tag:blogger.com,1999:blog-70221553247297040012024-03-18T04:06:41.482-05:00Engineering AdventureBetter Living Through Technology & EntrepreneurshipWindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.comBlogger80125tag:blogger.com,1999:blog-7022155324729704001.post-35043024351718241412020-03-15T12:08:00.000-05:002020-03-15T12:08:54.033-05:00Guide to the Virtual Happy Hour<h2>
...Or, how to socialize during a pandemic.</h2>
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This week has been tough on many of us, so I thought I would share the brilliant invention of <a href="https://punchlinecopy.com/" target="_blank">Lianna Patch (of Punchline Copy fame)</a>: the Zoom Happy Hour (ZHH). It's the safest way to stay social when upstart viruses decide to become party poopers. Friday evening, five brave friends of <a href="https://tinyseed.com/" target="_blank">TinySeed</a> tested the first beta VHH. It was awesome. Here is our beta recipe for the perfect virtual happy hour.</div>
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First, figure out if you have friends. As my MVP revealed, a one-person Zoom meeting even bores a dog. Also, while you can technically run a solo VHH, the more pedantic nerds will challenge the virtual nature of a lonely happy hour. If you're in a room by yourself and talking to yourself, all the participants are physically present; it's no different than crying into your drink in the lobby bar of a Marriott. Don't fall prey to this common trap!</div>
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Once you have a list of friends, you'll want to invite them. I used Zoom to schedule a free 40-minute happy hour for 6 PM on Friday, and then I shared the details on Slack.</div>
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Keep in mind that the invite needs to reach those friends. Starting an empty Slack, or joining a random Slack workspace won't work. Not every Slack includes your friends, but if it does, you have my permission to use it. You could also email your friends, message them on Facebook (if you have boomer friends), DM them on Twitter, or use your postal service to deliver a "Save the Date," followed by a formal Invitation. A wax seal currently seems unnecessary on a mailed virtual happy hour invitation, but we'll keep you informed as the etiquette continues to evolve.</div>
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Once your friends accept your invitation, you will need to prepare a physical room for the event. This is where many novices stumble: your body continues to occupy physical space even while participating in a virtual meeting.</div>
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Also, the other participants will want to see your face, so take that into consideration. I added a video light to my office so I wouldn't look like a grainy creep with sunken eyeballs. You might want to hide your dirty laundry, pick the trash off your floor, and banish dust bunnies with your vacuum. </div>
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Your physical appearance during a pandemic "work-at-home" situation could probably use improvement too. Consider grooming for once. Shave, comb your hair, take a shower. Maybe put on a shirt and brush your teeth. Your friends will ooh and ah at your effort.</div>
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A beverage remains a critical part of even virtual happy hours. Virtual drinks are less happy than real ones. Prepare your beverage before the happy hour starts, unless you intend to show off your bartending skills on the call. At a virtual happy hour, I think any concoction will do, except perhaps hemlock and other poisons. Cocktails, beer, wine, coffee, tea, Pamplemousse La Croix, Topo Chico, or even a bottle of scotch will do. Only if you've dressed for a renaissance fair is mead acceptable.</div>
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Finally, a few minutes before the scheduled time, you'll need to start your Zoom meeting. Now you await the arrival of your guests. Like any party, promptness expresses personality and ambition. Helpful people will arrive early and offer to help you hide embarrassing clutter. Shy people will show up what they hope is a few moments after the other guests. Folks who fancy themselves as leaders will show up at the end of the scheduled time and force everyone to stay late.</div>
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As guests arrive, you must administer the event itself. You can start with this simple script: "Hi ____, cheers!" Then you will hold up your drink to the camera, hold your cocktail to your lips, and take a sip. At this point, you will either naturally or unnaturally fall into conversation with your guest.</div>
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As you talk, late guests will arrive to interrupt your conversation, just like your boss showing up twelve minutes late for his own meeting and demanding a recap. At that point, you will repeat the cheers ritual, the (un)natural conversation, and the interruptions until all the guests arrive. </div>
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Obviously, the conversation will devolve into politics or a discussion of the pandemic. In normal circumstances, you're stuck listening to the loudest person in the bar. In a virtual happy hour, you have two secret weapons: you can shout directly into the microphone or distract folks with the cool shit you have at home! The distraction technique seems to work more smoothly.</div>
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Someone will share their husband, dog, cat, or pet scorpion. Another guest will ask you to guess the purpose of a piece of secret prototype hardware. And everyone has presumably delicious drinks to show you. These distractions all provide sweet relief from the global apocalypse.</div>
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Just like any meeting, things will get out of hand. Somebody will want to show us a funny website or document. As a gracious host, you'll be expected to remain calm while the person asks everyone if we can see their screen. This should only take thirteen or fourteen minutes. Allow a full hour if this person is your boss. The wait will be worth it; the kitten is cute.</div>
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The twenty-third kitten video inevitably leads to boredom, and the alpha of the group will make an excuse to leave. "Oh, I have to go. I need to dry my home-made toilet paper." This triggers a flood of similar, but not identical excuses.</div>
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"Oops, I forgot to make sanitizer from this rum."</div>
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"Well, this Charmin' won't list itself on eBay! I better let you go."</div>
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Now your virtual happy hour is officially over. Wash your hands, and remember not to touch your face.</div>
WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com11tag:blogger.com,1999:blog-7022155324729704001.post-92010341931445505322018-05-05T13:56:00.001-05:002018-05-07T08:43:28.813-05:00Nonfiction Book Recommendations from MicroConf 2018I like to ask MicroConfers for their favorite non-fiction reads. If you need some entertainment, you can find <a href="http://www.engineeringadventure.com/2018/05/recommended-novels-from-microconf-2018.html">a list of novels recommended by MicroConf attendees here</a>. Here is the list from 2018:<br />
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<a href="http://www.singlefounderhandbook.com/" target="_blank">The Single Founder Handbook</a>, Mike Taber</div>
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<a href="https://www.amazon.com/gp/product/073521414X/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=073521414X&linkId=78ae38a5f7c8182c7c008505db7ea9bf" target="_blank">Profit First</a>, Mike Michaelowicz<br />
I haven’t read it, but I will. Several attendees recommended it to me after I told them I was working on <a href="http://book.wealthforfounders.com/" target="_blank">Personal Wealth for Founders</a>.<br />
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<a href="https://www.amazon.com/gp/product/1119404509/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1119404509&linkId=9ea0fbd67adf2cb89869afbf2b8ae1e8" target="_blank">The Little Book of Common Sense Investing, 10th Anniversary Edition</a>, John C. Bogle<br />
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<a href="https://www.amazon.com/gp/product/0062457713/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0062457713&linkId=f992b8a31a792818e5356445423c4a2d" target="_blank">The Subtle Art of Not Giving a F**k</a>, Mark Manson<br />
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<a href="https://www.amazon.com/gp/product/1591846358/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1591846358&linkId=dfd518477205161140b394e7ad03f31f" target="_blank">The Obstacle is the Way</a>, Ryan Holiday<br />
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<a href="https://www.amazon.com/gp/product/1250183863/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1250183863&linkId=aae4e2f9dd7082e8f456dd1a6a21c679" target="_blank">Extreme Ownership</a>, Jocko Willink<br />
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<a href="https://www.amazon.com/gp/product/1936891026/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1936891026&linkId=773555b0145ecd13645403ac3c677768" target="_blank">The War of Art</a>, Steven Pressfield<br />
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<a href="https://www.amazon.com/gp/product/0671791540/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0671791540&linkId=bdecc387834c477467d121d6d1ad7343" target="_blank">Awaken the Giant Within</a>, Tony Robbins<br />
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<a href="https://www.amazon.com/gp/product/1455586692/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1455586692&linkId=79107665f7845ef10551bbbad9c0e6f3" target="_blank">Deep Work</a>, Cal Newport<br />
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<a href="https://www.amazon.com/gp/product/1455554790/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1455554790&linkId=9312b3175cb05b8e18ef86cc68cd5625" target="_blank">Work Rules</a>, Laszlo Bock<br />
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<a href="https://www.amazon.com/gp/product/1501124021/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1501124021&linkId=08a43b60868c9b6ae662fec7f0fd9277" target="_blank">Principles</a>, Ray Dalio<br />
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<a href="https://www.amazon.com/gp/product/0470521163/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0470521163&linkId=18fcdc7411fe6cb289151b3cd50a9224" target="_blank">Behind the Cloud</a>, Marc Benioff<br />
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<a href="https://www.amazon.com/gp/product/006124189X/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=006124189X&linkId=d59755d9200c26ecbd8419be6d55a269" target="_blank">Influence</a>, Robert B. Cialdini<br />
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<a href="https://www.amazon.com/gp/product/193253167X/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=193253167X&linkId=de17c3e932a9c208049e1bc8fb68ec12" target="_blank">No B.S. Wealth Attraction for Entrepreneurs</a>, Dan Kennedy<br />
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<a href="https://www.amazon.com/gp/product/0787960756/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0787960756&linkId=329185a608aa34ab84efc20e4b334ed7" target="_blank">Five Dysfunctions of a Team</a>, Patrick Lencioni<br />
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<a href="https://www.amazon.com/gp/product/0787954039/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0787954039&linkId=ab8a6471632c40d279ffc31c2fbc94ba" target="_blank">Four Obsessions of an Extraordinary Executive</a>, Patrick Lencioni<br />
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<a href="https://www.amazon.com/gp/product/0986019526/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0986019526&linkId=9c83bee42246d7cfa47a65cff8983ff7" target="_blank">Scaling Up</a>, Verne Harnish<br />
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<a href="https://www.amazon.com/gp/product/0691156662/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0691156662&linkId=369238ade365cc98825be122e016558f" target="_blank">The Five Elements of Effective Thinking</a>, Edward B. Burger<br />
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<a href="https://www.amazon.com/gp/product/0062009273/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0062009273&linkId=c965abcaaa8cfb81e6705ad3b67a3581" target="_blank">Bitter Brew</a>, William Knoedelseder<br />
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<a href="https://www.amazon.com/gp/product/1501135929/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1501135929&linkId=f6bacee83d2e0e9437f486e3308e51c4" target="_blank">Shoe Dog</a>, Phil Knight<br />
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<a href="https://www.amazon.com/gp/product/1591848148/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1591848148&linkId=6c5c4b4c2d83b2f0e90c43417818c183" target="_blank">American Kingpin</a>, Nick Bilton<br />
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<a href="https://www.amazon.com/gp/product/0735220034/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0735220034&linkId=f1ce501ebe52dcd4e67c793af8c09cb0" target="_blank">Never Lose a Customer Again</a>, Joey Coleman<br />
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<a href="https://www.amazon.com/gp/product/0385531109/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0385531109&linkId=0d66614a13132b9802a957beb3f47528" target="_blank">How I Killed Pluto And Why It Had It Coming</a>, Mike Brown<br />
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<a href="https://www.amazon.com/gp/product/145165443X/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=145165443X&linkId=01c8be52bbb1c90b30ee79e1f5dfe698" target="_blank">The Smartest Kids in the World</a>, Amanda Ripley<br />
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<a href="https://www.amazon.com/gp/product/1422119157/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1422119157&linkId=5f4c5dbd638dc9e4413e469ae7605e4d" target="_blank">Financial Intelligence for Entrepreneurs</a>, Karen Berman, Joe Knight, John Case<br />
Recommended after telling an attendee about my Wealth for Founders book.<br />
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<a href="https://www.amazon.com/gp/product/1521860955/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1521860955&linkId=b663af441fa9350b349bd6f13e30cc70" target="_blank">House Hacking</a>, Ben Leybovich<br />
Recommended after telling an attendee about my Wealth for Founders book.<br />
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<a href="https://www.amazon.com/gp/product/1987600800/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1987600800&linkId=b7e85da2c011a7bb305d70a9747175e3" target="_blank">The Parallel Entrepreneur</a>, Ryan Buckley<br />
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<a href="https://www.amazon.com/gp/product/1534873066/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1534873066&linkId=59d91e01a994d49064929209f6c70873" target="_blank">When Coffee and Kale Compete</a>, Alan Klement<br />
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<a href="https://www.amazon.com/gp/product/1595555277/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1595555277&linkId=5339bc382507e74aa95699184afe5b7d" target="_blank">The Total Money Makeover</a>, Dave Ramsey<br />
Recommended after telling an attendee about my Wealth for Founders book.<br />
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<a href="https://www.amazon.com/gp/product/0393352242/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0393352242&linkId=3a7f643c773ae49c60d212db89bec8dc" target="_blank">A Random Walk Down Wallstreet</a>, Burton G. Malkiel<br />
Recommended after telling an attendee about my Wealth for Founders book.<br />
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<a href="https://www.amazon.com/gp/product/1414333145/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1414333145&linkId=7b186fe30a05845d2c5e473df4c5c6c9" target="_blank">Unthinkable</a>, Scott Rigsby<br />
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<a href="https://www.amazon.com/gp/product/1591848261/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1591848261&linkId=00e8559d2e5fa92343ee6bda1ae16882" target="_blank">Anythink You Want</a>, Derek Sivers<br />
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<a href="https://www.amazon.com/gp/product/0718033329/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0718033329&linkId=fe035001e0148b03de80fd288ed8e97a" target="_blank">Building a Story Brand</a>, Donald Miller<br />
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<i>P.S. I read so much nonfiction, that I created <a href="http://www.passagesapp.net/" target="_blank">Passages</a> iPhone app to remind me of the most important concepts I discover. It's free, so <a href="http://www.passagesapp.net/" target="_blank">check it out</a>.</i><br />
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WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com3tag:blogger.com,1999:blog-7022155324729704001.post-15881101256761364412018-05-04T18:13:00.003-05:002018-05-07T08:41:45.978-05:00Recommended Novels from MicroConf 2018I enjoy collecting book recommendations from the MicroConf attendees. These books are fiction; <a href="http://www.engineeringadventure.com/2018/05/nonfiction-book-recommendations-from.html">click here if you prefer to read nonfiction</a>. In no particular order, here are the fiction books suggested to me by the 2018 attendees:<br />
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<a href="https://www.amazon.com/gp/product/0060539828/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0060539828&linkId=5d8d3e685eab06e03266317c9ff24155" target="_blank">Burning Chrome</a>, by William Gibson<br />
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<a href="https://www.amazon.com/gp/product/0553287893/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0553287893&linkId=28e7f7b61c0ec0d161db34743aef4bdf" target="_blank">Rendezvous with Rama</a>, by Aurthur C. Clarke<br />
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<a href="https://www.amazon.com/gp/product/1612184715/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1612184715&linkId=b150be7a096257ef7b0488e45b6ac05b" target="_blank">Off to be the Wizard</a>, by Scott Meyer<br />
What would happen if you crossed The Matrix with D&D? Hilarity.<br />
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<a href="https://www.amazon.com/gp/product/0765358638/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0765358638&linkId=9de51327530dc757b94abd993d73d533" target="_blank">The Unincorporated Man</a>, Dani Kollin and Eytan Kollin<br />
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<a href="https://www.amazon.com/gp/product/0375703764/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0375703764&linkId=35a2b4fdcb576c7255680b873a8f40ce" target="_blank">House of Leaves</a>, Mark Z. Danielwski<br />
I’m told that you must get the physical paperback.<br />
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<a href="https://www.amazon.com/gp/product/0765377136/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0765377136&linkId=6d93100c26aa4b53890cc1fa6ab1aa86" target="_blank">Mistborn: The Final Empire</a>, Brandon Sanderson<br />
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<a href="https://www.amazon.com/gp/product/031624662X/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=031624662X&linkId=ac215b26929bedbfc2513fdac5ee497a" target="_blank">Ancillary Justice</a>, Ann Leckie<br />
<br />
<a href="https://www.amazon.com/gp/product/068816112X/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=068816112X&linkId=8b55bf387a0f6eeee655eb8e93fa830e" target="_blank">Replay</a>, Ken Grimwood<br />
<br />
<a href="https://www.amazon.com/gp/product/0316262315/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0316262315&linkId=74751d3aaa3d00ac7f03d4ad2013e7fd" target="_blank">New York 2140</a>, Kim Stanley Robinson<br />
<br />
<a href="https://www.amazon.com/gp/product/0451228731/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0451228731&linkId=45ed47f0cf39be530e6fc0183e619217" target="_blank">Daemon</a>, Daniel Suarez<br />
I second this recommendation, and also the sequel <a href="https://www.amazon.com/gp/product/0451231899/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0451231899&linkId=80420839e819cfe81cb34294b0b64696" target="_blank">Freedom™</a>.<br />
<br />
<a href="https://www.amazon.com/gp/product/1501138073/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=1501138073&linkId=2184aad60e51bcaaa46c9898be990ad1" target="_blank">Zero K</a>, Don DeLillo<br />
<br />
<a href="https://www.amazon.com/gp/product/0765382032/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=movaveinc-20&creative=9325&linkCode=as2&creativeASIN=0765382032&linkId=9439e62f225f4c84b721946e48ead98e" target="_blank">The Three-Body Problem</a>, Cixin Liu<br />
<br />
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WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com2tag:blogger.com,1999:blog-7022155324729704001.post-68247380979222672332017-05-06T17:04:00.000-05:002017-05-06T17:09:25.716-05:00Tools and Books from MicroConf 2017<p>Few groups dedicate themselves more to learning than the attendees and speakers at
<a href="http://www.microconf.com">MicroConf</a>. Like
<a href="http://www.engineeringadventure.com/2016/04/tools-mentioned-at-microconf-2016.html">last year</a>,
I polled as many folks as possible for their favorite tools and books that others may not know about.</p>
<h1>Mentioned in Talks</h1>
<h2>Tools</h2>
<ul>
<li><a href="https://balsamiq.com" target="_blank">Balsamiq - wireframing tool</a></li>
<li><a href="https://calendly.com" target="_blank">Calendly - Help Schedule Meetings</a></li>
<li><a href="https://www.techsmith.com/camtasia.html" target="_blank">Camtasia</a></li>
<li><a href="https://www.remarq.io" target="_blank">Remarq.io - nicely formatted PDF reports and books from markdown</a></li>
<li><a href="http://www.adobe.com/products/aftereffects.html" target="_blank">After Effects</a></li>
<li><a href="http://www.adobe.com/products/illustrator.html" target="_blank">Illustrator</a></li>
<li><a href="https://harpoonapp.com" target="_blank">Harpoon - time tracking and invoicing for freelancers</a></li>
<li><a href="https://hunter.io" target="_blank">Hunter.io - find email addresses</a></li>
<li><a href="https://www.telestream.net/screenflow/overview.htm" target="_blank">ScreenFlow - screen capture, screen cast, and video editing software</a></li>
<li><a href="https://slack.com" target="_blank">Slack - work chat system</a></li>
</ul>
<h2>Services and APIs</h2>
<ul>
<li><a href="https://www.podcastmotor.com" target="_blank">Podcast Motor</a></li>
<li><a href="https://stripe.com/atlas" target="_blank">Stripe Atlas</a></li>
<li><a href="https://www.rev.com" target="_blank">Rev- transcription </a></li>
<li><a href="http://wistia.com" target="_blank">Wistia - Video Hostin</a></li>
<li><a href="http://demoduck.com" target="_blank">Demo Duck - product demo videos</a></li>
<li><a href="http://www.videobrewery.com" target="_blank">Video Brewery - product explainer videos</a></li>
<li><a href="http://retargetlinks.com" target="_blank">RetargetLinks - links to enable ad retargeting</a></li>
<li><a href="https://smarterqueue.com" target="_blank">SmarterQueue - schedule social media</a></li>
<li><a href="https://stripe.com" target="_blank">Stripe - online payments</a></li>
<li><a href="https://maillift.com" target="_blank">MailLift - handwritten letter service / API</a></li>
<li><a href="https://www.asknicely.com" target="_blank">AskNicely - real time NPS</a></li>
<li><a href="https://zapier.com" target="_blank">zapier - automated workflows</a></li>
<li><a href="http://www.leadchat.com" target="_blank">LeadChat - humans to answer live chat on your site</a></li>
<li><a href="https://wpsimplepay.com" target="_blank">WP Simple Pay - Stripe checkout forms for Wordpress</a></li>
<li><a href="https://www.profitwell.com" target="_blank">Profitwell - SAAS Metrics</a></li>
</ul>
<h2>Books and Other Resources</h2>
<ul>
<li><a href="http://microconfrecap.com" target="_blank">Microconf Recap Notes</a></li>
<li><a href="https://stripe.com/atlas/guide" target="_blank">Stripe Atlas Guide to Starting a Business</a></li>
<li><a href="https://tinymarketingwins.com" target="_blank">Tiny Marketing Wins - a marketing tatic per week</a></li>
<li><a href="https://justinjackson.ca/jolt/" target="_blank">Jolt! - marketing tactics book</a></li>
<li><a href="http://training.kalzumeus.com" target="_blank">Kalzumeus Training - Sell More Software (free course)</a></li>
<li><a href="https://gettingreal.37signals.com" target="_blank">Getting Real - A 37 Signals book (now free)</a></li>
<li><a href="https://devmarketing.xyz" target="_blank">DevMarketing.xyz - Marketing for Developers course</a></li>
<li><a href="https://www.amazon.com/gp/product/1939447720/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1939447720&linkId=d39b02520351945bd95619cecedf7cb8" target="_blank">Ask</a></li>
<li><a href="https://www.amazon.com/gp/product/039952794X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=039952794X&linkId=a5602529c5011f3c099632beb1d9a6d3" target="_blank">NPR Curious Listener’s Guide to Jazz</a></li>
<li><a href="https://www.amazon.com/gp/product/0071466592/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0071466592&linkId=f8da1f209aebdfe52c60297b5209b084" target="_blank">Instant Cashflow - Bradley Sugars</a></li>
<li><a href="http://www.imdb.com/title/tt3783958/" target="_blank">La La Land - a film</a></li>
</ul>
<h2>Speaker Slides</h2>
<ul>
<li><a href="https://justinjackson.ca/slides/" target="_blank">Justin Jackson's slides</a></li>
<li><a href="https://smartmarketer.com/download-my-microconf-slides/" target="_blank">Ezra Firestone's Microconf Growth Slides</a></li>
<li><a href="https://developyourmarketing.com/wp-content/uploads/2017/04/2017-MicroConf.pdf" target="_blank">Keith Perhac's Slides</a></li>
</ul>
<h2>Tools for Infoproducts</h2>
<ul>
<li><a href="https://leanpub.com" target="_blank">Leanpub - publish in progress and complete books</a></li>
<li><a href="https://www.withcoach.com" target="_blank">Coach - sell courses and digital products</a></li>
</ul>
<h2>Social Media and Other Content Distribution</h2>
<ul>
<li><a href="https://medium.com" target="_blank">Medium</a></li>
<li><a href="https://www.quora.com" target="_blank">Quora</a></li>
<li><a href="https://www.linkedin.com/" target="_blank">LinkedIn </a></li>
<li><a href="https://www.facebook.com/" target="_blank">Facebook</a></li>
<li><a href="https://www.instagram.com" target="_blank">Instagram </a></li>
<li><a href="https://twitter.com" target="_blank">Twitter</a></li>
<li><a href="https://www.youtube.com/my_live_events" target="_blank">YouTube Live Events - stream video for online workshops</a></li>
<li><a href="https://www.crowdcast.io" target="_blank">Crowdcast - stream video for online workshops</a></li>
</ul>
<h2>Sources for Content</h2>
<ul>
<li><a href="https://unsplash.com" target="_blank">Unsplash - free high resolution images for any use</a></li>
<li><a href="https://www.quuu.co" target="_blank">Quuu - content suggestions for social media</a></li>
</ul>
<h1>Attendee Recommendations</h1>
<h2>Business Books and Resources</h2>
<ul>
<li><a href="https://www.amazon.com/gp/product/1885167776/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1885167776&linkId=1033033666ea4e1c2c9b2f1e45b6782a" target="_blank">The One Thing - Gary Keller</a></li>
<li><a href="https://www.amazon.com/gp/product/1936891026/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1936891026&linkId=2465caee8e4b6a897c764456f854b29e" target="_blank">The War of Art - Pressfield</a></li>
<li><a href="https://www.amazon.com/gp/product/1591843170/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591843170&linkId=7faf6ede97c9e1418b8da4332b0a98f7" target="_blank">Purple Cow - Seth Godin</a></li>
<li><a href="https://www.amazon.com/gp/product/1591841666/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591841666&linkId=8153b33f1fa4ea339a6b6fa108347dab" target="_blank">The Dip - Seth Godin</a></li>
<li><a href="https://www.amazon.com/gp/product/0812979680/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0812979680&linkId=c8e07aa5beee30394cd87715f82fd845" target="_blank">Antifragile - Nassim Taleb</a></li>
<li><a href="https://sivers.org/blog" target="_blank">Derek Sivers Blog</a></li>
<li><a href="https://www.amazon.com/gp/product/1591845572/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591845572&linkId=caf3f9ae0c76e714a564d8f0775a312d" target="_blank">Personal MBA - Josh Kaufman</a></li>
<li><a href="https://youtu.be/nJPERZDfyWc" target="_blank">Everything is a Remix Remastered - Kirby Ferguson</a></li>
</ul>
<h2>Wealth / Personal Finance Books and Resources</h2>
<ul>
<li><a href="https://www.amazon.com/gp/product/1589795474/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1589795474&linkId=7fcfee2b96c7dba2edbdee7f1004eff2" target="_blank">Millionaire Next Door</a></li>
<li><a href="https://optionalpha.com" target="_blank">OptionAlpha - Learn about options trading</a></li>
<li><a href="https://personalcapital.com" target="_blank">Personal Capital - track your net worth, analyze your investments</a></li>
<li><a href="https://mint.com" target="_blank">Mint - track your spending and net worth</a></li>
</ul>
<h2>Health / Wellness Books</h2>
<ul>
<li><a href="https://www.amazon.com/gp/product/0062116932/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0062116932&linkId=f58803c5b6040eeb590dc8a68d66170d" target="_blank">Search Inside Yourself: The Unexpected Path to Achieving Success, Happiness (and World Peace) by Chade-Meng Tan</a></li>
<li><a href="https://www.amazon.com/gp/product/1623366151/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1623366151&linkId=66006272ebd35f60532e17fdc52d8cde" target="_blank">The Urban Monk</a></li>
<li><a href="https://www.amazon.com/gp/product/0195374614/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0195374614&linkId=09a518bb84079b8a74d6bdfaad836a94" target="_blank">A Guide to the Good Life: The Ancient Art of Stoic Joy by William B Irvine</a></li>
<li><a href="https://www.amazon.com/gp/product/1455586692/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1455586692&linkId=ba8f8b909e7d84fd83027ed60d242dec" target="_blank">Deep Work by Cal Newport</a></li>
<li><a href="https://www.amazon.com/gp/product/014311638X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=014311638X&linkId=5746f72db3eaaa6ff69a9bce6a81118b" target="_blank">Food Rules: An Eater's Manual by Michael Pollan</a></li>
<li><a href="https://www.amazon.com/gp/product/157322345X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=157322345X&linkId=0d3cca03bbc26b02afc96d08af0bbead" target="_blank">Turning the Mind into an Ally (Guide to Meditation)</a></li>
</ul>
<h2>Fiction</h2>
<ul>
<li><a href="https://www.amazon.com/gp/product/0451228731/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0451228731&linkId=86e767180a1314db2d6c12b6dec6c70b" target="_blank">Daemon by Daniel Suarez</a></li>
<li><a href="https://www.amazon.com/gp/product/0451191145/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0451191145&linkId=1c6c2e58fefc8b77317ad44e34b5a4c5" target="_blank">Atlas Shrugged by Ayn Rand</a></li>
</ul>
<p><strong><emph>Good stuff? You'll probably also enjoy <a href="http://www.engineeringadventure.com/2016/04/tools-mentioned-at-microconf-2016.html">2016's list of tools</a>
and <a href="http://www.engineeringadventure.com/2016/04/recommended-books-and-educational.html">books</a>.</emph></strong></p>
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<span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!</span>
WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com7tag:blogger.com,1999:blog-7022155324729704001.post-23136352610888642092017-04-08T18:23:00.000-05:002017-04-11T14:54:55.239-05:00Buying a Car in 2017: Hand to Hand Combat with 11 Car Dealerships<b>Note: Feel free to <a href="https://twitter.com/windaddict" target="_blank">ask questions or give me feedback in the comments or via twitter: @WindAddict.</a></b><br />
<div>
<br />
Car salesmen hunt like spiders. An innocent car shopper stops to peek at a car. A salesperson in a polo and khakis trots out to greet their prey. Fresh meat! Soon our shopper has tangled in a web made of words. The more the shopper struggles, the more they tangle in the web. Eventually, the shopper tires of bone-grinding handshakes, back slaps, and ear-grinding speeches. The shopper makes a desperate move for freedom. The shopper drops a large pile of cash and — tires screeching — escapes in a new car.</div>
<div>
<br /></div>
<div>
We all know the sales-arachnid connection if asked. But we don’t really understand it until it’s 8:23pm and our driver's license is being held hostage. Where's the forsaken sales person with the stupid driver’s license? You cross and uncross your legs. You get up and pace the tiny office like a bear in a cage.<br />
<br />
Slowly it dawns on you that, like an airport, the environment of the dealership has been carefully purged of any dangerous objects. There is nothing sharp or heavy we might use to launch a mission to recover a drivers license. We're in a place where nobody wants to land: at the mercy of a car salesman.</div>
<div>
<br /></div>
<div>
I Hope the real tale of my car buying experience will help you can escape a gruesome fate. Learn from my mistakes and experiments that let me research and buy a new car for a reasonable price. And I did it all without too much suffering. In a world of legally-mandated middle men, what more can we hope for?</div>
<h2>
Why a New Car?</h2>
<div>
In this case I'm not your role model for economic decisions. I bought a new car. Please don’t buy a new car. For most folks, a new car costs too much. You won’t get much more value over a used car. This is especially the case if you need to take a loan. Even if you pay with cash, I’d discourage buying new if the car will cost more than 10% of your net worth. Wisely invest your money instead. </div>
<div>
<br /></div>
<div>
In my case, the primary motivation for a new vehicle was safety. I wanted something with a 5-star safety rating, blind-spot monitoring, a rear camera, and collision prevention. I could have achieved this with a used car. I chose not to go that route because of excuses. I had access to an extremely low-interest loan. Additionally, reductions in the cost of safety technology had reduced the amount of savings offered by a used car.</div>
<div>
<br />
What I mean to say is that I fell in love with some aspects of the 2017 Highlander and made up some excuses to justify it. So it goes.</div>
<h2>
The Test Drives</h2>
<div>
When I started this adventure, I wasn't sure what car I wanted to buy. I had a short list of vehicles (more on that later), but I knew that I needed to experience each vehicle to make my decision. That left me no choice but to visit car dealers.<br />
<br />
I wanted something with similar capabilities to my Element: something that could carry a windsurfing rig or dog and get reasonable mileage. I did the usual research: <a href="https://www.edmunds.com/" target="_blank">Edmunds.com</a> and ConsumerReports.org. The top SUVs in the Consumer Reports rankings were the Audi Q7, the Toyota Highlander, the Subaru Forester, and the Kia Sorento. I eliminated the Audi based on the price — and I wasn’t sure I wanted a conspicuous luxury badge. The others I planned to visit in person.<br />
<br />
The experience of visiting dealerships ranged from amusing to torture. When I asked to see a Sorento at the Kia dealer, we had to wait a few minutes for the sales guy to find the key to one. Finding car keys seems like an ordeal at most dealerships.</div>
<div>
<br /></div>
<div>
After a wait, the salesperson let us inspect the Kia’s inside, but didn’t offer a test drive. He probably didn’t think I was a serious buyer. Maybe it was the speech I gave each dealer I visited while researching prospects:</div>
<blockquote class="tr_bq">
"Hi, I’m in the process of researching a car to replace my Honda Element. I’m going down the rankings in Consumer Reports and checking out the cars. I’d like to take a look at the ABC with the XYZ package."</blockquote>
<div>
The speech probably wasn’t what the dealer wanted to hear. It told them that I wasn’t buying today, I didn’t know what make or model I ultimately wanted, and I was an educated consumer. It probably also implied that I would shop around. But it was honest. Even though I knew that many of these sales people would try to pressure me, convince me, and probably even lie to me, my honesty let me feel good about myself. </div>
<div>
<br /></div>
<div>
I think my speech gave me a few tactical advantages. First, it let me see how I was treated when the sales person was doubtful of a sale. If they treated me poorly now, I would know what to expect the rest of the sales process would be like.</div>
<div>
<br /></div>
<div>
Next, being honest about my intent allowed me to not feel guilty for using a sales person’s time. If the sales person spent time with me, they knew the deal, and they consented to it. That point might seem strange, but feelings of guilt put you at a disadvantage. You don’t want a sales person to be able to apply pressure during negotiation: “Oh, but I’ve spent so much time helping you, why are you asking for an unreasonable price?”</div>
<div>
<br /></div>
<div>
The first Subaru dealer I visited presented a similar experience: feel free to take a look, but we won’t offer to let you test drive. This sales guy was a character: he told a gruesome story about a wrecked Forester and implied that the turbocharged Forrester was only suitable for insecure young men. At least he gave me a colorful brochure, something none of the other 6 dealerships I visited offered me! He also clued me in to the cool youtube videos of Subarus driving up roller ramps that only allow one wheel to have traction. Pretty cool!</div>
<div>
<br /></div>
<div>
The first Toyota dealer I visited actually offered to let me do a real test drive — the only test drive offered my first day visiting dealerships. If you want to test drive a car, many dealers will make you ask. This dealership eagerly asked me if I'd like to test drive. They didn't have any brochures, but a drive is better than a brochure.</div>
<div>
<br /></div>
<div>
Finally, I visited a Mercedes-Benz dealer to see the GLC300. It was on the Consumer Reports list too (albeit a bit lower ranked than the others). After visiting Kia, Subaru and Toyota, I was curious what the luxury car dealership would be like. The car looked pretty cool, but no test drive was offered. That didn't seem like a very luxurious experience. The sales folks all had nicer watches and fancier clothes than I own, so perhaps they didn't think someone wearing a t-shirt could afford a Benz. That's OK -- I didn't think I wanted a luxury-branded car.</div>
<h2>
Using Scripted Answers at the Dealer</h2>
<div>
To make my life easier I tried to script my replies to sales people. I did this in person, in email, and on the phone. I don’t meant that I memorized lines like an actor. I just prepared responses to common questions used in sales and negotiating. For verbal questions I didn’t give word for word responses — I simply kept to the same outline.</div>
<div>
<br /></div>
<div>
When I encountered a new question, I’d make note of it and come up with a good response I could recycle. Unless you’re a great negotiator, you need to prepare for dealer negotiation tactics in advanced. The wrong response can cost you time, money, or simply offer a sales person too much leverage to persuade you with.</div>
<div>
<br /></div>
<div>
When asked me how much I was looking to spend, I replied to each dealer the same way:</div>
<blockquote class="tr_bq">
“I’m not sure yet. I need to see all the cars on my list first. Once I know which car I want, I’ll research the price and have a better idea.”</blockquote>
<div>
When negotiating, you never want to disclose your budget unless you will get a significant advantage from doing so. In the research phase, you have nothing to gain from disclosing your budget, your net worth, your cash savings, etc. </div>
<div>
<br /></div>
<div>
Asked about what I was looking for in a car, I answered honestly:</div>
<blockquote class="tr_bq">
“I want something big enough to fit my windsurfing gear like my Element does I want a 5-star safety rating, comfortable seats, and reliability.”</blockquote>
<div>
Combined with my speech about the Consumer Reports rankings, this helps keep the sales person focused on my needs. A response like “Oh, I don’t know” or “I want something big” invites the sales person to push you to buy something according to their incentives. You’ll waste your time politely listening to stories about profitable vehicles. But, if you’ve already done you’re research, you probably don’t want a dealer’s advice on which model to buy.</div>
<div>
<br /></div>
<div>
Later, when you know which vehicle you want, you’ll get extremely specific: X model, Y year, Z color, with the A, B and C packages. That’ll help keep you from getting quotes on cars you don’t want when you’re negotiating price.</div>
<h2>
Visiting Dealers for the Elimination Round</h2>
<div>
After my first round of visiting dealers over the holidays, I had narrowed it down to two choices: a Forrester or a Highlander. I still had not driven the Forrester, so I drove up to the Subaru dealer. What a strange surprise. I walked through and around the dealer a few times and nobody offered to help me. Strange. I was starting to get used to sprinting sales people.</div>
<div>
<br /></div>
<div>
I walked to their reception desk and asked to see a Forrester. A salesperson greeted me, I gave her my spiel, and then she took me through Their Process. I assume they had a scripted Process, because it was a bit theatrical. She asked me lots of pleasant questions about my needs while looking up the cars they had in their inventory.</div>
<div>
<br /></div>
<div>
And then I fell into a trap. This was the only unpleasant part of that dealer’s process. I let the sales person vanish with my drivers license. I felt my stomach drop three seconds after she left the room with it. Other dealers didn’t take my license for a walk. I made a tactical mistake: I couldn’t leave the dealership without my license.</div>
<div>
<br /></div>
<div>
I felt like an idiot. One tiny mistake and now a sales person as enough leverage on me to prevent me from leaving. The spider had me cornered, so I did what any hero would. I read a book. And I cursed under my breath.</div>
<div>
<br /></div>
<div>
Years later, she returned to her tiny office with my license and a set of keys for a Forrester. Lesson learned. Never allow the salesperson to leave the room with your property. If they insist on wandering around with your insurance, license, or favorite pet, follow them wherever they go.</div>
<div>
<br /></div>
<div>
After a brief sales speech, I test drove a Forester. The routine was pretty similar to most test drives except for some fun demonstrations, like the adaptive cruise control, and demonstrating the Forrester's turning radius by instructing me to drive in a circle from one parking space to the second one over (it’s not very different from similar sized cars, but it is still a fun demo).</div>
<h2>
Final Car Research</h2>
<div>
Before making my final decision on make and model, I spent hours doing research. I used these resources to help my decision:</div>
<div>
<br />
<a href="http://www.consumerreports.org/cro/index.htm" target="_blank">Consumer Reports</a> (a digital membership is quite affordable)</div>
<div>
<a href="https://www.edmunds.com/" target="_blank">Edmunds</a></div>
<div>
<a href="http://www.jdpower.com/cars" target="_blank">JD Power and Associates</a></div>
<div>
<a href="http://www.cartalk.com/test-drive-notes" target="_blank">The Car Talk Test Drive Notes</a> </div>
<div>
Talking to workers at a repair shop (they liked Subarus but believed Toyotas were more reliable)<br />
<a href="https://news.google.com/" target="_blank">Google News (to search for reviews in the media)</a><br />
<a href="https://www.youtube.com/" target="_blank">YouTube (to search for video reviews)</a></div>
<div>
<a href="http://www.toyota.com/owners/resources/owners-manuals/highlander/2017" target="_blank">The Toyota Highlander Manuals</a><br />
<a href="https://www.subaru.com/owners/vehicle-resources.html" target="_blank">The Subaru Forester Manuals</a></div>
<div>
<a href="https://www.amica.com/en.html" target="_blank">Insurance quotes for each model (Amica)</a><br />
<a href="http://www.cars101.com/subaru/forester/forester2017.html" target="_blank">2017 Subaru Forester Measurements on Cars101.com</a><br />
<a href="http://www.windaddict.com/2017/03/2017-toyota-highlander-hybrid-limited.html" target="_blank">My Own 2017 Toyota Highlander Interior Measurements</a><br />
<br />
I finally decided that I wanted to buy the Toyota Highlander.</div>
<h2>
Getting Offers</h2>
<div>
I researched how folks are buying cars in 2017. Car buying services seem like a bigger trend since I last bought a car. These services (many of which seem to be branded versions of <a href="https://www.truecar.com/#/" target="_blank">TrueCar</a>) promise to get you the car you want at a fair price. The services I tried are free to the consumer, and don’t seem to obligate the buyer in any way.</div>
<div>
<br /></div>
<div>
I’m a Costco member, so I started with their buying service. Sadly, none of the participating dealers in my area had the 2017 Hybrid Highlander Limited Platinum in stock. For that reason, I was unable to use Costco buying service to go any further in the buying process. The service didn’t give me any dealer quotes. Having generated zero contacts with dealers, the Costco car buying service didn’t help me. I suspect it would have been great if there was inventory available in my area, but who knows?</div>
<div>
<br /></div>
<div>
The AAA Car Buying Service was slightly more useful. Like Costco, they didn’t find any matching cars in inventory. Although they wouldn’t help reduce the price of cars not in inventory, the AAA car buying service still put me in touch with several participating local dealerships and let them know what kind of car I was looking for. </div>
<div>
<br /></div>
<div>
To supplement the AAA Car Buying Service, I also googled some other local Toyota dealerships and contacted them through their websites. Most dealers had a “contact us” form. Dealers must all use the same ancient software to run their website because they all hurt my eyes.</div>
<div>
<br /></div>
<div>
To keep things simple, I recycled the same messages to all the dealers. To kick things off, I sent all the dealers this note:</div>
<blockquote class="tr_bq">
“Hi,<br />
<br />
I'm contacting several dealerships about buying a 2017 Hybrid Highlander Limited Platinum. I'd prefer a white model with saddle brown or black seats, but I'm flexible. <br />
<br />
Can you please send your best offer? Please also list any taxes and fees for a "out the door total". I'm planning on paying cash. If you don't have one in stock, can you give a time estimate on when one would be ready?<br />
<br />
I have a 2006 Honda Element EX-P with around 171,000 miles I might trade in if it makes economic sense.<br />
<br />
Please respond by email.<br />
<br />
Thanks“</blockquote>
<div>
I kept an Evernote note with both my scripted responses and some simple negotiation notes for each dealer. As I contacted each dealer, I added a line to my notes. Over time, I gradually expanded the search radius for dealers -- my notes made it simple to keep track of where I was in that process. Here is a sample from my notes:</div>
<div>
<br /></div>
<blockquote class="tr_bq">
Joe at ______: Quoted $51,010. Told him he'd have to do better.</blockquote>
<blockquote class="tr_bq">
Traci/Jay at ____: sent wrong vehicle. Asked for right one. Now talking to Jay. </blockquote>
<blockquote class="tr_bq">
Joe at _____: Wrong car quoted. $44,257 for non-hybrid, FWD? Asked about hybrid again. </blockquote>
<blockquote class="tr_bq">
*Jon at _____: $48,770 + TTL 1st week of Feb. Told him interesting offer, can do better?.<br />
Responded: 46,964. My counter offer: $44500 + TTL; replied No.<br />
Total with Accessories: 47196 before TTL<br />
total with TTL: 50595<br />
TTL = 6.35% plus 430 fees<br />
To reserve need to put down 500$ deposit </blockquote>
As you can see, the notes are a simple record of the quote from each dealer, and where I was in negotiations. I kept a record of each offer and my response. I sometimes wonder what happened to Traci. Did he get demoted to car wash duty after botching my quote?<br />
<h2>
Quotes on Highlanders Roll In (kinda)</h2>
<div>
A few car sales people phoned me after I contacted them. Most of the sales folks I contacted weren't avid readers or writers. To anyone who called, I politely repeated the basics from my email script over the phone and asked them to email me their quote. </div>
<div>
<br /></div>
<div>
I also told any dealer who called that I preferred to communicate through email because I wanted to make it easier to keep track of the offers. It seemed smart to imply that I was talking to multiple dealers so that I would get good quotes.<br />
<br />
In retrospect, implying so much competition may have been a mistake — many dealers never gave me a real quote. I wonder if they were discouraged by the prospect of having competition. On the other hand, I did eliminate many incompetent sales people while still getting a good deal.</div>
<div>
<br /></div>
<div>
Many of the dealerships I contacted didn’t have the car I wanted in inventory. Most of those salesmen who responded wanted me to come visit them at the dealership to order a car. Or did they just want to snare me in their web? </div>
<blockquote class="tr_bq">
“I would like to invite you in to visit with me and work out the Order to you satifaction[sic].”</blockquote>
<div>
I responded to these invitations identically with a copy and paste from my Evernote scripts:</div>
<blockquote class="tr_bq">
“I can't come in right now because I'm comparing many quotes before making my final decision. Can you send me your best offer on a 2017 Hybrid Highlander Limited Platinum. I’d prefer a white model with saddle brown or black seats, but I’d consider other colors. <br />
<br />
Please also list any taxes and fees for a "out the door total". I'm planning on paying cash. Can you also give a time estimate on when one would be ready? I understand that the timing might not be a sure thing.“</blockquote>
<div>
Some of the responses made my eyes do barrel rolls. They claimed that an email quote would be unfair or impossible:</div>
<blockquote class="tr_bq">
“It would not be fair to you for us to guess what the vehicle will cost you.”</blockquote>
<div>
Yeah, right. What a pile of triceratops turds! Would my physical presence somehow improve the accuracy of the quote? Or did they expect me to write them a blank check to order a car? How do these jokers sell anything?</div>
<div>
<br /></div>
<div>
A few of the unreasonable dealers started giving me real numbers after they got the nonsense out of their system. Some suckers must fall into their hare-brained traps. Don’t despair when you get unhelpful responses like this. Often a more senior (and more helpful) sales person followed up after a few days or weeks. Perhaps they make junior sales people answer email so they can audit them for lunacy. I uncovered a few lunatics.</div>
<div>
<br /></div>
<div>
One sales person quoted me $51,010 over email, which almost exactly matched the MSRP on Toyota’s website. Based on what I read about buying cars online, I expected to get competitive offers for the car immediately. My expectation didn’t match reality. You’ll still have to negotiate to get a good offer. So don’t feel too discouraged if the first quotes are high. Negotiations feel less intimidating if you can sit on your couch with a beer while you respond. We live in amazing times.</div>
<div>
<br /></div>
<div>
A ray of hope finally arrived in my inbox — a decent quote for less than MSRP. This seemed much closer to what I was expecting. Normally my next line would be "Sorry, you'd have to do better than that". That seemed harsh for the only decent quote so far. Fortunately I just <a href="https://twitter.com/patio11/status/820852910200213505" target="_blank">learned a nice negotiating gambit from Patrick McKenzie</a>, so I gave it a shot:</div>
<blockquote class="tr_bq">
<b>Jon</b>: “I can do 48,770+ttl as equipped”</blockquote>
<blockquote class="tr_bq">
<b>Me</b>: “Thanks for your help Jon,<br />
<a href="https://twitter.com/patio11/status/820852910200213505" target="_blank">That is an interesting offer. Do you have a better one?</a><br />
Can you tell me any details I should know to help me make a comparison?” </blockquote>
<blockquote class="tr_bq">
<b>Jon</b>: “Hi <br />
I can as always take an offer to the GM<br />
what are you comparing it to?”</blockquote>
<div>
Jon’s mention of the GM (general manager) establishes a higher authority, a useful negotiation tool for him. Higher authorities let you blame aggressive negotiations on someone else. This helps maintain your relationship with the party you’re negotiating with: “Bob wouldn’t like that.” Why not blame uncomfortable situations on a third party?</div>
<div>
<br /></div>
<div>
Higher authorities sometimes even trick the other party to disclose information they shouldn’t. Salespeople use it all the time to conjure the illusion that they are on your side: “Let me talk to Bob and see what I can do for you. What is the highest you can go?”</div>
<div>
The higher authority also protects the negotiator against disclosing information. When asked a question they don’t want to answer, they can simply say that only the higher authority can say: “Oh, that is up to Bob. Give me a number and I can take it to him.” </div>
<div>
<br /></div>
<div>
The higher authority gambit also buys a negotiator time to think: you can delay almost anything by saying “let me ask Bob”.</div>
<div>
<br /></div>
<div>
I encourage you to also prepare a higher authority gambit. Spouses, significant others, your bank, or even your parents can work. When confronted with an offer you don't like, you can say your higher authority wouldn't like it. Prepare yourself for the counter gambit against higher authorities: “why don't we give your higher authority a call right now?” </div>
<div>
<br /></div>
<div>
In my situation with Jon, I decided to ask Jon to help me with the higher authority. I also repeated an outline of the situation from my original message:</div>
<blockquote class="tr_bq">
“Hi Jon,<br />
If you could ask your GM for their best offer, that would be helpful. </blockquote>
<blockquote class="tr_bq">
I've emailed several Toyota dealerships asking for their best offer on a 2017 Hybrid Highlander Limited Platinum (preferring white exterior and black or saddle brown interior). I'll be considering them as they come in, and hope to make a decision soon. </blockquote>
<blockquote class="tr_bq">
Thanks,<br />
John”</blockquote>
<div>
You’ll notice that I didn’t answer his question about the other offers I’m looking at. Even if I had other offers, I wouldn’t disclose them at this point.<br />
<br />
The only situation I can think of where it would make sense to disclose another dealer’s offer is when you’ve already negotiated two or more dealers down to a good price and no dealer will go any lower. Note that pitting two parties against each other can hurt your relationships with them. That concern may not matter in the case of a car dealer, but it would matter for other kinds of negotiations.<br />
<br />
If I had disclosed my actual situation (that Jon had the best offer so far), it wouldn’t make sense for Jon to offer a better price. Keeping my offers hidden paid off:</div>
<blockquote class="tr_bq">
<b>Jon</b>: “Hi </blockquote>
<blockquote class="tr_bq">
I can do 46,962+ttl, let me know what options you would want and will do cost on those”</blockquote>
<div>
Wow, one quick email brought the price down another four percent! Now we were about nine percent below MSRP. This was my best offer by far, and it was a price below what my research indicated was a good deal. Of course I’d try to go lower. So far I hadn't mentioned a single number!</div>
<blockquote class="tr_bq">
<b>Me</b>: “Thanks Jon, </blockquote>
<blockquote class="tr_bq">
Ok, that makes sense. Could you do $44500 + TTL? And of course, whatever additional options we agree on (sorry, I'm not super familiar with the accessories at this point).<br />
TTL in this case is 6.25% + $33, correct? </blockquote>
<blockquote class="tr_bq">
After we agree on the details, what is the process to lock in the deal and get the car in February?”</blockquote>
<blockquote class="tr_bq">
<b>Jon</b>: “Hi </blockquote>
<blockquote class="tr_bq">
thats my best deal </blockquote>
<blockquote class="tr_bq">
need signed buyers order and $500 deposit to order the unit in”</blockquote>
<div>
I could have tried another counter offer, but I decided not to at this point. Based on my research, this was a very good deal. Also, given a choice, I'd actually like doing business with Jon. He was the only salesperson so far who responded quickly to my notes and didn't try to play any dishonest games. The majority of my other dealer contacts seemed dishonest and lazy.<br />
<br />
Armed with a good offer, I continued talking to other dealers. A few more dealers eliminated themselves from the race by complaining that I was making them "compete with themselves" by asking for a better deal than MSRP. I could have (and maybe should have) probably given them a number similar to the $44500 I gave Jon. But I didn't.<br />
<br />
In comparison to the other dealers behavior Jon was far ahead of the pack. Maybe I could get the price a few hundred dollars lower from another dealer, but then I'd have to do business with a snake. No thanks.</div>
<div>
<br /></div>
<div>
At this point I was reminded that I knew a salesperson at a different Toyota dealer. I sent him a text message, and he offered to sell me a Highlander at $500 over invoice price. His quote for the same Highlander configuration was $47,793. When I told my acquaintance about Jon’s offer, he never got back to me. I took the lack of response as a sign that Jon had a great offer. </div>
<div>
<br /></div>
<div>
I called Jon on the phone and put a $500 deposit on my credit card. He never asked me to sign a buyer’s order, so I figured that I would continue to talk to other dealers just in case. None of them gave me a better offer.</div>
<div>
<br /></div>
<div>
I’ll skip the negotiation of the accessories with Jon because they were uneventful. I wanted to get the side molding and the bumper guard for my Highlander. His quotes were not only less than the MSRP for those dealer add-ons on Toyota’s website, they were less than the cost of the uninstalled parts on <a href="https://www.toyotapartsdeal.com/">https://www.toyotapartsdeal.com</a>. Those prices seemed extremely fair to me, so I did not attempt to negotiate them.<br />
<br />
A minor note: even Toyota's highest tier Highlander doesn't include floor mats! I can only imagine that that floor mats are an extremely high-margin item. That's OK -- I wanted third party all-weather mats anyhow.</div>
<h2>
The Car Negotiating Playbook</h2>
<div>
These are the scripts I used for negotiations.</div>
<h3>
First Contact (Asking for Quotes)</h3>
<div>
Hi, </div>
<div>
<br /></div>
<div>
I'm contacting several dealerships about buying a 2017 Hybrid Highlander Limited Platinum. I'd prefer a white model with saddle brown or black seats, but I'm flexible. </div>
<div>
<br /></div>
<div>
Can you please send your best offer? Please also list any taxes and fees for a "out the door total". I'm planning on paying cash. If you don't have one in stock, can you give a time estimate on when one would be ready? </div>
<div>
<br /></div>
<div>
I have a 2006 Honda Element EX-P with around 171,000 miles I might trade in if it makes economic sense. </div>
<div>
<br /></div>
<div>
Please respond by email. </div>
<div>
<br /></div>
<div>
Thanks </div>
<h3>
Responding to Nonsense (Invitations to Visit the Salesperson)</h3>
<div>
I can't come in right now because I'm comparing many quotes before making my final decision. Can you send me your best offer on a 2017 Hybrid Highlander Limited Platinum. I’d prefer a white model with saddle brown or black seats, but I’d consider other colors. </div>
<div>
<br /></div>
<div>
Please also list any taxes and fees for a "out the door total". I'm planning on paying cash. Can you also give a time estimate on when one would be ready? I understand that the timing might not be a sure thing.</div>
<h3>
Responding to a Reasonable Offer</h3>
<div>
That is an interesting offer. Do you have a better one? </div>
<h3>
Responding to a Silly (or non-competitive) Offer</h3>
<div>
Thanks for your help ____! Unfortunately you'd have to do better than that.</div>
<h3>
Responding to Questions About Your Budget or Price Needs</h3>
<div>
I can't give you an exact price because I'm getting multiple competitive quotes. Most of the folks I've emailed are in a similar position.</div>
<h2>
Picking Up the Car</h2>
<div>
When my Highlander was ready to pick up, the process was simple in principal: show up, test drive, pay, go home. Reality was a little more complex.</div>
<div>
<br /></div>
<div>
I took my future car for a test drive and inspected it. Everything seemed like it was in good order. Only one thing bothered me: the engine had some tape and stickers attached to them that were obviously meant to be removed. When I asked Jon about them, he removed them, but said it was no big deal. There were stickers and things on the engine that would just burn off over time.<br />
<br />
Burn off! As someone who aims to build quality software, the concept disturbed me. Did the dealerships not have a checklist of tasks to do on each new car before delivery? Surely Toyota operates using checklists and standard operating procedures. Sure a few stickers are a tiny detail, but what important tasks might the dealership forget before delivering a car?<br />
<br />
Next the sales guy and I sat down for a bit to talk about the payment. Up until this point, we had agreed on a price, but we never discussed how I would pay for it.<br />
<br />
I knew there could be complications over payment when I picked up the car, but I let the issue lie because I knew it could be a point of negotiation. I figured that if I asked early, they would cite rules and policy about payment. It seemed better from a negotiating standpoint to be able to act surprised if I didn't like their terms.</div>
<div>
<br /></div>
<div>
Back at Jon’s desk, he told me “I hope you won’t be upset, but we need to change the price.” I nearly swallowed my tongue. Change the price?!<br />
<br />
Suddenly my mind was full of worry and doubt: "I knew this online negotiation was too good to be true! Did I just waste a few weeks waiting for this car when I could have focused on negotiating with other dealers?" And so on. I took a deep breath and tried to rev up my negotiations brain. I prepared myself to walk away from the deal -- I could always dispute the deposit with my credit card company in the worst case scenario.</div>
<div>
<br /></div>
<div>
My blood pressure nearly redlined before Jon told me “Yes, Toyota just offered a rebate on this car, so I’ll have to reduce your cost by $1000.” We both laughed. Hopefully I didn't sound like I lost my marbles. I assured him that kind of price change was fine with me! </div>
<div>
<br /></div>
<div>
When Jon asked how I would pay, I told him that I wanted to pay as much as possible on credit card, and the rest by wire transfer. He replied that the maximum they could put on credit card was $2000. I raised my eyebrows and thought for a bit before I said that I needed to do $5000.<br />
<br />
Jon said he would need to ask permission. The higher authority gambit! I replied “that would be fantastic”. A few minutes later, he returned and said it would be ok. He swept his paperwork off his desk and walked me down a dimly lit hall to the finance guy.</div>
<h2>
The Finance Guy</h2>
<div>
The finance guy? But I’m not financing! Well, you visit the finance guy even if you wheel in a huge stack of two dollar bills. The finance guy is a last-ditch attempt to wring more profit from your wallet. A visit with the king spider. Time to be strong!</div>
<div>
<br /></div>
<div>
The Finance guy had a real office equipped with a closing door. Not a cubicle like the sales guys. I’m sure scream-dampening insulation lined the walls. Finance guy sat in a dress shirt behind a massive wood desk. Some huge diploma-like certificate hung on the wall, radiating trust and authority. A giant desk-size tablet computer fllled the space in front of two chairs.</div>
<div>
<br /></div>
<div>
Jon made a quick introduction, stepped out, and seal me in the room. Finance Guy brought up the bill on the tablet monstrosity. The price was exactly what I expected from previous communications with Jon. Good.<br />
<br />
The first swipe at my wallet was (I assume) a deliberate mis-understanding of how much I was going to put on the credit card: “So, you’re going to put $4,500 on the credit card…. you’ve already put $500 on a card for the deposit.”</div>
<div>
<br /></div>
<div>
“No, we agreed that I’d put $5000 on the credit card today”</div>
<div>
<br /></div>
<div>
He didn’t push the issue, or appeal to a higher authority. Perhaps I was talking to the highest authority. Yes, the king spider. My next job was initialing the right spots on the breakdown of costs. No problem — they matched what we had agreed to. Signing on the tablet monster was fun.</div>
<div>
<br /></div>
<div>
Next, he tried to get me to sign a “Dispute Resolution Agreement” with the dealership. I glanced at it — an agreement to arbitration and a waiving of my rights to a trail by judge. Waive my rights? Hmm. A dealership seemed like the last place I'd like to waive my rights. The agreement didn't seem very balanced -- the dealership wasn't offering me much in exchange for my rights. No surprise there. I asked the finance guy: “Am I required to sign this to buy the car”</div>
<div>
<br /></div>
<div>
“Yes,” he claimed that the agreement was a Toyota requirement, which is probably not true since the agreement was with the dealership, not Toyota. Again, a Higher Authority gambit. This time the higher authority was an international corporation that all Toyota dealers worked with. Nicely done Finance Guy!</div>
<div>
<br /></div>
<div>
I wasn’t quite sure how to respond. I didn't anticipate this part of the deal. I began carefully reading the agreement, flipping back and forth slowly between the pages while I considered my options. I definitely didn’t want to sign the dumb thing. On the other hand, if I refused to sign, would I be back at square zero with my buying process? I felt exhausted by the thought. I knew my mental state worked in the dealer's favor. I needed to stay silent while I considered my options and gathered my wits.<br />
<br />
I kept studying the agreement. Perhaps I could use my own higher authority: a lawyer, or someone like that. I didn’t have anyone lined up as a lawyer. Would Finance Guy call my bluff? Could I call it right back by searching for a lawyer on my phone?</div>
<div>
<br /></div>
<div>
I couldn’t believe how quickly this dilemma unraveled in my favor. It didn’t seem like more than a minute had passed before finance guy capitulated: “OK, well, let me see if this is really necessary. We can go through the rest of the process, and if we need the agreement I’ll contact you later.”</div>
<div>
<br /></div>
<div>
So much for “Toyota’s requirement.” Finance Guy blew up his own higher authority gambit when faced with the ultimate nemesis: uncomfortable silence. Never forget the power of silence.</div>
<div>
<br /></div>
<div>
The next step was the extended warranty sales pitch. Finance guy asked me why I chose my car, etc, etc. He spewed many tedious questions. I think he was trying to get a specific response from me because he kept going until I said the word he was looking for: reliability.</div>
<div>
<br /></div>
<div>
Oh yes, he agreed, Toyotas were known for their reliability. Blah blah blah. To my horror, he then threw Toyota under the bus. Finance guy cast doubt on the reliability of the car I was about to pay 50k for. He felt that the Hybrid technology specifically was troublesome, and he wouldn’t vouch for it’s reliability. No sir! And that’s why he felt I should spend several thousand dollars on an extended warranty.<br />
<br />
The trickster in me wanted to stand up and say: "Forget it then. If it's not reliable, I don't want it. Catch you later!" That would have been a lot more fun than his long speech about extended warranties. I probably sighed, hummed, and looked outside. No level of bored body language would discourage Finance Guy. There was a platinum plan and a gold plan. If you're really frugal, you can be a cheap with a silver plan. Blah blah blah.<br />
<br />
Unlike him, I didn’t capitulate: “No thanks.” Apparently this has never happened before. Now he had to interrogate me about why I didn't want the warranty. He tried to get me to agree that if it saved me more money than it cost it was a deal. I agreed that was true.</div>
<div>
<br /></div>
<div>
The fresh out of college me might have disputed the point. Now I don’t care. Why disagree? True or not true, agree or disagree, I didn’t have to buy the warranty. Agreeing takes less time.<br />
<br />
I agreed. Then I told him I still didn’t want it. He acted like I was crazy, and continued his pitch. I finally told l him that I didn’t budget any more money for the car than the amount we agreed to. The no budget argument finally convinced him to stop boring me to death. No money, no interest.</div>
<div>
<br /></div>
<div>
He ran my credit card and gave me a sheet of paper with the bank wiring instructions. It was Saturday, so the soonest a wire could go through was Monday. That didn’t seem to bother him — I’d still get the car today.<br />
<br />
Oddly, their bank account had a completely different name attached to it than the dealership. I can only assume that they use various companies to keep the money separate in case jerks like me (who didn’t sign the arbitration agreement) tried to sue them.</div>
<div>
<br /></div>
<div>
A few minutes later, Finance Guy expelled me from his spider’s den. I savored the fresh air as I wandered the cube farm looking for Jon.</div>
<h2>
Getting the Car</h2>
<div>
For the final stage of the buying process, Jon walked me thorough the warranties, the XM radio, the emergency service. He even told me to reject XM’s first attempt to get me subscribe — they’d give me a better price when they followed up.</div>
<div>
<br /></div>
<div>
He walked me back to the car and showed me the main features. He helped me configured the safety features, he showed me how the radio works, and so on. Finally, he gave me a full tank of gas.<br />
<br />
At the gas pump, I noticed what looked like scratches on the side of the center console. It turned out to just be some lint that had stuck to it. Jon personally cleaned it up with a microfiber cloth.<br />
<br />
After a final handshake I drove home with my new car, a grateful survivor of the car buying process.<br />
<br />
<i><b>Want more? Read my <a href="http://www.engineeringadventure.com/2017/02/an-unlucky-engineers-guide-to-wealth.html" target="_blank">Unlucky Engineer's Guide to Wealth here</a>.</b></i></div>
WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com53tag:blogger.com,1999:blog-7022155324729704001.post-15328509564584678242017-03-15T10:20:00.004-05:002017-03-16T09:15:25.279-05:00Tear-free App Updates<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOU-T-7vgN9MLgGyZ03ZLpsu5VlIfClA4CMn6_mgex1DLvFmWxYdCvqbB9yhG7nYG1rsWcuR6PJX7NqUWYI9Cws6vRQlFhyMEQhRQnsMVoxX-xO7O4bf9rDZpCXXuMk4SW6nsO0pDYqEJx/s1600/Screen+Shot+2017-03-12+at+11.28.55+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt=""Dear @Marriott - please go back to your old app - it worked perfectly. Get rid of whoever designed the new one - it is awwwwful."" border="0" height="64" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOU-T-7vgN9MLgGyZ03ZLpsu5VlIfClA4CMn6_mgex1DLvFmWxYdCvqbB9yhG7nYG1rsWcuR6PJX7NqUWYI9Cws6vRQlFhyMEQhRQnsMVoxX-xO7O4bf9rDZpCXXuMk4SW6nsO0pDYqEJx/s320/Screen+Shot+2017-03-12+at+11.28.55+AM.png" title=""Dear @Marriott - please go back to your old app - it worked perfectly. Get rid of whoever designed the new one - it is awwwwful."" width="320" /></a></div>
Have you seen those home improvement shows where a team of decorators surprises a family with an made-over house? The results cause more huge frowns, tears, and chaos than you’d expect.<br />
<br />
Mom stares catatonically after discovering her Grandmother’s antique dresser holding the bathroom sink. Her hand leaves a fuchsia trail of Krylon on her jeans from the last minute paint job. Dad faints on the avant-garde cardboard lounge chairs replacing his beloved leather reclining couch. The kids roll on the floor and wail at their legos glued to the playroom ceiling.<br />
<br />
The viewers marvel at the chaos, wondering what the decorators were thinking.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGp8hUMxEQrCffLN-PmajP9FpmVOWAZelPkpLz2MaLpJDS8nqIDQyjb36nY8zBmWpACANUB9i72rKwUGV-15DUu4xSITXPya6IzfvtCxyEFsWPCbznvNHfOQ5DbHptQGnr8NVEbSHAt1ZU/s1600/Sketches+-+22.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="An amazing new floorplan update" border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGp8hUMxEQrCffLN-PmajP9FpmVOWAZelPkpLz2MaLpJDS8nqIDQyjb36nY8zBmWpACANUB9i72rKwUGV-15DUu4xSITXPya6IzfvtCxyEFsWPCbznvNHfOQ5DbHptQGnr8NVEbSHAt1ZU/s320/Sketches+-+22.png" title="An amazing new floorplan update" width="320" /></a></div>
The same shock and disappointment hits customers when a company drastically changes their app:<br />
<blockquote class="tr_bq">
<a href="https://twitter.com/TheArtofBeer/status/829450993796542465" target="_blank">Dear @Marriott - please go back to your old app - it worked perfectly. Get rid of whoever designed the new one - it is awwwwful.</a></blockquote>
Bad app makeovers cause tears, and not just for poor taste. Large updates change how an app works. New features are emphasized and existing features are moved, removed, or altered. Our customers finds themselves stumbling through a new, unfamiliar interface, yanking their hair out, not getting work done.<br />
<br />
When customers have trouble using a new version of an app, they don’t see a learning curve, or a beautiful new concept they should give time. They see low quality. They got stuff done on version 2. Version 3 leaves them fumbling like a toddler at nap time.<br />
<br />
Customers know that they didn’t wake up dumber. The app changed and now they’re balding and can’t get their work done. The simplest explanation: the app sucks. One star — they’d give zero if they could!<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxBziDzSF4ZK5ff2Tw9Unpcj2rfVh2Y5YODCNAzSlNoSYIjO5AH_cTyNzPDpUmQMIxll1MHfAaRFc9HzrJC5CoaDrRchQ-iC5ZdBYnB-Lj3K8sROfJvUaf8KgcaJFLIHe4f__nwcwn1LIn/s1600/Screen+Shot+2017-03-12+at+11.20.19+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt=""would give it zero if I could" Google search" border="0" height="125" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxBziDzSF4ZK5ff2Tw9Unpcj2rfVh2Y5YODCNAzSlNoSYIjO5AH_cTyNzPDpUmQMIxll1MHfAaRFc9HzrJC5CoaDrRchQ-iC5ZdBYnB-Lj3K8sROfJvUaf8KgcaJFLIHe4f__nwcwn1LIn/s320/Screen+Shot+2017-03-12+at+11.20.19+AM.png" title=""would give it zero if I could" Google search" width="320" /></a></div>
We app makers often see quality as a one-dimensional measure. The app crashes, or it doesn’t. A feature works or it fails. Simplistic models of quality work for a while, but mature apps need a wider perspective. Measures of quality must incorporate customer sentiment and behavior. An frequent user of your app might prefer an occasional crash to a setback in usability or functionality. A crash is a temporary glitch; an inability to locate or correctly operate a feature leads to a cascade of hurt.<br />
<br />
When users get stuck or make an mistake using an app, recovery is difficult. Who do they call for help? There is no AAA to come jump-start your app or tow it to the nearest app repair shop. App support hotlines are rare. Book stores don’ t sell Dummy’s Guides for your app. As app makers, we must anticipate and prevent customer issues so our users don't redline their frustration gauges.<br />
<h2>
The Great Skitch Update Debacle</h2>
Evernote proudly released Skitch 2.0 for Mac in 2012. It was a big moment for the company. Exciting blog posts. Press coverage. Customers reacted like we burned down their house. They wrote reviews that made us double over and clutch our bellies.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2D5GSBhH4NDujLbk1EN_h9ecmjrPfUZd522QwmRvmcVNAnoZ5BuitU2VwFyXvUniqDrl-y_J6Dhyq2i6Hcp22deGP-OSx6J-_kzb2aNdjHaCIiQdqATgEP9uTwapWsCfx8SmEYhMZnlnl/s1600/Screen+Shot+2017-03-12+at+11.35.26+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt=""Loved it before the update"" border="0" height="60" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2D5GSBhH4NDujLbk1EN_h9ecmjrPfUZd522QwmRvmcVNAnoZ5BuitU2VwFyXvUniqDrl-y_J6Dhyq2i6Hcp22deGP-OSx6J-_kzb2aNdjHaCIiQdqATgEP9uTwapWsCfx8SmEYhMZnlnl/s320/Screen+Shot+2017-03-12+at+11.35.26+AM.png" title=""Loved it before the update"" width="320" /></a></div>
Internally, we saw Skitch as a visual communication tool. We worked hard on Skitch 2.0 addressing many shortcomings of the original app. We worked long hours fixing quirks and adding useful communications features. From our perspective at Evernote, the features we dropped seemed unimportant and a distraction from what we saw as Skitch’s purpose.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh68LvkAMgmhAIW4-st5dquyH_AyQlUHIO6nDOBbMHlcOFzdgFCQo1N01BDY95rffHFfeE5jKC1AVtaP2nh8zXrizwNtOIdMJsVtB5ecI1SGahRt7VF2047VlkSSrJO0J07FpDQ94DM1MLd/s1600/Screen+Shot+2017-03-12+at+11.24.58+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt=""Horrible downgrade" - when app updates go wrong" border="0" height="43" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh68LvkAMgmhAIW4-st5dquyH_AyQlUHIO6nDOBbMHlcOFzdgFCQo1N01BDY95rffHFfeE5jKC1AVtaP2nh8zXrizwNtOIdMJsVtB5ecI1SGahRt7VF2047VlkSSrJO0J07FpDQ94DM1MLd/s320/Screen+Shot+2017-03-12+at+11.24.58+AM.png" title=""Horrible downgrade" - when app updates go wrong" width="320" /></a></div>
But we didn’t understand Skitch’s purpose. Our experienced users ached at the loss of features like FTP and custom fonts. To those customers, the features that went missing were key pieces in how they used Skitch. Skitch wasn’t just a visual communication tool to them. For some, Skitch was a tool for uploading images to their blog or website. Others used Skitch as a simple image editing package. Skitch 2.0 broke those workflows, forcing those users to use a different product.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizg9sXiVK-KgQBYs-sQt_gdky219ibhnaltnUMA0jC3rqEXrehzi6YGgFV2n8swh3vDIPHU5HPVA8UX_tQzSUWJ3GbXPWzoFsUIBv-JQztW2znz-k9Sh_WjRHeEcGS3cO79sycMjJfJ3Bd/s1600/Screen+Shot+2017-03-12+at+11.37.41+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt=""This version is a colossal piece of junk"" border="0" height="48" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizg9sXiVK-KgQBYs-sQt_gdky219ibhnaltnUMA0jC3rqEXrehzi6YGgFV2n8swh3vDIPHU5HPVA8UX_tQzSUWJ3GbXPWzoFsUIBv-JQztW2znz-k9Sh_WjRHeEcGS3cO79sycMjJfJ3Bd/s320/Screen+Shot+2017-03-12+at+11.37.41+AM.png" title=""This version is a colossal piece of junk" " width="320" /></a></div>
How could we be so dumb? We didn’t control Skitch’s purpose. We could influence it, but the customers ultimately decide what they use the app for. Our team didn’t understand these customer perspectives until after we ruined their week. Like the interior designers on TV, we made drastic changes while ignorant of how people really lived in our app. Where we saw an ugly couch, our customers saw a cozy place to watch an action flick.<br />
<br />
Evernote acquired Skitch in part for the passionate user base. We took great care. We didn't want to upset anyone or turn that passion against us. We sat for long meetings, testing betas, debating the user experience. Developers wrote code late at night, trying to get each feature ready for the big 2.0 debut. We put in so much effort that Skitch 2.0 took longer to release than planned.<br />
<br />
Quarters of work, probably man-years of effort, and our customers still recoiled in horror. It doesn't matter how much we debated UX and reworked features. The success of an app lies with the customers, not the executive team, product management or the team building the app. That lesson arrived in an avalanche of 1-star reviews. Ultimately<a href="http://www.digitaltrends.com/mobile/skitch-co-founder-apologizes-for-mac-2-0-app-mishap-plots-new-course-of-action/" target="_blank"> we apologized and promised to return the missing features</a>. Too bad it cost us so much good will.<br />
<br />
For the record, things have turned around for Skitch. <a href="https://itunes.apple.com/us/app/skitch-snap-mark-up-share/id425955336?mt=12" target="_blank">Skitch 2.8 for the Mac</a> has a five star average review. My Evernote friends have worked hard to make Skitch a world-class app.<br />
<h2>
More Growth Doesn’t Mean More Churn</h2>
Remember Skitch 2.0. Never forget your current customers as you scramble for growth or glory. Your best customers have learned every detail of how your app works, even the quirks and flaws. They’ve become experts in your app, probably even more so than you. Like a carpenter with a hammer, or a mechanic with a box wrench, they use your app without effort. They prize this ability because it gives them an advantage. It makes them productive.<br />
<br />
If you alter your app too much, you steal their productivity. Skitch’s choice to remove features fell on the extreme end of the productivity-robbery spectrum, but even a simple reorganization of the app can break workflows. When the app no longer feels familiar, even long-time users fall to a novice skill level. Imagine a mechanic having to concentrate on their box wrench technique, or a carpenter having to relearn their hammer. They’d fall out of the zone, lose their happy thought. A forced return to conscious thought means slowing down. It robs them of productivity and leads to busted knuckles.<br />
<br />
Even if your new design will make all users more productive in the long term, your formerly most productive users will grind their teeth. Minor productivity setbacks feel like getting stuck in traffic on the way to a party.<br />
<br />
Hopefully customers won’t abandon your app before they return to productivity, because you’ve just created a moment with lower switching costs: “since I have to learn a new app anyhow, I may as well try something new.”<br />
<br />
Don’t sacrifice your existing users just to attract new users. Customer growth depends on manageable churn rates, not just higher conversion rates. If you pop the balloon, you lose any gains from adding air faster. A successful app requires customer engagement in all cohorts, not just the tire-kickers drawn in by a pretty window display.<br />
<h2>
Planning Updates</h2>
I wish I could explain how to make everyone like your app updates. That's a fairy tale though. With a large enough user base, you will always have one customer scribing a zinger on the App Store. Some people just love to hate. The best you can do is mitigate customer pain by making conscious tradeoffs.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpLTEIibfzJX7PmGBAy6KX-XppZ18YbzoeVGuy0eaT2HOmwRbfS9QD9tLj82-xoooAwWREIRCef177xORY_YZKGRSQITfafYNT5bmEb4ul8w2qzUpNrqvATQ604TzXwa2dnfpeXnG7RiGP/s1600/the-update-journey.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="The Update Journey" border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpLTEIibfzJX7PmGBAy6KX-XppZ18YbzoeVGuy0eaT2HOmwRbfS9QD9tLj82-xoooAwWREIRCef177xORY_YZKGRSQITfafYNT5bmEb4ul8w2qzUpNrqvATQ604TzXwa2dnfpeXnG7RiGP/s320/the-update-journey.png" title="The Update Journey" width="320" /></a></div>
Like a family road trip, smoothly updating an app requires planning and staging. You can’t just drive from Florida to California without a break. Adults need to stretch their legs. Kids need stimulation and snacks. Everyone need bio-breaks, to eat food and hydrate. Transforming your app is a journey, for both you and your customers. You need to know your destination, how to get there, and where you can take breaks.<br />
<br />
To craft high quality apps, you must orchestrate changes to take customer needs into account. Needs like: don't break my workflow. Or: don't let me get lost in an unfamiliar user interface. Or even: give me feature X. And, of course: don't let anything break.<br />
<br />
Every change you make to your app adds a little risk to the proposition. Risk that customers won't be happy. Risk that the app might crash. Risk that customer data is lost. Who knows? Limiting the scope of your updates helps you manage risk. Smaller scopes mean faster updates, less for customers to learn, and the ability to respond quickly to customer feedback. Large updates compound that risk and also inhibit your ability to rapidly respond to customer feedback.<br />
<br />
The journey metaphor is not without flaws. As you attempt to reach a beach oasis, you'll be camping in the jungle, climbing mountains, and fording rivers. The app may start to look a bit janky: some new bits of interface are slick and beautiful, while older parts of the app seem worn and tired. There are tradeoffs. Spending 6 months on an update that directly helicopters your users from 1.0 to 2.0 could be the right decision for your business (incidentally, there are more than 2 paths; <a href="http://businessofsoftware.org/2015/10/david-heinemeier-hansson-rewrite-basecamp-business-of-software-conference-video-dhh-bos2015/" target="_blank">you can helicopter your business focus to 2.0 while leaving the customers at 1.0</a>).<br />
<h2>
What do You Want?</h2>
Start your update planning with self-knowledge. Why does your team wants to change the app? Are you matching competitor’s offerings? Reducing churn? Attempting to increase the average revenue per user? What results do you want?<br />
<br />
If you have multiple goals for an update, prioritize. Pick one thing. Having one goal to per release lets you limit the scope of your changes. Big releases can overwhelm your customers. Spreading out the changes over time helps limit the burden on them. Save your second priority for your second update.<br />
<br />
If you worry that your app looks uglier than a hippo’s rear, you can start a makeover without impacting the functionality. You don’t need to change how your app is organized, what vocabulary it uses, or how you make money. Hold those variables constant while you reign in the colors, pick more tasteful fonts, and improve your use of whitespace.<br />
<br />
When you users open the re-skinned app, it will look cleaner and more modern, <i>and</i> their muscle memory will still work. Is that just putting lipstick on a hippo? Maybe. But your customers understand lipstick. Makeup is useful -- ask any actor. Customers won’t understand if one update transforms a hippo into a narwhale. People understand an ungainly hippo getting a makeover.<br />
<br />
For your following release, maybe your goal is to add a new feature. Again, you keep the change surgical. You add the feature, but keep the appearance of the app, the overall organization of it, and so on. Let that change sink in for a bit before your address how the app is organized, or whatever the next stage of your update might be.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiiG6_Ve6oEA7oa9D6drnIQRK0mDbmtentMoY9SZg68KCtnTx5eP7IcdqD-s2cJ4svlf9EjjeHqu8h32fHBbB4-dZcgLOVRpqbwn4CEedUAEFD8fbtWYBtCioqvup05HgxyAuMxr2wStH0/s1600/App+Update+Smash.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="App update smash" border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiiG6_Ve6oEA7oa9D6drnIQRK0mDbmtentMoY9SZg68KCtnTx5eP7IcdqD-s2cJ4svlf9EjjeHqu8h32fHBbB4-dZcgLOVRpqbwn4CEedUAEFD8fbtWYBtCioqvup05HgxyAuMxr2wStH0/s320/App+Update+Smash.png" title="App update smash" width="320" /></a></div>
If you lose sight of the purpose behind an update, you will go overboard. Without focus, designers, developers, and product managers start to think that they “might as well” add X, Y, Z, and also Ƣ to the release. When you finally ship — and it will probably take a while if you keep glomming on features — your customers won’t recognize the updated app.<br />
<br />
You must have the discipline to limit the scope of changes. Otherwise your customers will choke on their grande mochaccino and hurl their phone into the nearest storm drain. Clunk. Clunk. Splash!<br />
<br />
After they upset your customers, these bloated releases hurt you again. Mistakes in a bloated release takes longer to fix than a tiny one, don't they? Bigger changes also make it more difficult to untangle the feedback you get. Return your gaze to <a href="https://twitter.com/TheArtofBeer/status/829450993796542465" target="_blank">the tweet about Marriott</a> above. Can you tell what went wrong?<br />
<h2>
How Will Your Customers React?</h2>
Great updates require empathy. You can't make good decisions for your customers without knowing how and why they use your app. Some companies use customer personas to help them empathize with each kind of customer. They give their personas names, and sometimes even mascots (e.g. stuffed animals).<br />
<br />
You might feel too shy to name your customer personas (Bobby the Ballerina!), but you should keep in mind how different categories of customer have different needs, workflows, and expectations. Your most active customers almost certainly have worn a path through your app. Know what those paths are. Customers won't smile if you obliterate their favorite path with a taco stand. Thanks for the tacos, but how do I get to the FTP feature?<br />
<br />
Discovering your customer taxonomy will take some research if you don't already know. There are many tools to help you understand your customers: analytics, customer reviews, and other tools like <a href="http://businessofsoftware.org/2014/06/bos-2013-bob-moesta-and-chris-spiek-uncovering-the-jobs-to-be-done/" target="_blank">Jobs to be Done interviews</a>. Your app exists to serve customers. You better understand who they are!<br />
<br />
In addition to personas, there are different stages of the customer lifecycle. For instance, most apps have both new and existing customers. A new customer can have a completely different reaction from someone familiar with your app. While you don't want to upset your best customers, you also don't want your new ones to bounce right out of your app and delete it!<br />
<h2>
Systematic Empathy</h2>
Once you know the different kind of customers you have, you can examine each change through their eyes. Make a spreadsheet of your customer taxonomy so your empathy rays don't miss anyone.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHO95ZhgLmR-l3m1Aw2TOga-asbpOcXr83CjFa-JC8kTSXaQbgKE9W8rFoRMwmh0rybc0JqFuNoKfbMbVo2EfKLPuVarB7gkH_ewb6gMEsfxYEDRThxUQTuj9RLYjzpo1bg92EA1IlF8Wf/s1600/Customer+Persona+Empathy+Chart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Customer Persona Empathy Chart" border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHO95ZhgLmR-l3m1Aw2TOga-asbpOcXr83CjFa-JC8kTSXaQbgKE9W8rFoRMwmh0rybc0JqFuNoKfbMbVo2EfKLPuVarB7gkH_ewb6gMEsfxYEDRThxUQTuj9RLYjzpo1bg92EA1IlF8Wf/s320/Customer+Persona+Empathy+Chart.png" title="Customer Persona Empathy Chart" width="320" /></a></div>
Here is one way to think about it. For each customer persona, add a column to indicate if a proposed change would go unnoticed by that kind of customer. For each persona who might notice the change, fill out a column indicate if they will be helped in the short term, helped in the long term, or hurt by the change. Add a final column where you will document your strategy to smooth the transition for this customer. If any of those strategies don’t seem trivial, that’s a sign that your update has grown too large. Consider breaking the update down into a chain of smaller updates.<br />
<br />
Pro tip: you're allowed to talk to anyone. Test the assumptions in your spreadsheet with conversations, beta tests, and demonstrations! Even if you're speaking one-on-one with customers regularly, never forget to look at the reality of your releases. Analytics and reviews are real feedback from a broad representation of your actual customers. Use all of this feedback to steer your app's direction.<br />
<h2>
TL;DR</h2>
Why not take your users on a steady gradual journey over time? Why kick them out of the airplane over unfamiliar territory? This isn’t the 1990’s, where massive releases were the norm. People no longer hire the Rolling Stones or U2 to launch updates. The world has changed. Abandon the Massive Release Mindset! You’re not mailing CD-ROMs or floppies to users; there are no material costs to save by piling up major changes into one massive release.<br />
<br />
The more incremental your updates to your app, the lower the burden on existing customers, and the more specific your analytics and reviews will be. Stacking up big changes just stacks the risk: risk your customers will hate it, risk that the changes won't work correctly, and so on.<br />
<br />
Skyscrapers of change looks beautiful while they upload it to the store. Apps always look sleek and clever before customers touch it. The moment of truth arrives soon enough. The update goes out, someone shouts JENGA!, and now you have pieces of app littering the floor.<br />
<br />
Or maybe you got everything perfect. What do you think? Can you reliably ship a massive update without bruising your business?
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WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com2Austin, TX, USA30.267153 -97.74306079999996729.828484 -98.388507799999971 30.705822 -97.097613799999962tag:blogger.com,1999:blog-7022155324729704001.post-15479732799593220232017-02-06T10:00:00.001-06:002017-03-15T16:47:26.683-05:00An Unlucky Engineer’s Guide to Wealth<br />
Pirate Treasure. Startup IPOs. 3X bonuses. Scratch-off lotteries. Hypersonic stocks. Marrying royalty.<br />
<br />
We think up clever windfalls to rationalize our dreams. We can own handmade sports cars, azure watered tropical islands, and concealed safes reeking of hundred dollar bills. It helps us believe we can live a Hollywood lifestyle if only we make the right bet.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOxqLK_i90VB5j1J9_aKC3dYU6fyBGldG5shftPRRzYE9sZxAWixTyftAccmyewQUa1n7lESTP_RPyofk2agGNh_iJpvzFpUcvICaPywDEeHNLkKKeISf8teCsQpgriE5dtpu0tk606LU4/s1600/Pirate+Treasure.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Getting Rich With Pirate Treasure" border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOxqLK_i90VB5j1J9_aKC3dYU6fyBGldG5shftPRRzYE9sZxAWixTyftAccmyewQUa1n7lESTP_RPyofk2agGNh_iJpvzFpUcvICaPywDEeHNLkKKeISf8teCsQpgriE5dtpu0tk606LU4/s400/Pirate+Treasure.png" title="Getting Rich With Pirate Treasure" width="400" /></a></div>
<br />
<br />
Get-rich-quick schemes poison our ambition and self control. They trade a million pennies for a swipe at one $10,000 bill. While chasing extraordinary events we miss out on concrete opportunities for building wealth.<br />
<br />
None of us will wake tomorrow morning laying in a pile of gold doubloons. None of us will cash a ten million dollar check, or ring the New York Stock Exchange bell. Not even if you fall to your knees and whisper “pretty please.”<br />
<br />
I still see friends trying to build a magical money fountain in their spare bedrooms. Our engineer’s inclination to cleverness can distract us from a deliberate approach to goals. Our addition of engineering skill to the equation makes long shots seem more reachable. Making millions at a software startup seems more likely when you’re a software expert. If only you join the right company with the right idea at the right time, you’ll get rich at the IPO. We want to believe that our skills will magnify our chances of a jackpot. Maybe we can engineer some luck!<br />
<br />
It’s a trap magnified by our poor grasp on who is rich and how they got there. We think of wealth like the Robb Report does: ostentatious homes, slick gizmos, and over-the-top vacations. For an engineer, luck is the only visible path to 300 foot yachts and six-figure dirigible ski trips in the Andes. Our vision confuses spectacle and splurging with real wealth.<br />
<br />
Yachts large enough for Forbes to report are the product of ludicrous spending. Submariner watches look impressive, but they don’t pay dividends. Luxury only tells us about spending, not the path to riches.<br />
<br />
Spending money on fancy stuff proves nothing. Paying for luxury with debt takes no special talent. Extravagance doesn’t confirm riches any more than a snobby attitude and a prejudice against hot dogs for lunch. Unsustainable spending surely leads to poverty and frowning bankers, but there is no easy trick to know it when we see it.<br />
<br />
From the outside we can’t tell if an autonomous two-masted schooner is worth 1% or 400% of the owner's net worth. A crazy boat that makes up less than 1% of your net worth might make sense. A boat that makes up the majority of someone’s wealth belongs to a fool. Why benchmark our level of success against a situation that might be idiotic?<br />
<br />
We need a better measure of wealth than fancy crap. You can’t plot your course to riches without a goal and a tool to measure progress. Discussion won’t mean much without a good metric to judge against.<br />
<h2>
Measuring Wealth</h2>
My preferred measure of wealth compares your resources to your income. It doesn’t care what your neighbors or colleagues own or do. It doesn’t care if you ride a dirt-crusted Huffy mountain bike or a Ferrari F12berlinetta. Do you get your clothes at Walmart? Or do you only go to a boutique where they taylor each garment? This measure doesn’t care.<br />
<br />
I love the <a href="https://www.amazon.com/gp/product/1589795474/ref=as_li_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1589795474&linkId=150e0c362d2d5281481faa2c3e5c8845" target="_blank">The Millionaire Next Door</a>. It’s my favorite book about wealth. It proposes a wealth benchmark of ten percent of your annual income multiplied by your age. If your net worth is at that level or above, you have what they consider the expected level of wealth. If you build a net worth that is above twice that level, you are what the book calls a prodigious accumulator of wealth.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhF0L9MjNHyDhBj_P8nb-DEuubLbdyevCnQEzYwSzorhaKFKAabSjmyXwp8o-KxSORc_OOMrp5mKYX0MJ5wVJ0Dp6hOly7MX7ZOB2HJMm4mMGyBndVjJunU3xKnuqh-iZbeIl0ncNDD8AHJ/s1600/The+Wealth+Formula.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="The Wealth Formula" border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhF0L9MjNHyDhBj_P8nb-DEuubLbdyevCnQEzYwSzorhaKFKAabSjmyXwp8o-KxSORc_OOMrp5mKYX0MJ5wVJ0Dp6hOly7MX7ZOB2HJMm4mMGyBndVjJunU3xKnuqh-iZbeIl0ncNDD8AHJ/s400/The+Wealth+Formula.png" title="The Wealth Formula" width="400" /></a></div>
<br />
Using this measure requires only honesty and math. The terms are simple. Net worth means assets minus liabilities (debt). Bank accounts, stock, mutual funds, ETFs, real estate, and cars are all assets. Credit cards, mortgages, student loans, and car loans are liabilities. Don’t cheat. Never list consumer goods as an asset: most clothing, electronics, and furniture have little value after purchase.<br />
<br />
Your income should include your salary, any supplements you get from relatives, and any income that comes from investments like rental property.<br />
<br />
More than the superficial signs of wealth involving fashion labels and cars, this measure reveals what proportion of your own income you hold on to and grow. It measures your savings and investment efficiency rather than your appearance.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfDW932Cn2GSVdNwj4SOr4J97bARZ8ZCkqwveKymEzWUz2anvTU-LkJUmiWSJOfuAURr7fD4bV2VW0Ee461M32rDb4i3c6_EktZgAa0bre9rC1vkYVN4HUJcFr8-A81a5AcpbN5r1RBizP/s1600/Income+Vs+Wealth.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Income Vs. Wealth" border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfDW932Cn2GSVdNwj4SOr4J97bARZ8ZCkqwveKymEzWUz2anvTU-LkJUmiWSJOfuAURr7fD4bV2VW0Ee461M32rDb4i3c6_EktZgAa0bre9rC1vkYVN4HUJcFr8-A81a5AcpbN5r1RBizP/s400/Income+Vs+Wealth.png" title="Income Vs. Wealth" width="400" /></a></div>
<br />
Put another way, it measures how much of the income flowing through your hands stays in your pockets. A river of wealth flows through our bank accounts. If we can divert enough of the river’s current into a reservoir, we will naturally grow wealthy. If we allow our river of income to entirely flow into the sea, we’ll always depend on it.<br />
<br />
Does that excite you? It should. No matter what happens in the external world, we can control ourselves. We don’t need much luck to accomplish that. Just habits.<br />
<br />
Wealth achieved through our own behavior may seem disappointing. It’s much less convenient than finding a Liberty Head Nickel stuck to your Chucks. Changing your behavior requires tradeoffs and long-term thinking. It may mean sacrificing your desires now to have wealth later.<br />
<br />
But have hope. Wealth is a skill. Anyone with more than a poverty-level income can practice it.<br />
<h2>
Paths from Zero to Wealth</h2>
If you graduate college at age 22 and have an income of 100000, our formula expects your net worth to land at $220000. An impressive and unlikely sum for a recent graduate.<br />
<br />
My eyes bugged out when I first did this calculation for myself a dozen years ago. I was shocked. I was a few years out of school, in a good job and contributing to a 401k and Roth IRA. Yet on this measure of wealth I fell far behind the curve. I was earning a C or a D grade on wealth, and I itched to improve it.<br />
<br />
Consider how you might get from zero to wealth over the ten years. Let’s still assuming an income $100,000. And to keep it easy, let’s also assume that your income and the value of our investments didn’t increase. How would you become wealthy within that decade?<br />
<br />
The expected net worth at age 32 is $320,000. To get there from a net worth of zero implies that you saved $32,000 each year. That's a savings rate of 32% of pretax income, or around a 44% savings rate of after tax income (assuming a 28% tax rate). Every month over 10 years, you must drop $2,666 into your piggy bank.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgm3AdkOyVAI3ujb8w1ZBwvmWjeV4JV2GRYweCxFK-j1FZL3pyaRjIw3wyMM-EVRR9JzWZZQknVBKxrXjKq0-qzhIoWlyzWgBcv4rj5TiMyoNNwbFSp64Vm2oyZnNN9JgXeTHjAso90Kesn/s1600/building_wealth_with_flat_income.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Building Wealth by Saving 40%" border="0" height="293" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgm3AdkOyVAI3ujb8w1ZBwvmWjeV4JV2GRYweCxFK-j1FZL3pyaRjIw3wyMM-EVRR9JzWZZQknVBKxrXjKq0-qzhIoWlyzWgBcv4rj5TiMyoNNwbFSp64Vm2oyZnNN9JgXeTHjAso90Kesn/s400/building_wealth_with_flat_income.png" title="Building Wealth by Saving 40%" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Building Wealth from Zero with $100K Income (32% pretax savings)</td></tr>
</tbody></table>
Incidentally, that amount is about 1.8 times maximum pre-tax income you can contribute to a 401k over 10 years. I’m not necessarily recommending a 401k, but it is a very simple way to automatically accumulate wealth and reduce your tax burden.<br />
<br />
What if you procrastinate the wealth question until you’re 30? I know engineers older than that who have saved very little. For this case let's again assume that from 30 to 40 years old you earn $100,000 per year. Your expected wealth level is $300,000 at 30.<br />
<br />
If you have very few assets at this point and want wealth by your 40th birthday, you better get busy. You now have to save $40,000 per year over the next ten years, 40% of your pre-tax income, or about 56% after taxes (assuming a .28 tax rate). You’d need $3,333 per month, 25% more than you needed at 22, and 2.2 times maximum you can contribute to a 401k pre-tax.<br />
<br />
The delay stings. If you’re used to a monstrous income-devouring lifestyle, it cuts deep. The earlier you start building your net worth, the gentler the climb to the top. And if you’d like to qualify as a prodigious accumulator of wealth, you need to double these numbers.<br />
<br />
Once you reach your target level of wealth, maintaining it won’t hurt as much: you just need to preserve 10 or 20% of your income each year.<br />
<br />
Hopefully you noticed some assumptions in my math. The income remains consistent over ten years, and the savings has no growth. If you invest wisely, your net worth will grow faster than your savings rate. If your salary grows, so too will your expected net worth.<br />
<h2>
Unexpected Implications</h2>
The wealth formula leaves clues about money management. Wealth isn’t absolute. Wealth only has meaning relative to your age and income.You can be wealthier on this scale than a neighbor who has a much higher net worth.<br />
<br />
Wealth does not necessarily require more income. Controlling spending is just as important. Wealth might mean moving where the cost of living is less. It might mean spending less on things we don’t care about. Or it might mean making good investments. Our wealth isn’t one-dimensional, it’s a landscape of possibilities.<br />
<br />
This story also tells us that as we grow older, we require a higher net worth to keep the same level of wealth. Does this represent the cost of healthcare as we age? The prospect of retirement? Inflation? The expectation of the growth of our investments? All of these interpretations seem fair.<br />
<br />
As our income grows with raises, promotions, and income-producing investments, our wealth is also expected to grow in turn. Each salary bump requires another step up in the net worth we need to be considered wealthy. Those bumps are also expected to continue to expand our wealth at ten to twenty percent of our age per year. Those consequence almost demand that we invest a large part of our raises instead of spending them.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8X8d8e-0kUOThF7uS9_aD9-GhD4zazknuTs4fe5zmY4Sp3QNjsrRjol80FXdBuDoPmz5q2JCM_1ABaXeKsQRmikiwoGPaJw3qCaIDe253aiHUTV44MMuGx-Cr4fuTwS4gNrBwEXesSkWR/s1600/building_wealth_with_growing_income.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Building Wealth with Income Growth" border="0" height="237" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8X8d8e-0kUOThF7uS9_aD9-GhD4zazknuTs4fe5zmY4Sp3QNjsrRjol80FXdBuDoPmz5q2JCM_1ABaXeKsQRmikiwoGPaJw3qCaIDe253aiHUTV44MMuGx-Cr4fuTwS4gNrBwEXesSkWR/s400/building_wealth_with_growing_income.png" title="Building Wealth with Income Growth" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Building Wealth With 3% Annual Income Growth (40% pretax savings)</td></tr>
</tbody></table>
It also suggests that we can be wealthier by having a less expensive lifestyle. The Millionaire Next Door shocked me when I read it. I realized for the first time how misleading the Hollywood and media representation of riches is. The rich people we see on TV and in Magazines are outliers. The conspicuous spenders we regularly encounter are walking lies, often poor by the standards of The Millionaire Next Door.<br />
<br />
If you repeat the calculations for a prodigious accumulator of wealth (20% of your annual income times age), you will notice that the pre-tax savings rate over the ten years from age 22 to 32 is 64%. After taxes that leaves very little money (about 12% with the same assumptions). A prodigious accumulator of wealth will almost certainly need excellent investment growth to supplement their income. Saving 40% of your pre-tax income still works with enough time though:<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin2TIj-HUb-PxDz4xLkoaMDBOExXwxi8IVABiN8lORBFkFhhSys3Ppc7kqj2QCkEAagHP-c9c_ydrPb34-6FWuS-b8_lf4PQeHX7byiIApX8A2NGNjWQGkzKN_tUScERN7vQ8NijV_qnj-/s1600/building_massive_wealth_from_zero_32percent_savings.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="Building Prodigious Wealth by Saving 32% Pretax" border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin2TIj-HUb-PxDz4xLkoaMDBOExXwxi8IVABiN8lORBFkFhhSys3Ppc7kqj2QCkEAagHP-c9c_ydrPb34-6FWuS-b8_lf4PQeHX7byiIApX8A2NGNjWQGkzKN_tUScERN7vQ8NijV_qnj-/s400/building_massive_wealth_from_zero_32percent_savings.png" title="Building Prodigious Wealth by Saving 32% Pretax" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Building Prodigious Wealth by Saving 32% Pretax</td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<h2>
Practicalities of Building Wealth</h2>
More than twelve years after reading The Millionaire Next Door, I have made reasonable progress against its measure of wealth. And I did it despite working at a failed startup that resulted in a more than 50% paycut for a year. Am I rich when compared to the people in magazines and TV? Not even close. But against my own income and my financial needs, I am doing well.<br />
<br />
A few key decisions helped me grow my net worth:<br />
<br />
<ul>
<li><a href="http://www.engineeringadventure.com/2016/10/a-popular-system-for-guaranteed.html">automated savings and investment in index funds</a></li>
<li>buying and holding on to investments instead of selling when the markets did poorly</li>
<li>buying and sticking with a “starter home” even while my income doubled</li>
<li>refinancing my home for a lower interest rate and additional 30 years to reduce expenses</li>
<li>owning and sticking with a reliable car for the long term</li>
</ul>
<br />
Obviously this isn’t investment advice. You should make your own calculations and talk with an accountant or other professional before making any changes. For instance, buying a house can be a really dumb idea in some parts of the country.<br />
<br />
Automated savings and investment let you grow your net worth without having to think. A 401k or Roth 401k let you easily invest in the stock market with every paycheck. Often your employer will even chip in extra money for you. While they might not be perfect for every situation, they are easy to use. If a 401k isn’t enough, or you prefer a more liquid place for your money, many brokerage firms can periodically move money into an investment account from your bank account.<br />
<br />
Holding on to investments saves you taxes (in the case of non-retirement accounts) and transaction fees. It also discourages you from trying to time the market or chase higher performing investments.<br />
<br />
Buying and sticking with my “starter” home helped me because my income has grown while my mortgage has remained the same. I can’t say that buying a home is right for everybody, but it has helped my situation. The cost of Austin housing has gone up dramatically. If I had sold this home and bought a new one, not only would it likely have meant a higher mortgage and property tax, it also would have cost me 6% or more in realtor and other transaction fees. If I had rented an apartment, I would probably now be paying more in rent than the cost of my mortgage, insurance, and property tax combined.<br />
<br />
One caveat: homes aren’t a great place to store wealth. They aren’t very liquid in poor economic times — more expensive homes become especially difficult to sell. Even if you do sell your home at the right time, where do you plan to live next? Few people manage to do more than roll the sale of one house into the purchase of the next.<br />
<br />
Selling my fun but unreliable Jetta and sticking with my reliable used Honda for years has let me save lots of money by not encouraging me treat my car like a status symbol. Also the repairs, insurance, tires, and oil are all much cheaper.<br />
<br />
If you are going to do one thing today to get started, calculate your current net worth. See how you compare the wealth formula. Just knowing where you stand can feel motivating. I suggest using <a href="https://www.personalcapital.com/" target="_blank">Personal Capital </a>to track your investments over time, and <a href="https://www.mint.com/" target="_blank">Mint</a> for monitoring your spending and current net worth.
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<span style="font-size: x-small;">†Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com19tag:blogger.com,1999:blog-7022155324729704001.post-29052165915680518252016-11-27T17:15:00.004-06:002016-11-27T17:15:51.613-06:00Painlessly Traveling with International DataWe might waste time on our smart phones at home, but a data connection is a practical luxury when traveling. Wasting time on Facebook is the last thing on our mind on vacation. Our focus returns to the planet around us and to more practical needs. We might translate a menu, navigate to a hotel, or research how to get from Brussels to Maastricht.<br />
<br />
Despite the benefits, many of us rely on cafe wifi instead of buying a local mobile plan. We don't want to waste time finding a shop and haggling over a SIM card in French. We want to go directly from our plane to the incredible spectacle of Sainte-Chapelle. We also don't want to pay our carrier expensive roaming fees and risk shocking overage fees.<br />
<br />
I spent weeks researching solutions. I found many past-as-you-go international plans offered, but not many good reviews of them. Most of these providers make it difficult to understand how much they charge per megabyte and what kind of connection they provide. I would hate to pay more than my domestic carrier would charge for international roaming. I also want to have access to modern LTE speeds. I don't want to starve to death before finding a decent restaurant!<br />
<br />
After a lot of digging, <a href="https://www.amazon.com/gp/product/B01CN75FZC/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B01CN75FZC&linkId=656ed95556429a786a81d545f92a38a3" target="_blank">I ordered a GigSky SIM from Amazon</a>. GigSky seemed to offer clear, reasonable rates and seemed to offer LTE connections in most countries. Other providers did offer lower “starting” rates, but I was unable to find documentation of the specific rates I would get. Very few of the other providers gave any indication that more than 3G speeds were available. I was astonished and skeptical that such basic information couldn’t be found for many providers.<br />
<br />
In October 2016, I used the GigSky SIM in my unlocked iPhone 6s Plus in the Netherlands, Belgium, and Germany.<br />
<br />
GigSky sells data by country. When I was in the Netherlands, I purchased data for that country. As my train to Brussels crossed into Belgium the data stopped. Data service in Belgium required a separate purchase.<br />
<br />
As fussy as that may seem, GigSky accommodates even spontaneous travel. The GigSky SIM is configured to provide data to the GigSky app even before you buy data. This means you can purchase a plan without needing WiFi. Within minutes of payment, data is available to all other apps.<br />
<br />
Aside from the national boundaries of the GigSky plans, there are also time limits and data caps. For the Netherlands, a $15 plan buys you 100MB of data that lasts 3 days. $25 equals 400 MB over 7 days, $35 is 800 MB for 14 days, and $50 gives you 3 GB lasting 30 days. Prices can vary by location, but this illustrates the trend. More expensive plans give you much more data per megabyte. You can find details on the pricing in each country here https://www.gigsky.com/pricing.<br />
<br />
During my travels I usually was able to get a fast LTE connection using GigSky, although occasionally I would have 3G in more remote areas. Aside from a few understandable situations in buildings with thick walls or in caves, the service never left me without data. I was quite thankful to have GigSky at one fancy hotel — the GigSky LTE connection was much faster than the crummy hotel WiFi.<br />
<br />
To prepare for my trip, I took several steps to minimize my data consumption. First of all, I downloaded map data in the Google Maps app for most cities I would visit. Downloaded Google Maps lets you see your location and also the map data without any sort of data connection. It also means that when you do have a connection, less data will need to be downloaded when using the app. Despite the local map data, to get directions Google Maps still requires a data connection.<br />
<br />
I also disabled background app refresh for all apps on my phone. Background fetch allows apps to fetch data even when you’re not using them — not something I wanted to pay for. I especially didn’t want to pay for social media apps to distract me on vacation.<br />
<br />
The GigSky sim was fairly easy to use. I ejected the iPhone’s sim tray using a safety pin and swapped in the GigSky SIM as my 777 descended upon Amsterdam. The one tricky bit was adjusting the cellular settings after installing the SIM card. I saved the GigSky APN configuration file on my iPhone using an Evernote Premium offline notebook to make it easier. A few minutes after landing I was connected to the local carrier and able to buy data through the GigSky app. Seconds after clearing customs, I hailed an Uber.<br />
<br />
When I returned to the US, I simply swapped the SIM cards back and my phone was back to normal.<br />
<br />
My data usage for the entire ten-day trip averaged about 100 MB a day. Some days I used a little more data, others a little less. I took advantage of free wifi where possible, and I mostly used the data for directions, researching attractions, and communicating with people we were meeting.<br />
<br />
My main frustration with GigSky was that the SIM only provides a data connection. If you’d like to send a text message or make a call, you’re (sorta) out of luck. I planned to meet a friend in the Netherlands, and I needed the ability to make phone calls and send SMS messages to make the rendezvous. <br />
<br />
Although Skype will let you send cheap SMS messages and inexpensive international phone calls, you can’t receive text messages. Also, unless you buy a phone number from Skype, you can’t receive phone calls either. In both cases, the sending number is one just temporarily used for that purpose.<br />
<br />
Other popular solutions for free international text messaging turned out to require verification through a traditional text message. Bah! The whole point was that I couldn’t SMS. Even a SMS app that I previously configured seemed to realize that my SIM had changed and wanted to re-verify by sending me a traditional SMS.<br />
<br />
Ultimately I used Skype to communicate with my friend. I explained the odd phone situation so everything worked out.<br />
<br />
Since Apple’s iMessage uses data instead of the SMS system to deliver messages to other iMessage users, it worked fine with GigSky. I did have one problem though: for some time I had been inadvertently saving my contacts to my SIM card instead of iCloud. Since I had removed my domestic SIM card, I lost access to many of my contacts. Many of the messages in the Messages app had been reduced to phone numbers. Everything worked fine when I returned to the US and installed my T-Mobile SIM. I’ve since migrated all my contacts off the SIM card.<br />
<br />
<b>Upsides</b><br />
<br />
<ul>
<li>Buying data is quick after the initial setup</li>
<li>Data is affordable in larger increments</li>
<li>GigSky offers flexibility — an impromptu crossing of borders isn’t a bit deal</li>
<li>No contracts</li>
<li>The cost of the GigSky SIM Card is offset by offering a free 100 MB plan in the first country you use it in (it expires in 3 days)</li>
<li>In most places I received fast LTE connections</li>
</ul>
<br />
<br />
<b>Downsides</b><br />
<br />
<ul>
<li>You can’t use an iPhone as a wifi hotspot with GigSky</li>
<li>SMS messaging and Phone calls won’t work with the GigSky SIM card installed</li>
<li>You lose access to any contact information you store on your main carrier’s SIM card </li>
<li>Initial configuration will take a little time — I suggest installing the app and activating the card before a trip</li>
<li>Smaller data plans are pricey and expire quickly</li>
<li>Data plans are tied to a single country</li>
<li>The GigSky instructional and marketing material can be confusing</li>
</ul>
<br />
<span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain this blog and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com3tag:blogger.com,1999:blog-7022155324729704001.post-6684866100505426022016-10-30T15:13:00.001-05:002016-10-30T15:13:31.625-05:00A Popular System for Guaranteed Investment Losses<blockquote class="tr_bq">
“This market sucks; I just sold all my stock.” <br />
– A friend, first quarter of 2016.</blockquote>
<br />
<span style="font-family: inherit;">My friend panicked because the stock market dug a hole in his net worth. In his frantic state, he sold all his stock thus purchasing the hole and moving in. </span><br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUUMuRSXKVWRjHSvHzNqnpbITQ1uKHCSpzpdLE1tNPZTtmC5YGRxVeyh_lkfK_71bJ-aGIgDJ3gY83oZfgd5Q7xPA9D_UzzrN3RgV9ugleeygs-CNp6x2aPv_Fg7NrD3QiFLR9xQ_PR27u/s1600/Sketches+-+11.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUUMuRSXKVWRjHSvHzNqnpbITQ1uKHCSpzpdLE1tNPZTtmC5YGRxVeyh_lkfK_71bJ-aGIgDJ3gY83oZfgd5Q7xPA9D_UzzrN3RgV9ugleeygs-CNp6x2aPv_Fg7NrD3QiFLR9xQ_PR27u/s320/Sketches+-+11.png" width="320" /></a></div>
<span style="font-family: inherit;"><br />He wasn't alone feeling dread. Analysts discussed what the drop meant for the economy and our portfolios. Maybe this was “the bubble” popping! Maybe this is a recession. Maybe none of us will ever be able to retire. Or maybe the market was “taking a break” for a while. In any case, I heard no positive interpretations.<br /><br />Fear of loss damages our capacity for rational thought. My friend didn’t predict the market’s loss — he sold in the dip, not before it. His predictive powers missed the dip. Why did he try to predict again? Selling stock prophesies loss. You wouldn’t sell an asset if you thought the value would increase. He bet a second time on a skill that failed him once.<br /><br />My friend was so worried about losing money that he didn’t honor the premise of long-term investing. Instead he looked at the trend of the last few days and extrapolated the future. He engaged in market timing – acting on a prediction of the future. My friend was scared of the market’s future.<br /><br />I felt excited about the dip. Instead of catastrophe, I saw discounts. Now I could buy my favorite investments even cheaper. People like my friend were selling me their stock cheaper because they were nervous about the future.<br /><br />I went on an index fund shopping spree. I had some extra cash that I didn’t need to spend or keep in my emergency fund. Instead of my scheduled, once a month investment, I accelerated my purchases to several times a week. I didn't use money I would need in the short term. I still invested for the long term. I just did it faster.<br /><br />Was I timing the market? Yes, I was. I feel a little guilty about that. I invested more frequently because I predicted the market would eventually recover from the dip. I didn’t anticipate a date for a recovery, but a purist would still call it timing. Perhaps I am too emotional in the opposite direction of my friend. Better that than defeating my entire investment plan!<br /><br />To mitigate my investment risks, I always spread my long-term investments over a variety of index funds owning a diverse collection of assets. If I owned mostly individual stocks and bonds, I may have felt differently. Sometimes individual companies continue to suffer even when the larger market recovers. Sometimes businesses or even nations have permanent problems they never recover from. But I had diversity across asset classes, markets, and sectors.<br /><br />I also didn’t expect to need the money from my investments any time soon. If I did, I wouldn’t call it long-term investing. I don’t plan to retire in the next ten or twenty years. Barring a cataclysm, the market should be out of the dip before I'd want to retire. Even the Great Depression was over after a dozen years. <br /><br />My net worth dropped by thousands of dollars. Perhaps that should worry me. Obviously I want the market to shoot up and make me rich, but fluctuation is a natural part of the stock market. Life means fluctuation and change. Seasons come and go. Unexpected events happen. Even the best cities can experience natural disaster. Hurricanes hit New York. San Francisco has earthquakes. Floods fill the basements of the Louvre.<br /><br />But when the Seine jumps its banks, Parisians didn't sell their homes hoping to buy them back after the flood recedes. We instinctively understand the impracticalities of selling property during a disaster. Stock? Not so much. Investing in the stock market without a tolerance for a drop in value is a guaranteed recipe for losing money. Drops happen. To make money you need to sell with gains, not losses.<br /><br />Even though we might not have an immediate need for the money, we hate watching our net worth falter. We feel a loss in our net worth much more painfully — and for longer — than an equivalent gain in our net worth. Investment success requires the right mentality.<br /><br />Instead of thinking “losses”, think discount. Don’t worry about what investments you already have. Pretend you have no investments. Worry instead about whether at this new price you’d like to buy these investments. Or, if you’re capable of more rationality than I am, ignore it all and continue your investment plan unchanged. <br /><br />Gains in the stock market come from steady growth, dividend re-investment, and occasional periods of rapid growth. Other than scheduled dividends, I know I can’t predict when gains would happen. I’ve lost money trying silly technical analysis ideas. I’ve also lost money reading quarterly reports and looking at fundamentals. I’ve lost money following expensive financial advice. None of that saved the the pain and embarrassment of bleeding money through short-term trading. Predictions have terrible track records.<br /><br />Since I now admit I can’t predict the future, I no longer sell when things look bad. If I abandoned the market, I would transform my current losses into cash and risk missing out on market gains gains. Was I really prepared to skip dividends and a potential leap in the market? Not a chance. Instead of fleeing, I continue to add money when the markets are down.<br /><br />My friend? His fear cost him dividends, gains during a fast climb out of the dip, and steady growth of the market to levels above the beginning of 2016. He probably locked in a 8% loss from the start of the year. Meanwhile the market has experienced about a 10% gain from January 1st 2016. <br /><br />If he continued investing instead of selling when he felt the pain, he could have experienced an 18% gain on his new investments, along with the 10% gain on his previous investments. That’s a missed opportunity turned into a painful loss.<br /><br />Do you intend your investments for the long term? Do you use a balanced, diverse index fund strategy? Do the research. Does it make sense to stay invested even when the markets are down and CNN is predicting the end of the world? Does it make sense to invest more money in that situation? I think so.<br /><br />If you agree with me, be strategic. Arrange your investments so that fear won’t motivate the wrong decisions. Automate your investments. Ignore the financial news. Don’t invest money that you will need in the next ten years.*<br />
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<span style="font-size: x-small;">*<b> This isn’t personalized financial advice. Agree with me at your own risk. Do your own research, run some simulations in a spreadsheet, and consult with professionals who understand your financial situation. Beware brokers and “free” financial advisors. Use professionals who you directly compensate and who don’t have a conflict of interest!</span></b></span>
WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com1tag:blogger.com,1999:blog-7022155324729704001.post-34185404126632818172016-09-18T17:47:00.004-05:002016-09-20T10:01:31.234-05:00Recommended Books and Educational Resources from The 2016 Business of Software Conference<i><b>Update: </b>20 Sept, 2016: added Predictable Revenue and Selling with Noble Purpose.</i><br />
<br />
I'd rather read a cereal box than most business books. They either put me to sleep faster than an antihistamine overdose, or retell the same wilted business ideas. Who has time for that?<br />
<br />
Now I only read books recommended by people I admire. People like those at <a href="http://businessofsoftware.org/" target="_blank">the Business of Software Conference</a>. They consume an elephant's weight in books every year, so they make a great filter for recommendations.<br />
<br />
Every year, I ask the folks at the conference what books they've read in the last year that really made an impression on them. Most of these suggestions come from attendees, but a few were mentioned in the talks too. If one of the books below catches your eye, it will almost certainly be worth your time.<br />
<br />
<a href="https://www.amazon.com/gp/product/0857086197/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0857086197&linkId=d20ae8fe3d56207ca24bf1e7ce37da20" target="_blank">Oversubscribed: How to Get People Lining Up to Do Business with You</a> by Daniel Priestley.<br />
<br />
<a href="https://www.amazon.com/gp/product/0374533555/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0374533555&linkId=29ae915712600c7022cdc7f08d62da29" target="_blank">Thinking, Fast and Slow</a>, by Daniel Kahneman.<br />
<br />
<a href="https://www.amazon.com/gp/product/0061353248/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0061353248&linkId=d692fdfaed5cc06e6cd967d5711de5d7" target="_blank">Predictably Irrational, The Hidden Forces that Shape Our Decisions</a>, by Dan Ariely.<br />
<br />
<a href="https://www.amazon.com/gp/product/0143113763/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0143113763&linkId=bfefafd61c2ad3b549b62d158febe93c" target="_blank">Gut Feelings: The Intelligence of the Unconscious</a>, by Gerd Gigerenzer.<br />
<br />
<a href="https://www.amazon.com/gp/product/1118905555/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1118905555&linkId=46eef96671a8b4db8821720db44b0ec6" target="_blank">Everybody Writes: Your Go-To Guide to Creating Ridiculously Good Content</a>, by Ann Handley.<br />
<br />
<a href="https://www.amazon.com/gp/product/1400064287/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1400064287&linkId=f3aee0f037ce617aa4ebecbeda349088" target="_blank">Made to Stick: Why Some Ideas Survive and Others Die</a>, by Chip Heath.<br />
<br />
<a href="https://www.amazon.com/gp/product/1625274491/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1625274491&linkId=3853729424dbf4dd73dc7fba0a54e689" target="_blank">Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant</a>, by W. Chan Kim.<br />
<br />
<a href="https://www.amazon.com/gp/product/1501135910/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1501135910&linkId=224f032e50bf1d9a8441f0828796071a" target="_blank">Shoe Dog: A Memoir by the Creator of Nike</a>, by Phil Knight.<br />
<br />
<a href="https://www.amazon.com/gp/product/1455566381/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1455566381&linkId=ea887c835980d5a0ea21fe59ab169918" target="_blank">Tribe: On Homecoming and Belonging</a>, by Sebastian Junger<br />
<br />
<a href="https://www.amazon.com/gp/product/039916359X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=039916359X&linkId=419136b29d664ed3c2b00db26547bbed" target="_blank">The Chimp Paradox: The Mind Management Program to Help You Achieve Success, Confidence, and Happiness</a>, by Dr. Steve Peters.<br />
<br />
<a href="https://www.amazon.com/gp/product/0062060244/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0062060244&linkId=222cc1e14e2d30a9550b73a78f16be4c" target="_blank">The Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business</a>, by Clayton M. Christensen.<br />
<br />
<a href="https://www.amazon.com/gp/product/0984213031/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0984213031&linkId=eb92fb87c6a39c3d8e4bc8975cde887f" target="_blank">Consumption Economics: The New Rules of Tech</a>, by J.B. Wood.<br />
<br />
<a href="https://www.amazon.com/gp/product/0062292986/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0062292986&linkId=690a1d62505e2569eea45c95c9cbecd7" target="_blank">Crossing the Chasm, 3rd Edition: Marketing and Selling Disruptive Products to Mainstream Customers</a>, by Geoffrey A. Moore.<br />
<br />
<a href="https://www.amazon.com/gp/product/0470941529/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0470941529&linkId=0e83d50836c2b215c502efd1d2b7005f" target="_blank">The Advantage: Why Organizational Health Trumps Everything Else In Business</a>, by Patrick M. Lencioni.<br />
<br />
<a href="https://www.amazon.com/gp/product/1491919019/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1491919019&linkId=f3bcc3a9ff6526a8edf9904ffdade3b9" target="_blank">Badass: Making Users Awesome</a>, by Kathy Sierra. <i>If you want to improve anything, you probably need to read this book. Or watch Kathy's Business of Software talks. Not only does Badass tell you how to get your customers great results, it teaches you how learn skills. </i><br />
<i><br /></i>
<a href="https://www.amazon.com/gp/product/0984380213/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0984380213&linkId=82024fb064eea4830e571a37188cfdb3" target="_blank">Predictable Revenue: Turn Your Business Into a Sales Machine with the $100 Million Best Practices of Salesforce.com</a>, by Aaron Ross and Marylou Tyler.<br />
<br />
<a href="https://www.amazon.com/gp/product/1118408098/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1118408098&linkId=d3f3670dba9844de82a140ea0450668a" target="_blank">Selling with Noble Purpose: How to Drive Revenue and Do Work That Makes You Proud,</a> by Lisa Earle McLeod.<br />
<br />
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<span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com5tag:blogger.com,1999:blog-7022155324729704001.post-68063636230447918352016-09-06T20:28:00.003-05:002016-09-07T09:18:57.275-05:00Revisiting the Lightest Camera BagAre you tired of hauling around a camera bag that weighs more than your camera does? Did you spend a lot on lenses, but avoid carrying them because of a sore and sweaty back?<br />
<br />
You're not alone. I enjoy photography, but I hate feeling like a pack animal. I also felt dumb traveling with a camera luggage advertisement on my back. Expensive camera inside! That's the last thing I want strangers to think as I explore Barcelona.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1yPSVFq_qQOg4FFrad3lkiOx_rkPu3lzEpL8hzg8wat9j8A4ZIC3svOePCT_51ngRW75AQmwBbUiao4CUeTBVEaZQ2Vk3FPra1tMNQy6yI6iPfG1DuLhNJ1CepFifZ8MCDbg7RcZyzIRg/s1600/Enlight+4.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1yPSVFq_qQOg4FFrad3lkiOx_rkPu3lzEpL8hzg8wat9j8A4ZIC3svOePCT_51ngRW75AQmwBbUiao4CUeTBVEaZQ2Vk3FPra1tMNQy6yI6iPfG1DuLhNJ1CepFifZ8MCDbg7RcZyzIRg/s320/Enlight+4.jpg" width="320" /></a></div>
<br />
I started testing different bags more than four years ago. Camera equipment has changed a lot since then, but the core of my solution remains the same: a light, unpadded bag and separate padding for the camera and lenses. The unpadded bag I use and recommend is the <a href="http://www.avantlink.com/click.php?tt=cl&mi=10083&pw=193802&url=http%3A%2F%2Fwww.patagonia.com%2Fus%2Fproduct%2Flightweight-travel-courier-15-liters%3Fp%3D48813-0" target="_blank">Patagonia Lightweight Travel Courier Bag</a>. My courier bag has traveled the world. Taipei, Boston, Barcelona, Cologne, Amsterdam. It''s still in great shape, and still my favorite container for camera gear.<br />
<br />
Over the past few years, the design of the bag has changed, but it still weights very little: only 8.2 oz. There are different colors available, and it appears the there are now two smaller zippered compartments on the front rather than one. Also, the zipper pulls appear to be attached by knots rather than a bit of plastic.<br />
<br />
The bag's strap adjusts length with a nylon toggle, and the excess strap feeds into the bag so nothing dangles. The strap is made of a mesh that offers a little padding and allows your shoulder to breath. Breathability matters in the Texas summer. On each end of the bag there are elastic pockets useful for water bottles, sunglasses, or a compact umbrella. The exterior zipper pockets are great for carrying spare camera batteries or memory cards.<br />
<br />
The travel courier easily repels a light rain,. A surprise deluge in Venice taught me that a heavy downpour will get through the zippers and seams of the bag. Fortunately my guidebook soaked up most of the rain, sparing my electronics. The new bag claims to be weather-resistant, but I'd still carry an umbrella or plastic bag to protect anything sensitive.<br />
<br />
The bag has enough space to squeeze in my camera, two lenses, a jacket, and a pouch containing extra batteries, a Lens Pen, charging cables, and spare memory cards.When I carry a jacket, I put my camera and lenses on top to enjoy a little extra padding. A benefit of a bag without built-in padding is that it actually takes up less space when you carry less gear.<br />
<br />
The bag is designed in such way that the main compartment is unlikely to spill while being worn over the shoulder. I often use the interior of the bag to hold my lenses as I change them to reduce the chances of dropping anything on the ground.<br />
<br />
If you don't have a pouch for your camera accessories, I highly recommend the <a href="http://If you don't have a pouch for your camera accessories, I highly recommend the Tom Bihn clear organizer pouches." target="_blank">Tom Bihn clear organizer pouches</a>. They're well made and make it easy to find your gizmos without spilling them on the floor. I put all my camera essentials into a medium pouch so I can easily transfer my phone charger, cables, camera batteries, and SD Card Wallet between bags without forgetting anything.<br />
<br />
Over the past year, I've sold both of my Canon cameras and most of my Canon lenses. dSLRs are great for weddings and sports events, but the size and weight make travel photography miserable. Recent mirrorless cameras now match or exceed the quality of typical dSLRs, with a fraction of the weight and bulk.<br />
<br />
Today I carry a <a href="http://www.amazon.com/gp/product/B00PX8CHO6/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00PX8CHO6&linkCode=as2&tag=movaveinc-20&linkId=JNBD2YH6GN3S7O37" rel="nofollow">Sony Alpha a7II Mirrorless Digital Camera</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=B00PX8CHO6" height="1" style="border: none !important; margin: 0px !important;" width="1" />
body with the <a href="https://www.amazon.com/gp/product/B00FSB799Q/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B00FSB799Q&linkId=a861d4ab0cb4bb87492b54811b1d4099" target="_blank">Sony Zeiss 55mm f1.8 lens </a>attached. You can read more about <a href="http://www.engineeringadventure.com/2015/01/sony-a7-ii-ilce7m2-first-impressions.html" target="_blank">this camera and lens combination in my review here</a>. Depending on my plans, I sometimes carry a second lens in the bag - usually the Sony 28-70 lens.<br />
<br />
The decision to go mirrorless shrank my equipment weight and bulk. I have plenty of room in the courier bag to add a lens pen, pocket umbrella, cheap sunglasses, spare batteries, USB backup batteries, and sometimes a jacket or coat.<br />
<br />
My padding has changed with my camera choice. I no longer use the Domke wraps to pad the camera. Now I protect the camera with the <a href="http://www.amazon.com/gp/product/B0087N0ODA/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B0087N0ODA&linkCode=as2&tag=movaveinc-20&linkId=UIACNFWODZTV7GKJ" rel="nofollow">LensCoat LCBBLBK BodyBag with Lens (Black)</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=B0087N0ODA" height="1" style="border: none !important; margin: 0px !important;" width="1" />. It's a neoprene shell shaped roughly like a camera with lens attached.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfYkhxYnd05rsTDuXFub4dIigFq6rFsyVRBgrQloxcL_w_ZqkpZ_x0Jy8mNnXn8FCwLaVS3PfF7MMnf8z5O0oWGqhXrz7-rkdvEZiXFpiFo09rpXwIO-ggmUeswl88TWnDFQiGRY1zTwOC/s1600/Enlight.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfYkhxYnd05rsTDuXFub4dIigFq6rFsyVRBgrQloxcL_w_ZqkpZ_x0Jy8mNnXn8FCwLaVS3PfF7MMnf8z5O0oWGqhXrz7-rkdvEZiXFpiFo09rpXwIO-ggmUeswl88TWnDFQiGRY1zTwOC/s320/Enlight.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">LensCoat BodyBag with Lens</td></tr>
</tbody></table>
The BodyBag has a flap that comes over the top and back of the camera that secures with velcro. Your camera straps poke out of the sides of the shell, so you can still carry the camera over your shoulder. I frequently wear the camera in the BodyBag over my shoulder when it's not in the courier bag. It offers protection from bumps in crowded places and a little shelter from dust and rain.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnHhLjsYuugk5ti_MAVsVQH1zUSPklAKEWEzbDc-mwgVjwCpIn0Oy_fjHK7Py7YCWfhKN5Nb-wL_3rki49FZCZzU6vOp78G-3UgFiT-PHI5fMJjdFhV4HmqFJCEHl5jP1xORZ1FxmOGM4_/s1600/Enlight+2.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="252" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnHhLjsYuugk5ti_MAVsVQH1zUSPklAKEWEzbDc-mwgVjwCpIn0Oy_fjHK7Py7YCWfhKN5Nb-wL_3rki49FZCZzU6vOp78G-3UgFiT-PHI5fMJjdFhV4HmqFJCEHl5jP1xORZ1FxmOGM4_/s320/Enlight+2.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">LensCoat BodyBag with Lens open to reveal a Sony Alpha a7II</td></tr>
</tbody></table>
Inside the BodyBag, there is a small loop of material that opens with a snap -- a leash to attach the BodyBag to your camera strap. You can see it peeking out of the middle of the BodyBag in the photo above. When you want to used the camera, you just open the velcro, peel off the BodyBag, and let it dangle from the strap. If you prefer, remove the BodyBag completely and stuff it into your pocket.<br />
<br />
Inside the "snout" of the BodyBag, the part that sits in front of your lens, the LensCoat folks thoughtfully built a small pocket containing a disc of rigid foam. The foam gives another layer of protection to one of the most vulnerable parts of your camera: the front lens element.<br />
<br />
I hate missing shots, so I store my camera setup in the BodyBag with the lens cap off. Who wants to suffer the embarrassment of trying to take photos with the lens cap on?<br />
<br />
I store the lens cap in the same pocket BodyBag pocket that contains that disc of foam. That way I'll won't have misplaced my lens cap when it comes time to swap lenses. Please use common sense if you copy this technique. I always have a lens hood installed on my lens, creating some extra space between that pocket and the front element of my lens. I wouldn't recommend storing anything hard like a lens cap where the glass of your lens might rub against it.<br />
<br />
This setup with the BodyBag just fits my Sony Alpha A7 II with the Sony Zeiss 55mm f1.8 lens. It fits snugly with the lens hood installed in the extended position. It looks like a tailored fit, which I love since this is my favorite lens on my favorite camera. LensCoat offers different sizes of the BodyBag; I suggest comparing your camera measurements to the measurements of the BodyBags. The BodyBags have a small amount of stretch.<br />
<br />
To carry a second lens, I've adapted an different <a href="https://www.amazon.com/gp/product/B0087N0GH4/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B0087N0GH4&linkId=345f853acf97b340ca3800b17a21e522" target="_blank">LensCoat BodyBag</a>. This one was designed for holding a dSLR body without a lens attached. My 28-70mm lens fits in it fine, but a properly-sized LensCoat lens pouch is probably a better bet if you're buying something new. <a href="https://www.amazon.com/gp/product/B0087N2Z9Q/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B0087N2Z9Q&linkId=c76a2397cef529a56310f8c23a8cce4b" target="_blank">The lens-specific models</a> feature a disc of hard foam to protect the front glass of your lens. They offer a variety of <a href="https://www.amazon.com/gp/product/B0087N2Z9Q/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B0087N2Z9Q&linkId=c76a2397cef529a56310f8c23a8cce4b" target="_blank">different size neoprene Lens Pouches</a>.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9I0iL9RF0vtG5EzCPEDmZRL_0Tdi45qyOJecU61h_e4XPypF0N4p0MBP2cfwP0mwGlazsK47bU-KJ5Imw4lP7xXG8piD6JRv_BLdwiaL2X469_mB8ZPoECBdqnub8V0ypxPuWj-mv9G-T/s1600/Enlight+3.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="217" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9I0iL9RF0vtG5EzCPEDmZRL_0Tdi45qyOJecU61h_e4XPypF0N4p0MBP2cfwP0mwGlazsK47bU-KJ5Imw4lP7xXG8piD6JRv_BLdwiaL2X469_mB8ZPoECBdqnub8V0ypxPuWj-mv9G-T/s320/Enlight+3.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Patagonia Lightweight Travel Courier Bag with my LensCoat BodyBag with Lens on top</td></tr>
</tbody></table>
For walking around town, I feel like the BodyBag plus the Travel Courier offers a perfect compromise between convenience and protection. It doesn't provide a half-inch-thick foam sarcophagus around my camera, but it also doesn't weigh ten pounds.<br />
<br />
When I travel by air, I empty the courier bag and put it with my clothes (the courier stuffs into it's own interior pocket). The camera and lenses I leave in their LensCoat bags and jam into my well-padded <a href="https://www.amazon.com/gp/product/B00O3GSK9U/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B00O3GSK9U&linkId=526901d9782f30446f05f06991d711e2" target="_blank">Think Tank Photo Urban Disguise 60 v2 bag</a>. The LensCoat padding works fine for a long hike, but not for getting thrown around by TSA officers, squeezing under airplane seats, and getting rammed by rolling suitcases. That's where you want an expensive foam sarcophagus like my Think Tank.<br />
<br />
Once I'm at my destination, I move my camera equipment back to my lightweight courier for exploring.<br />
<br />
This camera bag setup has changed my life. I take so many more photos now.<br />
<br />
<br />
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<br />
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<span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. </span><span style="background-color: white; color: #333333; font-family: "verdana" , "arial" , "helvetica" , sans-serif; font-size: xx-small;">We also participate in Patagonia's affiliate program. </span><span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">Buying items through this link helps sustain this blog and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com2tag:blogger.com,1999:blog-7022155324729704001.post-43398974532037073522016-08-07T14:36:00.000-05:002016-08-24T11:00:24.536-05:00Recommended Books and Educational Resources from MicroConf Europe 2016<i><b>Update</b>: 7 August 2016: added Lazy Leadership. 8 August 2016: added Crucial Conversations. 9 August 2016: added Startup Madlibs.</i><br />
<br />
The folks who attend Microconf tear through great piles of books every year. They are particularly well informed. They attend many conferences, listen to (and produce) podcasts, and are involved in many different communities. They sit at the top of the reader food-chain. My kind of people!<br />
<br />
At MicroConf Europe 2016, I asked as many people as possible: which books have had the biggest impact on you in the past year?<br />
<br />
Here are their answers, plus a few books that were mentioned in the talks:<br />
<br />
<a href="https://www.amazon.com/gp/product/1118113365/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1118113365&linkId=153f43a6d13c2afbadb731845c1aaf91" target="_blank">Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing</a> by Roger Dooley.<br />
<br />
<a href="http://www.singlefounderhandbook.com/" target="_blank">The Single Founder Handbook</a> by Mike Taber<br />
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<a href="https://www.amazon.com/gp/product/0071466592/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0071466592&linkId=53bb875b4c80505712de36b40813dc40" target="_blank">Instant Cashflow</a> by Bradley Sugars (James Kennedy described this book as “tacky”)<br />
<br />
<a href="https://www.amazon.com/gp/product/1449335675/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1449335675&linkId=e547e0b54748cbb4ec0e1b974c87c6b8" target="_blank">Lean Analytics</a> by Alistair Croll and Benjamin Yoskovitz (James Kennedy called this one awesome)<br />
<br />
<a href="https://www.amazon.com/gp/product/1591845823/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591845823&linkId=105e96a6aef454b0e77587130c66d5e0" target="_blank">Built to Sell: Creating a Business That Can Thrive Without You</a> by John Warrillow<br />
<br />
<a href="https://www.amazon.com/gp/product/1591844975/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591844975&linkId=6ab4d68cf66e4678a72c8c5b22699ebb" target="_blank">Finish Big: How Great Entrepreneurs Exit Their Companies on Top</a> by Bo Burlingham<br />
<br />
<a href="https://www.amazon.com/gp/product/1118905555/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1118905555&linkId=309627e663301a26766620dd03140e0e" target="_blank">Everybody Writes: Your Go-To Guide to Creating Ridiculously Good Content</a> by Ann Handley<br />
<br />
<a href="https://www.amazon.com/gp/product/1608320995/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1608320995&linkId=90848e9b0c042e015b4ff9b073323687" target="_blank">Double Double: How to Double Your Revenue and Profit in 3 Years or Less</a> by Cameron Herold<br />
<br />
<a href="https://www.amazon.com/gp/product/1119998956/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1119998956&linkId=0d0b2c1e187e08bca879ce798a2c36a6" target="_blank">Design for Hackers: Reverse Engineering Beauty</a> by David Kadavy<br />
<br />
<a href="https://www.amazon.com/gp/product/1591844886/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591844886&linkId=7087529be6262fec09ef973dcab6c31d" target="_blank">The Pumpkin Plan: A Simple Strategy to Grow a Remarkable Business in Any Field</a> by Mike Michalowicz<br />
<br />
<a href="https://www.amazon.com/gp/product/1591846447/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1591846447&linkId=5edf92b879e6af0f812875a75b10d06b" target="_blank">Start with Why: How Great Leaders Inspire Everyone to Take Action</a> by Simon Sinek<br />
<br />
<a href="https://www.amazon.com/gp/product/057809665X/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=057809665X&linkId=33bd94450d914de22718d1216eaf4f1f" target="_blank">It's Not All About Me: The Top Ten Techniques for Building Quick Rapport with Anyone</a> by Robin Dreeke<br />
<br />
<a href="https://www.amazon.com/gp/product/1491919019/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1491919019&linkId=dc2f2ae0ebd69c47fe4bdc0d188575e8" target="_blank">Badass: Making Users Awesome</a> by Kathy Sierra<br />
<br />
<a href="https://medium.com/the-modern-team/lazy-leadership-8ba19e34f959#.rr7c5mciz" target="_blank">Lazy Leadership</a> by Andrew Wilkinson (blog post)<br />
<br />
<a href="https://www.amazon.com/gp/product/0071771328/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&tag=movaveinc-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=0071771328&linkId=689cc9c2d7c3defb9422195b838313b8" target="_blank">Crucial Conversations: Tools for Talking When Stakes Are High</a> by Kerry Patterson<br />
<br />
<a href="https://fi.co/madlibs" target="_blank">Startup Madlibs: Perfecting Your One Sentence Pitch</a> by Adeo Ressi<br />
<br />
Like this list? Be sure to also see <a href="http://www.engineeringadventure.com/2016/04/recommended-books-and-educational.html">recommended books from MicroConf USA 2016</a>.<br />
<br />
If you're a reader, you might also consider looking at my free app <a href="http://www.passagesapp.net/" target="_blank">Passages</a>. Passages is a journaling app for your reading. It's a place to store the important quotes and snippets that you want to learn. It's also a tool to help you internalize that knowledge.<br />
<br />
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<span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com1tag:blogger.com,1999:blog-7022155324729704001.post-20279531363450977752016-04-15T09:48:00.003-05:002016-04-16T10:47:08.065-05:00Tools Mentioned at MicroConf 2016MicroConfers love tools: tools to make money, to automate business processes, to make life better, to build businesses around. I'm sure that many businesses are only successful because of the boost in efficiency they get from the right tools. These are the tools that I heard mentioned at MicroConf:<br />
<ul>
<li><a href="https://zencastr.com/" target="_blank">Zencastr</a> - web-based podcast recording</li>
<li><a href="https://zoom.us/" target="_blank">Zoom</a> - video conferencing, screen sharing, etc.</li>
<li><a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwjb3sO414_MAhWGQCYKHf8ICwQQFggiMAE&url=https%3A%2F%2Fitunes.apple.com%2Fus%2Fapp%2Fspeaky-voice-reader-for-web%2Fid754061898%3Fmt%3D8&usg=AFQjCNEIqyACfk8RLQWYipeJDsGk5w_BYg&sig2=4MCYeN5PgQ4jMagLp2O2PA" target="_blank">Speaky</a> - an app for reading web articles to you</li>
<li><a href="https://www.personalcapital.com/" target="_blank">Personal Capital</a> - a more investment-oriented <a href="https://www.mint.com/" target="_blank">Mint</a> competitor</li>
<li><a href="https://zapier.com/" target="_blank">Zapier</a> - an web automation tool and competitor to <a href="https://ifttt.com/" target="_blank">ifttt</a></li>
<li><a href="https://hireotto.com/" target="_blank">Hire Otto</a> - another web automation tool, this one aimed at businesses</li>
<li><a href="https://www.pluralsight.com/">Pluralsight</a> - a place to get royalties from technical tutorials</li>
<li><a href="http://www.ulyssesapp.com/" target="_blank">Ulysses</a> - a tool for writing</li>
<li><a href="https://www.literatureandlatte.com/scrivener.php" target="_blank">Scrivener</a> - a tool for writing</li>
<li><a href="http://www.remarq.io/">Remarq</a> - creates well-designed documents from markdown</li>
<li><a href="https://trello.com/" target="_blank">Trello</a> - a tool for project and process management</li>
<li><a href="http://close.io/">Close.io</a> - Steli Efti's Sales tool / CRM</li>
<li><a href="https://www.pipedrive.com/" target="_blank">Pipedrive</a> - a Sales CRM</li>
<li><a href="http://quickmail.io/">Quickmail.io</a> - automated email</li>
<li><a href="https://bluetick.io/">Bluetick.io</a> - Mike Taber's new automated email tool</li>
<li><a href="https://mastermindjam.com/">MastermindJam</a> - a Mastermind matching service (if you have a business you need a mastermind group)</li>
</ul>
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Self-promo: the app I'm working on, <a href="http://passagesapp.net/" target="_blank">Passages</a>. :)</div>
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WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com1tag:blogger.com,1999:blog-7022155324729704001.post-48542162747663987652016-04-14T10:09:00.002-05:002017-04-12T14:17:49.929-05:00How to Build Wealth Dinner at MicroConf 2016<b>Update: "Abe" contacted me to clarify my notes and with some new information about how his financial advisor is paid. I also got some feedback that my commentary on the financial advisor's fee was confusing. I improved the wording (I hope). Update 2: I edited my commentary on the fees to appear under "Bob" for clarity now that we know "Abe" pays a flat fee. Thanks "Abe"!</b><br />
<br />
Do you have a financial plan? Does it go beyond owning your own business? Entrepreneurship and wealth building are two different activities, even if two seem linked. You could build a successful company without ever becoming wealthy.<br />
<br />
These notes are from an attendee-organized dinner at MicroConf. Although most of us would call ourselves entrepreneurs, most of these attendees recognize that there is more to wealth than making money with software.<br />
<br />
We began our meal by going around the table and introducing ourselves and what each of us hoped to get from the dinner. We had quite the spectrum of wealthiness. Three of us were financially independent and no longer needed to work for income. Some of us were doing fairly well. Some of us have not built much wealth, or had lots of debt. Some of us had made great financial wealth and then lost it all investing it into their failing business.<br />
<br />
The three wealthy folks among us had systems for building and maintaining that wealth. A few of the rest of us had systems as well. There were a few followers of <a href="http://www.mrmoneymustache.com/" target="_blank">Mr. Money Mustache</a> in the group. Quite a few of the group seemed interested in starting a system, but it wasn't clear what they were currently doing.<br />
<br />
After our introductions, the organizer asked the three financially independent folks to share their financial insights with us. Not surprisingly, we pelted them with questions. This took the remainder of the time allotted to dinner.<br />
<br />
<b>Lets call the first speaker "Abe." </b>Abe had built wealth through his business and used a financial advisor who managed the bulk of his assets. The speaker didn't share specific number, but characterized himself as a member of the "two comma club" in terms of liquid assets. That means more than 1 million USD, but less than 1 billion USD.<br />
<br />
Abe considered himself financially conservative and cautious about who managed his money. He picked his advisor based on a personal recommendation. He trusts the advisor also because his advisor and he have a very similar shared philosophy around investment.<br />
<br />
Abe meets with his advisor once a quarter, although it sounded like he was in regular contact. He even said that he has given trade instructions over the phone, which is surprising to me. It seems contradictory to have a financial planner manage your investments only to override their decisions.* I wish I had the time to get a clarification. <b>Update: </b>"Abe" clarifies that he has only done this twice in the past five years to take advantage of specific events.<br />
<br />
His advisor was affiliated with Ameriprise and he had <strike>all</strike> most of his assets deposited with them. He was charged for his initial consultation with his advisor (about $1,000) and <strike>is charged an annual fee based on a percentage of the assets under management</strike>. <b>Update:</b> Abe looked into it. He mis-remembered. His advisor charges a flat fee.<br />
<br />
Abe <strike>did not know the fee, but </strike>was quite happy with the value he got for the fees he pays. He claimed that his account was up by 4% during the down market that started in the middle of 2015.<br />
<br />
One interesting thing Abe noted: he uses Google Finance to track his portfolio performance. Why? It sounds like Ameriprise doesn't do a good job of it.<br />
<br />
<i><b>My Thoughts:</b> <b>Update: Abe's fee is flat after all (see above). I've moved my thoughts about percentage-based advisor fee's to Bob's commentary below.</b></i><br />
<i><br />Abe's use of a flat-fee financial advisor makes a lot of sense to me. He could do all the work of managing a portfolio himself, like I do. That would save him a couple thousand dollars a year. But if you have retired with a big nest egg, does that use of your time align with your priorities?</i><br />
<i><br /></i>
<i>Also, Abe may not enjoy managing a portfolio. I enjoy herding ETFs in my brokerage account. But I don't enjoy taxes; I pay an accountant to handle them for me. When the economics make sense, why not let someone else handle the things that cause you stress or distract from your goals?</i><br />
<i><br /></i><i>I worry that Abe isn't calculating his portfolio performance correctly if he is using Google Finance to do it. Maybe he is. But maybe he is forgetting his fees and any tax implications if his advisor is actively trading. Since Abe is using his account for income, this is less of a concern: the value of his account and the income checks will make it obvious when something goes wrong. If you're aiming for growth, tracking performance and fees becomes more important: over a long enough time period tiny losses really add up.</i><br />
<i><br /></i>
<i>As for his 4% gain in the down market, I wish I could have gotten more details. It is easy to cherry-pick dates, or make other errors that imply a more amazing portfolio than the reality. I did well coming out of that market simply by increasing the amount I invested each month as the market dropped. If I had looked at the same situation at the bottom of that market, I would have shown large losses.</i><br />
<br />
<b>We'll call the second speaker Bob.</b> Like Abe, he also pays a financial advisor to manage his nest egg. Unlike Abe, his advisor is compensated with annual percentage fee against his assets under management. He lives off the income. Except in how he pays has financial advisor, his methods align with Abe.<br />
<br />
To that he adds that we should all invest in ourselves, saying "You are your best asset." I take that to mean that we should invest in our education, our mental and physical health, and our aspirations.<br />
<br />
<i><b>My Thoughts:</b> Abe and Bob both use advisors. It makes me think: these two are delegating. In business they probably used accountants, book keepers, and attorneys to make their business run smoother and free up their time for higher priorities. In Bob's case the compensation of his advisor isn't like the professionals he might have used in his business; those professionals aren't paid based on the book value of a client company.</i><br />
<i><br /></i>
<i>My biggest concern about Bob's setup is the percentage-based fee. Bob didn't mention what the percentage was, but 1% seems typical. Years ago, when I was first learning about investment, 1% didn't seem like much. In fact, it seemed good: yay, the advisors fee is aligned with my success!</i><br />
<i><br /></i><i>I was naive. </i><i>If you're trying to grow your net worth, the percentage-based fee can add up: that fee will compound along with your net worth. Remember: compounding is the magic of investing. <a href="https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-cost" target="_blank">That's great for the advisor: their fee grows. Meanwhile, you're missing a chunk of your magic.</a> </i><br />
<i><br /></i><i>Bob's advisor is charging a percentage of assets under management. Even if there are losses or no gains, the advisor gets a percentage for that year. How is that aligned? Using my imagination: an aligned incentive might be paying 1% of your investment gains. No gains would mean no fees in that case. Or just charge me for the advisor's time -- it works for Abe's advisor, it works for my accountant!</i><br />
<i><br /></i><i>What additional do you get for the growing fee? Nothing. The math for balancing a portfolio is the same if you have $1,000,000 or if you have $1,000 to invest. At a million dollars, you might qualify for some new kinds of assets (e.g. expensive hedge funds), but so what?</i><br />
<i><br /></i><i>Well, what about trading fees? Those fees go down relative to the size of the portfolio: you can trade for less than $10 no matter how many shares you trade.</i><br />
<i><br /></i><i>Worse, if you're still working, you're still contributing to your net worth. If you deposit it with your advisor, they get to take 1% of it that year. Your advisor gets to take 1% of all the salary you earn and save each year!</i><br />
<i><br /></i><i>Presumably some of the assets your advisor buys will also have annual percentage-based fees: all mutual funds and ETFs do (the best are measured in hundredths of a percent). Hedge funds are known for huge fees. In that case, the advisor needs to be able to provide significant benefits over a self-managed set of investments. And it can't just be convenience: Wealthfront is more convenient and has a 0.25% annual fee (for funds beyond $10,000).</i><br />
<i><br /></i><i>All of this is to say: <a href="http://www.fool.com/investing/general/2014/04/07/adv.aspx" target="_blank">paying a percentage of your net worth to an advisor makes no sense</a> to me. Worse, I consider asking folks to pay an annual percentage of their managed assets bad financial advice. </i><br />
<i><br /></i><i>One thing: If you're using your nest egg to generate income, a percentage if assets under management fee might not be as big of a deal. In that situation your net worth might be consistent, and you'd pay around the same fee each year. </i><br />
<i><br /></i><i>But if you're trying to grow your net worth, </i><i>a 1% or greater annual fee works against that goal.</i><br />
<br />
<i>Both Bob and Abe are using their managed assets for income, not growth. How did they grow wealth? They built a valuable company. Entrepreneurs need to keep the distinction in mind and pick a wealth-building strategy that fits their stage in that process, their timeline, and their wealth goals.</i><br />
<br />
<b>The final speaker was John Sonmez</b>, and unlike the others, he gave explicit permission to share his identity. John spoke passionately about his wealth building system and shared tons of details. I was pounding notes into Evernote at maximum speed. Apologies if some of the details aren't clear or if I get some details wrong. <a href="http://simpleprogrammer.com/2013/09/16/secret-non-software-developer-life-ive-never-told/" target="_blank">You can find some of this same information on John's blog</a>.<br />
<br />
John's story starts when he was 19. He got his first tech job and was making around $170,000. Unlike how I imagine most 19-year-olds, he felt grateful. He knew he was making really good money, and he wanted to make the most of it.<br />
<br />
John did some simple math based on his tax rate and minimal expenses. He figured he could save, and with typical investing returns have a million dollars in ten years. Ten years sounded like way too long to buy his freedom.<br />
<br />
John started researching different investment strategies. To him, everything he read, all his simulations pointed towards buying residential rental properties. Real estate. He started buying properties at the rate of one per year. <br />
<br />
Why real estate? Leverage: you can buy a property with a loan for 80% of the cost of the property. It only ties up 1/5 of the cost of the asset -- and if things work out properly, the rental income pays off the loan. When trading stocks, the most margin you can have is 50% - you have to put down 1/2 the cost of the asset. And with stocks, you can run into problems if the value of that stock drops too much.<br />
<br />
Real estate can also have tax advantages: you can depreciate the property over a long period of time. Stock doesn't work that way. You can also deduct interest and all fees.<br />
<br />
Finally, John says that Real Estate benefits from inflation.<br />
<br />
John offers this real estate advice:<br />
<ul>
<li>Don't speculate. Don't buy in "hot" markets, or markets that are cyclical.</li>
<li>Invest in the central areas of a city</li>
<li>Put 30% down on your first property to reduce the leverage</li>
<li>Put at least 20% down when you buy to avoid PPI, etc.</li>
<li>Pad your rental income estimates: assume 10% for property management, 10% maintenance, 10% for the unit being unoccupied</li>
<li>Look for a rent to price ratio of 1 or greater: (monthly rent) / (price / 1000) [note: this sounds like a simplified <a href="http://www.investopedia.com/terms/c/capitalizationrate.asp" target="_blank">Capitalization Rate</a>]</li>
<li>Put each property into it's own LLC</li>
<li>Before buying a property, ask property managers if they would service it (it's a bad sign if they don't service a particular neighborhood)</li>
<li>Use the crankiest real estate inspector you can find. How do you find a cranky inspector? Look for someone with lots of negative reviews from realtors. </li>
<li>Have umbrella insurance</li>
<li>Don't speculate on the value of the property increasing, don't sell; the goal is income</li>
<li>Use multi-family units to reduce the number of transactions and simplify finding renters. He likes four-plexes.</li>
<li>The only Real Estate investing book he likes is the <a href="http://www.amazon.com/gp/product/0071446370/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0071446370&linkCode=as2&tag=movaveinc-20&linkId=TIGINCE6UVNO4ZDP">The Millionaire Real Estate Investor</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=0071446370" height="1" style="border: none !important; margin: 0px !important;" width="1" /> by Gary Keller</li>
</ul>
How has this worked for John? He owns $3 million in real estate. $2.2 million is paid off. He currently makes $10,000 - $12,000 in passive real estate income monthly. He had no issues in the 2008 real estate crisis.<br />
<br />
One of the attendees asked John: what about the Tesla/Google/Apple/Uber autonomous cars? Won't that hurt your strategy? Won't real estate values in city centers go down when commuting isn't such a big deal? John's reply: he thinks that's a long way off.<br />
<br />
I'd also point out that there are many parts of the world where there already is "autonomous" transportation. The San Francisco Bay Area already has BART and Caltrain and Uber. Depending on your employer, there are also Google, Yahoo, etc buses. Do people still want to live in city centers there? Housing prices says yes.<br />
<br />
Another attendee asked: what about all the fees and expenses? John pointed out that the goal is to keep the properties for rental income, not sell the properties. He buys the properties so that the rental income, with a conservative margin, will pay for the fees in addition to bringing him income.<br />
<br />
<i><b>My Thoughts:</b> John's speech pumped me up. At the same time: real estate really frightens me. My parents struggled to sell their house during the real estate crisis. I lived a thousand miles away and it still left a scar.</i><br />
<i><br /></i>
<i>As a home owner, I also know that homes have a lot of hidden costs: property taxes, maintenance, insurance, inspections, realtor commissions, etc. These costs can add up, even if you can deduct them from your taxes. Some, like paying a realtor, only happen once per property if you never sell. </i><br />
<i><br /></i>
<i>I feel conflicted. On one hand: wow, John has really accomplished something. On the other: wow, it would take me a lot of time, research, and perhaps soul-searching for me to feel comfortable to buy a rental property. Would it be worth that time? Or would it be more valuable for me to build my own software company and invest my wealth into index funds?</i><br />
<i><br /></i>
<i>My other concern with a 100% real estate approach (and John didn't say if he was 100% real estate) is the liquidity issue. If you need a huge chunk of money for, say, cancer treatments for a loved one, how would you get it? Real estate can take years to sell in the wrong environment -- or maybe you can't sell it at all if you live somewhere like Detroit. On top of that, the commissions are large. Index Funds you can sell in seconds on any trading day for less than $10 per fund.</i><br />
<i><br /></i>
<i>However, real estate might be more liquid than a small business, which most of us are also investing in. In good markets, selling a house within 30 days is reasonable. For a small business, it could take six months even if you find a buyer quickly. </i><br />
<i><br />One unifying thought for all of this: how you invest and what you invest in is a personal decision. For some people, giving control to an advisor would be impossible. Others want to enjoy life and don't care about the costs or the details as long as they get enough income to maintain their lifestyle worry-free. Real estate might be a lot of fun for some folks. For others, it might feel too risky or unconventional.</i><br />
<i><br /></i>
<i>Start with Bob's advice: invest in yourself. Research what is best for you. Definitely don't blindly rely on Abe, Bob, or John's advice for riches. Also remember that there are financial advisors who charge flat fees or by the hour. You can also have a discussion with your accountant. I often ask mine about new investment ideas I hear. He has seen enough clients try things that he knows what works, what fails, and why. </i><br />
<i><br /></i>
<b>Want more? Read the <a href="http://www.engineeringadventure.com/2017/02/an-unlucky-engineers-guide-to-wealth.html" target="_blank">Unlucky Engineer's Guide to Wealth</a>.</b><br />
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*I'm guilty of similar inconsistencies. My system is built around index funds -- not individual stocks. I still break the rules and occasionally buy small amounts of individual companies I like. It's fun.<br />
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†Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-77321042645393717842016-04-11T18:58:00.002-05:002016-04-18T10:18:32.427-05:00Recommended Books and Educational Resources from MicroConf 2016<a href="http://www.microconf.com/" target="_blank">MicroConfers</a> read a lot. This is one of the reasons I've created <a href="http://www.passagesapp.net/" target="_blank">Passages</a>: to help people maximize their return on their reading investment. Here are some of the books I heard mentioned, or that I mentioned to other attendees.<br />
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<a href="http://www.amazon.com/gp/product/1939447720/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939447720&linkCode=as2&tag=movaveinc-20&linkId=4H64KIIT4NVTHUG6">Ask: The Counterintuitive Online Formula to Discover Exactly What Your Customers Want to Buy...Create a Mass of Raving Fans...and Take Any Business to the Next Level</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=1939447720" height="1" style="border: none !important; margin: 0px !important;" width="1" /><br />
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<a href="http://www.amazon.com/gp/product/0997082305/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0997082305&linkCode=as2&tag=movaveinc-20&linkId=GU3Q3W65MW7YYPKS">Will It Fly? How to Test Your Next Business Idea So You Don't Waste Your Time and Money</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=0997082305" height="1" style="border: none !important; margin: 0px !important;" width="1" />
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<br />
<a href="http://www.amazon.com/gp/product/1601631391/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1601631391&linkCode=as2&tag=movaveinc-20&linkId=ISLHFKKGTYBAM2UY">Secrets of Power Negotiating, 15th Anniversary Edition: Inside Secrets from a Master Negotiator</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=1601631391" height="1" style="border: none !important; margin: 0px !important;" width="1" /> I suggested this book to a few attendees who run agencies. I found this book to be a really fun read. I have not read it yet, but I've heard <a href="http://www.amazon.com/gp/product/0143118757/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0143118757&linkCode=as2&tag=movaveinc-20&linkId=XTS742WEE4EFPJW2">Getting to Yes: Negotiating Agreement Without Giving In</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=0143118757" height="1" style="border: none !important; margin: 0px !important;" width="1" /> is quite good as well.<br />
<br />
<a href="http://www.amazon.com/gp/product/1591845947/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1591845947&linkCode=as2&tag=movaveinc-20&linkId=WKGGBMS43DYWXQZ2">The Charisma Myth: How Anyone Can Master the Art and Science of Personal Magnetism</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=1591845947" height="1" style="border: none !important; margin: 0px !important;" width="1" /> Another fascinating book that I suggested to my new MicroConf friends.<br />
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<a href="http://businessofsoftware.org/2013/02/gail-goodman-constant-contact-how-to-negotiate-the-long-slow-saas-ramp-of-death/" target="_blank">Gail Goodman, Constant Contact. How to negotiate the Long, Slow, SaaS Ramp of Death</a> A Business of Software talk that every SaaS business owner needs to hear.<br />
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<a href="http://www.amazon.com/gp/product/0060589469/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0060589469&linkCode=as2&tag=movaveinc-20&linkId=JS2B2J3OYRFASFS5">Zen and the Art of Motorcycle Maintenance: An Inquiry Into Values</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=0060589469" height="1" style="border: none !important; margin: 0px !important;" width="1" />
<br />
<br />
<a href="http://www.amazon.com/gp/product/B00UIC5HQM/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00UIC5HQM&linkCode=as2&tag=movaveinc-20&linkId=IZG36TF2VRMOXU66">Become a Technical Marketer: A Guide to Working Faster, Accelerating Growth, Automating Marketing Tasks, and More</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=B00UIC5HQM" height="1" style="border: none !important; margin: 0px !important;" width="1" />
<br />
<br />
<a href="http://www.amazon.com/gp/product/1591845572/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1591845572&linkCode=as2&tag=movaveinc-20&linkId=V54W5KX57GMDR4VI">The Personal MBA: Master the Art of Business</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=1591845572" height="1" style="border: none !important; margin: 0px !important;" width="1" />
<br />
<br />
<a href="http://www.amazon.com/gp/product/1492180742/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1492180742&linkCode=as2&tag=movaveinc-20&linkId=VBZVBRQQWOPK6F4O">The Mom Test: How to talk to customers & learn if your business is a good idea when everyone is lying to you</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=1492180742" height="1" style="border: none !important; margin: 0px !important;" width="1" /><br />
<br />
<a href="http://kopywritingkourse.com/" target="_blank">Kopywriting Kourse</a><br />
<br />
<a href="http://www.amazon.com/gp/product/0473175045/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0473175045&linkCode=as2&tag=movaveinc-20&linkId=BYF7FWNM6MQWQMQB">The Brain Audit: Why Customers Buy (and Why They Don't)</a><img alt="" border="0" src="http://ir-na.amazon-adsystem.com/e/ir?t=movaveinc-20&l=as2&o=1&a=0473175045" height="1" style="border: none !important; margin: 0px !important;" width="1" />
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<br />
<a href="http://growthlab.com/products/call-to-action/" target="_blank">The Call to Action</a><br />
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Finally, <a href="http://www.jasonswett.net/my-favorite-books-of-2015/" target="_blank">Jason Swett shared this list of the top books of 2015</a> with me.<br />
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<span style="background-color: white; color: #333333; font-family: "georgia" , serif; font-size: xx-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-50537769339132270802016-04-10T10:11:00.004-05:002016-04-18T10:15:07.665-05:00Trends at MicroConf 2016You can learn a lot by chatting with folks at <a href="http://www.microconf.com/" target="_blank">MicroConf</a>. Here are a few patterns I noticed in the talks and talking with attendees. Perhaps you'll find something to help your business take off!<br />
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<a href="https://www.shopify.com/" target="_blank"><b>Shopify</b></a>. I talked to a few folks doing consulting work or building plugins (or Apps, as Shopify calls them) for Shopify. At least one person said that the market for Shopify products and services was still small. It's probably true, but the amount of interest makes you wonder how fast the Shopify ecosystem will grow in the next year or two.<br />
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<b>Email marketing tools</b>. <a href="https://www.getdrip.com/" target="_blank">Drip</a>. <a href="https://bluetick.io/" target="_blank">Bluetick</a>. <a href="https://convertkit.com/" target="_blank">ConvertKit</a>. Many folks are building and using these tools. You probably should be too.</div>
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<b>Pre-paid consulting</b>. Some agencies and consultants are not accepting <a href="https://en.wikipedia.org/wiki/Net_D" target="_blank">net-90</a> payment terms. Depending on the client or their own inclinations, they are charging in advanced, or requiring payment at pre-defined milestones for the project to continue. Not offering your clients credit seems like a great way to remove some risk from a consultancy.</div>
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<b>Payroll tools</b>. Some of the MicroConf attendees own products that help customers run payroll. At least one of them used <a href="https://www.dwolla.com/" target="_blank">Dwolla</a> to transfer the funds. Paying employees and contractors is a pain even for one employee. Big payroll providers are expensive and difficult. Perhaps this is a growing market.</div>
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<b>Customer personas</b>. Many MicroConfers build customer personas to have a better idea of the different type of people they are marketing to, building products for, and are trying to retain. Done correctly, this helps the businesses make better decisions in all areas. Speaker <a href="http://www.priceintelligently.com/" target="_blank">Patrick Campbell</a> claimed that 98% of successful companies had quantified buyer personas. Get on it! </div>
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<b>Customer on-boarding</b>. Speakers <a href="http://www.benorenstein.com/" target="_blank">Ben Orenstein</a>, <a href="https://www.intercom.io/" target="_blank">Des Traynor</a>, and <a href="http://larslofgren.com/" target="_blank">Lars Lofgren</a> all praised a robust on-boarding process for new customers. Des wisely reminded us that the on-boarding process is the only part of your product that all users are guaranteed to do. Ben spent hours watching new users trying to use his product. Ben polished his on-boarding until each user slid into the app like a clumsy penguin into the Ross Sea. Lars discussed on-boarding in the context of customer churn, one of the key metrics in growing a SAAS business.</div>
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<b>Sales demos</b> were a popular topic as well. Speaker <a href="https://www.getdrip.com/" target="_blank">Anna Jacobsen</a> revealed a big ah-ha moment as she shared what she learned from a year of product demos at Drip. The process she developed involves live, one-on-one demos with each potential customer. As she guides them through Drip, she customizes a new account tailored to the customer's workflow. At the end of the demo, she offers to let them use it as a trial account in exchange for a credit card number. Bam: her demo-to-trial hack turns a sales demo into on-boarding.</div>
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<b>Pricing research, experimentation, and Value based pricing</b>. I heard lots of folks talking about pricing, especially after the pricing insights from <a href="https://knowyourcompany.com/" target="_blank">Claire Lew</a>, Lars Lofgren, Patrick Campbell, <a href="http://amirkhella.com/" target="_blank">Amir Khella</a>, and Ben Orenstein. Claire's Know Your Company charges clients $100 per employee. Unusually for a web-based app, the charge happens just once. It works because it aligns Know Your Company's revenue to it's results. As clients grow, they add employees and pay to do so.<br />
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Lars reinforced the concept of picking the right pricing metrics: ones that would expand with customer success, but not invite cheating. Patrick went into great detail on how to price, and encouraged us all to never stop evaluating your pricing. Ben advocated for the ability to change pricing without pushing any new code. Amir explained his pricing formula based on how much money he estimated his product will save customers.</div>
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<b>Talking to customers.</b> Many MicroConfers believe that their customers know what problems they have, and what products they would pay for. The best of them use customer communications to improve their products, customer engagement, and to find new opportunities for making revenue. Which brings us to...</div>
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<b>Expansion revenue.</b> Sometimes it is better to make more money from existing customers rather than simply trying to acquire new customers. Increase that Lifetime Value. Lower your LTV/CAC ratio.</div>
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<b>Customer funding.</b> Some of the businesses at MicroConf paid for product development costs by charging customers before the product existed. In exchange for the early vote of confidence, these customers get first dibs on the product. Getting money before a product exists shows that you've discovered a problem that people will pay to solve.<br />
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<b>Building free tools to acquire customers.</b> Speakers Amir Khella and <a href="https://snappa.io/" target="_blank">Christopher Gimmer</a> both built free tools into real online businesses. Patrick McKenzie <a href="https://twitter.com/patio11/status/717139651480301569" target="_blank">tweeted the benefits of this strategy</a>. </div>
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<b>Shipping real MVPs.</b> Des Traynor suggests that a good MVP includes only the features that all your customers would use all the time. Building an MVP means shipping painfully early, which was another theme.</div>
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<b>Sales calls / demos.</b> If you're wondering how folks are getting customers without spending jillions on AdWords, this is one way. I bet fear of person-to-person interaction generates lots of ad revenue! See also: talking to customers.<br />
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<b>Cold emailing.</b> B-to-B businesses do this all the time, and it's not spam (done properly, at least). Another way to acquire customers without huge costs. </div>
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<b>Podcasting.</b> Speaker <a href="http://podcastoutreach.com/" target="_blank">Kai Davis</a> talked about podcast tours. That's not touring podcast studios (they probably look pretty boring). This means campaigning to become a guest on someone else's podcast. Rinse and repeat. His incredible fact: 17% of Americans listened to a podcast in the past month. It looks like podcasting is growing fast. Several of the attendees had podcasts.</div>
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<b>Portland.</b> There were many people from Portland, and even a few attendees who are moving there. Although it is smaller in both area and population than Austin, I can tell that ATX is jealous. Does Portlandia count as content marketing?</div>
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<b>Tesla.</b> Sure, Elon Musk is a great entrepreneur. Whatever. What MicroConfers seem to really care about is how dang cool the Model S. Some folks were considering speculating on the Model 3, which was just announced. Considering the demand for the Model 3, why not pre-order a loaded one and sell it for a big markup?<br />
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What do you think? What did I miss?</div>
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</div>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-13935017483140849852016-01-24T11:32:00.000-06:002016-01-30T10:45:52.217-06:00Pitch Anything: The Book ReviewEngineers believe in meritocracy. We think that if we work harder or do better work than others, we will be rewarded.<br />
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It is nonsense. There are plenty of engineers who do lovely work and still get fewer rewards than less-skilled counterparts.</div>
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Negotiation and salesmanship (salespersonship?) are key skills for engineers who want to get ahead. We like to think that engineering is a lovely pure place where talent and hard work determine outcomes. The reality: social skills are just as important as technical skills. Sometimes you need to use persuasion to get what you want.</div>
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<a href="http://www.amazon.com/gp/product/0071752854/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0071752854&linkCode=as2&tag=movaveinc-20&linkId=NW47YZP3LWSCHVCS" target="_blank">Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning the Deal</a> is strong medicine for the merit-oriented mind. Avoiding analysis is a key piece of Oren Klaff’s sales techniques. The technical details are where deals become boring and look like commodities. Oren focuses on relationships and social dynamics instead of analytical details.</div>
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His tools are framing, story-telling, relationships, and social cues.</div>
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Oren's stories will scald your engineer eyes. Oren has no problems violating social norms in order to achieve his goals. He helps himself to an investor’s partially eaten apple. He snatches an executive’s bored doodle. He confiscates his marketing materials from the executives he just pitched to. These are some of his techniques for disrupting the implicit social order.</div>
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The stories are amazing — and dangerous — because they would be so difficult for most engineers to pull off. They are acts that require humor and charisma to pull off without getting punched in the ear. Oren makes the necessity of humor clear, although he has limited advice in this area. I’m not convinced that the book teaches you the right skills to avoid a dented head. </div>
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His are the type of tactics that need coaching and some low-stakes experimentation. He does make that clear, so it's not a criticism so much as a warning. Some skills require more than reading. With enough practice, maybe someday you’ll be able to get results with lines like:</div>
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“Your lips are moving, but I’m not listening to a single word. Your words have no meaning. Stop talking. Start transferring money.”</blockquote>
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Not to worry: Oren also has advice that won’t risk bodily harm. When selling an idea, he suggests setting the stage by describing economic, social, and technology trends that support the idea. This lets you create an image of the stars aligning for a limited-time opportunity.</div>
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Oren also suggests that you present your idea as being a part of a motion. Instead of presenting the end-goal of your idea, you should explain how it will change, over time, the current way of doing things. Make your idea a film rather than a snapshot.</div>
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If you’re interested in giving presentations or will be involved in sales, I think you’ll get value from the book. Oren has unique ideas. You’ll probably also get a thrill if you’re interested in persuasion or negotiation.</div>
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I’ll leave you with this judo chop to the rational mind:</div>
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"Strong frames are impervious to rational arguments. Weak arguments, made up of logical discussions and facts, just bounce off strong frames.”</blockquote>
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<span style="font-size: x-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous reading habit and is much appreciated!
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WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-40989762707482761282015-08-23T17:56:00.000-05:002015-08-23T17:56:04.399-05:00MicroConf Europe (Barcelona)I'm attending <a href="http://www.microconfeurope.com/" target="_blank">MicroConf Europe</a> in a few days. I'll be in Barcelona Friday August 28 at 8:35am until the morning of September 2nd.<br />
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If you'd like to meet up in Barcelona, let me know. I'd love to talk iOS apps or recruiting, share a cab, and explore the city!WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com2tag:blogger.com,1999:blog-7022155324729704001.post-57259004563399212052015-03-25T18:43:00.003-05:002017-05-13T13:11:44.452-05:00Quitting with Employee Stock Options<b>Update: I was interviewed on the topic of quitting with private stock options and RSUs by the <a href="http://www.sfchronicle.com/business/article/How-S-F-companies-turn-stock-options-into-cash-6485919.php" target="_blank">San Francisco Chronicle</a>.</b><br />
<br />
Many startup companies still use Restricted Stock Options to make up for a below-market compensation, or as an incentive to stay with the company for a longer period of time. This leaves employees with a dilemma when they decide to leave the company.<br />
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Should you spend tens of thousands of dollars to exercise their options? Or should you just save your cash and leave the equity along with the job? The options probably expire a few months after leaving the company if you don't exercise them — that’s part of the restrictions on most options.<br />
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What if the stock never goes public, or never experiences a “liquidity event”? What if the stock doesn't perform as well as the S&P 500? $X0,000 is a lot of money to put on a single bet. Your money would be forever stuck in a useless stock.<br />
<br />
What if you decide to abandon your options and the company has a massive IPO eight months after your departure? You'd probably be really jealous of your former coworkers who are all buying Teslas and getting fitted for Gold Apple Watches.<br />
<br />
I’m facing this dilemma right now. I have options that will expire in a few months, and they will cost a big chunk of change to exercise.<br />
<br />
What if I can participate in the potential high upside of the private stock while removing the risk of losing the money?<br />
<br />
There are some options. <a href="http://employeestockoptions.com/" target="_blank">The ESO Fund</a> has an interesting offer: they will give you money to exercise your options. What do they want? <a href="http://www.quora.com/Has-anyone-worked-with-the-ESO-Fund-to-get-liquidity-on-exercised-options-Or-chosen-not-to" target="_blank">According to Quora</a> they want a liquidation preference and a percentage of the upside.<br />
<br />
This would mean that if the stock turns to money, they will get some small multiple of the money they gave you to exercise the options. In addition, they get a percentage of the remaining proceeds. If they gave you $10 to exercise an option and then the company goes public and you sell the share for $40, you might owe them $20 for a 2X liquidation preference, and then an additional $5 for a 25% split of the remaining money (these are completely made-up numbers).<br />
<br />
What if it’s the same $10 to exercise, but the stock sells for $20? Then you pay them $20 for the liquidation preference and get no money out of the deal. What if it’s $10 to exercise and the stock sells for only $5? Then you pay them the entire $5, and they eat the loss for the additional $5 they paid in to exercise. The exact way it works depends on the agreement you negotiate with the fund.<br />
<br />
A 1X liquidation preference is completely fair. This simply means that the ESO Fund gets back whatever was left of their investment -- and you've lost no upside.<br />
<br />
A higher liquidation preference means that in certain scenarios you won’t share in the appreciation over the strike price. From the Quora question, it sounds like you can trade liquidation preference for a less favorable split of the remaining capital. I suggest making a spreadsheet or writing a program to evaluate the possible scenarios.<br />
<br />
Based on what I know so far, the ESO Fund seems like a great way to protect your wealth if you are willing to share your upside. There is a significant opportunity cost to turning your cash into illiquid private equity. Do you really want to sink your hard-earned cash into an equity you can’t readily sell or control? The ESO Fund offers a nice way to solve that dilemma.<br />
<br />
Another interesting option that might help you turn stock options into cash is <a href="https://equityzen.com/" target="_blank">EquityZen</a>. Unlike the ESO Fund, EquityZen is a place to sell — or pledge to sell — your equity. It appears that EquityZen may even help you work around “Rights of First Refusal”, and other clauses that private companies use to exercise control over their employee’s equity. You might be able to use this service to sell enough shares to exercise all of your shares.<br />
<br />
One possible sticking point of EquityZen is that their minimum transaction size is $100,000. They allow you to bring in another stock holder into the transaction to reach that minimum, but that sounds potentially tricky.<br />
<br />
<i><b>If you found this helpful, you will enjoy <a href="http://www.engineeringadventure.com/2017/02/an-unlucky-engineers-guide-to-wealth.html" target="_blank">An Unlucky Engineer's Guide to Wealth</a>!</b></i>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com4tag:blogger.com,1999:blog-7022155324729704001.post-76488235563779181482015-01-11T20:20:00.002-06:002015-01-11T20:20:34.248-06:00Sony A7 II (ILCE7M2) First ImpressionsLast month I purchased a <a href="http://www.amazon.com/gp/product/B00PX8CHO6/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00PX8CHO6&linkCode=as2&tag=movaveinc-20&linkId=BJ7QWIYHLEP2AF5L" target="_blank">Sony a7 II camera</a>* (ICLE-7M2K), and I love it. It has a lot of advantages over the Sony NEX 6, but also a few downsides. You can read my <a href="http://www.engineeringadventure.com/2013/01/the-sony-nex-6-and-future-of-cameras.html">initial review</a> and <a href="http://www.engineeringadventure.com/2013/11/sony-nex-6-long-term-review.html">long term review of the Sony NEX 6 here</a>. All photos on this page were taken with the a7 II and (usually) edited in Lightroom. Click on any of them to see a larger version.<br />
<a href="https://www.flickr.com/photos/jmpk/16018352768" title="Gringotts Dragon by John M. P. Knox, on Flickr"><img alt="Gringotts Dragon" height="213" src="https://farm8.staticflickr.com/7532/16018352768_7f974fce6e_n.jpg" width="320" /></a><br />
In my<a href="http://www.engineeringadventure.com/2013/01/the-sony-nex-6-and-future-of-cameras.html"> previous writing about the NEX 6 and other mirrorless (or EVIL) cameras, I noted how they would probably replace dSLRs for most kinds of photography</a>. Not only are they smaller, lighter, and easier to use, they produce images that are just as good as their dSLR counterparts. Today, unless you're shooting sports, weddings, or other fast-moving action, I think buying a dSLR is a big mistake.<br />
<br />
The a7 II is a new camera, and costs a lot more than the NEX 6 models which I purchased in 2012 to replace my Canon 7D. Even the Sony Alpha A6000, a fast-focusing successor to the NEX 6 costs a lot less.<br />
<br />
For that extra cost, I think there are a lot of advantages to the a7 II. First, the camera is a lot more competitive with high-end dSLRs in some key areas. It’s startup time and wake time from sleep seems much faster than the NEX 6. The a7 II still starts slower than a DSLR (which can be almost instantaneous), but I think it's now fast enough. If these improvements are in areas you care about, it may be worth the extra cost.<br />
<h2>
Battery Life</h2>
If you read my<a href="http://www.engineeringadventure.com/2013/11/sony-nex-6-long-term-review.html"> review of the NEX 6</a>, you may remember that I was critical of the battery life, especially if you used the eyepiece instead of the rear LCD. Both the NEX 6 and a7 II have a similar rating in terms of the number of shots you can take, and they both use the same model of battery.<br />
<a href="https://www.flickr.com/photos/jmpk/16060908250" title="Mangrove Sunset by John M. P. Knox, on Flickr"><img alt="Mangrove Sunset" height="256" src="https://farm8.staticflickr.com/7491/16060908250_8e67ea7603_n.jpg" width="320" /></a><br />
I suspect that you can get more battery life out of the a7 II simply because there is less of a penalty for turning the camera off or letting it sleep (AKA power saver mode). I configured the a7 II to go to power saver mode in ten seconds for exactly this reason. Time will tell if this has a real impact.<br />
<br />
The battery life of a DSLR is hard to beat simply because you don't have to light up a screen to use the camera. The electronic viewfinder of these cameras might eat the batteries, but it also makes the camera a lot easier to use. I have a set of fully charged Wasabi batteries that I carry with me just in case I burn through the first battery. Unless I'm visiting a very photogenic spot, one battery usually is enough for a day’s worth of still photography.<br />
<h2>
Construction</h2>
Another area of significant difference between the NEX 6 and the a7 II is the way the cameras are built. The a7 II has a magnesium alloy body that feels quite solid. The a7 II weighs significantly more too. Many of the buttons and switches of the a7 II feel as if they were lathed out of solid hunks of metal. I like the luxurious feel.<br />
<a href="https://www.flickr.com/photos/jmpk/16060734298" title="Hurricane Pass by John M. P. Knox, on Flickr"><img alt="Hurricane Pass" height="213" src="https://farm9.staticflickr.com/8600/16060734298_61ea6c14f7_n.jpg" width="320" /></a><br />
The bottom of the camera is significantly thicker than the NEX 6 as well, which makes the camera larger, but also provides a larger, more stable base for a tripod mount. The bottom is improved in other ways too: the articulating LCD screen is more recessed and protected from this angle. Unlike the NEX 6 design, a tripod mount is unlikely to interfere with the movement of the display.<br />
<br />
The NEX 6 isn't advertised as weather proof, yet mine has been in rainstorms around the world and survived just fine. I’m sure to indulge in even more electronics-unfriendly behavior now that I have a a7 II, which is actually advertised as having weather seals.<br />
<br />
Another design difference: a large DSLR-like bump contains the electronic viewfinder of the a7 II. The a7 II looks more like a traditional camera, but I liked how the NEX 6 just used a tiny corner of the body without taking up extra space. The a7 II viewfinder also extends further from back from the body of the camera. The extra length probably makes it more comfortable to use, but is another tradeoff because it makes the camera larger.<br />
<h2>
Usability</h2>
The menu system on the a7 II is a vast improvement over the NEX 6. The NEX 6 divided important settings between “Camera” and “Setup” menus that each had long lists of settings. I never knew which menus held which items; both of the screens contained “setup” things for the “camera”. This led to a fun game of “find the setting”, where I would scroll through a huge list of items in one screen, then have to back out and try the other one.<br />
<br />
The a7 II has a breaks down categories of settings into pages, but almost all of the settings can be paged through linearly without having to tediously back in and out of screens. The whole system seems very responsive compared to the NEX 6, and similarly fast to a dSLR like the Canon 7D.<br />
<a href="https://www.flickr.com/photos/jmpk/16060399320" title="Phoenix Fire Lighters by John M. P. Knox, on Flickr"><img alt="Phoenix Fire Lighters" height="213" src="https://farm8.staticflickr.com/7558/16060399320_44f9e4510d_n.jpg" width="320" /></a><br />
Along those lines, you can customize many of the buttons on the camera to enable you to change different settings quickly. This feels a lot more like my Canon 7D, which is studded with buttons so you can change the important settings without removing the camera from your eye.<br />
<br />
The a7 II also has an exposure dial right on the body. I’m not sure if I like that feature or not. On one hand, there is a dedicated dial, on the other hand, it is easy to bump or forget to look at the setting (which is shown in the viewfinder as well, but I sometimes forget to check it). On the bright side, you're much more likely to notice an exposure problem on the a7 II (or NEX 7) than a DSLR because the setting impacts how the scene looks in a viewfinder.<br />
<br />
The Canon 7D also has wheels you can configure to change exposure, and it is quite easy to shoot many photos under or over-exposed without realizing it. Obviously the image in optical viewfinder looks the same no matter how poor your exposure is. All of these cameras have a scale in the viewfinder to show the exposure compensation. I tend to forget to look at it, that's all.<br />
<br />
Like the intelligent modes in the NEX 6, the a7 II has an auto mode that does a great job of deciding what kind of scene you're shooting and configuring the exposure, ISO, and aperture intelligently. Unless you're going for a very specific effect, this is a great way to shoot travel photography, or any other photography where you may not have a lot of time decide if you'd prefer shallow or deep depth of field, or if a scene is backlit or not.<br />
<br />
The a7 II also has a scene mode, which lets you manually choose what type of photos you're taking: sports, landscape, portrait, and so on. This is useful if you're going to take lots of photos of a certain kind, or if you're going to hand the camera to a stranger for a photo.<br />
<h2>
Full-Frame Sensor</h2>
Finally, one of the big selling points of the camera is that the sensor is full-frame. The advantages of full-frame may not be obvious. The NEX 6 camera’s sensor is what they call an APS-C sensor, or a crop sensor. With the same lens, an APS-C sensor takes a photo that looks zoomed in 1.5x compared to a full-frame sensor. That means to get the same photo with the same lens, you'll need to get closer to the subject with the full-frame — making up for the lack of zoom effect. Getting closer to the subject means that you can blur out the background even more with the same aperture.<br />
<h2>
<a href="https://www.flickr.com/photos/jmpk/15639518413" title="Lighting by John M. P. Knox, on Flickr"><img alt="Lighting" height="256" src="https://farm8.staticflickr.com/7526/15639518413_8a5b146630_n.jpg" width="320" /></a></h2>
<div>
On the other hand, if you love landscape photography, or you're always at the long end of your zoom range, the full frame might not be as useful to you.</div>
<h2>
Lenses</h2>
When I last wrote about the Sony NEX 6, there weren't many full-frame lenses available for E mount cameras (the E-mount is sometimes called EF-Mount when using full-frame lenses). Although there aren't as many full-frame lenses as the Canon or Nikon system, there are many more choices out than there were just last year. Most of the more important focal lengths are covered.: there are two great lenses for the 28-70mm range, a 16-35mm lens that is getting great reviews.<br />
<br />
The lenses for EF-Mount don't tend to have as aggressively large apertures as are available for dSLRs. Canon, for instance sells 50mm prime lenses at maximum apertures of f1.8, f1.4, and f1.2. The fastest aperture lens that Sony sells is the <a href="http://www.amazon.com/gp/product/B00FSB799Q/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00FSB799Q&linkCode=as2&tag=movaveinc-20&linkId=657XBUG2OBINJHJI" target="_blank">Zeiss Sonnar T FE 55m f1.8 lens</a>. I own it, and it makes very sharp images even at the maximum aperture, something that isn't always true.<br />
<br />
If you don't mind manual focus (or very slow autofocus), there are adapters for common lenses. I’ve use an adapter for my Canon L Glass on the NEX 6 with lots of success. The focus peaking and zooming makes manual focus much easier than on a dSLR. Many folks are using Leica glass on their Sonys for that reason. If 1.8 isn't fast enough for you, or you need a longer lens than the Sony 70-200mm lens, an adapter will let you use your favorite lens from another brand.<br />
<br />
There are advantages to the Sony full-frame lenses too. They are typically smaller and lighter than the dSLR equivalents, and in general they seem to be getting good reviews. I own the <a href="http://www.amazon.com/gp/product/B00FSB799Q/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00FSB799Q&linkCode=as2&tag=movaveinc-20&linkId=657XBUG2OBINJHJI" target="_blank">Zeiss/Sony Sonnar T FE 55m f1.8 lens</a>. It's quite sharp even wide open, it can blur the background nicely, and really looks and feels like a quality piece of equipment. This is a great lens for taking photos of people (the next photo used this lens, be sure to visit the full size).<br />
<a href="https://www.flickr.com/photos/jmpk/16073338689" title="Brew & Brew by John M. P. Knox, on Flickr"><img alt="Brew & Brew" height="213" src="https://farm8.staticflickr.com/7468/16073338689_3e542dfe36_n.jpg" width="320" /></a>
<br />
I purchased the <a href="http://www.amazon.com/gp/product/B00PX8CNCM/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00PX8CNCM&linkCode=as2&tag=movaveinc-20&linkId=5ZTMHWWUQYIGL7TX" target="_blank">a7 II in a kit with the Sony 28-70mm f3.5-5.6 Lens</a>, also <a href="http://www.amazon.com/gp/product/B00GTXHQ8Q/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00GTXHQ8Q&linkCode=as2&tag=movaveinc-20&linkId=WSTNQ3N5YJYB2LG4" target="_blank">available separately</a>. This lens is a great general-purpose zoom, and is reasonably priced, especially compared with the <a href="http://www.amazon.com/gp/product/B00FSB79FU/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00FSB79FU&linkCode=as2&tag=movaveinc-20&linkId=NNGBEQZOTV3MSMR3" target="_blank">Zeiss/Sony 24-70 f4 lens</a>. Either of these lenses are great for travel and landscape photography. Both have built-in image stabilization which compliments the a7 II's sensor-based stabilization. Both are also weather sealed, to help prevent dust and moisture from harming the electronics.<br />
<h2>
Image Stabilization</h2>
Another reason for the greater thickness of the a7 II is the sensor-based 5-axis optical image stabilization built into the body. This is one of the primary features that made the camera attractive for me. I shoot a lot indoors and at night. The ability to add stabilization to almost any lens makes handheld shooters like me happy. Sony claims that lenses with built-in 2-axis stabilization will get the remaining 3 axes stabilized with the same method.<br />
<a href="https://www.flickr.com/photos/jmpk/16247608232" title="Dragon's Fire by John M. P. Knox, on Flickr"><img alt="Dragon's Fire" height="256" src="https://farm8.staticflickr.com/7547/16247608232_93e705262e_n.jpg" width="320" /></a><br />
Image Stabilization is useful only when doing handheld photography. It helps with low-light photography, and certain kinds of sports or other action photography where you'll be moving the camera quickly to frame shots (I'm not sure this would otherwise make a good sports/action camera though; others might focus faster). The stabilization might be useful for handheld macro photography too since macro makes movement more apparent.<br />
<br />
One thing image stabilization won’t do is reduce blur in a moving subject. For that you need fast shutter speeds.<br />
<h2>
Social Media Camera</h2>
The a7 II makes a fantastic social media camera. Like the NEX 6, the camera can create an ad-hoc Wifi network, and there is a free iPhone and Android “PlayMemories” app that will transfer JPEG versions of photos off the camera (even though I shoot raw on camera this still works). These cameras are my secret trick for making really sharp Instagram posts (the following photo was transferred from my a7 II, edited on my iPad, and posted to Instagram, Twitter, and flickr).<br />
<a href="https://www.flickr.com/photos/jmpk/16059677125" title="Holding back erosion, Honeymoon Island. #beach by John M. P. Knox, on Flickr"><img alt="Holding back erosion, Honeymoon Island. #beach" height="320" src="https://farm8.staticflickr.com/7465/16059677125_5cb1b6d445_n.jpg" width="320" /></a><br />
Unlike the NEX 6, there is a dedicated button on the camera. View the photo you want to transfer to your phone or tablet, hit the Fn button, and you can transfer the image in seconds. The a7 II is much faster and more reliable at this than the NEX 6.<br />
<br />
I can transfer, edit, and share photos from the a7 II in just a few minutes if everything goes smoothly. I share a lot more photos than I otherwise would because of this feature. I’ve only tested this on my iPhone, but I'm guessing the situation is the same on Android phones.<br />
<h2>
Conclusions</h2>
I'm really enjoying the upgrade to the <a href="http://www.amazon.com/gp/product/B00PX8CHO6/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00PX8CHO6&linkCode=as2&tag=movaveinc-20&linkId=BJ7QWIYHLEP2AF5L" target="_blank">a7 II</a>. The larger sensor and stabilization make my life easier in the frequent situations where I’m taking photos at night or in dark restaurants. The additional programmable buttons makes it easier to configure the camera on the fly. The faster Wi-Fi sharing means that I share many more photos to social media.<br />
<br />
If you're even more of a night photographer than I am, and you don’t mind lower resolution (and no in-body stabilization), you might also look into the <a href="http://www.amazon.com/gp/product/B00JIWXTXG/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00JIWXTXG&linkCode=as2&tag=movaveinc-20&linkId=QU6SGDFQJ55YRZWA" target="_blank">Sony a7s, which has low noise at astronomically high ISOs</a> (ISO 409,600 vs ISO 25,600 on the a7 II).<br />
<br />
If you’re not quite ready for the cost of full-frame camera (and the pricier full-frame lenses), the <a href="http://www.amazon.com/gp/product/B00I8BICB2/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B00I8BICB2&linkCode=as2&tag=movaveinc-20&linkId=VRJYW77T7WGCQ5UH" target="_blank">Sony Alpha A6000</a> (the successor to the NEX 6) is a fantastic camera that can take photos rivaling a dSLR at a fraction of the size.<br />
<h2>
Improvements over the NEX 6</h2>
<ul>
<li>Faster startup time</li>
<li>Sensor-based 5 axis stabilization for lenses without stabilization; will also enhance the stabilization of sony lenses with built-in stabilization (OSS)</li>
<li>Similar focus speed</li>
<li>Many buttons that can be customized</li>
<li>Same excellent auto mode</li>
<li>Weather sealing</li>
<li>Magnesium alloy shell</li>
<li>Same battery</li>
<li>Larger, deeper grip</li>
<li>Easier and faster to navigate settings menus</li>
<li>Much faster wifi sharing of photos to iOS devices, with dedicated button</li>
<li>Higher resolution (24.3 megapixels vs. 16.1 megapixels)</li>
<li>Higher maximum shutter speed of 1/8000 vs 1/4000 S</li>
<li>Higher flash sync speed of 1/250 S vs 1/160 S</li>
<li>Similar power consumption: each can take 270 photos using the viewfinder, or 360 using the rear LCD</li>
<li>Similar ISO range: ISO 100 - 25600 (the a7 II also has extended ISOs below 100 starting at ISO 50)</li>
<li>Higher maximum ISO in auto mode (ISO 6400 vs 3200)</li>
</ul>
<br />
<h2>
Disadvantages of the a7 II vs. the NEX 6</h2>
<ul>
<li>74% Heavier (599g with battery and media vs. 345g)</li>
<li>Bulkier</li>
<li>Full frame lenses are needed to get the most out of the camera, although crop-sensor lenses will work (the crop-sized image will be about 10 megapixels)</li>
<li>Lower maximum burst capture (10 FPS (frames per second) for the NEX 6 vs 5 FPS, although the NEX 6 will only track focus at 3FPS, while the a7 II will track focus at 5)</li>
<li>No built-in flash</li>
</ul>
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<span style="font-size: x-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps sustain my outrageous camera addiction and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-29700942387409214182014-12-17T13:03:00.000-06:002014-12-17T13:03:04.210-06:00Evaluating a Job Offer Part 9: Conclusions<i><span style="font-family: Times, Times New Roman, serif;">Few decisions can have a larger impact on your financial life as a software developer than accepting (or not accepting) a new job. </span></i><i style="font-family: Times, 'Times New Roman', serif;"><b>This is part nine, the final part of an essay on the financial considerations when evaluating a software developer job offer. Just tuning in now? You can jump to the beginning to learn <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-1.html" target="_blank">the risks of taking a new job</a>.</b></i><br />
<i style="font-family: Times, 'Times New Roman', serif;"><b><br /></b></i>
Before you’re ready to accept a new job offer, you’ve hopefully considered your job offer from many different angles. You’ve explored the possible risks of the new job, and compared the costs of living at the new job, the value of the benefits, and the value of any equity in the bargain.<br />
<a href="https://www.flickr.com/photos/jmpk/13209693154" title="Track Speed by John M. P. Knox, on Flickr"><img alt="Track Speed" height="240" src="https://farm4.staticflickr.com/3778/13209693154_37ceef6bd2_n.jpg" width="320" /></a><br />
You have all the data. Now you just need to make a decision. Lucky for you, a job offer is not a yes/no decision.<br />
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There is a third option in every negotiation: “You’ll have to do better than that.” It’s a line I learned from<a href="http://www.amazon.com/gp/product/1601631391/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1601631391&linkCode=as2&tag=movaveinc-20&linkId=UQOFFJSKRIK4RLJY" target="_blank"> Secrets of Power Negotiating by Roger Dawson</a>. It really works.<br />
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One recruiter sent me a LinkedIn message out the blue. It was for a position in San Francisco with a “competitive salary.” I asked him what the salary range was. He replied that the top of the range was $165,000. I messaged back “Sorry, you’d have to do better than that” and was immediately told they could do $185,000. That’s a 12% increase and I hadn’t even discussed my experience, much less interviewed. Those magic words can pay.<br />
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If you look at the numbers and decide to ask them to do better, be prepared for their response. If their recruiter is a good negotiator, they may ask you to justify your numbers. The recruiter might also ask you what they have to offer you to get you to say yes. If you’ve already gone through the process I’ve outlined, it won’t be difficult to explain why the offer isn’t good enough.<br />
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You should also be prepared for the recruiter to decide not to do better. Many software developers undervalue themselves, or simply aren’t aware of how to properly evaluate a job offer. As a consequence, many companies have learned that they can hire a developer at the price they want by just making enough offers to different candidates. I’ve personally experienced this, and it’s not fun saying “no” to a job that looks like a lot of fun, but which offered significantly lower compensation than the job I had. It’s even more difficult when you’ve flown out for an interview, met the team, joked around with them, and had a great time. It was difficult, but I did say no.<br />
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Hopefully your decision won’t be that difficult. Hopefully you have an offer that you can give an enthusiastic “yes” to, and your new job will make you happy and open new doors for you. Just make sure to consider compensation, benefits, equity, and intangibles like happiness when making that big decision.<br />
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<b style="background-color: white;"><span style="color: #333333; font-family: Arial;"><span style="font-size: 15px; line-height: 20.4545402526855px; white-space: pre-wrap;">Now you know as much as I do about job offers for software developers. If you'd like an easy way to use what you've just read, you can use my calculation spreadsheet to examine and compare job offers. Simply fill out your email below and I'll send you the spreadsheet.</span></span></b><br />
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<span style="font-size: x-small;">*Moving Average Inc. is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com. Buying items through this link helps support the site and is much appreciated!</span>WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-62717240418845547472014-12-16T09:08:00.000-06:002014-12-17T13:08:50.770-06:00Evaluating a Job Offer Part 8: Happiness<i><span style="font-family: Times, Times New Roman, serif;">Few decisions can have a larger impact on your financial life as a software developer than accepting (or not accepting) a new job. In this segment, we won't talk finance. Instead, I'll give you permission to turn down more money for less happiness. </span></i><i style="font-family: Times, 'Times New Roman', serif;"><b>This is part eight of an essay on the financial considerations when evaluating a software developer job offer. Just tuning in now? You can jump to the beginning to learn <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-1.html" target="_blank">the risks of taking a new job</a>.</b></i><br />
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There is one very good reason to take a job without an increase in pay: happiness. That’s a subject big enough for another essay, and something that should be carefully evaluated separately from the economics.<br />
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Just like your job probably has the largest impact on your financial situation, it has one of the largest impacts on your overall happiness as well. You’ll spend about a third of every year at work, so it makes sense to have a job that aligns with your interests and gives you a sense of accomplishment.<br />
<a href="https://www.flickr.com/photos/jmpk/15569945681" title="The Baguashan Buddha, #Taiwan You can climb inside and see scenes from Buddha's life. Pretty interesting! by John M. P. Knox, on Flickr"><img alt="The Baguashan Buddha, #Taiwan You can climb inside and see scenes from Buddha's life. Pretty interesting!" height="320" src="https://farm6.staticflickr.com/5616/15569945681_373e2447bc_n.jpg" width="320" /></a><br />
One of my worst jobs was a great fit for my skills. The company had a mission that could have had a large positive impact its potential customer base. Unfortunately, the folks in charge at the company were focused on the product instead of the mission. The product was a challenge, but it was developing fine. The biggest challenges, like funding and developing a market, were left up to fate. I hated the feeling of building something really great, but not believing that the company would be successful either financially or at achieving its mission. The situation made me miserable.<br />
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The situation of a job can make you more or less happy too. A bad boss can make your life miserable. Nothing has motivated me to leave a job faster than a boss that I didn’t like. Even the work environment can harm you. This article mentions that <a href="http://news.bbc.co.uk/2/hi/health/763401.stm" target="_blank">job strain had a similar impact on health as smokin</a>g! How much of a raise would you need to persuade you to take up smoking?<br />
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Your job can have an indirect impact on your happiness as well. <a href="http://www.theguardian.com/news/datablog/2014/feb/12/how-does-commuting-affect-wellbeing" target="_blank">This study shows how a daily commute impacts happiness</a>. Take particular note that the study found that higher pay didn’t make up for a poor commute.<br />
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I don’t think there is anything wrong with accepting a job offer that compensates you less if it will make you happier. Likewise, it makes sense to pass up an increase in compensation to stay at work that will make you happier.<br />
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<i>Finally, <a href="http://www.engineeringadventure.com/2014/12/evaluating-job-offer-part-9-conclusions.html">we'll wrap things up in the conclusion</a>.</i><br />
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<b style="background-color: white;"><span style="color: #333333; font-family: Arial;"><span style="font-size: 15px; line-height: 20.4545402526855px; white-space: pre-wrap;">To get your offer in black and white, I've created a spreadsheet that will make your decision easier. Fill out your email below and I'll send you the spreadsheet. I promise to never sell or share your email.</span></span></b><br />
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<!--End mc_embed_signup-->WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com1tag:blogger.com,1999:blog-7022155324729704001.post-59677997258273938902014-12-13T17:09:00.000-06:002014-12-16T09:10:06.542-06:00Evaluating a Developer Job Offer Part 7: Details and Avoiding Traps<i><span style="font-family: Times, Times New Roman, serif;">Few decisions can have a larger impact on your financial life as a software developer than accepting (or not accepting) a new job. In this segment, we'll get prepared for some persuasive techniques your recruiter might use, and also go over some of the remaining offer details. </span></i><i style="font-family: Times, 'Times New Roman', serif;"><b>This is part seven of an essay on the financial considerations when evaluating a software developer job offer. Just tuning in now? You can jump to the beginning to learn <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-1.html" target="_blank">the risks of taking a new job</a>.</b></i><br />
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There are a number of other factors you have to consider before accepting a new job.<br />
<h2>
Recruiter Gambits</h2>
Some recruiters try to sell their equity by claiming that in the past employees were allowed to sell some of their shares after funding rounds. I think that’s a great way to let employees get value from their shares. However, there isn’t any way to know if that will ever happen again, or if you will be allowed to participate. Issues like vesting schedules, the class of stock you have, your seniority, and your contract can prevent you from selling when others might be allowed to.<br />
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Another key to understanding your equity is getting a copy of the equity agreement. I’ve made the mistake of accepting a job offer before doing this, and when I eventually saw them, the terms of the agreement were quite surprising to me. Among other things, the stock units had an expiration date. If they expire before the company is sold or makes a public offering, the equity returns to the company and my value is zero.<br />
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With those terms, it hardly feels like “my” equity at all.<br />
<a href="https://www.flickr.com/photos/jmpk/14988745904" title="Pacific surf breaks at Yehliu Geopark. #Taiwan by John M. P. Knox, on Flickr"><img alt="Pacific surf breaks at Yehliu Geopark. #Taiwan" height="320" src="https://farm4.staticflickr.com/3946/14988745904_00f423ea65_n.jpg" width="320" /></a><br />
The kind of equity you’ll probably be offered is worth a lot less than the equity the founders and investors have, but recruiters will tell you that your shares are worth what the last investors paid. I find these claims outrageous. Not only is it unlikely that you would receive the same preferred class of shares that investors have, you also have far less control of the company.<br />
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Unless you’re an accredited investor with cash to spare, you can’t invest in a more diversified portfolio of private companies like most investors would. This puts you at a significant disadvantage to the investors, who may have invested because they are specifically looking to invest in risky growth companies that have a chance at 10x or 100x returns. And <a href="http://online.wsj.com/articles/SB10000872396390443720204578004980476429190" target="_blank">it seems like those venture funded companies fail about 75% of the time</a>.<br />
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It’s also important to know what preferred stock can mean. In some cases, the investors have negotiated a guaranteed return, called a liquidity preference. These preferences mean that the investor gets to take some multiple of their investment out of the value of any sale of the company. If the investor invested $1 million with a 3x liquidity preference, then they get to remove $3 million from any deal in addition to their split of the remainder based on the shares they hold.<br />
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I imagine liquidity preferences are <a href="http://www.businessinsider.com/how-liquidation-preferences-work-2014-3" target="_blank">an intentionally confusing tool to help investors, and not employees profit from a successful startup</a>. You can ask your recruiter or hiring manager about the financial structure of the company, but I wouldn’t count on their knowledge of the situation. It’s not like public company where investor disclosures are publicly available. I’m sure there are many other tricks investors use that I’m not aware of.<br />
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Some companies will have a more credible explanation for their shares value because they have filed for IPO or publicly announced a merger or acquisition. Even if the company has filed for IPO or some other liquidity event, keep in mind that it might change its plans. Just google for “cancels IPO!” There is also no way of knowing how the shares will be valued at the time you’re able to sell them. <a href="http://www.investopedia.com/articles/stocks/07/ipo_lockup.asp" target="_blank">You’ll almost certainly not be allowed to sell your shares immediately when the IPO or transaction occurs</a>.<br />
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To sum up, I almost always value the equity component of an offer at zero. Equity is a great incentive to align your interests with the company so that you’ll share in it’s success. Its contractual caveats, vesting schedule, and lack of liquidity or control make it a poor substitute for cash. Ultimately you buy food and pay rent with cash, not equity.<br />
<h2>
Bonus Plans</h2>
Bonus plans and profit-sharing plans are motivational devices that can be almost anything. Like equity, the value of a bonus plan involves lots of wishful thinking. It’s a lottery that’s held once or more a year.<br />
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When negotiating at one place, I was told that one employee purchased a new Porsche with last year’s bonus. I never got a large enough bonus to buy a used Volkswagen, much less a sports car, at that place. I later heard that he had been saving for that car for years and the bonus just made it happen faster. Never take the recruiter’s word on these things at face value.<br />
<a href="https://www.flickr.com/photos/jmpk/14942361443" title="The sun sets begind the birds and windmills of Gaome Shidi #Taiwan by John M. P. Knox, on Flickr"><img alt="The sun sets begind the birds and windmills of Gaome Shidi #Taiwan" height="320" src="https://farm6.staticflickr.com/5610/14942361443_c3d6505cc0_n.jpg" width="320" /></a><br />
The nice thing about bonus plans is that there is often documentation to go along with them. I got an offer letter at a different business that laid out the bonus plan rules. Much to my surprise, the bonus was capped to 15% of the base salary. Earlier, I was assured by the recruiter that the annual bonus would make up for the cost of living gap. Even a 15% year wouldn’t get me there.<br />
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Obviously you shouldn’t anticipate the best possible year for a bonus, even if the recruiter says otherwise. Take the sage advice from mutual fund prospectuses: “past performance does not necessarily predict future results.” Be sure to at least make note of what things look like with a 0% bonus. Ask the recruiters, managers, and any employees you talk to what the bonus percentages for the past few years were.<br />
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Most important of all: don’t forget the taxes that will be taken out of any bonus. I’m happy to have a bonus plan, but I ultimately value these at zero as well.<br />
<h2>
Sign On Bonus</h2>
The sign on bonus is a one-time payment made to the employee, typically in their first paycheck. The sign on bonus might seem like a nice way the new employer can compensate you for the risk of a new job. It might, except that you usually have to repay the bonus if you leave the company before a certain time period. The bonuses I’ve seen require one year of service before you can quit or be fired without repaying the sum.<br />
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In summary, the sign on bonus is nice, but it usually won’t help you if you get fired early on. I consider the sign on bonus to be compensation, but because it is paid only once, I amortize it over the two or three years I typically spend at a company.<br />
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For example, if I’m offered a $30,000 sign on bonus, I’ll divide it by two years and treat an additional $15,000 as part of the annual compensation. If there are direct expenses related to this job, like relocation, I’ll subtract those from the amount (plus additional for taxes) before figuring out the contribution to my salary.<br />
<h2>
Titles</h2>
Titles may not seem important, but they can have an impact on your career. This is a topic that is on the intangible side, so I’ll save my thoughts for a future essay.<br />
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<i>The final crucial factor to consider <a href="http://www.engineeringadventure.com/2014/12/evaluating-job-offer-part-8-happiness.html" target="_blank">when considering a job offer is happiness, the topic of the next post</a>. That post is coming soon...</i>
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<b style="background-color: white;"><span style="color: #333333; font-family: Arial;"><span style="font-size: 15px; line-height: 20.4545402526855px; white-space: pre-wrap;">To get your offer in black and white, I've created a spreadsheet that will make your decision easier. Fill out your email below and I'll send you the spreadsheet. I promise to never sell or share your email.</span></span></b><br />
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<!--End mc_embed_signup-->WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com0tag:blogger.com,1999:blog-7022155324729704001.post-34242124900224197042014-12-12T09:56:00.002-06:002014-12-13T17:20:23.907-06:00Evaluating a Developer Job Offer Part 6: Equity<i><span style="font-family: Times, Times New Roman, serif;">Few decisions can have a larger impact on your financial life as a software developer than accepting (or not accepting) a new job. Today we'll consider a controversial topic: equity. A lot of private companies (e.g. startups) try to sell their equity as a form of financial compensation. I use a ridiculous metaphor to explain why you maybe shouldn't give up money for paper. </span></i><i style="font-family: Times, 'Times New Roman', serif;"><b>This is part six of an essay on the financial considerations when evaluating a software developer job offer. Just tuning in now? You can jump to the beginning to learn <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-1.html" target="_blank">the risks of taking a new job</a>.</b></i><br />
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Though it may seem daunting, equity is actually really simple. All you have to do is make sure you get as much as you already have at your current company, or more (in supposed dollar value, based on the last investment). Unless the company has filed for IPO or is publicly traded, value the equity at zero. Don’t accept equity for a salary of lower value.<br />
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Lots of people will disagree with the value of zero. I plan to write more about this because it is a complex topic. Most equity in private companies is so encumbered that it has little or no real value. In any case, there typically isn’t enough liquidity to accurately value it.<br />
<a href="https://www.flickr.com/photos/jmpk/15370038671" title="World Trade Center Building by John M. P. Knox, on Flickr"><img alt="World Trade Center Building" height="256" src="https://farm3.staticflickr.com/2949/15370038671_6309fe40ee_n.jpg" width="320" /></a><br />
Unless the company is publicly traded, I see stock, stock options, and restricted stock units (RSUs) as an incentive, not compensation. An incentive is something that helps align your interests with the interests of the company. Debateably, it can also serve as a motivational tool.<br />
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Even if the stock is public, that doesn’t mean that it will keep its value over the next couple of years while it vests. When I last worked at AMD, the stock price was around $7.50 per share. Now in October of 2014 it’s about $3.00. The S&P 500 has increased in value almost as much as AMD has lost value over that same time period. Holding a large amount of your compensation in one undiversified equity is a very risky thing.<br />
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Compensation is an exchange of value. You trade one thing of value for another thing of value. Equity is different.<br />
<h2>
The Investment Metaphor for Equity</h2>
Imagine that one day you get an unexpected phone call from someone named Pat. You’ve never talked to Pat before, but Pat has an amazing opportunity for you. If you jump in now, you’ll get in before everyone else! Pat wants you to buy stock in a company working on the future of envelope technology. TongueCut Inc. and their safety envelopes are going to be huge! Not only is it impossible to get a lip or tongue injury with their new envelope technology, Pat explains, but they’re working on flavored adhesives and have 14 envelope patents pending. If you want in — and of course you want in — you only have to invest $40,000. So what do you say?<br />
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I think most software developers I know would say “no thanks!” But at least some of them would gladly take a $40,000 paycut in exchange for restricted stock units in an unproven startup. The investment in the envelope company might actually be a better deal since presumably Pat isn’t selling restricted shares!<br />
<h2>
The Fishing Co-Op Metaphor for Equity</h2>
Imagine that instead of developing software, you fish for a living. Instead of selling your fish on the market, you join a fishing co-op. The co-op has an interesting deal. You and the other co-op members deliver all your catch to the warehouse every day. The leaders of the co-op then trade or sell all the fish on behalf of the co-op.<br />
<a href="https://www.flickr.com/photos/jmpk/15373278255" title="Tug on the Mississippi at Dusk by John M. P. Knox, on Flickr"><img alt="Tug on the Mississippi at Dusk" height="213" src="https://farm3.staticflickr.com/2950/15373278255_1fcd1fa0b9_n.jpg" width="320" /></a><br />
Some days the leaders decide that they should spend the co-op money to buy new fishing gear, pay rent on the warehouse, that the division of shares should be changed, or that they should give some fish away. At the end of the month, the remaining funds of the co-op are split among the members according to the number of shares each has. It might be zero. If the co-op can figure out a way to make the fish more valuable, or if you have a disproportionate number of shares, you might make more money than you would have as a lone fisherman.<br />
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Is that compensation? I don’t think so. It’s more of a form of collectivism with totalitarian rule. Also note that the only thing which you can control is how much effort you put into your fishing. The leaders can eat all of the fish, they can give shares of the co-op to lazy friends, they can take a loan against the co-op to buy a Super Bowl commercial.<br />
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Now this metaphor isn’t perfect, but hopefully it illustrates just how little value the stock of a private company can have, unless you own enough to have control (e.g. a seat on the board of directors).<br />
<h2>
My Equity Experience</h2>
If you’re trying to figure out how to evaluate an equity offer, maybe my experience can help. Years ago, I gave up more than half my salary for a chance to work at an interesting startup. Replacing that salary was options that gave me ownership in a few percent of that company. Less than a year into the project, I saw issues that I thought would hurt our chances for success. I tried to persuade the CEO to make some changes, like talking to more than one VC for funding and working more to develop interest in the product. He wasn’t very interested in my opinion. After I quit, I heard that the company let the staff go when funds ran out. I still own the stock, which hasn’t earned me a dime and probably can’t be sold.<br />
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I think this perfectly illustrates how even holding actual shares of a private stock doesn’t give you any control. I couldn’t change the course of the company even though I could talk to the CEO every day, and I held more than 1% of the stock! And unlike a shareholder of a public company, I don’t receive quarterly reports on the status of the business.<br />
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Even equity in more successful startups offers relatively few rewards. Although I have heard of founders being able to cash in some of their equity during funding rounds, it seems like a very rare option for employees.<br />
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As a minority shareholder, I have very few rights, and the shares are mostly useless. And that’s why I believe that the value of equity in startups is a myth that usually benefits the biggest owners of a company, not the employees.
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<i>Another important task is <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-7.html" target="_blank">examining the details of the offer and avoiding common mistakes, which is covered in the next segment</a>. </i><br />
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<b style="background-color: white;"><span style="color: #333333; font-family: Arial;"><span style="font-size: 15px; line-height: 20.4545402526855px; white-space: pre-wrap;">To get your offer down to the bare numbers, I've created a spreadsheet that will guide you through the process of calculating the financial value of a job offer. Fill out your email below to see how different jobs compare. I promise to never sell or share your email.</span></span></b><br />
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<!--End mc_embed_signup-->WindAddicthttp://www.blogger.com/profile/09842543518651197297noreply@blogger.com1tag:blogger.com,1999:blog-7022155324729704001.post-26782565394568978612014-12-10T18:31:00.001-06:002014-12-12T09:58:15.832-06:00Evaluating a Developer Job Offer Part 5: Extra Perks<i><span style="font-family: Times, Times New Roman, serif;">Few decisions can have a larger impact on your financial life as a software developer than accepting (or not accepting) a new job. Today we'll examine a few of the extra perks and other incentives a new job might include. </span></i><i style="font-family: Times, 'Times New Roman', serif;"><b>This is part five of an essay on the financial considerations when evaluating a software developer job offer. Just tuning in now? You can jump to the beginning to learn <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-1.html" target="_blank">the risks of taking a new job</a>.</b></i><br />
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Besides the benefits you expect, many businesses offer perks above and beyond mere vacation time. By factoring in these benefits, you can get a clearer idea of how much aspects of your new job will cost and whether or not these benefits actually benefit you.<br />
<h2>
Lunch and Snacks</h2>
When I worked at AMD a long time ago, my department decided to make our vending machines free. Like the other buildings, we had a coke machine and one of those snack machines with the spirals that sometime would leave your bag of Hot Fries dangling instead of pushing it into the tray. Unlike the other buildings, money wasn’t required to dispense anything. We all thought it was an amazing benefit, and I put on six pounds eating too many bags of Cheetos.<br />
<a href="https://www.flickr.com/photos/jmpk/15244212978" title="Ribeye paired with @Blacktoothbrew and @pineyriverbrew @greatamericanbeerfestival #gabf by John M. P. Knox, on Flickr"><img alt="Ribeye paired with @Blacktoothbrew and @pineyriverbrew @greatamericanbeerfestival #gabf" height="320" src="https://farm3.staticflickr.com/2941/15244212978_c28255a30e_n.jpg" width="320" /></a><br />
It was so cool that folks in other departments would risk getting chewed out by our director to get free diet cokes.<br />
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When I later moved to Freescale, I was shocked to discover that they didn’t even offer free coffee. A few enterprising engineers banded together to form coffee co-ops, but the non-members had to either scrounge up their own materials or visit the on-site Seattle’s Best Coffee.<br />
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Today, it’s becoming more common for software firms to offer free catered lunches, fresh fruit, and gourmet snacks to their employees. I think this is a pretty good benefit for both employees and the employer, but the value to you may depend on your lunch habits. If you like to bring your own lunch and eat at your desk, it might have no value to you. If you enjoy eating with your coworkers, and don’t want to pack your own lunch, it could save you lots of time and maybe a couple thousand dollars a year.<br />
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The calculation is pretty easy, just take into account your vacation and holidays and any cost of living differences. For example:<br />
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46 weeks * 5 days * $10 per lunch = $2,300<br />
<h2>
Transportation and Parking</h2>
It is fairly common for businesses in the San Francisco area to have private busses that drive you to and from your home. They often feature free coffee and wifi. But don’t assume that they are a cure for a long commute! I’ve heard that some companies only run the busses twice a day: once to work and once from work. Some companies arrange the schedule so that riders have to put in nearly twelve hour days. Be sure to ask questions so that you don't become a bus slave.<br />
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Some companies also will pay for passes to use public transportation. If taking public transportation makes sense for you, that could be a nice benefit.<br />
<a href="https://www.flickr.com/photos/jmpk/15186490909" title="Storm on the Mississippi by John M. P. Knox, on Flickr"><img alt="Storm on the Mississippi" height="213" src="https://farm4.staticflickr.com/3856/15186490909_5ec458e029_n.jpg" width="320" /></a><br />
Another benefit (which might reflect a cost of living expense too), is parking. If an employer is in an urban area a free parking lot isn’t a given. Some employers have contracts with parking garages to offer their employees free or low-cost parking. If you’re planning to drive to work, parking can be a significant expense. If you’re planning to live near work, free parking might make owning a car more practical.<br />
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These benefits are nice, but probably don’t provide a huge value unless they help you go carless.<br />
<h2>
Relocation</h2>
If you’re moving from one city to another to take a job, you may be offered relocation. This is generally offered as a choice of lump sum, or a package covered by the employer. The package usually means that the company hires movers for you, although sometimes they will also pay for other expenses: travel costs to visit the area before moving, closing costs to sell your house, corporate housing for a few weeks in the new city.<br />
<br />
Relocation is really about breaking even on the move, so it is more of a concern when it doesn’t exist, or if it is inadequate to your needs.<br />
<br />
<i>Another important subject to consider is <a href="http://www.engineeringadventure.com/2014/12/evaluating-developer-job-offer-part-6.html">equity, which is the topic of the next segment</a>...
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<b style="background-color: white;"><span style="color: #333333; font-family: Arial;"><span style="font-size: 15px; line-height: 20.4545402526855px; white-space: pre-wrap;">So you can get your offer down to the bare numbers, I've created a spreadsheet that will guide you through the process of comparing the financial details of your current job to a new offer. Fill out your email below to see how you offer compares to your current job. Don't worry, I won't sell or share your email.</span></span></b><br />
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