Category Archives: Personal Thoughts

Madison’s Isthmus Wrote About Me, Madison, Startup Chile and Entrepreneurship

Mark Eisen of Madison’s The Isthmus wrote an article, Nathan Lustig Takes His Talent Abroad, about me, Madison, Startup Chile and my background of what made me an entrepreneur. If you’ve read my blog, you’ll probably recognize many of the stories that Mark wrote about. It was really fun chatting with Mark about Madison’s future and the startup scene that we’ve building for the past decade. I’m glad I can still be a part of it from “5400 miles away.”

I wanted to make one clarification about about the business school: while it’s true I absolutely hated Accounting 100, the first two weeks were incredibly helpful in understanding how Quickbooks worked. Although the classes and many of the students weren’t my style, I owe a ton of my success to some of the professors there including John Surdyk and Anne Miner who run the Burrill Business Plan Competition where I first met Joe Boucher, a UW professor and my lawyer, Jon Eckhardt who helped me a ton with both ExchangeHut and Entrustet. Plus two of by business partners were business students who graduated from the entrepreneurship program!

Thanks to Mark for writing and everyone who took time to be interviewed to make the article happen. Thanks Joe, Matt, Forrest, Scott, Maite and anyone else who I missed. And it’s true. I’ll be back in Madison for at least awhile in late June! It will be great to see you all.

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Crowdsourcing Policing: A Double Edged Sword

We’re going through the biggest period of change in human behavior since the invention of the printing press. One of the biggest changes is crowdsourcing: the ability to have many people do tasks that individuals and small groups used to in the past.

You can find examples of crowdsourcing changing nearly every industry including encyclopedias (wikipedia), news (twitter), sports reporting (bleacher report), investing (kiva, kickstarter), menial tasks (mechanical turk), tshirts (threadless), space exploration (mars rover) logo design (99designs), editing (ueditme), traffic (waze), travel reviews (lonleyplanet), restaurant reviews (yelp), even concert tours (eventful). Pretty much any industry you can think of has been disrupted by crowdsourcing. Most for the better.

Crowdsourcers use the ubiquity of data and an internet connection to provide better service to consumers than they previously had from full time employees or big, slow institutions. Many of these services have replaced the old guard completely. Nobody would think of looking at encyclopedia britannica anymore. Wikipedia is way better, easier and cheaper.

Crowdsourcing has started to spill over into even more traditional industries like government and policing. Police have always had tiplines and there have always been amateur sleuths, but the internet, a proliferation of data, and online communities have supercharged these efforts. Regular people, or those with a cause, can help police identify witnesses, send in tips and even add to the investigation.

In Boston, reddit and 4chan immedietly sprang to life to try to identify the bombers. In another case, a gearhead was able to identify the car used in a hit and run just by looking at a photo of it’s headlight. In the Stubenville rape case, Anonymous hacked into youtube, email and other online services to gain access to incriminating texts, videos and pictures that directly led to the rapists’ conviction.  In another case the police released a video of an assault and the perpetrator was identified by his social media a few hours later. These are all cases where the crowd’s participation has led to justice.

In the Boston bombing, it’s led to singling out many people, most of whom are not guilty, but so far nobody’s been falsely accused by these amateurs. But what happens when the wisdom of the crowd turns into a mob? What happens when online sluethes are convinced they have a suspect?

The mob has started to publish people’s personal details, family, net worth, address etc. During the Trayvon Martin case, Spike Lee tweeted the personal details of the wrong Zimmerman. The family was harassed and intimidated and feared for their lives as the mob circled them. When Anonymous or other internet hackers have disagreed with individuals or believed that they’ve committed a crime, their response has been to publish personal details, invade their privacy and try to turn the mob on them.

Some people believe that the crowd can replace traditional police work. And that the crowd can act as a deterrent to bad behavior. I believe that the crowd can help, but we must weigh the potential to shame innocents and devolve into mob behavior and public lynchings of people who should be innocent until proven guilty. I don’t want to live in a world of distributed 1984, where everyone is watching, everyone can be an informer. That doesn’t sound like fun to me.

We must come up with new social norms that allow the crowd to help out, like in the Stubenville rape case, but that deter people from devolving into mob behavior, publishing people’s personal details and shaming people before they’re are proven guilty, or at least until there’s significant evidence to support the conclusion. This will be a big trend to watch over the next 3-5 years as these social norms develop.

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Privilege

“What does it feel like to be mistaken for an upperclass Chilean?” asked my next door neighbor Marcy, over Thanksgiving dinner in Wisconsin.

It was a great question. I knew I had some privileges by being able to pass for an upper class Chilean (until I speak of course, my accent gives me away instantly), but I hadn’t really given it much thought. It made me reflect on my privilege both in Chile and in the US, as well as privilege in general.

I am very lucky. I was born in 1985 in the safety of suburban Milwaukee, WI, USA to two loving, hard working parents with advanced degrees, with grandparents who thought I could do no wrong.

My life would have been very different if I were born into a black family in the throes of slavery in the 1820s American south, or in 1985 into a poor family living in the slums in India, South Africa, Brazil or Chile. I got lucky. I won the sperm lottery. But I didn’t always realize this truth.

When I was a kid, we always learned about the American dream. If you work hard, it said, everyone has the opportunity to succeed. Many people even claim everyone has the same opportunity to succeed. As I got older, it was clear that’s it’s just not the case. And its even worse in many countries outside of the US.

While some societies allow for more social mobility than others, the US much more than Chile for example, there’s no doubt that it is much harder for someone with my exact intelligence, drive, entrepreneurial skills and good looks, but born into poverty, to achieve what I have at age 27. It’s a truth that many of us are not willing to admit.

The first time I truly recognized my privilege was in 2006 when I was 20. I was buying and selling tickets outside of a sporting event. I had 20 tickets left and I knew the market was going to drop. I quickly dumped 15 tickets to another broker for $40 each, or about 25% under current market value. A half hour later, those tickets were worth $10 at best. The buyer was furious. He was going to lose ~$400.

He got in my face and demanded his money back. The tickets were fake, he said. I knew he was full of it and called his bluff. Let’s walk into the arena and see how many are fake, I proposed. I’ll give you double, $80 for each fake one we find! He knew they were real. He grabbed me, reared back as if he were going to punch me in the face, swung, but stopped inches short.

He realized I wasn’t getting scared so he tried to grab into my pocket to get the cash. I wriggled away and ran to the front of the line and told the ticket takers that a guy was trying to rob me. Security took one look at me, then at my premium ticket and let me pass. They took one look at my irate attacker and threw him out.

My attacker was a 6’ tall, lower class, furious black man. I was an upper middle class, clean cut, scared looking twenty year old who probably looked sixteen. If it weren’t for my racial and class privilege, security probably wouldn’t have let me in and I would have gotten beaten up and robbed.

Going back to Marcy’s question, it’s a strange feeling. Chile is one of the most classist countries in the world. It’s one of the things I most dislike about being in Chile. But I clearly benefit from implied upperclass or “cuico privilege” even though I am a foreigner.

For example, last week I had an hour between meetings in a nice part of town. I was looking for a place to sit in the shade and read to kill some time. I saw a small garden with a bench that was clearly part of an apartment complex. I walked across the lawn, plunked myself down onto the bench, took out my kindle and started to read. The concierge quickly came running over to see who trespassing in his garden, but stopped short and starred at me through a big window, clearly trying to decide if he should kick me out or not. I pretended not to notice and kept on reading. He watched me for another 45 seconds, then left without saying a word. There’s no doubt in my mind he would have made me leave instantly if I were lower class. Or a foreigner who looked low class.

It also works the other way. When I take the bus or walk around in the centro, some people look at me strangely, like “what is he doing in here?” I’ve even had a few drunken guys at a bar in the center ask me straight up “what are you doing here” and when I answered in my gringo accented Spanish, they changed their tone completely. To answer Marcy’s question, it’s strange, but there’s nothing I can do about it.

I believe we must recognize privilege, but there is no use feeling guilty over something which we do not have any control. At the same time, we must recognize the innate advantages we have based on being born at our specific time, to our specific family, to our specific race, to our specific class, in our specific country. We must act conscientiously of this privilege. We must remember that someone with our exact characteristics with fewer privileges would likely not have the same success as we do. And if they did, their success would have been much more difficult to achieve.

Try one of my favorite thought experiments. Take a step back. If you were born with your exact same qualities, drive, passion, smarts, good looks, work ethic, morals and ethics, but in the body of someone without the advantages you currently have, would you be as successful as you are today as easily as you did today? For me, the answer is clearly no. What about you?

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AT&T Is Firing Me As A Customer Even Though I Want to Pay Them $480 in 2013

I’ve been an AT&T customer since march of 2010 when I first switched from Verizon to get an iPhone. I’ve paid AT&T at least $1500 for my personal cell phone over the past two and a half years and would like to keep doing so. If you include my business accounts I’ve had with them, I’ve paid them over $4500. I’ve always paid on time. I’ve been a model customer. I want to pay AT&T at least $480 in 2013. But AT&T doesn’t want my business anymore. They can only cancel my service.

Here’s the problem: I pay AT&T $80 per month when I am in the US. Whenever I travel abroad, I put my phone service on “vacation suspend” mode with AT&T at a cost of $10 per month. Vacation Suspend means that my phone is not active, but I keep my phone number. When I come back to the US I reactive my plan and I go back to paying full price. I’ve been doing this since November 2010 when I first went to Chile. Here’s my payment history from AT&T:

  • March 2010 to Nov 2010 – $80/month
  • December 2010 to May 2011 – $10/month
  • May 2011 to September 2011 – $80/month
  • September 2011 to December  2011 – $10/month
  • January 2012 – $80/month
  • February 2012 to November 2012 $10/month
  • November 2012-January 2013 $80/month

I’ve had 17.5 months at full price and 17.5 months on the vacation suspend reduced mode for a total of: $1400+175=$1575. AT&T refuses to let me go back on vacation suspend again.

In August 2012, AT&T started charging me full price again because the representative told me that they have a company policy that you can only be on vacation suspend for 180 days in a row. When I called back, he happily put me back on vacation suspend for another three months. When I came back to Chile this month and wanted to go back on vacation suspend, the rep told me it was impossible. The system only lets them put me on vacation suspend one time every 12 months. I talked to a supervisor. Same deal. I talked to their twitter support. Everyone understood my predicament and said they’d love to be able to help me, but they only thing they could help me do was cancel my account.

They claimed that this has been their policy for years. I know, looking at my account history, that it’s not. I’ve been on vacation suspend multiple times in a single 12 month period and for more than 180 days in a year with no problems. This policy is either a recent change to get rid of customers like me or the customer service reps are now lying to me.

I want to keep my plan because it’s convenient. When I go back to the US I get to keep my number and have a functioning phone with a change of SIM cards and one phone call. There’s only two reasons I can think of why AT&T wants to get ride of me: First, AT&T wants to fire me because that I have a grandfathered in unlimited data plan for $30. AT&T no longer offers unlimited data. Second, they are a big company that doesn’t make exceptions and will just let revenue walk out the door.

I’m still hoping for common sense to prevail from AT&T, but if it doesn’t shortly, I will cancel my plan and AT&T will lose at least $480 this year and thousands of dollars in the future.

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