How Pie's 'Block Ads, Get Paid' Model Is Giving Users Control of Ads & Privacy | E2012

Pie.org’s Ryan Hudson joins Jason (0s)

• The internet is built by people who choose to create and those who choose to be passive consumers should not complain about the state of the internet. (11s)
• Simple business ideas are often dismissed but simplicity can be a sign of elegance and complexity, making it difficult to achieve. (2m14s)
• Billions of people use web browsers to interact with the world, which is why Google created the Chrome browser. (1m34s)

History and initial reactions to Honey (2m30s)

• In 2012, a browser extension that automatically applied coupons for online shoppers was launched. (3m37s)
• Despite initial consumer interest and viral growth, the extension was met with skepticism from Silicon Valley investors who were focused on mobile applications. (3m20s)
• The extension's creators recognized that extensions offered a solution to the user retention problem that many mobile apps struggled with, as extensions could seamlessly integrate into users' existing browsing habits and provide value at the point of purchase. (5m17s)

Consumer behavior, trust, and conversion rates (5m57s)

• The average time it took for consumers to save money after installing a coupon app was several months. (7m15s)
• This was because consumers were not always shopping at stores that offered active coupon codes. (7m21s)
• Many successful business ideas are simply improved versions of existing products or services, meeting fundamental human needs in new ways. (8m40s)

OpenPhone - Get 20% off your first six months (9m17s)

• OpenPhone is a business phone app that allows users to manage business communications through their existing phones or desktops. (9m26s)
• OpenPhone offers features such as shared phone numbers for customer support and the ability to port existing numbers from other services at no additional cost. (9m54s)
• Listeners can get a 20% discount for the first six months of any OpenPhone plan by visiting openphone.com/twist. (10m27s)

Merchant reactions and Honey's business strategy (10m43s)

• Some e-commerce businesses initially resisted Honey, while others were indifferent. (11m4s)
• Honey recognized that online shoppers often face a dilemma at checkout: use a coupon code or risk paying more. (11m56s)
• Honey discovered that most consumers prefer a seamless shopping experience and don't necessarily want to search for the absolute best deal, but they do want to feel confident they are getting a fair price. (13m59s)

Future of Pie and consumer ad control (14m20s)

• Amazon's advertising business is estimated to be worth approximately 30 to 40 billion dollars. (16m7s)
• Amazon's advertising revenue is generated through a cost-per-click model, where advertisers (sellers on Amazon) pay for each click on their ads. (17m0s)
• The cost of advertising on Amazon is ultimately passed on to consumers through higher product prices. (17m3s)

Demo of Pie browser extension (17m50s)

• Consumers have lost control over their advertising and internet experience. (17m58s)
• The current internet advertising model is broken for consumers, advertisers, and publishers. (18m7s)
• Pie is a product that aims to put consumers at the top of the priority stack and build delightful experiences that re-architect the open internet. (19m54s)

Economic implications of ad blocking (20m35s)

• Consumers are increasingly frustrated with online ads and tracking, leading many to adopt ad blockers. (21m4s)
• While ad blocking provides a solution for users, it disrupts the revenue model of publishers, leading to paywalls and hindering the sustainability of a free and open internet. (21m34s)
• Pi aims to address this issue by encouraging users to opt back into a limited selection of advertising, thereby supporting publishers while giving users control over their ad experience and potentially earning rewards. (21m53s)

LinkedIn Jobs - Post your first job for free (27m23s)

• It is important to be cautious about spending and hiring in a venture market, ensuring that every hire is a perfect fit to maximize resources and extend the company's runway. (27m26s)
• LinkedIn is a valuable platform for finding unique candidates, boasting over 1 billion members, 70% of whom do not frequent other leading job sites. (27m48s)
• LinkedIn is currently offering a promotion where companies can post a job for free, encouraging businesses to utilize their platform for recruitment. (28m19s)

Legal considerations of ad blocking (28m34s)

• Ad blocking has been determined to be legal in multiple court cases, notably in France and Germany where Axel Springer, the owner of Business Insider, unsuccessfully attempted to challenge it. (28m36s)
• While some jurisdictions may sympathize with both user control, privacy, and publishers' interests, consumer advocacy for control over software on personal devices has generally prevailed. (28m56s)
• Mobile platforms like Apple and Android have historically restricted ad blocking through the control of browsers and app stores, limiting user choices. (30m12s)

Apple's privacy stance and ad reintroduction strategies (30m20s)

• Apple's privacy measures, while well-intentioned, have inadvertently strengthened the dominance of large ad monopolies like Facebook by limiting competition from smaller ad networks. (30m45s)
• Apple, despite its consumer-centric image, is also an advertising company, generating significant revenue from its App Store ads and its agreement with Google for search engine placement. (32m23s)
• Pie is developing a system called "fair ads" that will allow users to opt-in to ads in exchange for direct rewards, such as cash back, aiming to shift the advertising model from data tracking to rewarding user attention. (33m46s)

Beehiiv - Get 30 days free and 20% off your first 3 months (36m22s)

• Beehiiv is an all-in-one platform that powers newsletters and provides features to help grow subscriber bases. (36m42s)
• Beehiiv offers an AI Post Builder feature that assists with writing by taking inputs and optimizing content for maximum impact. (37m8s)
• Beehiiv is affordable, starting at $39 a month, and offers a 30-day free trial plus a 20% discount for the first three months. (37m34s)

Funding decisions and advice for young founders (37m50s)

• It is possible to forgo engaging with venture capitalists and instead self-fund a company, especially if the founder has a successful track record and strong relationships with previous investors. (37m57s)
• Building a company with trusted individuals, particularly those who have experienced prior success and are aligned with the company's vision, is invaluable. (39m5s)
• Embracing a builder's mindset, actively shaping the world rather than passively observing, leads to personal growth and attracts like-minded individuals. (41m3s)

Company values and political engagement (43m40s)

• A need exists for more thoughtful and intelligent people to step into political roles and approach them from a position of what is best for the country and the world. (44m12s)
• Many challenges exist in large institutions, not just government, where people are so far removed from the actual work, and incentives exist for employees to hire others to do 80% of their job. (46m1s)
• Arbitrary milestones are often created to provide a sense of progress, but setting a direction and working hard and fast in that direction while maintaining adaptability is more effective, especially in a startup environment. (48m24s)

Remote work and the value of in-person interactions (49m8s)

• The speaker believes in the value of in-person interactions for work, noting that the speed of building something with people in person can be much faster than remote work. (49m31s)
• The speaker believes young people are missing out on mentorship and inspiration by working remotely and that these intangibles are unlikely to occur over Zoom. (50m36s)
• The speaker acknowledges that Los Angeles, while geographically spread out, has changed in the last 15 years with more infrastructure for building companies, including investors and talent. (51m37s)