Rabbit Holes 🕳: Finding Value in the Current Bubble

Rabbit Holes 🕳: Finding Value in the Current Bubble

The current bubble in the tech industry has been fueled by a decade of cheap, liquid money. However, amidst this bubble, it seems that we have failed to find and empower truly beneficial technology and innovations. While there have been some profitable startups, the majority of them have not been based on new digital technologies or recent scientific advances. As a result, once the dust settles, it is unlikely that much productive value will be left.

One interesting aspect of this bubble is the rise of unicorns – startups valued at over $1 billion. However, a closer look reveals that many of these unicorns have accumulated massive losses. In fact, of the 133 publicly traded ex-Unicorn startups analyzed, more than half have cumulative losses exceeding $500 million. This raises concerns about the sustainability and long-term viability of these companies.

In the midst of this bubble, there is a need for platforms that can help us discover and highlight truly valuable content. Glasp is one such platform that allows users to save and share highlights from articles. This not only helps in organizing and clustering insights but also enables users to follow popular creators and explore their work through the highlights of others. It provides a convenient way to save and revisit valuable information in one place.

While the current bubble may not be conducive to finding and empowering truly beneficial tech and innovations, there are still opportunities to make freemium models work. Freemium, a model that offers both free and premium services, can be a successful strategy for attracting new users. Research has shown that a free user is typically worth 15% to 25% as much as a premium subscriber, with significant value stemming from referrals.

To make freemium work, it is important to ensure that the free offerings are compelling enough to attract new users. If the conversion rate is low, it may indicate that the free features need improvement. On the other hand, if there is a lot of traffic but few people are paying to upgrade, it may mean that the free offerings are too rich. Striking the right balance is key.

Aiming for a moderate conversion rate coupled with a high volume of traffic is generally the best long-term strategy for freemium models. However, the target conversion rate may vary depending on the size of the market. Early adopters are usually less price-sensitive and more likely to upgrade, so they can be a valuable target audience. Additionally, satisfied users can play a crucial role in helping your product go viral, so it is important to consider how they can contribute to the growth of your business.

It is also important to keep increasing the value of your premium services to keep attracting upgrades. Users who join late are typically harder to convert, so continuous innovation is necessary to maintain a steady stream of upgrades.

In conclusion, while the current tech bubble may not be ideal for finding and empowering truly beneficial tech and innovations, there are still opportunities to make freemium models work. By focusing on creating compelling free offerings, aiming for a moderate conversion rate, and continuously innovating to increase the value of premium services, companies can find success in this challenging landscape. It is crucial to keep in mind the importance of satisfied users and their potential to help your product go viral.