Check this out as the founders of Kout discuss their start-up an their online payment service.

Hat tip – Robert Scoble

Tom Friedman is usually very good at explaining the disruptive influence of new technology and the implications for the global economy, even if he isn’t the first (or second) to notice something.

The latest phase in the I.T. revolution is being driven by the convergence of social media — Facebook, Twitter, LinkedIn, Groupon, Zynga — with the proliferation of cheap wireless connectivity and Web-enabled smartphones and “the cloud” — those enormous server farms that hold and constantly update thousands of software applications, which are then downloaded (as if from a cloud) by users on their smartphones, making them into incredibly powerful devices that can perform myriad tasks.

The emergence of the cloud, explained Alan Cohen, a vice president of Nicira, a new networking company, “means than anyone can have the computing resources of Google and rent it by the hour.” This is speeding up everything — innovation, product cycles and competition.

The October issue of Fast Company has an article about the designer Scott Wilson, who thought of grafting the body of an iPod Nano onto colorful wristbands, turning them into watchlike devices that could wake you up and play your music. He had no money, though, to bring his concept to market, so he turned to Kickstarter, the Web-based funding platform for independent creative projects. He posted his idea on Nov. 16, 2010, reported Fast Company, and “within a month, 13,500 people from 50 countries had ponied up nearly $1 million.” Apple soon picked up the product for its stores. Said Alexis Ringwald, 28, who recently founded an education start-up, her second Silicon Valley venture: “I have many friends — they introduce themselves as ‘reformed’ Wall St. bankers and lawyers — who have abandoned conventional careers and are now launching start-ups.”

Some like Rich Kaarlgard have been describing this as the “cheap revolution” for years. Friedman is explaining the new developments in that area. We now have it all at our fingertips all the time. It’s a powerful and exciting development. Kickstarter is a great crowdsourcing example that thrives in this environment.

Friedman uses the column to contrast Wall Street and Silicon Valley. It’s a good read.

The Huffington Post sold for $315 to AOL this week, and Demand Media recently completed an IPO. In many ways, these events validate the strategy of gaming the system. Google is a beast that can be gamed, and both these operations did it very well.

HuffPo is notorious for hysterical headlines and their lefty slant, but they were also very well organized and filled a void in the marketplace. In many ways they deserve their success. But, a big part of their success has to do with gaming Google’s search results. Their editors find interesting stories, do a post on it with a link back, but HuffPo usually gets all the search traffic. The other sites usually don’t complain, because links from HuffPo provide really good traffic as well.

Demand Media also fills a void, as they use their own algorithm to find potential search results that need to be filled with content. Then they pay know-nothing writers (well, I guess some of them know what they are writing about) to create a short article covering the topic. AOL is even trying to copy the strategy. Many now refer to sites like Demand Media as content mills, and Google might be addressing the issue, but Demand Media has already scored their IPO and Google’s search results are littered with lame content at the top.

Gaming the system pays.

A gracious if not a bit awkward Mark Zuckerberg joined Jesse Eisenberg and Andy Samberg, who was impersonating Zuckerberg, onstage for the opening of SNL last night. It wasn’t particularly funny, but Zuckerberg sure helped his image quite a bit with the appearance.

I thought the folks at Groupon were nuts to turn down Google’s offer of $6 billion, but Henry Blodget explains why. The article makes sense and it was frankly an eye-opener.

BusinessWeek has a great profile on Henry Blodget and how he’s fighting back with his web properties after his disgraceful exit from Wall Street after the tech bubble burst.

Henry Blodget is a man who will be neither easily riled nor insulted. When, in March, he learned that a blog had labeled a section of The Business Insider, the gossipy financial website he founded three years ago, “The Hooters of the Internet,” Blodget waited a couple hours before tweeting: “The Hooters of the Internet. I like that.” In May, Blodget predicted on his website that within just a few years, The Huffington Post will take in over $100 million in advertising revenue—more than triple the $30 million the site says it will bring in in 2010—and that by 2015 or so, it would be generating more from advertising than The New York Times. In an endnote, he disclosed that Kenneth Lerer, a co-founder of The Huffington Post, is also an investor in The Business Insider, or TBI as it is known by its readers. “Thank you for the disclosure,” someone called The Truth typed in the piece’s comments section. “Unfortunately, it invalidates everything you write. You’re a mouthpiece.” It took Blodget less than a minute to post his response: “Thank you!,” he wrote, like a fraternity pledge embracing his hazing.

Blodget was busted back then by then-New York Attorney General Eliot Spitzer, who has since had his own problems. Spitzer now has a TV show premiering soon on CNN, so it looks like everyone can get a second chance.

The Business Insider, along with niche areas like Silicon Alley Insider, is an excellent online magazine and news resource, so Blodget appears to be on his way.

I agree that HuffPo will keep growing as well, though at some point they might want to scale back those ridiculous and often misleading headlines.

HuffPo has a cool story about a new niche dating site – You and Me Are Pure. As the article points out, there are all sorts of online dating sites out there covering all sorts of niches, from dating based on ethnicity to things like fitness buffs, cougars and bikers.

The aim of the site, the creators explain, is “to use virginity as a significant compatibility tool to bring people together. Some people may overlook the bonding power of virginity. Virginity as an important common aspect between people can lead to close friendships, or can even serve as a mutual precious gift of marriage.”

The founders of the website, Lety and Jose Colin, explain that they were virgins until they were wed.

We have to admit we’re impressed. With all the niche dating sites out there, they may have found the most exclusive one of all!

Some Democrats in the House are poised to introduce a new bill to tax online purchases. The argument over Internet sales taxes has been raging for years, and it pits online sellers like Amazon and eBay against traditional retailers like Target and Wal-Mart.

At the moment, Americans who shop over the Internet from out-of-state vendors usually aren’t required to pay sales taxes. Californians buying books from Amazon.com or cameras from Manhattan’s B&H Photo, for example, won’t be required to cough up the sales taxes that they would if shopping at a local mall.

This is hardly a new debate: pro-tax officials and state governments have been pressing Congress to require taxes to be collected for a decade or so. They argue that reduced sales tax revenue threatens budgets for schools and police, and say that, as a matter of fairness, online retailers should be forced to collect the same taxes that brick-and-mortar retailers do.

But with states scrambling for new sources of revenue during what may be a double-dip recession, pro-tax lobbyists are hoping that they’ll have better luck this year. The National Conference of State Legislatures applauded Delahunt’s legislation, saying he should be commended for allowing states to collect as much as $23 billion in new taxes.

So did the Retail Industry Leaders Association, whose tax committee members include Wal-Mart, Home Depot, Costco, AutoZone, Target, and IKEA.

On the other side are groups that advocate for lower taxes and retailers including Amazon.com and eBay. In a statement on Friday, Tod Cohen, eBay’s vice president for government relations said: “At a time when unemployment rates are high and small businesses across the country are closing shop, we are confident that Congress will protect small Internet retailers and the consumers they serve from another Internet tax scheme.”

The absence of a tax online has been very helpful in the growth of the Internet and online sales. It makes thing much easier for small sellers as well, so any change would need to be carefully examined.

That said, online sales are now huge, and it does hurt revenues for state governments.

If they move forward, the key would be to craft a system that has one standard for all states, so every online retailer isn’t subject to 50 different state regulations. That alone would kill many online businesses.

Perhaps they should have a single national rate, like 5%, and the states get money based upon the location of the purchaser for each transaction. Retailers would simply collect the tax and then report transactions and the locations of the buyer.

Depending on how big your business is, there are things that any entrepreneur needs to buy to make a business successful. One of the first things, for most businesses, is a robust computer system. HP is highly recommended, because of its sophistication and attractive bulk prices. You can even get discounts if you are using hp coupons. You can use HP computers in a networked manner using Linksys or Netgear routers to effectively collaborate across rooms.

One other important thing you may want to invest in is a high quality printer. Every office needs a laser printer at some point of time. Once you get the printer, think of a photocopier, if you think that would be useful. Get good videoconferencing systems if you are dealing with multiple locations or need to talk to clients long distance.

Apart from hardware, there’s a bunch of software that can be useful. No business can do without a good accounting or tax software. Intuit is a good one; Quickbook Pro is also good for the small office.

Small businesses need to focus on how to use open source or freeware to keep costs down. One good way to collaborate online is to use Skype. This is a VOIP telephone system that also lets you chat and collaborate online. Businesses that deal with employees online can find this very useful for collaborative work. International businesses, dealing with long distance clients, can find this very useful.

There is not really a hard and fast rule about what you got to buy to be successful. It kind of depends on what you are selling. But in general, you should never shy away from spending in those things that improve business communication, whether it is with clients, or with business personnel.

Have you often wished that you could be your own boss by setting up your own business? Setting up a new business from scratch is never easy, but you can improve the odds in your favor by setting up as a franchisee for a running successful business. As a franchisee, you will function as an extended arm of the company which will provide all the support that you can expect from a partner. How do you go about selecting which company you are going to work with?

Ideally, you would like the franchising company to operate in a business where there is high demand and limited competition. You would also like the full range of support services from the training to marketing and advertising. We are going to look at one company that has been extremely successful in franchising because there are many lessons to be learnt from their success. The company is called N-Hance and offers wood renewal services for wooden floors and cabinets through a system of franchisees. Entrepreneur Magazine put the company at the top of the home improvement and miscellaneous services category in its annual Franchise 500 rankings.

N-Hance is a renewal system for wooden floors, cabinets and other built in storage. It makes the wood look like new without using messy and pungent chemicals and without the expense of refinishing or sanding. They have built a highly successful and comprehensive support system for their franchisees including complete turnkey packages that even include business stationery and business cards. In addition, their powerful brand and unique customer proposition put you in a position where you can provide genuine value to your customers.

If you are interested in an outstanding business opening in the flooring restoration business, you should give serious attention to this franchise opportunity. You will find it a relatively painless and low-risk blueprint to build up a successful business.