Monday, January 9, 2012

Making Free Money Online


Business card by haraldsfil






Vistaprint, the office supply company that caters to very small businesses, will acquire digital marketing company Webs.com for $117.5 million, the companies announced today.


Silver Spring, Maryland-based Webs, founded in 2001, appeared on the Inc. 5000 in 2009.


The company says it has served over 40 million customers globally since its founding, and claims 100,000 paying subscribers. It forecasts $9 million in revenue for calendar year 2011."Webs' suite of products delivers incredible value to micro businesses, helping them to look professional online in order to grow their business," said Robert Keane, chief executive officer of Vistaprint, in a statement. 


Vistaprint has "hundreds of thousands of active registered customers," Keane said, and more than $50 million in digital subscription revenues last fiscal year.


"Webs complements this success with a business model based primarily on free products that has achieved impressive customer reach," he said. Webs has free website and free custom Facebook page offerings. Vistaprint is infamous for its offer to design and print 250 business cards for freean offer Inc., for the record, rated as "don't waste your time." 


Brothers Zeki and Haroon Mokhtarzada started Websthen called Freewebswhile still students at the University of Maryland-College Park. The pair (Zeki, who is older, was studying computer science; Haroon, economics) designed websites for family and friends in their spare time, and quickly realized a website-creation tool would be a lot more efficient. So each invested $1,000, funds they used mostly to buy servers (which were then stored in Zeki's apartment). Their then-14-year-old youngest brother, Idris, did a little PR for the fledgling company, listing it on a web directory.


The brothers' entrepreneurial streak came from their parents, Afghan refugees who arrived in the U.S. in 1983 with virtually nothing and promptly started a visa and passport procurement company. “It exposed us kids at a very young age to two things that are important,” Haroon said in a 2009 interview. “One was entrepreneurship, and the second is we got access to computers really early because they got a computer for the business.” 


The trio worked on the company part-time from 2002. Zeki had a job at the National Institutes of Health and Haroon pursued a law degree at Harvard University. (Idris was still in high school.)


When Haroon graduated from Harvard in 2005, Freewebs beckoned.


"[It] was making enough money to pay our salaries, so we said, let's give it some love," he said. In August 2006, the company received $11 million in Series A funding from Novak Biddle Venture Partners and Columbia Capital. Between 2003 and 2007, Freewebs grew 1,704 percent, according to the company history. (It rebranded as Webs in 2008.)


Haroon Mokhtarzada, the company's CEO, said of the Vistaprint deal: "Our companies share a common vision for the future of micro business marketing, and bring complementary products and competencies to the table. Together, we imagine a future in which a micro business will market itself through seamlessly integrated digital and physical marketing media with significant cross-over potential.


Vistaprint will acquire the company for $100 million in cash and $17.5 million in restricted shares "subject to continued employment of the founding shareholders," the company said. The deal is expected to close in January 2012.









Read more:

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  • Meet This Year's No. 1 Company




  • » 13 comments


    If you don’t know who Buddy Roemer is, it’s probably through no fault of your own. The former Louisiana Governor and Congressman — the only candidate running for President who has experience in both roles — has been ignored by debate organizers and left out of most national polls. It has him trapped in a vicious circle: he needs exposure from debates to get a boost in the polls, but he needs decent poll numbers to get invited to debates. To those who know Roemer, it’s a sad state of affairs — the man is considered brilliant (he started classes at Harvard University when he was 16), charming, and qualified. His main issue is campaign reform, and he won’t accept more than $100 from anyone wishing to donate to his quest for the Presidency.


    Governor Roemer sat down with Mediaite and discussed the frustration of being marginalized by his party, the dangers of letting Super PACs run wild, and the progress that he’s making in New Hampshire (In the latest 7NEWS/Suffolk University Poll, Roemer’s 2% helped him pass Rick Perry, tie Rick Santorum, and landed him just one percentage point behind Michele Bachmann). More of the biographical information on him can be found at his campaign website, BuddyRoemer.com


    MEDIAITE: Since you haven’t had a chance to do this at the debates, how about we start with the typical tradition of you having 30 seconds to introduce yourself?


    BUDDY ROEMER: I’m Buddy Roemer, I’m from the great state of Louisiana, I’ve been Governor, I’ve been Congressman eight years from Louisiana. I’m the only guy running who’s been a Governor and Congressman. I’m a father, I’m a grandfather — three kids, three grandchildren. I’m a banker. I built a billion dollar bank, we didn’t foreclose on anybody, we are profitable, we didn’t take any bailout money. And I’m running for President because I think the country’s headed in the wrong direction. I think Washington is bought and sold by special interests. I think the average citizen has no chance. I think the average person can stand a lifetime in a line waiting for opportunity and a guy with the big check can come up the last minute and take it away from him. It’s not right – jobs and justice, that’s why I run.


    M: It has to be frustrating to have these credentials — and plus, you’ve been both a Democrat and Republican — and still get pushed to the side.


    BR: I haven’t been heard yet, and that’s what’s frustrating. Look, if people hear me and they don’t want to vote for me, it’s a free country and I’ll be proud to be a guy who ran for President. But if they think this country can be made better by working together—Democrats and Republicans and Independents, I want them to look at me. I’m 68, I have no ego drive. I’ve been to the White House many times as a young Congressman working with Ronald Reagan. If I never go back, I’ll be happy. But I don’t see anybody else — anybody else — who’s not taking the big money. Bought and sold. It’s a disgrace.


    M: So when you look at the other candidates out there, are there any that you kind of… like?


    BR: I like them all. They all have some talent and they all have dignity, but they don’t have integrity. By this, I mean if you spend enough time in the trough of special interests and government gifts then you don’t smell a pig when it comes. And Newt Gingrich has been in the trough so long he can’t smell a pig. Everything smells about the same to him. Mitt Romney has four one-million dollar checks. Hidden in his campaign. Jon Huntsman has no money in his campaign. Nobody gives him any money. Yet he’s getting all of his money – he spent $4.3 million in New Hampshire — from his daddy and the Super PAC, which is completely illegal. His daddy can give him money, I wouldn’t stop that. But they need to pay taxes on it.


    Rick Perry has seven super PACs. Mitt Romney has three. Barack Obama has two. It never stops. I can’t find a candidate, and let me be just deadly honest here — I can’t find a candidate that talks about campaign reform. I can’t find a candidate who says no to the special interests. And, therefore, I’ve come to the conclusion that I can’t find a candidate who’d be worth a damn as President. If GE’s going to make the decisions, why don’t we elect GE?


    M: And you’ve really prided yourself on staying out of this… limiting donations to $100, right?


    BR: I have raised $250,000. My average gift is $51.45. I’ve had contributions from every state in America. I am running a social media, social network campaign. I am centered in New Hampshire, and I am on the rise. I am on the rise. Only three candidates improved their votes in the last 10 days in New Hampshire… Newt Gingrich, Jon Huntsman, and Buddy Roemer. And I’m the only one that doubled my percent in the polls. And I’m going to double it again in the next ten days. And then double it again. You know why? The word’s getting out: Roemer is free to lead, and by God, he knows how to create jobs.


    M: This is nothing new to you, right? You made a really big comeback when you were running for Governor of Louisiana.


    BR: I did. I had no chance to win. Just like here, people wrote me off, they laughed at me. All the politicians, particularly: ‘He can’t win. He doesn’t take the big checks.’


    With 45 days to go, I had 2% of the vote. On Election Day, I beat everybody running. The race was over. They didn’t even have a runoff. I beat three Congressmen, a Governor who had never lost an election — and had been elected Governor three times — and a Secretary of State. I beat ‘em all! It wasn’t that I was so good, it was the issue is so good. How about we the people running Washington rather than the lobbyists? It’s just that simple.


    M: The difference was that they let you debate in that election…


    In Louisiana, I was included in every debate. Even though I was the lowest-ranked candidate. I always had respect in my home state. Because they had watched me work and they knew that my key word was integrity. I never took a penny of PAC money, and that’s what I’m doing as President. And you know something? This race is wide open, man. I’m telling you. It’s wide open. The Republicans haven’t decided who the best warrior will be. I want to be the last man standing. I’m just hoping that I stay alive long enough to make three or four debates and have people see me operate under pressure, see me be tough on my opponents, but fair. See me build a team. I want you to watch me do that. And then this race will be over.


    NEXT>>>> “More money was given by lobbyists four years ago, in McCain and Obama’s race, than in 32 states combined. Your country is owned by someone else. It’s scary.”



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