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shopggdb-blog · 6 years ago

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cryptoquicknews-blog · 6 years ago

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New Post has been published here https://is.gd/wQZtLq

Sorry, I Turned Off My Bitcoin Faucet (Because Money)

This post was originally published here

Ofir Beigel is the general manager of 99 Bitcoins, an informational site for newcomers to the space.

In November 2015, I started operating 99Bitcoins’ faucet. Almost three years later, on Oct. 8, I shut it down.

Throughout its history, the faucet paid out over 12.795 bitcoins to its users. Here’s its story.

What are cryptocurrency faucets?

Faucets are a type of website that work on traffic arbitrage. It means you “buy” traffic cheap and sell it expensive. It works as follows:

You give site visitors a small amount of crypto every few minutes

You give visitors referral fees for bringing in new visitors

You get paid by advertisers to show ads to your visitors

As long as “Money paid to visitors” < “Money received from advertisers,” you’re profitable.

The first faucet was actually created back in 2010 as a way of giving people free bitcoins to spread the word about it. You may not believe it, but back then that faucet gave out 5 whole bitcoins for each new visitor.

Today faucets have evolved into different forms which I will cover in this post, but the concept stays the same: get cheap traffic, sell it for more. Of course, in the beginning, there were only bitcoin faucets but today there is a faucet for almost every major cryptocurrency out there.

99Bitcoins’ faucet

I started 99Bitcoins’ faucet as a side project. I bought an already existing faucet called “Bitcoin Genie” which back then was making around $300 a month and wanted to see if I can make something more out of it.

I actually documented my complete journey in a series of blog posts so I’m not going to repeat what I’ve already put down on paper. I will just give you a short breakdown with references to the original posts.

My first step consisted of actually building the faucet. Back then you have to know a little bit of code, but today there are various faucet plugins out there for WordPress that you can use (including one by 99Bitcoins).

Growing pains

The first lessons I’ve learned revolved around how to set up the faucet. Mainly, what should be the time interval between user payouts and how much should I pay each time?

The fact that cryptocurrency fluctuates a lot in price makes it hard to determine a fixed amount in crypto you want to pay users. If that specific coin suddenly appreciates drastically in price (just like bitcoin did at the end of 2016), you end up paying a lot more than you intended.

That’s why later on I moved on to a form of payment that is stated in U.S. dollars and not in BTC, meaning users would get paid in BTC but the amount they would earn is a static USD amount. This is important since you’re earning revenues in fiat and at the end of the day, you want to compare revenues and expenses in the same type of currency.

Becoming profitable

Initially, my main source of income was Google AdSense. This means that Google would show its ads on the faucet and I would get paid by them at the end of the month. Back then it was still unclear to me if this was allowed by Google but I took a chance and decided to check it out.

After some additional tweaking to the site, I managed to earn a few hundred bucks a month with it. Additionally, I found out that you can use captcha services to earn money, so I added a captcha to the faucet. This helped prevent spam requests and also added an additional revenue stream.

But the story was far from over.

Breaking the 4 digit mark

In March 2016, I managed to make over $1,500.

At the height of its career, the faucet managed to net nearly $2,000 a month on almost complete autopilot. I recently made my complete revenue documentation public so you can see my exact calculations here.

Then everything changed…

Google murders the faucet

In May 2016, Google banned my faucet from the AdSense program. Apparently, faucets are a form of incentivized traffic, which I wasn’t aware of at the time. This was a devastating blow to my main revenue stream and I had to find alternatives.

Once banned from AdSense, I set out to find other ad networks that would supply a good revenue stream. I found several options but things weren’t the same as before. The revenues were substantially lower and the ad quality was more often than not very poor. In order to make a decent profit, I had to use pop-ups and promote spammy products.

In the end, I decided to let the faucet run on a “break even” model. Meaning I didn’t earn anything but didn’t lose anything. I also didn’t have to promote anything I didn’t feel comfortable with to survive.

Turning off the faucet

Somewhere around March 2018 I removed the ads completely and decided to run the faucet at a loss. Why did I do this?

I think that at this point 99Bitcoins as a whole was doing pretty well and the hassle it took to round up my revenue from the faucet wasn’t worth my time. So I decided to lose around $500/month and still run the faucet pro bono.

The faucet was a good testing ground for various business models. For example, we tried implementing browser mining at some point, but soon found out it wasn’t profitable as well.

Also, since we were maintaining our crypto faucet plugin for WordPress, I needed a working faucet to see it was working properly.

Eventually, in September of this year I decided that the faucet was taking too many resources from our company (payments, development, customer support) and we shut it down on October 8.

Is owning a faucet still profitable?

A lot of people are asking if running a faucet is still profitable. I believe you can still run a faucet in a profitable way, but you’ll need to work hard at it and I’m not sure it can be done in a “clean” way.

Most of the major faucets I know of are no longer around. Those that are seem to be promoting a lot of junk. But the fact that faucets like Moon Bitcoin or Bonus Bitcoin are still around (and have been for a very long time) shows that the business model is viable.

I think that today, in order to stay profitable with a faucet, you need to:

Promote shady offers that accept traffic from less attractive countries and that generate good revenue (mostly because they rob people who use their service from their money).

Use different types of coins – I ran only a bitcoin faucet and it made it hard to keep up with the rising exchange rate. Other coins have “more room to grow” in a sense that you can keep their payout lower. For example, with bitcoin I reached a point where I’m paying users 8-10 satoshis per claim. There’s not a lot of margin to go any lower with the payout (since you can’t pay less than 1 satoshi).

Other alternatives to faucets

Aside from the classic bitcoin faucet approach, there are many other sites that are doing something similar but not identical. Here are some examples:

Instead of earning a set amount of satoshis on each visit you can buy a ticket to a lottery. Every day or so someone wins the jackpot. The more tickets you have the better your chances of winning.

A poker site where you play for crypto and you get additional funds for staying a long time on the site.

A virtual game where you mine bitcoins and can withdraw what you mined. Ads are placed on the site for revenues.

As you can see, you can get quite creative with this as long as you keep the simple formula of money spent on traffic < money earned on traffic.

The downside with these types of projects is that usually, you have to code them from zero. There aren’t any “out of the box” plugins or scripts for sites that aren’t a normal faucet.

Conclusion: This was a great project

To sum it up, running 99Bitcoins’ faucet was a great experience. I can’t say that it was immensely profitable but I did learn a lot in the process and managed to helFaucetsp people earn bitcoins for free, which is awesome.

Faucets are unique in that they represent the first time we can distribute mass micropayments with relative ease and this is something that can serve many online platforms.

So I don’t think this industry will die completely, it will just evolve. For example, there are already lightning network implementations in place.

Faucet image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

#crypto #cryptocurrency #btc #xrp #litecoin #altcoin #money #currency #finance #news #alts #hodl #coindesk #cointelegraph #dollar #bitcoin View the website

New Post has been published here https://is.gd/wQZtLq

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angel-and-the-antelope-blog · 7 years ago

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Laughed at by your family for wanting to follow your passion? Success is the best revenge. With David Horvath

Have you ever felt like you’re not getting the support you need to succeed, especially from the people closest to you? Then you need to read every word of this interview with David Horvath. Co-creator of the globally successful Uglydoll brand. This is one of my all time favorite interviews.

I have a lot of respect for how amazingly generous and open David is. He shares the struggles he faced and overcame to follow his childhood dream. A dream that, it seemed no one else wanted him to achieve. Read it, learn from it, take action on what you learn. And don’t ever let those who don’t have the courage to follow their own dreams, prevent you from following yours…

Uglydoll Kaiju

Angel: David, with the widespread success of the Uglydoll you are being hailed as one of the top character designers in the world, but did you have this passion for toys as a kid?

David: When I was 12 the class was going around discussing what they wanted for Xmas, etc. The boys wanted Atari, footballs, etc. I already had all of that in my garage so I said I wanted GOLION, a die cast metal Japanese robot. Many of the kids laughed until I explained that it said “ages 13 and up” on the box, meaning they weren’t old enough to play with it just yet. Then they kinda just stayed away. So in a way, the cool kids became the outsiders and I stayed put.

The Cool Kids Became Outsider And I Stayed Put

Angel: So it sounds like you chose to follow your own path from an early age. Did you get any support from the people around you?

David: My mother was a designer at Mattel for many years. I wish that had helped me some but the honest truth is, she wasn’t permitted to discuss her job with me and she stayed loyal to that golden requirement. The only way I knew she still worked there was through catalogs and purple He-Man errors brought home. But those catalogs were inspiring. I always knew that I wanted to tell stories through toys.

Bossy Bear

The resistance came from my father, who told me that surrounding myself with toys and quitting Art Center to go work at a toy store would never amount to me making my own toys. He would tell all his professional contacts and co-workers about his waste-of-life son locked up in his toy room, working at a toy shop. He made many a famous or well known professional in the art and design world shake their head at me (being told his version, not mine). So there was resistance. Luckily, I didn’t care. He wanted to be a photographer more than anything in the world, but went into advertising because it seemed more stable to him. Avoiding your life passion out of fear is a no-no in my book.

When he would freak out over why I had so many toys (over 40 of them!) I would ask him why science majors had beakers and slides all around their room. He didn’t get it. Anyway, when I was 19, I did indeed quit advertising at Art Center so that I could go work at a local boutique toy shop, to learn the ins and outs of non-mass market toy distribution and observe moms, dads, and kids buying toys in a retail environment. That job also got me into toy fair, and got me deep into the side of toys I knew would prove to be very important if I wanted to make my dreams come true and go at it on my own.

Making toys means nothing if you don’t have any clue what will happen to them once their done. Now I hear my father clips articles and such, but from my early teens until well after we started Uglydoll, he told me toys and those stuffed doo-dads were a waste. It’s easy to get behind your kid when he’s in the paper, but with our daughter I want to be sure to be there for her during the process, not the irrelevant outcome. I hope I can use my past run in with this resistance as a life lesson so that I can do better than he did when raising my own child.

Uglydoll Cinko

Angel: So your love of toys was a hard path to follow then, but what about your growth as an artist?

David: I didn’t set out to be an artist. I still draw the same way I did when I was 10. Is it art? I don’t really care but I did see a certain path I wanted to take as someone who spends their time working on their own toys and children’s books. It was mostly mental maybe? I knew this is how it was going to go, as I wouldn’t have it any other way. Many months on my sister’s floor in the early days, and skipping meals sometimes when things got serious at the start. But that stuff is always thrown in to test how dedicated you are. I always say if someone from the future travels back in time to tell you your life long dream will fail 100%, and you still go for it anyway, it will work.

Angel: You clearly had passion, did you set any specific goals from the beginning or did you wing it as you went along?

David: There was no winging it and the plan was always very specific. We get tons of emails asking how to do XYZ, which is great. I pretty much reply the same way each time, that in my experience, taking the same path someone else did results in getting close but never where you want to end up. Ignoring those paths and making up your own route leads you to where you really belong, wherever that may be.

I Use This Now Pretty Much Scientifically Proven Method By The Hour And It Works

Angel: Can you share any techniques you use to help you focus on achieving your goals?

David: Ugh I wish you asked before the “Secret” came out, but actually I have always believed in the law of attraction since I first read about it many years ago. I use this now pretty much scientifically proven method by the hour and it works. Your mind effects the universe, and it also creates it. Your thoughts absolutely determine your reality. How you generally feel inside and what thoughts you generally carry in your head is what’s going to keep coming at you. This is a huge part. The biggest. The rest is all minor detail, actually.

Uglydoll Wage Green Kaiju

Angel: What about the excuses many people have for not following their creative dreams; no money, time, credibility, support etc. Did you ever confront these same doubts?

David: Those aren’t excuses. Those are hurdles. Just need to jump. We had zero help. Zero cash. Ah but we had a needle, a scanner, a pen, an old borrowed digital camera, and a mac lap top which I got by selling my 2 older macs from when I had a job before. That first sewn doll sold for $30.00 And then the next one sold. Soon we had $3000!. So we used that to make more and keep it all growing. I had one design-ish art job after graduating from Parsons with Sun-Min. It didn’t last long. The first few weeks were great and I had a lot of fun animating in Flash until the boss told me to change a color to purple, and that was it for me. And I was super zapped by the end of the day anyway, too tired to work on my own stuff. Lesser paying jobs, be it retail stores or coffee houses, are great because you get so pissed off that your dream work comes out no matter what. But a “real” job with co-workers wanting to hang out and drink, late hours, weekends, and comfortable money coming in, is a dream killer.

When we decided to start for real, I slept on my sisters floor for 9 months eating not much more than cereal, plain white bread, and salads, and then moved to a tiny illegally erected bedroom within an industrial building in the then very scary DUMBO, Brooklyn, surviving on a daily menu of egg on a roll in the morning, a bagel and coffee for lunch, and really good $3.00 chicken legs from a local corner stand at night. Rent was a few hundred bucks, paid for by selling everything I owned in LA, keeping 5 days of clothes and not much else. I bought an air bed but had no table, so the computer was on the bed. $5.00 a day was the food limit. Laundry was once a week, and monthly subway passes were $80. I had nothing else and often went with out the coffee. A Japanese magazine shooting “famous artists” homes came to do a shoot, and elected to take photos of someone else’s much nicer room in the building just to avoid wasting a whole day. They even dressed it with our dolls. ( I tried to tell them.)

Uglydoll Babo

One Guy Called Me A Millionaire, On The Day I Had To Skip Lunch To Survive

I lived this way for the first 2 years of Uglydoll when everyone was calling me a millionaire. One guy called me just that on a day I had to skip lunch to survive. Then Sun-Min [my partner and co-designer] and I basically lived on the road when we went into full production and sales grew. Until we were married, we lived in hotels, traveling from trade show to trade show, driving across the US, stopping by small towns to find small shops.

Get As Much Input As You Can And Then Don’t Follow Any it

Angel: Did you ever go out and actively ask people for help and advice?

David: I realized when I was much younger after calling up Gary Baseman for some very good advice that I was getting great advice on how to do things a way they had already been done. The best advice I can give is to get as much input as you can, and then don’t follow any of it.

Angel: Now you’ve been in the industry for many years do you find it easier to call on your creativity at will? Do you have any tips for being more creative more often?

David: I just make what comes out. For the Ugly Guide books, there’s no sketches. I draw and write with a pen. No eraser, so it’s all a mistake. As for how to be more creative more often, sit down and work. Done deal. Even if crap comes out, sitting down and getting to work is what matters. Read “The War Of Art” by Steven Pressfield. That will help with the procrastination, if that’s the issue. That book was a great help and I am pretty sure the above is a quote from that book. It’s ingrained into my brain, so plagiarism not intended.

Icebat Kaiju

Angel: How do you keep your energy up with all the work required to make it in this business?

David: Meditation. Avoid all drugs and late week nights out. Basically be what losers call a “loser”. Stay home and make stuff for other people to go do. Avoid the “scene” and avoid hanging with the top artists in them. Scene-sters and others trying to “make it” like to keep each other in check and hold each other back, and they hate anyone who breaks away.

Angel: And your views on fitness?

David: Mental fitness is just as important as physical. Food is important. No soda. I quit all soda. But what’s most important is monitoring your daily, almost hourly mindset. Do you carry “Life is tough, life sucks” in your head all day? Then it will be. Careful, because the music, movies and games you repeat over and over too often can keep you in a certain mindset, good or bad.

Angel: What about the rock and roll lifestyle of being a hip artist and designer?

David: If you’re living a rock and roll life style, you get your photos in the backs of magazines only you and your buddies read and not much else.

My title is : Nerdy Japanese robot collector and strong believer in UFOs, ghosts, and the paranormal. The artist part is helping me save my pennies so I can switch over to UFO research full time. For real. See my blog for more on that. It’s boring though, so careful.

Angel: Ghost hunting aside, how often in your creative work do you find yourself doing things that you are afraid of?

David: My daily routine is wake up, do things that make me afraid, eat, sleep, draw, repeat. If you’re afraid, you’re on the right track. Keep at it! Just don’t discuss it or dwell on it.

Fear is fine but don’t use it as a way to not do what you need to do. Talking about your fear can lead to a weekly Friday night talk about your fears while drinking beer. Forget that. Do your work, then drink.

Angel: How often do you find yourself failing at something or abandoning a piece of work?

David: The real failure is not starting. So, never.

Angel: Isn’t it a shame they don’t teach that approach in school!

David: Math was my favorite art class. I used to fill in my test answers with UFO drawings. I got an F but was I wrong? That’s the key. But if you get all A’s in school, what does that mean? Good job little Johnny, you memorized what we told you to and filled in the blanks. Maybe it’s better to fail. I want to send our daughter to a school where they have a good balance of math, science, nutrition, financial planning, no tests, and David Icke. So basically home school.

Early on I taught a class, once a week, at Otis Art School for one year. It was supposed to be a flash animation class, but I turned it into a self help class. The class was called “quit, get your tuition back before the deadline, and use that money to make your dreams come true, because this place is simply training you to work for someone else”.

UMA (Unidentified Mysterious Animals)

Don’t Reveal Your Plan To Anyone

Angel: Are there any lessons you’ve learned about money that you’d like to pass on to other people just starting out?

David: Money! I’ll never forget our second year at Toy Fair. Many designer toy production houses set up booths after seeing how well we seemingly did the year before. As I passed the booths, one of the guys was rubbing his hands, literally, and told me “well, I’m ready to make a million dollars!” I looked back and said “You mean spend a million dollars, right?” He looked at me with a sort of ghost face, and sure enough, he didn’t set his booth up the following year. There’s nobody out there making instant cashola. There’s no “All you got to do is ________”. Even the guys you think hit it rich, did so well after you thought they did. A few smarty’s make it SEEM like they are making it big time, with hopes of selling their brand or company and its “perceived value” to larger companies looking to grab up a “hip, hot property/brand”, but no…its going to be a lot of work and nobody with some magic money wand is coming.

Hopefully. When the money comes in, save it! Or better, grow it. You’re going to need most of it to keep it all going. Making a lot of money costs a lot of money! And according to the music videos, when you make it big time, being a millionaire means buying nice cars and big houses, right? Well turns out, those are expensive!!! But the money is not as important as the “starting out” part… START! That’s all you have to do. Really. You’ll be surprised to find how few people do. Don’t tell ANYONE what you’re up to either. Don’t reveal your plan to ANYONE! Not because it’s a secret, but because something in the universe happens when you tell us what you’re going to do instead of just doing it. The universe takes it all away and you never start. Tell us what you did, not what you’re going to do. Then you’ll be fine.

Angel: With success comes more attention, is life in the public eye what you thought it would be when you set out?

David: Some kid posted a self made animated movie up on one of those movie sharing websites with characters that looked just like ours. So we made him take it down. Sad, because he was very talented and got a million hits. He called us evil and posted that we are evil all over the internet. Many fans of his movie called us evil too. Should we see him in person, who knows if there’s a danger. But the truth is, if a giant entertainment company or toy company is looking to rip us off (and they are) and sees a kid with imitations of our stuff, they copy THAT instead of ours…and when we go after the said big company, they claim that our stuff is not unique, using those copy cat works as examples. And if we don’t go after everyone, they can claim we are selective. And there’s a lot of copy cats. We work very hard to stop them. So we make a lot of enthusiastic kids with a lack of understanding in the copyright & trademark realm very upset. I don’t like that part. That kid was very talented and the animation was a college final. His professor should have told him way beforehand.

Angel: So how do you handle negative attention?

David: After an art show with Dehara at Giant Robot, a boyfriend of one of the employees, who was apparently helping out, came over to let me know that he hated my work, and that he believed my work missed an opportunity to “say something” to the viewer. (I made drawings of sad fat little kids raised on junk food emerging from video game packaging and internet browsers.)

I was fine with his comments, and after listening as intently as I do to the good comments, I started to move on with a sort of “Thanks for sharing your thoughts” polite kinda way.

Uh but he kept at it, sort of chasing me around and started to add insults such as “if someone gave one of these to me as a gift, I would throw it away” (which is a horrible thing to do, I think. A gift is a gift, good or bad.) Anyway I soon realized, sadly, that my first true live and in-person critic had turned out to be not much more than a drunkard heckler who only wanted to somehow lift himself up by trying to bring me down. I then realized he really was helping out there and his job was to take photos of anyone who bought the art. I always buy a few of Dehara’s pieces when he has a show so as he took my photo, he said stuff like “try to look like you care.” Etc to try to get a rise out of me. I didn’t say anything, and I thanked him for taking my photo. There’s no come back to drunken jealousy, so you should never try. It wastes your energy.

I’m human and a few things bring me down. But a joker like that never could. I felt embarrassed for him, because I know what makes people say such things. It’s the rot you feel when you don’t do your own work. When you don’t do your work and let fear take over for too long, you begin to hate seeing others get theirs done and up on the wall, page, screen, etc.

I only remember him because nobody before him or after him has said anything negative about my work to me in person. Uh, except for some of my past art teachers. If you do your work, and know you gave it your all, and if you live your life the way you really know you were born to, other people’s negativity seems to roll right off.

For news about David’s projects click here and go say hi on G+

Over to you

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