Foursquare

Following my recent experimentation with the new online ‘gadgets’ (hyper-linked in my first blog post), I must say that my interest in the ‘Matrix’ world has really amplified!

Being a business opportunity seeking by default, a new concept triggers my brain waves to automatically search for the ‘business benefits’ of it and the most recent one being the ‘FourSquare’.

What is FourSqaure? Who uses Foursquare? Why is Foursqaure used? .... And my ‘preset’ thoughts: Where is the ‘benefit’?

To my great joy, today we were actually assigned by our dear professor Enrique Dans to look into the FourSquare business model.

...in brief: Foursaqure is an application which allows users to collect points by checking in at different locations.

The user who collects most points at a certain location becomes the mayor of that place. This simple concept encourages the user to check in and it often results in 'competition' among friends to become the mayor!

It is free for users and it allows them to comment/recommend a location on Foursqaure. It also allows users to add friends on Foursqaure and connect to facebook and twitter.

So...where is the business opportunity in this? Different thoughts go to my mind...

As I am looking at the different ‘checked in’ locations of my few FourSqaure friends, I think...aha!!! If I had a business...then the more ‘check ins’ the better...I am thinking, this is genius!!!

We are all sick and tired of being targeted by advertising here and there and yet on FourSquare...WE ARE ADVERTISING FOR BUSINESSES with great pleasure!! ...on top of that, we are informing them how and where we spend our money!

Ok..so far so good...now, what’s in it for FourSquare? Does this new ‘marketing tool’ generate any revenue from the ‘checked in’ locations? Not sure...this requires further research...

...I start off by google and I come across the following sites:

Wikipedia...
Foursquare ...
Business Insider...
Cruchbase ...
TechieBuzz...

Will not bore you with details (although very interesting, hence I have provided the links) but here are the basic facts:

• So far 300.000 users (Feb 2010)

• Business has been valued at $100 million with acquisition interest from yahoo and Microsoft and a strategic partnership offer by facebook.

• Currently, still in the ‘testing face’ and free for most ‘customers’ (customers being businesses). Some businesses are offering ‘specials nearby’ goodies to users (for example a free cocktail) towards the points the user has been awarded.

The planned business model:

Foursquare will be adjusting its strategies for three types of organizations for paid services:

1. Small, privately owned stores and restaurants
2. Brands with retail chains
3. Huge multinationals marketers

Foursquare is also creating analytic dashboard (for bigger brands) to enable businesses to track their stay visitors.
Other opportunities are within deals against impressions such as web ads, clicks such as search ads, or even cost per check-in.

The interesting question is however, whether the popularity of FourSquare will grow in the same speed once it becomes an official ‘marketing tool’ where users are being ‘targeted’.

How can it avoid having the same dilemma as twitter where 5% of its user generate 75% of its overall activities?

When I was examining how I could promote ‘my online business’, I also wondered why FourSquare model has not considered online businesses। Perhaps a new opportunity... ?
In any case, it is interesting to follow the progress of the FourSquare business model and to see how it will progress in the near future.