sms.ac – What’s the Story?

Many of you will be a little surprised at the content of this post, as it’ll probably be the first time you’ve ever read anything remotely positive about sms.ac in the blogosphere. I have no intention of being an sms.ac apologist and it’s worth emphasising that I have no commercial relationship with them, but I think we can cautiously encourage their latest initiatives. I did make the time at CTIA to meet them, as I wanted to get a briefing from the people themselves and develop my own conclusions, rather than relying on web gossip.

But first let’s recap. If you’re not from round these parts, no company that I can think of has attracted quite so much vitriol in the last few years. This was undoubtedly inflamed by their habit of intimidating bloggers with Cease and Desist letters when they wrote something sms.ac considered factually incorrect. Joi Ito and Russell Beattie were two high profile bloggers that spring to mind who were on the receiving end of these things. To a blogger, who isn’t actually earning an appreciable money from their work, these things aren’t worth incurring legal bills in fighting, which could really stack up if you took on a corporation. So most make a decision to roll over and die when the C&D arrives.

Whichever way you look at it though, serving C&D’s might win you the skirmish, but you tend to lose the war for people’s hearts and minds. So no matter how frustrated and “in the right” you might feel, I would recommend that you never go down this route.

But apart from heavy-handed legal tactics, let‚Äôs look at the actual “crimes” that the company was alleged to commit. They really fall into two categories, both relating to spam – which if you read MobHappy regularly is a pet hate of mine:

Email Spam

When you register with them, you‚Äôre asked if you want to invite your contacts from your address book. This isn‚Äôt actually unusual – most social networking sites operate similar systems. The process involves uploading your address book or buddy list and then sms.ac sending out invites to join sms.ac and hook up with you, to everyone you agree to let them contact.

Looking at today’s site, I think it’s very obvious what’s happening here and it’s hard to see how people could invite lots of people by accident. You can choose to invite them all, a selected few or none at all. Furthermore, they need your email address and password to access this information. But it could happen by accident to a naive user, I guess.

In my opinion though the main problem is that the default setting for sending out these invites is once a month for a year – 12 times for the mathematically challenged among you. This seems to be to be over the top, quite honestly, even though people can change the default to any number they wish. sms.ac reply that there’s no drop off in response between the first invite going out and the 12th, which implies that maybe people do need to be reminded that often.

However, for the people who genuinely didn‚Äôt want to join up, you can see how very annoying this might be. Personally, I‚Äôve been on the “invited” end of this and felt frustrated. But, you can opt out of further invites ‚Äì this is a blanket opt out, so you‚Äôll never be invited by that person or anyone else ever again in connection with sms.ac. My own experience has proved to me that this opt out works.

I can’t really see what sms.ac could be asked to do about this, other than dropping the bulk invite tool altogether. And in fairness, I’m sure many people do find this facility useful. I myself use a similar facility at Linked In all the time.

However, if anyone has any suggestions to make this element better, I’ll pass them on.

sms spam

The other issue on the spam front is via the sms channel. The way the sms.ac model works is that when you join, you sign up to receive messages, for which you are charged – but sending messages to others in the community is free. This is a pretty natural way of encouraging contributions from the community. But, as anyone who has ever dealt with the public knows, people easily forget that they’ve opted in and will swear blind that they never did. To add insult to their feeling of injury, they also get charged for receiving these sms that they don’t remember asking for in the first place.

Worse for the image of sms.ac is that the more messages they send out, the more money they make and it’s quite easy to jump to the conclusion that they are deliberately spamming people to boost profits.

One of the things that sms.ac announced at CTIA is that they‚Äôve moved from a per message service to a subscription model. This means now that the more messages they send out, the higher their own costs will be – and could even lead to losses if messaging volumes are higher than expected. So this appears at least to put an end to that element of the accusation.

sms.ac freely admit that they have made mistakes in the past and to be honest, no one who has ever developed a service in any industry doesn’t make mistakes, particularly in usability in a tech-based environment. But what does seem to have happened is that sms.ac have made significant moves to correcting their problems.

Before I started to write about this I had a look around the web and while there‚Äôs plenty of complaints, they do seem to all date from over a year ago – I could have missed something though. On top of that, they have a toll free support line and email support, so if you have a grievance, get in touch with them. They also have a no-quibble money back guarantee, which seems to be putting their money where their mouth is and showing that they‚Äôre serious about their image. I also can’t think of anyone else who has this, but I could be wrong.

So, all the signs seem to me to indicate that sms.ac is committed to best practice, at least from now on in. I think as a blogger and as a part of the mobile community that I should welcome that, albeit with a big dose of caution. It’s perfectly possible that there are still issues with the company and I’m very sure you’ll be letting me know if you find something I haven’t uncovered.

But in the meantime, I think sms.ac seem to be cleaning up its act and that has to be a good thing for the industry and the 50 million members they claim to have.

sms.ac’s big idea at CTIA, if you haven’t read about it already, is to allow developers of mobile content to sell direct to their 50 million members. Developers are invited to merchandise their product or service in a “Pod” which can then be browsed by members and they can place an order. sms.ac handle the billing, which also means they can ensure that the advertised price is accurate.

Developers keep 33% of the revenue generated, which seems quite low until you consider that sms.ac must also share the remaining 67% of the revenue with the operators for the Premium sms billing. This can be 50% of the gross revenue and as high as 70%, I believe, in some markets, leaving around 17%, and sometimes a lot less, for sms.ac.

This idea seems a great attempt at solving real pain in the market for independent developers – how do you tell the user about your fantastic product, without spending a fortune on marketing or giving away a fortune to get on the operator deck?

So, in conclusion, I was impressed with CEO, Michael Pousti and his cohorts, Greg Wilfahrt and Barry Stagg, and what they had to say. Certainly impressed enough to write this and invite the howls of derision and jabbering that I’m sure will follow from some quarters.

But a look at the actual evidence, as opposed to gossip and rumour, is pretty convincing and certainly I have had no problems with the service since I signed up (completely anonymously) two weeks ago.

Have your say – please leave a comment.

(Russell lights touch paper and hides.)
[tags]sms.ac, pousti, wilfahrt, spam, sms, messaging, pod[/tags]

—–>Follow us on Twitter too: @russellbuckley and @caaarlo

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  • Andrew
    This is in response to Chris Marvin's statement of the messages arriving at the same time every day. I work for HouseValues.com and they notify customer via text messaging. All texts received after 3:00pm PT are queued and distributed the following morning. This is probably the same type of thing. It keeps developers from being disturbed while they're eating dinner, sleeping, sexing, etc.
  • Hi Russell. I'm a recent Pod developer with SMS.ac. I did not know SMS.ac before November of last year and having looked into things it seems there was something going on in the past that people didnt like. However, I can say that I've been quite happy with their service for developers. I have in fact developed over 20 pods in 6 months and would be happy to comment on the Pod development side or to expel any fears of SMS.ac. Having personally visited them, I can honsestly say that they have a wonderfully-enthusiastic team of people dedicated to making this a fantastic, on-going service for all to use. They probably made mistakes as with all businesses, but I see only positive changes from here on in.
    Best regards,
    Mark Kolb
    www.kprobe.com
  • AD
    The service is tremendously popular and if what they are doing with this pod thing works, as a small/tiny game developer I will never have to deal with a operator or one of the big aggregators again, and that would make me quite happy. No correct that, it would make me ecstatic.
  • Chris Marvin
    How does the "money back guarantee" work? There is no facility in the US on any carrier that I know of for doing a charge back via SMS aggregator. In the US, via PSMS, once a charge is triggered it appears on your next bill. If the carrier decides to refund the money (or more likely credit the funds) it is the carrier's decision.

    Overall, the company's present tack seems like a lot of double speak and a simple re-branding campaign. Did you get a look at the developer agreement for these pods? How/when do partners get paid for the services that they offer? Did SMS.AC let you talk to any of these developers? Has anyone ever been paid? It seems like a pretty risky business model to rely on as a developer: Customer buys content, customer is charged via aggregator. Aggregator bills carrier. Carrier remits to aggregator. Aggregator remits to SMS.AC. SMS.AC remits to content provider. Each of the different transactions most likely takes place on a 45-60 day cycle, so you are looking at about 180 days between your first sale and any revenues.

    Lastly, don't you find it strange that you sign up for some SMS.AC services and get messages at the exact same time every day from a different person? Isn't that odd? It is almost like a computer program is generating those messages-- but I guess since they have switched over to the subscription product model this problem will disappear. Hopefully their opt-out process is MMA/CTIA compliant.

    Chris
  • I know what you are saying Russell... but what can't be forgotten is how they tried to cover, forcing people to be quiet, by using legal action, their bad tactics, and bad business methods, or whatever.

    If they made a mistake, that is fine, we all do, but trying to hide it and going after people (who were victims of the sms.ac bad user experience in the first place) just because those people had made comments about it is just bad business methods. Note those individuals made efforts to contact them before blogging about it.

    Instead, sms.ac should have been customer focused, be responsive, and use that feedback to improve themselves. Being business focused and customer driven is always a winner...

    Because they chose the corrupt (yet legal) path, they deserve to crash and burn… They have many subscribers, so they won't crash and burn, but nevertheless you kow where I am coming from...

    It would be pretty wild if *you* get a C&D letter from them, for hosting this thread :-)

    ceo
  • Russell Buckley
    njar.... slightly enigmatic. A bit like knocking on someone's door and running away :-)

    Engage, debate, what do you know that we don't?

    Russell
  • njar
    :(
  • Russell Buckley
    Enrique - As I made clear in the post, I definitely agree that this was the wrong thing to do.

    But let's get this in perspective. Supposing I wrote on a big blog that you were the worst developer on the planet (which you're clearly not! it's just an example) and I refused to detract the comment, would you be justified coming after me with a big lawyer, if you had the means to pay for one?

    The answer is of course you would be justified. That's the law. So they've done nothing illegal, merely ill advised.

    But to ignore their existence for ever more (if they have 50 million members) is like pretending Microsoft doesn't exist if we object to some of *their* legal cases. You might choose to disapprove of MS and plenty of people do. But I'm reporting here, not endorsing in any way.

    sms.ac aren't going to go away as far as I can see, so if we can encourage better community behavour by talking to them, I think that's the right thing to do. Others will clearly disagree and that's the risk I took when writing this post.

    Cheers

    Russell
  • As far as I am concerned, the story is that sms.ac should crash and burn...

    I don't like their practices, and them going after *individuals* who expressed themselves was very very low -- there is no "turning back" to what they have done in my opinion...

    You said they "admit that they have made mistakes" - but them going after individuals who used their means of free expression was not mistake, and was a very, very low legal tactic., and they don't deserved a 2nd chance IMHO...

    I will never use sms.ac, and I will never recommend sms.ac...

    ceo
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