In Conversation with Keith Ng, co-founder of FAME & Socialico
August 21, 2009 by Bernard Leong
Filed under Featured, Interviews
Are you one of those who are always chasing entertainment news about celebrities? Or, are you someone who prefer to spend the time on the stock exchange to sieve out the most interesting stocks to invest? If you like both, then the Facebook application and game, FAME will be something that you will check out. An interesting application that combines a stock market exchange game and people, FAME, started by two founders, Keith Ng and Damon Widjaja who have worked with each other for the longest time – 7 academic projects before deciding to get into it. Since they have launched the FAME beta on March 2009, they have started talking about their product at tech conferences within Singapore and was a finalist in the FB Fund 2009 (a contest run by Facebook to source for the latest and innovative apps out there). We have managed to catch up with Keith Ng, one of the founders from FAME (under the company Socialico Pte LTD) for an extensive interview, chatting with him about FAME and its features, the tips on how to develop on Facebook Platform and entrepreneurship in general.
Bernard Leong: Tell us about your background. What did you do before setting up FAME?
Keith Ng: Damon and I have Ngee Ann Polytechnic to thank for our software engineering roots, and later SMU where we met, for our business and management education. We both graduated with BSc (Information Systems Management); Damon pursued Organizational Behavior & Human Resource as a double major while I majored in Finance for my second degree, Bachelor in Business Management.
Personally, FAME was not my first foray into entrepreneurship. I started my own party lights stall along Orchard Road risking fines for illegal hawking when I was just 16, which the turnover of $500 per night was irresistible. When I was 18, I earned my first freelancing contract developing CRM solutions for a TCM firm. I registered my first startup, SWOOZH, in my second year of undergraduate mainly for Web development services to my clients.
Damon has strong family roots embedded deeply in entrepreneurship, especially in where he comes from – Indonesia. As a foreign student, he actively participates in events that assimilate him to the local culture, such as being an acting vice-chairman for the ushers in National Day Parade 2006. He too enjoys helping others through voluntarism and acts as youth advisor in Heartware Network.
Bernard Leong: What motivated you and your fellow co-founders to set up FAME? How did the idea come about?
Keith Ng: Damon Widjaja (my co-founder) and I have worked together in at least 7 academic projects, amongst which we landed a top 5 Software Engineering team award as well as $12,000 from Standard Chartered Bank as one of the top 3 teams for our final year project. In early 2008, we discussed the possibility of starting a venture together in view of our complementary strengths and buddy relationship, also with 2 more regular teammates (aka drinking buddies), who unfortunately opted for job offers later on to enhance their working experience.
After much brainstorming, FAME was an eureka epiphany over beer in our school’s pub when we revisited our internship in Standard Chartered Bank developing a virtual stock exchange trading prediction ideas (which did not commercialize eventually). Prediction market is a great research tool for corporations compared to traditional expensive and slow methods, but has not gained mainstream popularity. We decided that we could package this concept into Facebook trading real life personalities, in a similar fashion like “Friends for Sale” or “Human Pets” on a stock market platform. Through this interesting concoction, we also hope to attract players into our prediction market realm within FAME, which consists of prediction-based securities like “North Korea to release US Journalists by 2009”. As such, FAME was a novel combination of a few existing ideas.
Evolvement of a product is always to be expected, especially after we began to feel the market pulse and listen to our users. In general though, FAME remains true to the original intention; to be a multi-faceted game that appeals to a niche group of sophisticated players.
Bernard Leong: Can you tell us what is the FAME exchange about and is it a game or a stock market exchange about people?
Keith Ng: You can say it is a hybridization of both a game and a market exchange of people! FAME (Famous Market Exchange) is a social game for buying and selling virtual shares of players, celebrities, predictions and other unique stocks based on real stock market features. FAME is also the world’s first virtual stock exchange of people where anyone can apply to be listed. Users like your friends or yourself can be traded like any other counters in this free-to-play social game with virtual FAME dollars. Popular personalities will rise in price and their shares can be owned. Primed as “NASDAQ of Social Networking”, FAME is currently deployed in social networks such as Facebook and as a standalone site.
Each and every one of us is a brand and a promise, whether you like it or not. Every individual will be subjected to sentiments of others. Now, the question here is how can you measure your own brand and fame? How so too, for everything else, such as a slogan, a football player or a product? In FAME, we cast you and these subjects as stock securities and let the market determine the price, and that’s our answer to measuring fame. We build a stock market environment where prices go up or down demanding on market orders. We pay dividends on stocks that meet certain performance targets, such as profile views, or even a TV appearance. We also empower our users to be individual research analysts who can give ratings and insights to every stock in the game!
We seek to build a sizable community by enticing with visually attractive interfaces coupled with an innovative game experience to list their online personas, and even get famous in the cyberspace! To further incentivize players to participate, 3 lucky winners will walk away with US$100; players with higher profits have better chances.
Through wisdom of crowds, FAME also aspires to collect crowdsourced market data on current affairs/brands/ predictions in an innovative and rewarding manner. FAME is also a marketing and publicity enabler for our corporate customers, and functions as a simulation tool that educates the public on stock trading.
FAME is currently represented by Socialico Pte Ltd, founded by Damon and Keith.
Bernard Leong: What are the three interesting features in FAME that you want users to know about?
Keith Ng: FAME is an unlicensed school for anyone to learn about the stock market and yet be rewarded with tangible prizes and fun. The skills any players acquired in FAME can be transferrable to transacting in real stock markets, and vice versa as well. At the same time, it can be a great community to discuss current affairs, sports, and even brands. Here’s how:
1) FAME is build to replicate a real stock market as much as possible. We use the “Zaraba” method (used in Tokyo Stock Exchange and other major markets) to match orders in a proprietary system we codenamed “EVE” (Exchange Vectoring Engine). We also developed a market maker bot (JOSHUA) in which the AI is carefully designed to ensure liquidity and to stimulate the market through automated trading. Everyone is also encouraged to become an analyst and give ratings/commentary on other stocks. Your own price goes up and down the same way real markets determine; based on price others decide, user generated analysis, your visibility in the game and your own dividends payout!
2) I have to share with you my favorite stock exchanges in FAME, Predictions Stock Exchange (PSX) and EPL Stock Exchange (EPLX)! In PSX, you are betting on events such as “North Korea to release 2 US Journalist by 2009” – which is already proven true. Shareholders can get a handsome payout since our market maker will buy out the stock with a premium price. In EPLX, you earn from not only betting on the champion this season, but also earn from dividends – $30 per lot for a win, and $10 per lot for a draw. FAME is therefore more than a game; it is where you pit your wits against the rest and become Mr/Mrs I-Told-Cha!
3) We currently run a “Mystery Auction” segment, where users are invited to buy FAME chips with their virtual cash. 3 users with the most number of chips will each win US$100 each! Previously, we also selected a lucky winner for an iPod Touch prize. This is our way of rewarding players who are active and make profits in the game.
Bernard Leong: How do you initially gather users to come to the FAME exchange? What are the marketing methods you employ to gather people within the social graph?
Keith Ng: It is a misconception that it is easy to gain critical mass when you park your application in Facebook’s application platform. A quick search in the application directory can present many applications with 1 to 10 active monthly users. It may be much easier 1,2 years ago when there is less competition for users’ attention, but right now users have developed an ignorance effect for invitations as well as become very selective in adding applications.
The novelty within FAME is the earliest devised marketing strategy to gain interests. As a beta product though, FAME has not yet formulated a wholesome strategy to gather users. There were however several brutal bootstrapping measures, first beginning with appealing to FF (family and friends), and then establishing relationships with institutions such as SMU and SP to send email blasts. Next, it is then critical to get visibility through exhibitions where media strongholds will be scouting around. In fact, it was through exhibiting in E27’s unConference where we aroused the attention of TODAY and Digital Life that propelled our user base by thousands when we were featured.
Some in-game elements that we initiated to induce the viral effects is rewarding our users with virtual cash when they invite their friends to FAME, or when they successfully refer registrations. Similarly, we utilize Facebook’s notification feed engine to inform friends of new registrants that he/she “has been IPOed for $XX”, arousing interests in curious friends. Currently, we are experimenting on the best possible methods for users to publish on the news feed, a strategy that I personally deem to be the most effective viral tool. Packaging our news in a “reporting” manner where a fictional broadcast journalist updates the audience has so far been encouraging, but there can be many ways we can present the copy and the graphics.
One of the best lessons we have learnt in marketing through the social graph is in A/B testing, and finding out what appeals most to most, least to most. Sometimes, what may seem to be a terrific copy that the marketing dude in the team conjures may not appeal at all. Testing and tracking is to startup as what rice is to Asians; they are absolutely critical steps to survivability albeit painful, and they will help increase the user base.
Bernard Leong: Are there any new features coming on the horizon for FAME? Will you be interested to share it with us?
Keith Ng: This question is a great flattery (we assume so :) to us because there is so much to work on for FAME! We will be happy to share some updates that have been at the tip of our tongues.
Do look out for more collaboration-enabling features where players join certain “hedge fund companies” within FAME to synchronize their collective strategies. Our virtual relationship managers in future will have better developed Artificial Intelligence to assist our users, while the game will be much more vibrant with more multimedia elements such as videos. We want to help steer our users who are in the game to become FAMOUS with some unique talents to showcase.
You can also expect interesting game generated events in the virtual world of FAME that affect stock prices! *Hint, you may be able to generate these events if you have some spare changes in your pockets :P* We are also finalizing a dividends payment system where stocks that perform will pay out dividends to the shareholders.
And finally, it may not be a big deal if we tell you anyone can become a stock, but what if we tell you anyone can create a stock market on our platform on any social networks? And wouldn’t it be nice if FAME is playable on iPhone and Android?
I’ll leave you to your imagination what we have up our sleeves (:
Bernard Leong: Does FAME have a business model to work on or do you want to gather more users before monetization?
Keith Ng: We have identified our key business models. Right now, we are concentrating on delivering a sticky game and eventually provide values to our paid users who demand specific features, as well as value to our potential corporate customers who desire enabling of marketing and research. We have gathered much feedback from our users and have been carefully observing market trends in our industry on what users would be willing to pay for.
On the other hand, the concept of prediction market is still a very new concept and we hope to familiarize the market before thinking about money. The team is excited about the wisdom of crowd that prediction markets can glorify. Of course we always wanted monetization yesterday but we have to balance the delicate act of not turning off potential players and at the same time paying off our bills in time.
Bernard Leong: What are the tips that you will give to a person who is developing on Facebook platform?
Keith Ng: I had to consult my sidekick Damon, who has been the more intimate one with Facebook platform. Now, the geek says:
- Development on Facebook supported platform like PHP is preferred compared to non-supported platform like JAVA (which is our weapon of choice) as Facebook has stopped providing the latest API and comprehensive documentation and there are also lesser web communities discussing about it.
- Despite the above, be daring in pursuing language of your choice. Little help from the web communities is not equal to NO help at all. It might take a longer time to find a specific solution but it is worth all the effort.
- Be creative in using Facebook specific function and do not let them form the core of your application. This direction will bound the application to Facebook and much effort will be needed to port this application to other platform as these functions will not work outside Facebook environment.
- Do not forget to look at Facebook Connect as it allows your non-Facebook application to retrieve Facebook information without the hassle of creating a Facebook application
Bernard Leong: What are the major challenges that you encounter in your enterprise?
Keith Ng: Everyday brings about new challenges, but in the technical side we have to exhaust a lot of resources learning about Facebook’s Application Platform and coping with frequent changes Facebook is implementing.
On the conceptualization aspects, we hear many differing feedbacks on how our product should eventually manifest, but it is important to stick to our guns at times and remain faithful to our vision, and at other times maintain that dose of receptivity. It can be especially challenging not to get swayed easily! At times, dealing with harsh critics from business competitions or pitching sessions is equally daunting and discouraging, and again this is the time to revisit our faith in our visions and ourselves.
Pertaining to the creation of a business, we were saddened that of our potential partners opted for work experience and stability upon graduation (last year was a very good year). It was very unfortunate as they were great group-mates and pals whom we have won awards together. Moving on, there is also much family pressure on myself financially since both of us draws only a minute amount of allowance from our funding.
Bernard Leong: What are the three most important traits of an entrepreneur?
Keith Ng: Creativity, Situational awareness and Integrity (how I remember it, CSI)
- Creativity: Set the company culture right by not stupidfiying any ideas, including your own ones.
- Situational awareness: Be sensitive to all reactions, be it the frown on your investor, the unhappiness of your star programmer, or the latest trends in town.
- Integrity: Work no lesser than your most worked employee or partner, and be honest about everything. Stick by your comrades in the darkest time and earn the respect.
Bernard Leong: Thank you for the interview, Keith and Damon for that special question on Facebook Platform. Do let us know of the latest developments of FAME. We wish you and the team in FAME all the best and good luck with the road ahead.
About Keith Ng: Keith is the co-founder of FAME. He graduated with a Bachelor in Business Management(Finance) and Bachelor of Science(Information Systems Management) in Singapore Management University (SMU) under a DFS Scholarship. His main expertise and interest lies in exploiting the power of IT to drive business opportunities and creating values, and he have been involved in such developments since 1999. He first started out as a freelancer at the age of 17 and worked with a major pharmaceutical firm to produce a CRM system which focused on slightly complicated MLM algorithms. His most memorable stints were in Johnson and Johnson, DFS Venture and Standard Chartered Bank.
He was involved in developing a predictions market (Stock Exchange) system and Asterisk IVR system coupled with Voice Biometrics system, both as a project manager, and streamlining of a global financial work flow involving more than USD$100k monthly. In particular, his team was awarded SGD$12,000 for the voice biometrics project by Standard Chartered in recognition of the top 3 projects in the year. He also assisted several professors and lecturers in SMU as a teaching assistant as well as head teaching assistant.
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