Saturday, July 4, 2009

moonfruit trending It’s the rebirth of a startup

It’s not often that Internet companies last 10 years, but Moonfruit in the UK has proved pretty resilient. It survived the dotcom boom the first time round, launching with VC-backing, growing to 65 staff and cutting back to two staff in the space of a couple of years. It’s a wonder why they didn’t exit in the most recent boom, but here they are still, plugging away. And their resilience is proving to be an asset as their 10-years old web site building business comes back into fashion,

So what’s the best way to re-invigorate an internet brand after 10 long years? Get trending on Twitter, that’s how. So Moonfruit has been giving away 10 Macbooks for every year of their operation, beginning this week. The result is that it has become the top trending term on Twitter three days in a row, as all people need to do is add the hashtag #moonfruit to their tweet. An algorithm is randomly choosing a winner. There are five days left. By the second day this week it had reached 2.5% of all twitter traffic. But could the stunt backfire as fast as it worked?

A similar tactic was used by Lenovo to run a discount promotion offering a big discount off a new laptop. But these tactics raise the issue of hashtag spam - something Twitter is probably going to have to address soon with some kind of feature for people to vote something as hashtag spam.

Webnode and Jimdo are more recent startup entrants, but they use an Ajax interface for users to build sites. Indeed, I recall writing a piece trashing Moonfruit 10 years ago for it’s - at the time - heavy-weight download interface for web site building. Flash was used to make their websites more design focused but it wasn’t ubiquitous in those days and not enough people had broadband. However it has proved to be a USP today, as the site has a drag and drop interface because of Flash and Flex. Moonfruit users tend to be ‘design aspirers’ and want to customise their own site styles. Clearly they were 10 years ahead of their time - again, another double edged sword.

In the early days of Moonfruit it was ad-supported but with the dotcom crash they had to be open with customers and ask them to pay. A loyal base said yes - and that’s pretty much kept them going since. Moonfruit also has a sister company, domain registrar Gandi.net, run by Stephan Ramoin (CEO), Joe White (Tan’s husband) and lead designer Kevin Foster.

But with the latest downturn they’ve tried to monetise with premium features, even as Moonfruit is moving in the opposite direction towards a freemium model of its own, with a premium upgrade path for users. For instance Weebly recently added storefronts - something Moonfruit has had for some time.


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