Data isn’t a business model – it’s much more important


This post is by Tomasz Tunguz from Tomasz Tunguz


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The throwaway line in pitches these days is “we’ll sell our data.” Most of the time, this notion is wrong. Data is the most valuable outcome of building a successful product. It’s the insight, the secret, the keys to the kingdom. Don’t sell the keys to the kingdom. Data provides economies of scale and insights used to develop huge barriers to entry and it should be kept within an organization.

Data isn’t a business model – it’s much more important


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




The throwaway line in pitches these days is “we’ll sell our data.” Most of the time, this notion is wrong. Data is the most valuable outcome of building a successful product. It’s the insight, the secret, the keys to the kingdom. Don’t sell the keys to the kingdom. Big-Data-disguises-digital-doubts-UU1M91QI-x-large.jpeg Data provides economies of scale and insights used to develop huge barriers to entry and it should be kept within an organization. Internal data use is the path to building a huge business. For example, imagine if Google had sold user click data. The company would be worth a tiny fraction of its $160B market cap. Or had Facebook sold its graph? Or had Amazon sold customer purchase data? Each would have peddled any hope of large scale success for a nickel. 6a00d8341c03bb53ef013487ee1b79970c-500wi.jpeg Data is a moat. For Google, clickstreams are the richest data set for improving search. Google has the Continue reading "Data isn’t a business model – it’s much more important"

The Secret to SMB SaaS Distribution


This post is by Tomasz Tunguz from Tomasz Tunguz


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SMB SaaS companies cannot afford to pay for distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The average Google click costs three times this and the iOS average cost-per-install is more than twice as expensive. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution. Those communities reinforce and build a brand.

The Secret to SMB SaaS Distribution


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




SMB SaaS companies cannot afford to pay for distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The average Google click costs three times this and the iOS average cost-per-install is more than twice as expensive. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution. Those communities reinforce and build a brand. And the brand drives subsequent organic distribution. Expensify and ZenDesk are two great examples. Expensify focuses on users suffering with the greatest relevant pain: salespeople filing expenses. Salespeople are a great target community because they try new products quickly, are very vocal with their support or displeasure and are tremendous networkers. Winning their support means thousands of tweets/brand impressions like these monthly: Screen Shot 2012-09-18 at 7.46.15 AM.png ZenDesk markets their support suite to the tightly knit group of customer support
Screen Shot 2012-09-18 at 6.40.10 AM.png
Continue reading "The Secret to SMB SaaS Distribution"

Must startup founders be charismatic?


This post is by Tomasz Tunguz from Tomasz Tunguz


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Culturally, we tend to associate leadership with extroversion and attach less importance to judgment, vision and mettle. We prize leaders who are eager talkers over those who have something to say. Must great leaders be gregarious? Susan Cain wrote an OpEd this weekend in the Times containing the quote above. In Silicon Valley, the culture seems very much to embrace the idea of introverted leadership. One might even say the two kinds of leaders live in harmony.

Must startup founders be charismatic?


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




Culturally, we tend to associate leadership with extroversion and attach less importance to judgment, vision and mettle. We prize leaders who are eager talkers over those who have something to say.

Must great leaders be gregarious?

Susan Cain wrote an OpEd this weekend in the Times containing the quote above. In Silicon Valley, the culture seems very much to embrace the idea of introverted leadership. One might even say the two kinds of leaders live in harmony. On one hand, there are the garrulous Jobs, Benioff, Ellison and on the other there are the taciturn Schmidt, Page and Zuckerberg. All six of these leaders possess judgment, vision and mettle. Some lead from the front, voices booming and flags unfurled, and some lead from the back, plotting and coding. But ultimately, they all lead. And that’s the most critical part.