On the surface, this sounds a lot like the now defunct Google Answers. But, Mahalo Founder and CEO Jason Calacanis described some of the differences to me in a conversation last week, and there are certainly a few reasons to believe that Mahalo Answers could be what turns the site into a big winner.
Differences from Google Answers
For one, Calacanis points out that Google Answers wasn’t a part of search engine result pages. On Mahalo, each page – of which there are now more than 100,000 – now includes a question box where a user can ask about the topic. Additionally, unlike Google Answers where questions were “claimed” and then worked on by one person, on Mahalo, multiple users offer answers, and the person who asked it then designates who gets the money.
To prevent users from abusing this system – the clear potential flaw – Mahalo Answers comes with an eBay-like reputation system, so users get knocked if they end up not paying out tips. Mahalo also highlights top users of the system, which Calacanis believes will help drive adoption amongst the work from home crowd looking for an additional income stream.
Appealing to Subject-Matter Experts
The service gives users further opportunity to make money by allowing anyone to directly ask them questions. So, if a user establishes themself as an expert in a given topic, other people can go to their profile and submit a question to them. In the future, this functionality will be extended so experts can embed widgets or apps on blogs and social network profiles, from which people can ask them questions.
The Business Model
In rolling out Answers, Mahalo is also introducing a significant potential business model. The site – which has been ad-free so far – will take a 25% cut on the money being exchanged between users. With 4.8 million monthly unique visitors, Calacanis estimates that if just a relatively small percentage of those adopt Answers, the company will soon see significant revenue from the venture.
Will it Succeed?
So will Mahalo Answers catapult the site into a profitable business? There certainly won’t be a shortage of people looking to answer questions – between the existing work-from-home crowd and the recently unemployed (as well as existing Mahalo Guides), the service is launching at an opportune time.