Pinterest’s Unlikely Journey To Top Of The Startup Mountain – TechCrunch

Pinterest’s Unlikely Journey To Top Of The Startup Mountain – TechCrunch

Pinterest, one of the biggest success stories in the startup world, had a humble beginning. When it first launched, nobody liked it and the founders weren't well-funded for a long time. However, they maintained their original vision and didn't pivot because they believed they were building something big. This dedication to their original idea paid off in the long run.

One of the founders, Ben, joined Google in 2006 after a consulting gig in Washington DC. He worked in customer support and sales, gaining valuable experience in the tech industry. After launching Pinterest, the platform only had 200 users for the first four months. It took a while for the site to gain traction in California, but it consistently grew by 40-50% every month.

What set Pinterest apart from other startups was their relentless obsession with the product. They paid attention to every detail, from the writing to the community. Ben even personally wrote to the first 5,000-7,000 people who joined the site, showing their dedication to building a strong community.

Status as a Service (StaaS) — Remains of the Day

The concept of social capital theory plays a significant role in understanding the success of social networks. Social networks accumulate social capital assets and create status games for their users. The ability to accumulate social capital and earn status is what drives people to join and participate in these networks.

Successful social networks have a clear purpose and offer a unique form of status token, earned through some form of proof of work. This proof of work differentiates users and creates a sense of exclusivity and scarcity. Without a distinct proof of work, social networks risk becoming crowded and losing their appeal.

The competition for attention on social networks increases as more people join. Unless someone brings incredible exogenous social capital, the competition becomes more intense over time. Value and status are tied to scarcity, and users need to put in effort and skill to mine status on these platforms.

To maximize their social capital, heavy social media users are aware of the different status returns among the apps they use. Some features, such as the ability to reshare content, can increase the reach of content and accelerate its virality. Distribution is crucial in allocating social capital and determining the success of a social network.

Actionable Advice:

1. Stay true to your original vision: Like Pinterest, don't be swayed by external pressure to pivot or change your idea. Believe in the value of your product and stay dedicated to it.

2. Obsess over your product: Pay attention to every detail and constantly strive for improvement. Be obsessive about your writing, community, and user experience.

3. Differentiate with proof of work: Create a unique form of status token that requires skill and effort to earn. This will set your social network apart and attract users who value exclusivity and scarcity.

In conclusion, the success of Pinterest and other social networks can be attributed to their ability to accumulate social capital and create status games. By maintaining their original vision, obsessing over their product, and differentiating with proof of work, these platforms have carved out a unique space in the market. Understanding the importance of social capital and status can help entrepreneurs build successful social networks in the future.