#TBT: Why Google Won the Search Engine War

Hatched by Kazuki
Jul 10, 2023
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TBT: Why Google Won the Search Engine War
In the early days of the internet, search engines were still trying to find their place in the World Wide Web. Monetization was a significant challenge for these search engines, and many of them attempted to maximize ad revenue on their pages. However, this approach often led to a worse user experience and distracted users from their primary goal – finding relevant information.
Google took a different approach. They understood that what users wanted most was the most relevant information to their search queries. To achieve this, Google focused on indexing information based on relevancy and citation, allowing them to surface the most relevant results for users.
Unlike other search engines, Google didn't clutter their page with ads. Instead, they let users focus on their search and placed ads within the search results. This decision was crucial in maintaining a positive user experience. Additionally, Google implemented a clickthrough rate (CTR) as a way to measure the relevancy of search results. If a result had a low CTR, it indicated that it wasn't what users were searching for, allowing Google to continuously improve the quality of their search results. This approach benefited not only users but also advertisers, as they could reach the right audience more effectively.
This unique combination of focusing on user experience, relevant search results, and effective ad placement allowed Google to solve the monetization problem without compromising the user experience. By the time other search engines, like Yahoo!, tried to catch up, it was too late. Google had already established itself as the search engine of choice for users worldwide.
Google's success can be attributed to their understanding of users' desire for relevant information and their ability to monetize search without ruining the user experience. This approach proved to be a winning combination that set Google apart from its competitors.
Deciding how much equity to give your key employees is a crucial aspect of building a successful company. TechCrunch suggests that after a seed round, a company should aim to have an employee pool of around 10% to 12%. The allocation of equity to employees depends on their role and level within the company. For example, a senior engineer may receive as much as 1% of the company, while an experienced business development employee is typically given a .35% cut. A mid-level engineer may expect .45%, whereas a junior engineer or someone in a junior role in design or marketing may receive .15% or .05%, respectively.
It's important to note that building a successful company often takes longer than four years. As a result, longer vesting schedules are becoming more common. Previously, employees had up to 90 days after leaving a company to exercise their options, which could be costly and result in a large tax bill. However, companies are now extending this period to ensure that employees don't end up with nothing.
To attract advisors, offering a small percentage of the company, typically between .1% and .3%, can be a valuable incentive. This can help attract experienced individuals who can contribute their expertise and guidance to the company's growth.
In conclusion, Google's success in the search engine war can be attributed to their focus on user experience, relevant search results, and effective monetization strategies. By understanding what users wanted and implementing a unique ad placement model, Google revolutionized the search engine industry. When it comes to building a successful company, determining the right equity allocation for key employees is crucial. By offering appropriate percentages based on roles and levels within the company, companies can attract and retain talented individuals. Additionally, considering longer vesting schedules and extending the exercise period for options can further incentivize employees to stay and contribute to the company's success.
Actionable Advice:
- 1. Prioritize user experience: Like Google, focus on delivering the most relevant information to your users and ensure that your business model doesn't compromise their experience.
- 2. Implement clickthrough rate: Consider incorporating clickthrough rate as a metric to measure the relevancy of your offerings. This can help you continuously improve and deliver the most valuable products or services to your target audience.
- 3. Thoughtful equity allocation: When deciding how much equity to give your key employees, carefully consider their roles and levels within the company. Offering appropriate percentages can attract and retain talented individuals who can contribute to your company's growth.
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