The Power of Doing Things that Don't Scale and the Future of Content

The Power of Doing Things that Don't Scale and the Future of Content

In the world of startups, there is a common thread that connects many successful founders - their willingness to do things that don't scale. These founders understand that in order for their businesses to take off, they must take matters into their own hands. One of the most unscalable tasks that founders often have to do is to manually recruit users. They can't simply wait for users to come to them; they have to actively go out and get them.

This resistance to individually recruiting users stems from a combination of shyness and laziness. Many founders shy away from the sales and marketing aspect of their business, hoping that their product will speak for itself. However, for a startup to succeed, at least one founder, usually the CEO, must be willing to dedicate a significant amount of time to sales and marketing.

Another reason founders may hesitate to focus on individual customers is because they underestimate the power of compound growth. They see the initial numbers as small and insignificant, failing to recognize the potential for exponential growth. It's important for startups to measure their progress by weekly growth rates and to think about the long-term potential of their company.

One common misconception about startups is that they need to have a grand vision of taking over the world from the very beginning. In reality, most startups are fragile in their early stages. It's not about whether a company is going to take over the world; it's about how big it could potentially become if the founders make the right moves. This involves finding an initial set of users through a relatively untargeted launch, observing which users are most enthusiastic, and then seeking out more like them. The key is to constantly think of new ways to delight these customers and to make their experience with the product or service truly exceptional.

Founders often worry that focusing on individual customers won't scale. This concern is especially prevalent among founders with an engineering background, as customer service is not typically part of their training. However, as the company grows, founders will discover that delighting customers actually scales better than expected. By finding creative solutions and making customer satisfaction a core value, founders can create a culture that prioritizes the customer experience.

Sometimes, the right strategy for startups is to focus on a deliberately narrow market. By building something for themselves and their friends, who are often early adopters, founders can later realize that their product or service has broader market potential. This organic approach allows startups to refine their offerings and gain traction within a specific niche.

Similarly, content creators on the internet have a unique opportunity to publish and share their work with a global audience. As Bill Gates wrote in 1996, "Content is King." The internet allows anyone with a PC and a modem to create and distribute content at a low cost. This democratization of content creation has led to intense competition in various categories, including software, news, games, entertainment, sports programming, directories, classified advertising, and online communities.

Gates also recognized that the internet's potential for content is vast. Over time, the internet will house an enormous breadth of information, making it an irresistible medium for users. However, for the internet to thrive, content providers must be compensated for their work. While advertising holds promise for generating revenue, the current model is not yet practical for charging small amounts. The cost and complexity of electronic transactions often make it impractical to charge less than a substantial subscription rate.

In conclusion, the power of doing things that don't scale cannot be underestimated in the world of startups. Founders must be willing to put in the effort to recruit users individually, delight customers, and focus on a specific market. Similarly, content creators on the internet must navigate the challenges of monetization while providing high-quality and engaging content. To succeed in these endeavors, here are three actionable pieces of advice:

1. Embrace manual user recruitment: Don't wait for users to come to you; actively go out and get them. Engage with potential customers individually and find creative ways to attract them to your product or service.

2. Prioritize customer satisfaction: Delighting customers should be a core value of your company. Find ways to go above and beyond their expectations, and make customer service an integral part of your culture.

3. Focus on a narrow market: Instead of trying to appeal to everyone, consider targeting a specific niche. By building something for a particular group of early adopters, you can refine your offerings and gain traction within a dedicated community.

By following these principles, startups and content creators can establish a solid foundation for growth and success. Remember, it's not about taking over the world from day one; it's about the potential for exponential growth and the ability to adapt and delight customers along the way.