Cynthia Typaldos Interview_01

Part 1: Group-Forming Networks and Online Reputation

Cynthia Typaldos has taken two entrepreneurial ventures, RealCommunities and GolfWeb, from start-up to acquisition and has worked as a product marketing executive at Sun Microsystems and Data General. She is widely recognized as an expert on web collaboration and web communities and has been featured in Fast Company Magazine and quoted in the Wall Street Journal and other publications. Cynthia talks with us about the role of community for entrepreneurs and job seekers in the wake of the dotcom bust, as well as her own experiences as an entrepreneur.

SA: The theme throughout your entrepreneurial activities has been to use the web for collaboration. Why do you find this so compelling?

CT: What is surprising to me is that everyone, VC's especially, still don't get the web.

Sponsored Links

Entrepreneur SuccessFree entrepreneurial secrets & tips Free Think and Grow Rich downloadwww.entrepreneur-mindset.com

Secrets of SuccessSmall business success stories Interviews of successful women/menwww.womenhomebusiness.com

EntrepreneurGet Expert Advice, Videos & More Find All The Information You Need!www.AllBusiness.com

The big leverage is thru GFNs (Group Forming Networks). Once you realize that, it's obvious what things will improve exponentially by making them web-based. And it's pretty easy to understand GFN. David Reed, a former MIT Professor, created the term and even has a "mathematical theory" known as Reed's Law. Yet there is very, very little discussion commercially about the implications of this. Academics in sociology, computer science and political science seem to be leading the way in understanding the applicability.

There will be a Reputation Systems Symposium at MIT in April -- mostly academics, and just a few businesspeople (I plan to attend). Yet when you look at the most successful web businesses (eBay and Amazon) it's pretty obvious that tapping into bringing people together (e.g. groups) is what drives participation in their sites. Why hasn't Home Depot figured this out? Hard to explain.

SA: You mentioned reputation... I believe that reputation is everything for an entrepreneur - your most valuable intangible asset (because knowledge can be bought or hired). When you're participating in these online communities, how do you develop a reputation and protect it?

CT: Well, first step is to even have a reputation. I'm amazed at the number of people who claim to be "industry veterans", yet you type their name in on Google and nothing shows up. Now, to be sure, you have to type in the right words. My name appears to be unique to me, so I'm easy to find. But if you are Jane Smith it's more difficult.

SA: or Scott Allen...

CT: Right! However if Jane Smith claims to be a marketing executive in security software and you put into Google - ["jane smith" marketing security software] and get zip, then something is wrong with Ms. Smith's reputation. That is, it doesn't exist. So, in order to develop any kind of reputation - good, bad or indifferent - you have to do things that are noticed and posted to the web. Most of it is the usual stuff...networking, speaking, press releases, authoring white papers, articles, being interviewed :-)

Additionally you can reach out to an enormous number of "acquaintances", what Professor Mark Granovetter at Stanford calls "weak ties", using the web. This was not possible before the web. Keeping in touch with acquaintances, who could help you find that next job, funding for your company, or be your first customer, used to require enormous efforts, as it had to be done via face-to-face, phone, letters, etc. Even email is a lot of work. But now, as a member of an online community, you can not only become visible to others who are also interested in that space, but your visibility extends beyond the time and geographical constraints.

As far as worrying about your reputation going bad, it's no different than real life. What's different is the way your reputation can be extended out into this huge group of acquaintances.

SA: I'm inclined to think that also makes it more vulnerable. In real life, it would be impractical for someone to sabotage all your business cards and flyers and have any real impact. On the web, one person who's mad at you can do a lot of damage.

CT: People often tend to look at the downside of new technologies and not the upside. But you can also counteract very effectively one person's rampage by simply being yourself and visible. Additionally, all of these people that you are worried now have a negative view (and most likely don't if you have a stellar reputation already), you wouldn't even have been able to reach at all before! On the web, anonymous flames are pretty much ignored. So unless someone is willing to put their reputation on the line to damage yours, then you won't have a problem.

SA: What about automated reputation and rating systems, like eBay, Amazon, ELance, and so many others are now using? Are they worthwhile? How do you get the most out of them, whether as someone with a reputation, or someone looking at others' reputations?

CT: I need more context. As an entrepreneur? As a job seeker? As a book reader? People have complex reputations. It's different for you as a golfer, as a parent, as a driver, as a son/daughter, etc.

SA: OK, then... as a freelancer/solopreneur. Do those automated reputations mean much, or should you focus more on intangible reputation, if you will?

CT: Again, context is everything. If you are looking to do a deal with someone, and you know they are a seller on eBay, heck yes. If you are trying to determine the intellectual fit with a possible co-founder and he/she has written reviews on Amazon, again, of course this is very valuable information. The reviews wouldn't necessarily be just good reputation/bad reputation, but insight into the person's interests and thus his/her compatibility with you. All reputations have to be taken in context.

For instance, if you asked me to recommend the absolute best product marketing manager in the world I couldn't do it, even though I've hired and managed hundreds of these people, because it depends on the state of the company, the type of product, the market, and so on. I have a friend who has a deservedly great reputation as an environmental visionary. But I would never ask him for advice on how to train my dog.

SA: Right!