Vinny Lingham: The man to watch in 2008

Web entrepreneur Vinny Lingham will be my local web 2.0 story to watch for 2008. Despite his early critics, Vinny has put his money where his mouth is and secured some useful venture capital for his new baby, Synthasite. Earlier this year, Synthasite raised US$5-million in investment from a Richemont subsidiary, Swiss-based Columbus Venture Capital. It’s not a huge amount by world standards, but certainly useful and easily enough to take the project, a typically inexpensive web 2.0 creation, to the next level.

When I first blogged about Synthasite a while back, I hadn’t used it much and admittedly was moderately impressed by the interface and concept. There are many browser-based applications for website and blog engines out there, so what made this any different? I also remember finding the site a bit clunky.

But about a month ago I met up with Vinny for lunch in Cape Town where we did a bit of plotting, but more importantly: he gave me a demo of the latest rendition of Synthasite, which had seen quite a bit of work since my first post. I was impressed. The interface was beautiful, neat and easy to use, with drag-and-drop simplicity.

In many senses Synthasite is a simplified wordpress.com or blogger.com aimed at a broader internet user market. It also appears to be more than blogging, but plays in the personal website creation/page creator space too. A key feature is that it makes adding other web widgets to your site or blog easy. For example, you can add adsense, flickr, digg feeds and other components pretty easily, with a drag and a drop within your browser window. For power users this may seem obvious, as you can do these things anyway, but remember: Not everyone is a power user. In fact, if you think about it, power users are a small market when you consider a broader target market out there…

The revenue model clicks in via some of the widgets and components that can be added to your Synthasite blog or site. Synthasite is effectively an affiliate network which takes a cut of revenues for referrals to the various widgets that users add via the drag and drop interface. For example, Synthasite gets a referral fee for every user it signs up for adsense or perhaps a portion of the ongoing click revenue. This aspect was probably influenced via Vinny’s experience at incubeta, which specialises as a pay-per-click ad agency for various ad networks out there.

A key development for the future, which is sorely lacking in many online blog creation/website creation tools is a social network angle that somehow brings the Synthasite site creators and perhaps even the users together somehow. How this mishmash will work in a cohesive way is the big question, but there is something in it. Maybe this is already on the way?

You would bet that Synthasite will be a success. Vinny has an international profile, runs a big blog, has proven business success in Incubeta — and knows how to whip up hype and enthusiasm for the stuff he does. Moreover, this is not a project constrained by borders, but has a global outlook and strategy. Then there is also the small fact that US$5-million is behind it.

So, could Vinny Lingham be the Mark Shuttleworth of local Web 2.0 in the making? I guess we’ll find out in 2008.

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http://jaxonrice.com/ Jaxon Rice
I agree with you about Vinny. Synthasite is a great product and if they can build up a decent userbase they will definitely be an acquisition target for one of the big players (my money is on Google). The drag and drop page building capabilities would be perfect for Google Apps, and in my opinion synthasite is doing it better than anyone else at the moment.
Having said that, the man to watch in 2008 could just be the other guy you mentioned here, Mark Shuttleworth. The things he has done with Ubuntu are incredible, to the point where 2008 could be the year that a linux distro gets mainstream acceptance. There is tremendous opportunity for Linux in the mobile and gadget space, and Mark’s Canonical is perfectly positioned to take advantage of these opportunities.
Mark Shuttleworth reminds me of a more altruistic Steve Jobs. How many people get to build two huge businesses in their lifetime? He seems to have a great instinct for understanding our future tech needs. I cannot wait to see what he comes up with next.
http://jaxonrice.com Jaxon Rice
I agree with you about Vinny. Synthasite is a great product and if they can build up a decent userbase they will definitely be an acquisition target for one of the big players (my money is on Google). The drag and drop page building capabilities would be perfect for Google Apps, and in my opinion synthasite is doing it better than anyone else at the moment.
Having said that, the man to watch in 2008 could just be the other guy you mentioned here, Mark Shuttleworth. The things he has done with Ubuntu are incredible, to the point where 2008 could be the year that a linux distro gets mainstream acceptance. There is tremendous opportunity for Linux in the mobile and gadget space, and Mark’s Canonical is perfectly positioned to take advantage of these opportunities.
Mark Shuttleworth reminds me of a more altruistic Steve Jobs. How many people get to build two huge businesses in their lifetime? He seems to have a great instinct for understanding our future tech needs. I cannot wait to see what he comes up with next.
Yael
The site looks decent but it’s just doing *exactly* what weebly.com has done since 2006, with ajax, drag and drop, widgets and all. I don’t see Google acquiring this either, when they just have to do a bit more work on their Page Creator project in Google Labs (pages.google.com) to do the same. And their resources are obviously a little more extensive. All the same, I wish them all the best for a great year next year.
Yael
The site looks decent but it’s just doing *exactly* what weebly.com has done since 2006, with ajax, drag and drop, widgets and all. I don’t see Google acquiring this either, when they just have to do a bit more work on their Page Creator project in Google Labs (pages.google.com) to do the same. And their resources are obviously a little more extensive. All the same, I wish them all the best for a great year next year.
http://www.powertrip.co.za/ Jacques Marneweck
My bet is that Synthasite is taken over by Yahoo! Prob would work well with their Yahoo! Business Hosting Model for the web hosting side of things with yourdomain.com.
http://www.powertrip.co.za/ Jacques Marneweck
My bet is that Synthasite is taken over by Yahoo! Prob would work well with their Yahoo! Business Hosting Model for the web hosting side of things with yourdomain.com.
Yael
I just don’t know why anyone would buy the site when there are so many competitors doing the same, plus scripts that do the same, plus Google, plus plus plus. But I agree that this would really only appeal to business users. Most private users don’t need web pages with menus and other complications anymore.
Yael
I just don’t know why anyone would buy the site when there are so many competitors doing the same, plus scripts that do the same, plus Google, plus plus plus. But I agree that this would really only appeal to business users. Most private users don’t need web pages with menus and other complications anymore.
matt
@ Yael & Jacques — If they could beef up their user base, they would probably become more attractive for an acquisition… but their base is still tiny at the moment at around 11 000 subscribers. You would expect them to start growing this with the 5-mill behind it though…
@ Jaxon — yeah agree with you on Shuttleworth and his ubuntu creation. It would be interesting to see if Shuttleworth moves into the web 2.0 space anytime soon… eventually he’ll be there be sheer virtue of the way things are going… he’s there already by virtue of some of his investments… but I wonder when he’ll launch something of his own in web 2?
matt
@ Yael & Jacques — If they could beef up their user base, they would probably become more attractive for an acquisition… but their base is still tiny at the moment at around 11 000 subscribers. You would expect them to start growing this with the 5-mill behind it though…
@ Jaxon — yeah agree with you on Shuttleworth and his ubuntu creation. It would be interesting to see if Shuttleworth moves into the web 2.0 space anytime soon… eventually he’ll be there be sheer virtue of the way things are going… he’s there already by virtue of some of his investments… but I wonder when he’ll launch something of his own in web 2?
http://jaxonrice.com/ Jaxon Rice
@yael – you are perfectly correct about Weebly and other similar sites. Here is why I think Synthasite (and Weebly for that matter) would be a good acquisition target IF they can pump up their user base:
1) As other commenters have pointed out, Synthasite really appeals to small business users. These are the same business users who currently pay a couple of hundred dollars a year to small web hosting companies and to Microsoft for Office Licenses etc.
2) The Google Apps and Yahoo! Small Business programs are direct plays for this business. Currently Google Apps, while impressive, cannot compete with the enterprise level Microsoft Office suite of products. Google is going after the low hanging fruit – people who have simple needs and would prefer a very cheap option, particularly one that has the benefits of offsite backup and accessibility from everywhere. I would suggest that a typical Synthasite user fits this profile perfectly.
3) Which brings us to the user base. As Matthew pointed out above, 11 000 users is nothing. The $5 million war chest should help them change that though, and this is where Vinny’s SEO knowledge and Incubeta experience should prove invaluable. If they can build a substantial user base over the next 12-24 months then it would not be too hard to foresee a Google or Yahoo acquisition.
This is all obviously total conjecture. I do not know Vinny or the Synthasite crew personally, and chances are that they have some other interesting revenue models up their sleeves. The main reason why I think most of these new generation site builders are interesting is because they are targetting a very valuable type of user as opposed to your average social networking platform. As always, the service that builds the biggest user base for the lowest cost will probably emerge as the winner.
http://jaxonrice.com Jaxon Rice
@yael – you are perfectly correct about Weebly and other similar sites. Here is why I think Synthasite (and Weebly for that matter) would be a good acquisition target IF they can pump up their user base:
1) As other commenters have pointed out, Synthasite really appeals to small business users. These are the same business users who currently pay a couple of hundred dollars a year to small web hosting companies and to Microsoft for Office Licenses etc.
2) The Google Apps and Yahoo! Small Business programs are direct plays for this business. Currently Google Apps, while impressive, cannot compete with the enterprise level Microsoft Office suite of products. Google is going after the low hanging fruit – people who have simple needs and would prefer a very cheap option, particularly one that has the benefits of offsite backup and accessibility from everywhere. I would suggest that a typical Synthasite user fits this profile perfectly.
3) Which brings us to the user base. As Matthew pointed out above, 11 000 users is nothing. The $5 million war chest should help them change that though, and this is where Vinny’s SEO knowledge and Incubeta experience should prove invaluable. If they can build a substantial user base over the next 12-24 months then it would not be too hard to foresee a Google or Yahoo acquisition.
This is all obviously total conjecture. I do not know Vinny or the Synthasite crew personally, and chances are that they have some other interesting revenue models up their sleeves. The main reason why I think most of these new generation site builders are interesting is because they are targetting a very valuable type of user as opposed to your average social networking platform. As always, the service that builds the biggest user base for the lowest cost will probably emerge as the winner.
Yael
Yeah I agree that it’s a numbers game. Which is why I wonder how Synthasite as it is now will build serious enough traction to warrant Google ever ousting Page Creator.
You also have to wonder how they intend on leapfrogging Weebly’s existing market share, when Synthasite is really just cloning (literally) what Weebly has been doing for the last year and a half to two years.
Synthasite have positioned themselves as a player in the global market. This is obviously a lot tougher than if they were just targeting SA. The marketing question here is what have they done to differentiate themselves? Or what are they going to do? And is it all enough to keep up with whatever Google’s Page Creator is going to do in 2008? And even if it is, are they going to be able to pull off decent revenue while competing with Google’s standard ’100% free’ price tag?
It’s a big goal. Good luck guys!
Yael
Yeah I agree that it’s a numbers game. Which is why I wonder how Synthasite as it is now will build serious enough traction to warrant Google ever ousting Page Creator.
You also have to wonder how they intend on leapfrogging Weebly’s existing market share, when Synthasite is really just cloning (literally) what Weebly has been doing for the last year and a half to two years.
Synthasite have positioned themselves as a player in the global market. This is obviously a lot tougher than if they were just targeting SA. The marketing question here is what have they done to differentiate themselves? Or what are they going to do? And is it all enough to keep up with whatever Google’s Page Creator is going to do in 2008? And even if it is, are they going to be able to pull off decent revenue while competing with Google’s standard ’100% free’ price tag?
It’s a big goal. Good luck guys!
Yael
Just did a bit of research on Google and some others agree with my thinking, it seems.
http://venturebeat.com/2007/11/19/website-creation-company-synthasite-lands-5m-amid-competition/
If anything, Google would surely snap up Weebly ahead of Synthasite.
Yael
Just did a bit of research on Google and some others agree with my thinking, it seems.
http://venturebeat.com/2007/11/19/website-creation-company-synthasite-lands-5m-amid-competition/
If anything, Google would surely snap up Weebly ahead of Synthasite.
http://www.synthasite.com/ Vinny Lingham
@Matt : Thanks for the support Matt – it’s much appreciated
@ Yael : FYI – SynthaSite launched a closed Beta (http://www.vinnylingham.com/synthasite-launches-open-beta-program-for-affiliate-website-building-software.html) a year before Weebly. We’ve been flying under the radar even after their launch and I believe we were the first AJAX based drag and drop site builder to have launched – so we’re not actually copying anyone. What we’ve actually been doing is not really visible to our users – as much of it is server side at the moment or related to our business & revenue model going forward. Weebly have done a fantastic job of marketing themselves and even though we are often compared, we do not see ourselves as head on competitors per se. Our differentiation will become more obvious as time moves on…
http://www.synthasite.com Vinny Lingham
@Matt : Thanks for the support Matt – it’s much appreciated
@ Yael : FYI – SynthaSite launched a closed Beta (http://www.vinnylingham.com/synthasite-launches-open-beta-program-for-affiliate-website-building-software.html) a year before Weebly. We’ve been flying under the radar even after their launch and I believe we were the first AJAX based drag and drop site builder to have launched – so we’re not actually copying anyone. What we’ve actually been doing is not really visible to our users – as much of it is server side at the moment or related to our business & revenue model going forward. Weebly have done a fantastic job of marketing themselves and even though we are often compared, we do not see ourselves as head on competitors per se. Our differentiation will become more obvious as time moves on…
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ad networks, affiliate network, broader internet user market, browser-based applications, Cape Town, Columbus Venture Capital, local web, online blog creation/website creation tools, pay-per-click ad agency, Synthasite, USD, Venture capital, vinny lingham, Web entrepreneur Vinny Lingham, web widgets

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Vinny Lingham: The man to watch in 2008

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