How the Pandemic and Scaling Pinterest Can Teach Us Valuable Lessons

How the Pandemic and Scaling Pinterest Can Teach Us Valuable Lessons

In recent years, the journalism industry has seen a rise in independent writers who have chosen to go it alone via email newsletters. These writers, mostly white men, have found success in areas like technology, business, or politics, where they can blend punditry and analysis with original reporting. However, the independent model doesn't work as well for journalists who cover topics that require daily beat coverage or investigative reporting. Additionally, technical support and legal resources are often lacking in this model.

Building an audience is one of the trickiest parts for most independent writers. Judd Legum, a successful newsletter writer, explains that getting the first thousand subscribers can be challenging, especially for those starting from scratch. However, platforms like Substack have been piloting programs to provide writers with more institutional support, including advance payment. Unlike traditional newsrooms, Substack allows writers to keep their subscriber lists and own their Stripe accounts, giving them a direct billing relationship with subscribers. This not only makes it easier for writers to take their lists and subscribers elsewhere if they choose but also gives them a direct business relationship with their readers.

The independent model has empowered many journalists and non-journalists alike to start their own newsletters, pursuing stories they couldn't write in a traditional newsroom. However, as the newsletter phenomenon grows in popularity, the industry will have to grapple with the possibility of newsletter overload and newsletter fatigue. It's crucial for platforms like Substack to retain their talent and prevent them from moving their lists and business to other platforms.

In a completely different realm, Pinterest has experienced significant growth and success over the years. The team at Pinterest has learned valuable lessons about scaling and building a successful product. One important lesson they've learned is the strategic importance of what you measure. It's often said that what you measure improves, but if you measure the wrong thing, you could end up wasting time and resources on ineffective initiatives. The Pinterest team shifted their focus from measuring monthly active users (MAUs) to increasing the number of new weekly active pinners, which they identified as their core action. This shift in focus allowed them to prioritize the right metrics and drive growth in the areas that mattered most.

Another key lesson from Pinterest's scaling journey is the importance of having the right organizational structure and people in place. Execution problems often stem from either a wrong org structure or the wrong person in a particular role. As a company scales, it becomes necessary to make organizational changes that align with the company's strategy. An inefficient or overly matrixed org structure can act as a tax on a company's ability to execute effectively.

Pinterest also highlights the significance of listening to data over the vocal minority. While your loudest users may provide valuable feedback and feature requests, it's essential to consider the data and insights before making decisions. Facebook's newsfeed feature is a prime example of how initial user backlash can be overcome through data-driven decision-making. Listening to what the data says, communicating with users, and being prepared to ignore the vocal minority can lead to a more successful product.

Additionally, Pinterest emphasizes the importance of being cautious when adding new features. While it may be tempting to build every feature requested by users, it's crucial to consider the scalability and impact of each feature. Building features that only a small percentage of users will use can lead to a highly engaged but limited user base. It's essential to ask the right questions and find scalable solutions that cater to the majority of users.

Lastly, Pinterest highlights the need to focus on the long-term and be willing to take risks. As a product becomes sticky and gains a loyal user base, it's crucial to shift focus towards attracting the next hundred million users. This may require making decisions that could potentially anger existing users but are necessary for future growth. It takes leadership and a commitment to first principles to navigate these moments of organizational self-doubt.

In conclusion, the pandemic has pushed many journalists to pursue independent paths through email newsletters, providing them with the autonomy to write about topics that interest them. Platforms like Substack have given writers more support and ownership of their subscriber lists. On the other hand, Pinterest has taught us valuable lessons about scaling a successful product, including the importance of measuring the right metrics, having the right organizational structure, listening to data over the vocal minority, being cautious with feature additions, and focusing on long-term growth. As we navigate these lessons, here are three actionable pieces of advice:

1. For independent writers, focus on building your audience by leveraging existing networks or finding ways to collaborate with others in your niche.
2. When scaling a product, prioritize the metrics that align with your core action and be willing to make organizational changes to support growth.
3. Listen to user feedback but make data-driven decisions. Be cautious when adding new features and consider their scalability and impact on the majority of users.

By incorporating these lessons and taking actionable steps, journalists and product builders can navigate the changing landscape and find success in their respective fields.