tempted to use a thirty-something photo of yourself in social media or on your website, what happens when you meet a client face-to-face and they discover you are 52 and not 32?”
If the prospect of sharing a picture of your current self scares you, Liflander adds that there is nothing wrong with getting a little “brush up” using Photoshop. “A professional photographer will use some Photoshop magic, but they know how to apply just the right amount. It’s a good idea to maintain a recent headshot, no older than 3-4 years, and fully embrace your ‘now-is-my-best-age’ self.”
Posture UP
If you are one of the 32+ million people who have seen Amy Cuddy’s TedTalk on body language, you know that posture shapes how you appear to a great extent. To get a first class headshot, Liflander advises that you “stand or sit up tall to project confidence and professionalism.” This is where having a good portrait photographer is key. “A professional photographer is like a film director, who guides your posing, head position, and expressions to bring out your best. Trust them — and believe in yourself.”
Liflander also notes that getting outside might make the difference between looking like a pro rather than an awkward teenager at a wedding. “Sometimes it’s easier to look confident and professional in an environmental portrait that relates to your business. The environmental portrait shows you in your element, perhaps at your desk or in front of your building. We have one client who posed in front of his construction project. His pride and joy were evident, and came out naturally in the photograph when he stood next to the building he helped to build.”
Measure UP
Liflander asks his client’s a simple question: Do you want to fit the mold, or break it? “Do you want to ‘measure up’ to the competition, or surpass them? We have a client, Ira, who is a corporate lawyer. We photographed him in business casual attire at a local train station (see photo). Now he gets compliments on his social media profile photo all the time from his clients and other lawyers, who notice how relaxed and friendly he looks in the portrait. We also do many real estate and financial firm headshots where the client needs a simple business “uniform” photo with their colleagues, set against a basic white backdrop. It’s up to you! The pre photo-shoot consultation with your photographer is the time to discuss the image you want to portray, and how you want to achieve it. A professional photographer will help you with tips about the right clothing, expressions, body language, etc. to help you ‘measure up’ to your objectives.”
Attorney Ira Lakritz. (Photo Credit: Mark Liflander)
Look UP
This might seem obvious, but Liflander says it’s not. “Literally, look up and make eye contact with the camera!” he implores. “It’s as if you are looking at a client standing directly in front of you. This will help ease camera shyness, and promote a genuine expression.” He says “look up” can have another meaning that is equally important because in relating to others, we usually look up to convey a positive, friendly demeanor. Think about how you define yourself in business. What image do you want to project? Are you knowledgeable, dynamic, trustworthy, successful? Take the opportunity to discuss your self-perception with your photographer in the pre-shoot consultation so they can bring out your most important characteristics during the shoot.”
Pay UP
While it might be tempting to ask a friend with a cell phone to take your headshot, this is one area where you usually get what you pay for. “Don’t damage your professional image with an amateur headshot. Save yourself money and aggravation in the long run by doing it right the first time. Using a professional photographer is a bargain compared to the value you get — not to mention the real harm a bad or even not very good photograph can do to your image.”
When you consider that your professional headshot can be repurposed for social media profiles, your web site, and a myriad of printed marketing materials, it really is a bargain — and it takes very little time. “Our clients are in and out of the studio within 30 minutes to an hour —shoot done, shots edited, professional headshot chosen,” Liflander explains. He urges clients to consider getting consistent headshots for the whole team so company branding is constant from person to person and across all collateral material. “We strive to be the go-to photographers for all of our corporate clients’ needs, including editorial shots, annual reports, web site imagery and corporate events. Building a strong relationship with your photographer can help you rebrand the professional optics of your company in a dynamic and positive way.”
So take a look at your current headshot. Is it doing you and your company justice? If not, it’s time to fire it and get the job done right.
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9af151a9c4d094175c2c986cbdf768e0 | https://www.forbes.com/sites/kateharrison/2016/05/03/the-best-practices-in-cyber-security-for-small-to-medium-sized-businesses/ | The Best Practices In Cyber Security For Small-To-Medium-Sized Businesses | The Best Practices In Cyber Security For Small-To-Medium-Sized Businesses
Today, like never before, businesses face a barrage of spear-phishing attacks, new forms of creative and nasty malware, and the risk of infected laptops coming and going behind their firewalls.
Cyber-crime is growing at a tremendous rate. It’s become an organized big business opportunity for criminals, and is projected to grow to $600 billion this year, larger than any other form of crime. But why should small-to-medium-sized businesses (SMBs) worry about being targets? After all, they’re not Bank of America or Home Depot .
“Cyber criminals don’t discriminate,” warns Gary S. Miliefsky, founder of SnoopWall Inc., a counter-intelligence technology company. SnoopWall offers free consumer-based software to secure personal data on cell-phones and tablets. “In fact, cyber criminals find SMBs easier targets because their defenses are often not as advanced as those of larger businesses.”
Cyber security effects small businesses as well as large ones (AP Photo/Ng Han Guan)
Let through one piece of ransomware and you might very well be out of business. “Some of the latest ransomware exploits will not only encrypt your laptop or desktop, but they also look for file servers and do the same, automatically,” Miliefsky warns. “Then you will no longer have access to your own files – or even worse, your customer records – until you pay the ransom.”
Things are so bad that the FBI now recommends paying the extortion fees! “But we can’t let ourselves become victims. It’s time to get proactive and make sure we’re one step ahead of the next attack,” says Miliefsky. “It all starts with best practices. These are things you do, steps you take, actions and plans that can protect your company in the face of cyber threats. For example, if you do frequent daily backups and test those backups, then if you’ve been victimized by ransomware, you won’t need to pay the extortion fee. You could simply wipe the infected computer, re-image it, and restore the latest backup.”
Miliefsky says there are several “must-do” best practices for increasing cyber security in your small business:
Create corporate-security policies and make sure all employees commit to them. Train employees in key areas – acceptable use, password policies, defenses against social engineering, and avoiding phishing attacks. Encrypt all records and confidential data to be more secure from cyber attack. Perform frequent backups and keep a copy of recent backup data off premises. Test backups by restoring your system to make sure the process works. Carefully screen potential employees to reduce the risk of a malicious newcomer. Defend your network behind your firewall – and make sure you can block rogue access. You don’t want the cleaning company plugging in a laptop at midnight! Deal with the bring-your-own-device dilemma by standardizing security protocols.
“Still,” Miliefsky warns, “you need to remember that most breaches occur behind firewalls. How many times have you heard of a trusted insider falling for a phishing scam or taking a phone call from someone who sounded important who needed ‘inside’ information? Realize that some employees will browse websites they shouldn’t, gamble online, or chat using instant messenger tools. Educate your staff about acceptable use of corporate resources, and demand careful adherence to security protocols.”
Anyone can fall victim to even very obvious scams. Employees may not know your password policies or why they shouldn't open an attachment that says “Congrats! You've just won a million dollars – click here!” It's essential to train all your personnel on how to avoid cyber breaches.
Miliefsky suggests that you teach your staff the do’s and don'ts of instant messaging as well as other cyber security protocols. “If you are logging email for legal purposes, let them know that you are doing so, and why. Give them real-world examples about what they should do in an emergency. Teach them why you've implemented a frequent-password change policy, and why their password should not be on a sticky note under their keyboard!”
You should also perform your own security self-assessment against the best-practices recommendations above. Network security is a process, not a product. To do it right, you need to frequently self-assess, and make adjustments as needed.
Boards, CEOs, CFOs and CIOs are under extreme compliance pressure today. Not only are they charged with increasing employee productivity and protecting their networks against data theft, they are also being asked to document every aspect of IT compliance. “I recommend, whether or not an outside firm is performing IT compliance audits, that you begin performing measurable compliance self-assessments. You'll need to review federal regulations that affect your organization,” Miliefsky notes. He adds that some states have their own regulations, too. “In California, for example, if there has been a cyber breach regarding confidentiality, companies are required to publish this information on their websites. They also must notify customers if personal information has been compromised.” The easiest thing you can do to prove that you are in compliance is to document the steps your company is taking to protect data.
By taking a strong proactive approach, setting measurable goals, and documenting your progress, your business will be more secure in the months and years ahead.
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d2f4d01ccd6e41a39347f6f0763bc490 | https://www.forbes.com/sites/kateharrison/2018/05/16/is-podcast-marketing-right-for-your-business/?sh=28e67bf12669 | Is Podcast Marketing Right For Your Business? | Is Podcast Marketing Right For Your Business?
Radio advertising in the US is expected to remain relatively flat through 2021, but podcast adverting spending is expected to double during this same period. Podcasts continue to gain popularity due to the global proliferation of smartphones. These seemingly essential devices are most popular with the 18-34 year old demographic that makes up 44% of the global podcasting audience. Apple Car Play, which now comes pre-bundled as a native app in 24 major car brands, is similarly extremely popular. Over 40% of Americans aged 12 and older have listened to a podcast, with 24% of Americans listening to podcasts regularly. This means that podcasts are more popular than Catholicism, which is the religious affiliation of 21% of Americans.
Podcast marketing offers a targeted way to reach consumers. Image: Shutterstock
What makes podcast advertising so attractive to business owners? Seth Greene, author of five best-selling marketing books including the Market Domination for Podcasting, and Direct Response Marketing Expert, explains: “Podcasts offer advertisers the ability to hyper target. For example, if you had a product you need to get in front of hundreds of thousands of successful business owners, then the Sharkprenuer podcast — hosted by Shark Tank’s Kevin Harrington — would be a great show to be on. If you had a product like Shark Tank’s Chord Buddy, there are plenty of podcasts for guitar players to choose from. Research can pinpoint the podcasts that are just right for your message.”
Podcasts also provide SEO benefits. “iTunes is a Page Rank One website, and every episode usually links back to both the show’s website and the guest’s website,” Greene adds. “Get booked on a handful of shows, with links back to your website for the right keywords, and watch what happens. Using the earlier example, if you Google ‘Kevin Harrington Sharkprenuer’, his show is 5 out of 10 listings on the first page”.
Greene says that Podcasts can even help you get ranked in the app store itself. “Search iTunes itself for direct response marketing and Kevin’s show ranks both #1 and #6.”
But advertising on a well-known show is not the only option for getting your message across to the right people. “Many brands are experimenting with creating their own podcasts,” Greene says. “This way, they control the entire process from start to finish. A bonus of having your own show is that you then own the media and can advertise to your own following as much as you want at no extra cost.”
As someone who makes lots of podcasts and spends his days promoting them, Greene offers specific advice for making a promotional podcast successful:
“Your podcast needs a catchy name. Ideally, your podcast name should include the number one keyword that you want your show to rank for. Your podcast needs cover art. This cover art is the thumbnail image people see when they search for or find your show in iTunes. Your cover art should include the title of the show, a picture of the show host, and some clean images that give a good idea what the show is about. Your podcast needs a professional introduction. You should have a professional voice over actor or actress voice the intro, with (copyright free) appropriate music in the background. The intro should sound like a radio show introduction. It should establish you as an expert in your field, sell listeners on why they should listen to the show, and give them a call to action that takes them beyond the podcast. Your podcast needs hosting. There are many good hosting software companies in the market that can syndicate your show to places like iTunes, Google Play, etc. One of the best in the industry is Libsyn. Great featured guests make your podcast much more compelling. These folks will share your show with their audiences and be interesting to listen to. You will need to market your show so that your target market knows about it! This could include promoting it on email, Facebook, LinkedIn, Instagram, YouTube, etc. Any other creative ideas you have for reaching your key audience could be useful, too. Make sure that every episode is transcribed and edited, so it can be turned into social media content, blog posts, eBook giveaways, and even a physical book!”
Greene is biased in his advocacy of podcasting, for good reason. He offers podcast creation through his company Market Domination as part of a 41 step process that includes a client podcast, a published book, and a book launch event — both physical and virtual — to “maximize the client’s exposure.” For a meta experience, and to get clearer about what Greene has to offer, you can hear his podcast on podcast marketing.
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52c1df52b6ca3c4948a3e8364045d8ce | https://www.forbes.com/sites/kateharrison/2018/06/30/5-common-mistakes-small-businesses-make-with-seo/ | 5 Common Mistakes Small Businesses Make With SEO | 5 Common Mistakes Small Businesses Make With SEO
Common SEO mistakes small businesses make Shutterstock
Small businesses in particular can dominate local search if they employ good search engine optimization (SEO) techniques. However, according to Chris Rodgers, CEO and Founder of Colorado SEO Pros, there problems most small business encounter when it comes to their website copy. He shares the five most common SEO mistakes you can avoid with just a bit of awareness and planning.
Mistake #1: Waiting until after you launch a website to consider SEO
“We have seen more than a few horror stories where small business stakeholders decided to only start looking at SEO after their newly designed website was launched — only to tank all of the site’s existing rankings and traffic performance because proper SEO planning was not at the core of the website redesign and launch,” Rodgers says. Web developers, even great ones, are often not looking at all of the SEO factors that must be considered if you’re going to retain current SEO performance after launch. Rodgers says you need to consider SEO across the board when redesigning or re-launching a website. “The content created, the layout of the site, the information architecture, individual page content, all pages added and deleted, pages with URL changes — and especially 301 redirect mapping — can all have a massive impact on what happens to SEO after launch. If you don’t have an experienced SEO professional involved in the process early, you are rolling the dice. If you have any SEO equity built up, your may lose it all without a chance to regain it.”
Mistake #2: Trying to leverage SEO as a short-term business development channel
SEO does not function like any other advertising channel. It is not “pay to play” like PPC, radio, TV, print media, or other marketing outlets. Google and the search engines make the rules, and a good SEO provider will offer expertise and management. Their expertise will help you navigate a changing landscape that happens to have massive upside potential. “Don’t fool yourself: there are no real guarantees with SEO,” Rodgers warns. “Experienced SEO professionals create reliable strategies to improve rankings, traffic, and conversions; however there are over 200 variables in Google’s algorithm at play, and no human on the planet can control them all. Advertising dollars are continuing to explode in the SEO space because despite its challenges, SEO has one of the highest returns among all digital marketing channels. Just recognize that SEO is a longer-term strategy. If you are looking to make big moves in a short period of time, you may be disappointed. For that very reason, those who invest in SEO in the right way — over time — can reap massive rewards and achieve an ROI beyond any other marketing channel.”
Mistake #3: Having your web developer perform SEO
“Of course, good web developers know some SEO basics, but we have never met anyone that is a high-level expert at both web design/development and SEO,” Rodgers says. “There is just too much information to track and too many variables to consider. While web developers and SEO professionals may work in the same business, they definitely operate in separate specialties. I would compare it to the difference between a heart surgeon and an ophthalmologist: while both are technically doctors, they perform very different duties in very different ways.”
Even for the few web developers who are extremely knowledgeable at SEO, it is unlikely they will have the tools, experience, and skill set necessary to create and manage a comprehensive SEO campaign. “If your web developer is offering SEO, just understand that while they may be able to help you along the way, you cannot expect a high level of expertise and comprehensive SEO strategy — especially regarding ongoing SEO management, which is by far the hardest part,” Rodgers concludes.
Mistake #4: Purchasing a “too good to be true” SEO offering
SEO is difficult to do well. It requires a high level of expertise and years of experience to truly understand and manage this crucial function effectively over time, especially when the rules change and negative performance occurs. “There is no shortcut that works over time, and most of them lead to poor outcomes that simply waste your time, money, and effort,” Rodgers says. “There are legitimate SEO agencies, consultants, and in-house managers, and none of them are cheap. You will also find an almost limitless supply of SEO offerings sold by non-professionals to capitalize on the need for SEO among those who feel they can’t afford it. Mainstream marketing companies, digital marketing generalists, PPC agencies, web development companies, online media and advertising companies/websites, and countless others create their own brand of SEO management that is often sold as an add-on service that increases account revenue, while producing little result.” In short, if you want real SEO, you need to work with a specialist; don’t be duped by the fakers offering something too good to be true. If you really can’t afford SEO, work on getting educated yourself and consider hiring an experienced SEO consultant on a limited basis.
Rodgers suggests that to test a potential SEO provider, you should ask them to explain in detail their strategy regarding on-page SEO, off-page SEO, and technical SEO (crawl analysis and error resolution). “They should have a plan to address these three primary pillars of SEO, and be able to explain how and when they will address each one. I would also ask what paid SEO tools they use, because if they are not using any paid SEO industry software, they are going to be at a huge disadvantage. If they only respond to part of this list, or are confused by these questions, you probably ought to re-evaluate your options,” Rodgers adds.
Mistake #5: Organic traffic, website visibility, tracked conversions are increasing? It’s working!
To know if your SEO efforts are working you must create detailed tracking processes to gain the necessary insight. Google Analytics is free, and a great place to start. Install GA and create goals and events around your conversion points — e.g., contact page visits, form fills, email signups, web leads, and so on. Rodgers adds: “You can also use a number of SEO tools to track your rankings over time. A good one that tracks overall visibility without using specific keywords is SEMRush. If your rankings are improving, organic traffic is improving, and conversions are improving, you are probably on the right track with your SEO plan. Despite the need for SEO expertise, there are cases where a website offers the right content to the right users, follows basic ‘best practices’, and makes big progress over time. The devil is in the details, but if you’re tracking some basic metrics accurately, you should be able to tell if your program is working. If you’re doing SEO right, you should be seeing some legitimate opportunities come in from the website on a consistent basis, and be able to source them back to SEO with analytics.”
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a7dd449f6023c02995baa1fd0e1a7ad4 | https://www.forbes.com/sites/kateharrison/2018/06/30/questions-to-ask-yourself-before-you-start-a-business/ | 5 Questions To Ask Yourself Before You Start A Business | 5 Questions To Ask Yourself Before You Start A Business
5 Questions To Ask Before Starting Your New Business. Image: Shutterstock
The statistics are a bit dire: 20% of small businesses do not make it past their first year — and fully half will close their doors before their five-year anniversary. Nonetheless, eager entrepreneurs regularly take the plunge in order to follow the American Dream of owning their own business. If you are thinking about blazing your own path, despite the odds, you are not alone. According to the U.S. Small Business Administration, there are 28.8 million small businesses — defined as those with fewer than 500 employees — in the economy at any given time.
How can you protect yourself from excess enthusiasm and disappointment? Before you leap into a new business venture, consider these five questions:
Are you looking to create a job for yourself or do you want to grow a scalable company?
Many new entrepreneurs end up creating a job for themselves, but not a company that can operate without them in a key position . That’s okay, but if it is not your long-term goal, you need to have a clear vision of how you will scale your business before you begin. Otherwise, you risk finding yourself working hard and taking on more than you should, without either the funding or the people you need to succeed. If you want to work less down the road, you will need to focus on creating a business that can operate with or without you, rather than a so-called “lifestyle” enterprise.
Who are the players you want on your team?
In real estate, the crucial factor in price is “Location, location, location!” In the small business world, the equivalent is “Talent, talent, talent!” Having great talent around you is the key to success. Keep your standards high and be meticulous in choosing those you choose to scale the company with. It is important to note that the skills required to start a company and get it to $2 million in annual sales, and the skills required to scale a company from $2 million to $10 million, are very different. You might get lucky and find people who have both sets of skills, who can stretch with the demands of a larger business, but more likely if you want to keep your original team, you will need to invest in them. For example, Grayson Lafrenz, CEO at Power Digital Marketing created a free 14-week MBA program for all employees interested in growing their general business and marketing skill set to solve this problem internally rather than have to reach outside the company for experts to expand the company.
To attract good talent, consider giving your people equity as part of their compensation packages. A good rule of thumb is to set aside 15-20% of your total equity for your key players. These are the people — regardless of title or hierarchy — whom you can’t afford to lose. You need their talent, and you need to offer something attractive to keep them on board and invested in your vision.
Finally, give yourself the flexibility to take risks and hire people with diverse skills, but don’t rush to fill a role with just anyone. Rather, always align yourself with those who bring something to the table that your current team is lacking and that you’ve identified as crucial to your goals.
Who are your first couple of customers?
It is natural to assume that people are similar to you, but in reality, people have very different tastes, styles and spending habits. When you convince someone you don’t know to buy your product, take the time to talk with them! Treat their feedback like gold, cater to their requests, and consider pivoting to adapt to the market if you find they are part of an unexpected trend. Before you invest a lot of capital to launch your idea/product/service, you must build a solid foundation. The most successful “bootstrap” companies start with a few customers and then make sure they’ve gotten their offering just right.
Who are strategic partners you can align yourself with?
As the new company on the block, you’ll need to find efficient ways to acquire leads and clients. One of the easiest ways is to go talk to other companies who service the same customer base.
Remember, if you are bringing something unique to the market — not just duplicating what others are offering — there is always room for collaboration and smart partnerships. You scratch their back and they’ll scratch yours. It’s a smart way to do business, and it’s great PR. Think about the competitors in your field that focus on a slightly different niche. How can you complement one another’s work? Could they become your distributor? A potential acquirer? Are their clients possibly yours as well?
Do you have a strong operating agreement?
Many first-time entrepreneurs don’t put proper focus on having a really smart operating agreement. Assume that you will be successful and structure your operating agreement that way. A strong agreement should include five basics: ownership, rights, responsibilities of members and managers, distribution of profits and losses, how owners can be changed, and how to go about dissolving the LLC. A strong operating agreement will prevent disagreements, misunderstandings and a host of other problems once your company starts to enjoy its well-earned success.
Starting a new business is exciting and energizing, but if you want to beat the odds, these 5 tried and true tips are a good place to start.
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96e989ef76a0a58cc991581f46c2ac8d | https://www.forbes.com/sites/kateharrison/2018/07/31/epsons-new-green-printers-and-why-they-matter-for-your-business/ | These Green "Supertank" Printers Are A Good Investment For Your Business | These Green "Supertank" Printers Are A Good Investment For Your Business
Interior Of Busy Design Office With An Epson EcoTank Printer
When it comes to the environmental footprint of an office, a printer can have more impact than one might think. Despite advances in online document sharing and storage, the average office still prints 10,000 sheets of paper a year per employee — more than a tall tree’s worth. But the used paper is not the only negative impact printing has on the Earth. There’s the water used to produce the paper, the bleach and other chemicals used to process the paper, the energy used to run the paper mill, the costs of packing and shipping the paper – and that’s just the impact of the paper!
Then there’s the printer itself, which takes a lot of energy and materials to manufacture. It also takes about 1 gallon of fuel to make a laser cartridge and the inks involved use toxic chemical solvents. Most of these cartridges end up in landfills: we Americans throw away hundreds of millions of laser cartridges and almost 2 billion ink cartridges each year. It all adds up to one big environmental tsunami, which the printer industry has been relatively slow to address. Recently, however, the major printer manufacturers have begun to address these environmental issues by producing “eco-friendly” printers.
Epson — which sells more than half of all Inkjet printers — launched a new EcoTank product line to help customers become more efficient with in-office printing and go green at the same time. The product line uses refillable tanks instead of cartridges and can print a year’s worth of pages before requiring a refill. For example, their model ET-4750 holds enough ink to print up to 11,200 pages.
The refillable EcoTank was primarily invented to address three customer “pain points” associated with workflow: paying a high cost for replacement ink/toner cartridges, especially for printing in color; running out of ink at inopportune times; and losing workflow efficiency when having to change ink/toners. At the same time, is also unquestionably better for the planet as it requires about 30 fewer cartridges per employee per year. Some models also have automatic 2-sided printing, which can cut paper use significantly, as well.
The EcoTank has already sold more 500,000 units in the US, which is a very encouraging figure. While other “supertank” style printers exist, including Canon and Brother versions, Epson currently enjoys 91% of the supertank unit share in the US, with the company reporting adoption rates in some markets at double their projections. Epson’s EcoTank printers are also recyclable products, and Epson America, Inc. is ENERGY STAR qualified, RoHS compliant, and a SmartWay® Transport Partner. The Epson printers come with two years of ink included in the box, and users can save up to 80 percent with replacement ink bottles verses ink cartridge models. While the slogan “the more you print, the more you save,” may be a bit of a stretch, supertank printers and the EcoTank line in particular, are a welcome addition to a greener office landscape.
Generation Green is Canon U.S.A., Inc.’s environmental initiative that aims to reduce the environmental burdens in all stages of a product’s life cycle. The initiative includes PIXMA inkjet printers and imageCLASS laser printers, as well as imagePROGRAF large format printers. The reduction in ink and paper consumption as well as energy efficiency are the highlights of Generation Green. An ecological comparison chart of Canon’s products is available.
“Brother Earth” is the Brother Group’s slogan for their environmental activities, which includes development of eco technology among other programs. Brother developed the recyclable toner cartridge and they offer a recycling automation system. Brother has also revised and reformed the airflow system of these printers. The efficient airflow contributes to increased durability of the inner parts and an improved product lifespan while simultaneously reducing energy consumption.
These printers represent another way business owners can “go green” while saving aggravation, time, and money in their offices as well. Becoming more environmentally friendly in the office is important for various reasons including tax and legal advantages, reduced waste, and sustainability. Choosing to go green with a printer is pragmatic for all business sizes. As Peter Drucker once wrote, “Management is doing things right. Leadership is doing the right things.”
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ad6a558cf657ee8f70760f255f796363 | https://www.forbes.com/sites/kateharrison/2018/09/10/should-your-company-accept-bitcoin-and-other-cryptocurrency-payments/ | Should Your Company Accept Bitcoin And Other Cryptocurrency Payments? | Should Your Company Accept Bitcoin And Other Cryptocurrency Payments?
Should your business accept crypto?
While your organization may have already grappled with whether or not to add PayPal, Square or Apple Pay to your payment options, adding the ability to accept cryptocurrency is a bit different. Deciding to accept cryptocurrencies is more like the decision to accept foreign currencies than just choosing to add a new form of payment processor. There are significant benefits to accepting crypto, but it is not without some drawbacks. Savvy business owners should weigh these pros and cons when making the decision for their company.
Should your company accept cryptocurrency?
According to Michael Foster, co-creator of localethereum — a decentralized Ethereum marketplace enabling peer-to-peer exchanges — “crypto enables cheap and borderless near-instantaneous transactions. This enables customers all over the world — even those without access to traditional banks, but with access to the Internet — to purchase your company's services or products.” Dibu Paul, of Alchetron, the Free Social Encyclopedia for the World, notes that this is a big change. “Especially for large payment amounts, which have historically taken extra time to clear, crypto transactions are nearly instantaneous.” In addition, cryptocurrencies are not bound by a specific country's exchange rate: rather, they are universally recognized, which makes them more attractive for many businesses. For international e-commerce companies in particular, these advantages can be significant.
Paul also notes another benefit of crypto: it makes it easy for many people to contribute to a single purchase because everything goes to a smart public ledger, which can be trusted. This makes crypto a good medium for crowdsourcing. Using cryptocurrency as payment is also a good choice for high-risk businesses, since traditional payment gateways might not support them.
Transactional benefits aside, Josh Reif of Reif Ventures, LLC, adds that “accepting cryptocurrency can help you attract a younger demographic of people who prefer the simplicity and anonymity of crypto transactions.” Carmen Mastropierro, the owner of three digital magazines and an e-commerce website which accepted cryptocurrency, concurs: “I believe accepting cryptocurrency as a payment is wise for many businesses. Just offering several payment options has always been linked to higher conversion rates. In addition, some customers feel safer paying with crypto as compared to PayPal or credit cards.”
Alexander Winston, Managing Director of PPC Protect, adds: “I think it's important to always be open to new technology. If a customer wants to pay you in crypto, why should you turn them down? Originally, we only accepted payments in dollars through processors such as Stripe and PayPal. But with the vast increase in the number of cryptos available over the past few years, we've had quite a few customers request to pay in crypto.”
What are the risks involved in accepting cryptocurrency?
Foster says there are three primary risks of accepting crypto: (1) you don't know how to keep your crypto safe; you or your business are risk averse. (2) Cryptos are highly volatile — just look at Bitcoin’s price chart this year; (3) the regulatory and tax schemes are confusing and depend on where your business is located.”
CPA and COO Matthew May, founder of Acuity, adds: “Other risks include transaction fees, liquidity concerns and counter-party risks associated with using crypto exchanges, which act as the processors for businesses that do not directly accept crypto. Exchanges let you convert crypto to “fiat” — e.g., government-backed cash — but leaving money in exchanges leaves the crypto coins vulnerable to theft. “The crypto counterparty risk mantra is, ‘Not your keys, not your coins,” May continues. “This is the educated person's acknowledgement that when you send crypto to any of the exchanges, you add the extra risk of someone else having full custody and ownership of your assets.” To address this issue, those who have any significant money in crypto usually move it to a “hard wallet” offline, like a Ledger Nano.
How could your business accept cryptocurrency?
If the pros outweigh the cons for your business, and you want to add crypto to your payment offerings, how do you begin? Antonio Madeira of CryptoCompare explains how crypto transactions occur. In order to accept crypto as a form of tender for products or services, your business needs either a digital mobile “wallet” or a Point of Sale (PoS) machine. While the two processes are essentially the same, having designated equipment and accompanying software and support enables a more seamless experience for your customer and your business. A QR code for the amount of the transaction is generated on the business end, which is then scanned by the customer to pay and complete the transaction. Different PoS machines have various benefits, but most charge a fee for this service.
Madeira continues, “In order to accept crypto via your business website, sign up with a service such as Bitpay or Coinbase, which has plug-ins that you simply install automatically into your system. These gateways integrate with major e-commerce platforms. Customers will be able to check out using crypto, which is then deposited to your digital wallet or deposited as a local currency.”
“Accepting crypto can be a great advantage to a business. For our new business, adding them was as simple as adding and configuring a WordPress plugin,” explains Jacob Murphy of GPS Tracking Made Easy.
Whether choosing to accept crypto or not for your business, it is clearly prudent to know the facts. Ask other entrepreneurs about their experiences, evaluate your risk aversion level, and proceed with care.
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45e39b6818f724468ca90f10c07e985d | https://www.forbes.com/sites/kateharrison/2018/12/17/10-entrepreneurs-share-the-worst-business-advice-they-ever-got/ | 10 Entrepreneurs Share The Worst Business Advice They Ever Got | 10 Entrepreneurs Share The Worst Business Advice They Ever Got
Young asian businessman covered his ear ignoring advice. Getty
When starting a business, it can seem like everyone has an opinion on how you can become successful. They sound off on how to make your business grow faster, how to attract more customers, and how to generally run things. While good mentorship is useful, it is important to recognize that not all of the advice you’ll get is good. Sometimes even very successful, well-intended people can lead you astray. The following are the reflections of ten entrepreneurs recalling the worst advice they received on the road to their success.
Become a nonprofit
If you are launching any kind of social venture, you may hear that you would be better off becoming a nonprofit. While there can be benefits to the nonprofit structure, that decision shouldn’t be taken lightly. Non-profit status will bar you from being able to raise investor money — which can be the death knell for a startup. As Sacha Nitsetska, Founder & CEO or Mavenli.com recalls, “The worst entrepreneurial advice I ever received was from one prospective investor. He told me to just register my business as a nonprofit, as ‘no one would ever pay for mentorship services.’ Before I’d even finished building out the product, I had corporate clients ranging from world-renowned law firms to big four consultancies. We also had unpaid mentors on board, including the founder of Shazam! as well as senior advisors to CEOs of Fortune 500 companies. My counsel is to only take advice from people who believe in what you're doing — and who are on the same wavelength as you.”
Get a fancy office
When you are just starting out, cash is king — and it can be hard to decide what’s worth spending money on. Rafe Gomez, co-owner of VC Inc. Marketing, shares this story: “When I launched my business, a fellow I met with a booming consulting
business told me that I absolutely, positively needed to operate out of an impressive office space. He said that all of my competitors had offices,
and that if I wanted to be taken seriously, I couldn't survive without having
an office of my own. I ignored his recommendation and operated out of a home office, and later a co-working space. It turned out that none of my clients ever asked me whether I had an office: all that mattered to them was delivered results and solutions that they sought from me. Fast forward a few years: the guy who insisted that I needed an office in order to be credible went out of business. His overhead was too high, and when his sales dipped, he couldn't generate the receivables to sustain his company.”
3. Outsource as much as you can
Nadya Rousseau, CEO and founder of impact-based digital marketing agency Alter New Media shared her “outsourcing nightmare.” As she recalls, “The worst advice I ever received was to — right off the bat —begin outsourcing all of my work so I could just focus on sales and growing my business. The end result? Poor quality output for my clients, reduced profit, and a lost chance at necessary learning. My clients began wondering why their projects were not being handled with the same care that they once were (when I was doing EVERYTHING by myself!). Long story short, working with an outsourcing company to save time, whether on a white label basis or utilizing their trade name, can be a recipe for disaster. Do not think that you will automatically win by working with an outsourcing company. You are better served doing as much work as you can by yourself then bringing on quality team members. Today, I have my own digital marketing agency, with a team I have hand-picked for experience and compatibility.”
If you build it, they will come
It is easy to feel that a great product will be quickly embraced by the market, but that’s not always the case. Cody Swann, CEO of Gunner Technology, shared his experience, making this point: “My company is a software development firm that builds JavaScript solutions on AWS for the public and private sectors, as well as entrepreneurs. When I first struck out on my own, one of my informal advisers at ESPN told me to put blinders on, and focus on offering a great service or building a great product to the exclusion of everything else. It's the popular ‘if-you-build-it, they-will-come advice. That just doesn't happen any more — or happens so rarely that if that's your primary strategy, you might as well stick to buying lottery tickets! There is so much noise out there in the marketplace today that nearly everything should be considered competition — competition for attention. If you don't have a great marketing strategy, a solid business development plan, and superior team, your product/service will fail, no matter how great it is.
Go raise money
If you live in a startup-oriented part of the country, or run in tech circles, the default funding approach is often venture capital. However, getting VC funding can be a blessing or a curse — and should not be undertaken without serious consideration of other options. As Kristina Libby, Professor at NYU and Co-Founder of SoCu explains, “Every time I start a new project, I get the same advice: You should go raise a round from VC investors. While this advice seems good, it's actually horrible advice. So few people get their startup funded that way — and fewer still who are women. Very few people can just go out and raise a round to launch their business. Most people need to create a business that is profitable, first.”
Get funding before you launch
Knowing when to launch is more of an art than a science, but sometimes startups are afraid to go to market without funding because they think it will ruin their chances of getting funding later on. As Sukhjot Basi, CEO of Bank Yogi, recalls about being offered this advice, “Our startup advisor suggested that we should raise some capital before launching, and wait until we had the full product. While we were working with him on investor presentations, a couple of other competitors came onto the scene, offering similar products. The advice not to launch without capital was a bad one because it didn’t allow us to test the market early on. We could have been the first movers and suddenly we were incumbents. The advice to build the full product was even worse. It would have left no room to iterate, and would have been very expensive. Fortunately, we ignored that suggestion.”
Just incorporate
Picking which type of corporation you should be depends on how you plan to fund and run your startup. While you can change forms once legally, it is better to do it right at the start. Gene Caballero, Co-Founder of GreenPal, had issues with this. “When we first started, we were advised that we only needed to incorporate as an LLC —which turned out to be totally inaccurate. When we attempted to raise an angel round, they practically laughed at us because we were not a C-Corp. If you ever plan on taking your company public, make sure you form the correct corporation. Our initial council advised us that we didn't need to set up a C-Corp in Delaware, even though Delaware is the most tax favorable state for startups. This literally cost us our first round of funding, because we had to change our status — a $15,000 mistake that almost cost us our business.”
Pay to play
Jessica Postiglione, CEO + Co-Founder of Olika, makers of Birdie and Minnie, a premium hand sanitizer in a bird-shaped container notes: “We were told people will never purchase premium hand sanitizers when they can purchase $1 options.” Yet, the company went on to sell tens of thousands of their premium units, and are currently carried by major retailers nationwide. However, the worst advice they got was that they “should pay [the very large] slotting fees at major retailers just to get on the shelf.” In other words, they were advised to “pay to play.” But Postiglione notes, “That’s not a viable long-term strategy for a young startup with limited funds. Moreover, it is a strategy that does not reflect the digital age and power of eCommerce. The takeaway is that you must learn very quickly as an entrepreneur to be careful about the advice you take. Listen to feedback, and then identify the advice that is applicable to your business situation. As the Founder, you are the expert in your field, and you have to trust your gut.”
Build to sell
If you have taken venture capital funding, you’ll need to be building towards an exit strategy, or you will have very unhappy investors. However, for most companies, sustainability is a better goal. Dr. Joni Carley, a consultant who has worked with many entrepreneurs, reports that “the consistently worst advice I’ve seen startups follow is to build a business they can sell in five years for great profit. This is bad advice because:
1. it’s highly unrealistic;
2. it creates myopia in decision-making;
3. it indicates serious questions about commitment and passion.”
She continues: “What happens as a result of buying into this advice is unnecessary stress, people being in businesses they don’t really care that much about, entrepreneurs feeling trapped, success framed by unrealistic expectations, and, failures framed by short-sightedness so that they can’t be fully dealt with. The lack of long-term commitment by the founders filters through to employees and customers, and ends up having negative effects that can be profound.”
Chase whales
A big client can make a huge difference when you have a small business, but they can also sink you. As Mario Peshev, Founder, CEO and WordPress Architect of DevriX notes, “When you're small, landing a large client feels like winning the lottery. Chances are, 120% of your time will go into trying to persuade them to stay with you for a while. Growing a diverse customer base matters a lot. Putting all of your eggs in one basket could sink your business the moment the big whale client picks another vendor. Diversifying and scaling with safety nets in mind may take a little longer, but that strategy prevents you from gambling your entrepreneurial venture on one relationship. After all, you've quit your day job for scaling across the market, right? Stay the course and don’t let a whale divert you.”
Anyone who has ever started a business gets an incredible amount of feedback from friends, family, and even strangers. Sorting good advice from mediocre or bad advice is a crucial skill that entrepreneurs must cultivate in themselves. The advice to be open to advice but judicious about acting on it can save many a startup from death by a thousand cuts.
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cb99142ee38d992c5b4f038c4caf9b2d | https://www.forbes.com/sites/kateharrison/2019/03/26/5-successful-entrepreneurs-share-their-self-confidence-secrets/ | 5 Successful Entrepreneurs Share Their Self Confidence Secrets | 5 Successful Entrepreneurs Share Their Self Confidence Secrets
Portrait of a confident business woman Getty
Earlier this month, I wrote about how women and men with similar backgrounds have very different confidence levels — and how women tend to question their ability to successfully start a company. Despite evidence that female led companies tend to outperform their competitors, women often face a confidence crisis that can hinder them when dealing with some of the scarier entrepreneurial leaps required to move a startup forward.
Psychologists insist that confidence is a learned behavior, with many courses, books and other self-help tools available for those looking to bolster their “skills” in this area. In my personal experience, hearing what works from our peers can make a big difference. The following are top tips from five entrepreneurs about what works for them.
Know your worth
“The best tip I have for being confident professionally is knowing your own worth,” says Misha Kaura, a 26-year-old luxury fashion designer. “When applied, this means sitting up straight, looking people in the eye, giving a firm handshake, charging what you deserve, maintaining a positive attitude — and keeping a private victory log of things you’ve done well. These simple changes have done wonders for my confidence, productivity, and overall happiness levels, and have helped me get to the absolute top of my profession.”
Get things done
Dave Bowden, author of an Amazon best-seller about building confidence for shy men, stresses the power of the “ Getting Things Done Method”. “The best way to feel confident at work is to feel like you're in complete control of your tasks and deliverables,” Bowden says. “Having strong command of your schedule and knowing exactly what needs to be done – and when – makes you feel competent, confident and in control. The best system for staying on top of everything that I've found is David Allen's Getting Things Done method. While it can get fairly complicated, it's fundamentally about writing everything down in one place: every to-do, every project, every task and every stray thought relevant to your work. Systems like Trello and other apps make this even easier, and help you stay on top of your responsibilities. The simple act of recording everything you have to do in one place removes anxiety and imbues you with control — and confidence.”
Dress the part
“Dressing to kill is a confidence-booster,” says Steve Pritchard from Africa Travel. “If you look good, you feel good. In many companies there’s still a dress code, so make sure you look the part. Put effort into looking presentable and smart, every day. Looking professional will make you feel professional, and while this may be a superficial fix to your confidence issue, it is beneficial because it communicates confidence to others. Looking disheveled and uncomfortable affects those around you negatively. They may even treat you with less respect than they would if you were better dressed. If your company doesn't have a dress code or insists on casual wear, make sure you are well-groomed and presentable, every single day. This will encourage you to walk with confidence and hold your head up high.”
Don’t look outward for approval
Serial entrepreneur Syed Irfan Ajmal — who boasts a 100% success rate for building self-funded and profitable small businesses — says he used to be very externally motivated. “For years, starting from adolescence, I was hungry for permission and approval of others (family, friends, etc.) before doing anything. That's how I kept on doing jobs I didn't like; I was told entrepreneurship wouldn't be a smart choice. What I've learned through my own struggle is that you can’t expect others to understand what's right for you. Don't seek permission. Don't seek appreciation. If your heart is telling you something, it’s probably right. As leading psychologist and author Daniel Goleman says, 'Your gut instinct's data is valuable.'”
The mind body connection is real
“Ever since leaving school I had a pocket full of business ideas and the drive to get the businesses started, but the one thing I lacked was confidence,” recalls Nicholas Smith, Founder and Director of CompareNewTyres.com. “I tried reading self-help books, getting out and meeting new people, trying to build my confidence. But genuine confidence just seemed to evade me, until I started a new hobby. I was about 27 or 28 years of age and I started going to my local gym and running on the treadmill. I started by doing half a mile, a mile, then two miles — and I went two or three times a week. With every gym session, my sense of accomplishment and confidence grew. I'd set myself goals and every time I achieved a new milestone, my confidence grew some more. Although I'd started many businesses in the past, none were successful. I started CompareNewTyres.com around the same time I started going to the gym, and success went hand in hand with my new found confidence. I'd achieve a milestone at the gym and that helped me meet a business goal, which would in turn help me do better at the gym. My hobby helped boost my confidence, and my business thrived.
Jaime Pfeffer, success coach and author points out that one does not even need the gym to build this connection “Walk with confidence and use Power Poses,” Pfeffer suggests. “Pull your shoulders back, hold your head up high, and fake it 'til you make it. Research shows ‘acting as if’ can signal your brain to feel confident, even if you don't feel it quite yet. If you have not seen it, you should check out Amy Cuddy's TedTalk on the effects of power poses, which explains that body language can dramatically affect a person's level of confidence.”
These five tips can help new entrepreneurs avoid the pitfalls of anxiety and lack of personal power, and tap into proven techniques that enhance confidence and contribute to success.
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f1feac28a01d9d2866295d3554f315fe | https://www.forbes.com/sites/kateharrison/2019/04/22/world-changing-ideas-need-founders-with-these-qualities-to-succeed/ | World-Changing Ideas Need Founders With These Qualities To Succeed | World-Changing Ideas Need Founders With These Qualities To Succeed
LED bulb as a globe Getty
Simple but true: every world changing company started with the same thing – a single idea. Entrepreneurs are naturally full of ideas, and even if you have not acted on one, there’s an excellent chance you’ve had an idea for a new product or service that seems to be overlooked. So, what’s the difference between a good idea and a great one? Or better yet, a great one that can really “change the world”?
Daniel Epstein is CEO of Unreasonable Impact, an accelerator program in partnership with Barclays that supports startups. Dan meets with entrepreneurs daily, always on the lookout for world changing ideas. He defines such ideas as business models that: (1) will provide sustainable solutions to worldwide issues; (2) have the potential to create the jobs of the future; and (3) can be scalable. I asked him to share examples of Unreasonable Impact’s startups that are changing the face of sustainable living, and what specific qualities the founders have that make them likely to succeed in his mind.
Mimica = Curiosity
All good entrepreneurs are curious, hoping to solve a problem in ways that others have not considered. “ Solveiga Pakstaite, the Founder and Director of Mimica, accidentally found a packaging solution to help reduce food waste during her senior project at university,” Epstein recalls. “Her curiosity and research into creating more inclusive packaging for the visually impaired unexpectedly led to discovering that the general public also have a limited understanding of what food can be thrown away, how and when. Her packaging solution could help reduce the 7 million tons of food and drink that are currently wasted in the UK every year.”
Leaf Resources = Attention to detail
Ken Richards of Leaf Resources says that “luck and being in the right place at the right time” were the catalysts for his business — learning how to use plant waste to develop alternatives to plastics. “However, it was Ken’s attention to detail and ability to spot small changes that made a big difference was how he helped his business stand out from competitors,” Epstein notes. “His family values of ‘waste not, want not’ influenced him and inspired him to make his company more sustainable. This led him to discover an unexpected material that could create affordable bioplastics from plant waste – a solution that’s made his products both more economic to produce and easier to create on a larger scale.”
Airlabs = Practical and personal problem solving
The co-founders of Airlabs, who’ve created technology that tackles ‘air pollution hotspots’ like bus stops, found some surprising statistics that highlighted how harmful pollution inside cars can be. Sitting in traffic for just one hour in a running car is equivalent to inhaling two cigarettes worth of nitrogen dioxide." Co-founder Sophie Powers recently had her first child, so the revelation really hit home. “Taking matters into her own hands, she used Airlabs technology to provide families like hers with a practical solution to tackle in-car air pollution — a filter for inside the car,” Epstein explained. “Sometimes, with big issues like air pollution, you can have the right technology, but it’s thinking about how it can be applied to everyday lives that makes all the difference.”
Clara Foods = Looking beyond what’s actually possible – The ever-rising popularity of brunch has created a strong demand for eggs, with approximately one trillion consumed each year. “This increasingly unsustainable demand led Clara Foods CEO, Arturo Elizondo, to find another solution,” said Epstein. “By considering how to make eggs without using chickens or eggs — a feat many would deem impossible — Arturo’s focused research resulted in lab-cultured ‘animal free’ egg whites, an ethical and sustainable option, which is likely to debut as early as 2020.”
Sure Chill = Constant improvement
Solar powered refrigerators are vital for maintaining life-saving vaccines in parts of the world that are not on the electric grid – and the current invention is already an essential for many places. However, the batteries utilized in this equipment are expensive and unreliable, as well as hard to replace. “Ian Tansley, Chief Technical Officer of Sure Chill, was inspired by nature on a walk in the mountains near his home town. He spotted a frozen lake, and was reminded of the scientific capabilities of water,” recalls Epstein. “This seemingly trivial moment became the inspiration behind his water-powered fridge which is a breakthrough invention.”
I think Epstein’s real takeaway is that what makes an exceptional world changing idea is not just the idea itself, but the person who has it. Social entrepreneurs are always looking for opportunities to solve large problems and make a big difference. So, the next time a creative solution crosses your mind, ask yourself if you can expand it to fit Epstein’s five core requirements. With the right combination of inspiration and perspiration (as the Einstein quote famously reminds us), your own exceptional traits may inspire you to take the entrepreneurial leap as if the future of the world depends on it. It does!
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