Hacker News | Ask HN: How did you market your app when there were already a lot like yours?
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Google this phrase or buy the book:
http://www.amazon.com/Differentiate-Die-Survival-Killer-Comp...
My favorite passage:
"The best way to really enter minds that hate complexity and confusion is to oversimplify your message. The lesson here is not to try to tell your entire story. Just focus on one powerful differentiating idea and drive it into the mind. That sudden hunch, that creative leap of the mind that "sees" in a flash how to solve a problem in a simple way, is something quite different from general intelligence. If there's any trick to finding that simple set of words, it's one of being ruthless about how you edit the story you want to tell. Anything that others could claim just as well as you can, eliminate. Anything that requires a complex analysis to prove, forget. Anything that doesn't fit with your customers' perceptions, avoid."
with particular emphasis on:
Just focus on one powerful differentiating idea and drive it into the mind.
Why should anyone choose you?
Is it Time for You to Earn or to Learn?
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Over time I took to telling people the following, “join BuildOnline because you think you’ll get great experience. Join because you like the mission of what we’re doing. Join because if you do a good job we’ll help you punch above your weighclass and work in a more senior role. And if you ever feel that in the year ahead of you you don’t think that you’ll increase the value of your resume and you’re not having fun then go. Join because we pay well but not amazing. Stock options are the icing on the cake. They’ll never make you rich. Don’t join for the options.”
Network Effects And Scale Economies (aka Spolsky vs. Heinemeier) - Continuations
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And he is right to point out that scale economies can make a huge difference in software. Because the cost of making software (whether installed or SaaS) is mostly fixed, any incremental sale provides 80%+ of gross margin. That means that once you have covered your fixed cost you have a lot of “play money” to start throwing around. You can, like Spolsky’s Oracle example, spend heavily on marketing (and unless you believe that marketing is 100% useless) that will make a difference to sales. And of course here is where things start to get interesting, because you can have such a strong feedback loop that it allows the first player that gets to scale to become 10x bigger than the next player (grow faster, make more money, spend more on marketing, grow even faster).
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So I believe the assertion that bug tracking is definitely not a network effect business is wrong. The effects may be weaker, but anybody offering software today and not thinking about how to create and sustain network effects in what they are doing is missing a big opportunity.
Hacker News | Bug tracking isn't a network-effect business
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It doesn't have to be a network-effect business for customers to prefer the popular product as a "safe" choice.
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This is one of the big reasons why a lot of software is priced low enough that someone can pay for it with a credit card, and lots of software priced over $50,000 but very little between those two numbers. Also once you go down the enterprise software route the quality of your sales process matters more than the quality of your software. A good read on that is http://lists.canonical.org/pipermail/kragen-tol/2005-April/0....
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Bug tracking isn't a network-effect business - (37signals)
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Facebook sucks you in because everyone you know is using it. You go to eBay to find something because you know someone is selling what you want to buy. Oracle wins in the enterprise because there are tons of experts and plenty of auxiliary software available. All these business rely heavily on the network effect: Their product is more attractive than the competition because of their market share.
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2) Become a sales force-driven company: Hire a bunch of sales people and make them convince people to buy our software. This is even more enterprisey thinking. Side step the actual users, the developers, and go straight to management with steak and strippers. I’ve worked at sales force-driven software companies and they suck. The sales people will invariably promise more than you have and drive you even deeper into “build everything for everyone”.
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Does Slow Growth Equal Slow Death?
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Then I came across a quote from Geoffrey Moore, who is best known for his best-selling book Crossing the Chasm, which is about how businesses cross over from their initial niche markets to dominate larger markets. In another book, called Inside the Tornado, Moore writes about the great battle between Oracle and Ingres in the early 1980s. The winner of that battle is well known: Oracle now has a market cap of more than $100 billion, and I'll bet you've never heard of Ingres.
"What set Oracle apart from Ingres," Moore writes, "was that [CEO] Larry Ellison drove for 100 percent growth while Ingres 'accepted' 50 percent growth." Executives at Ingres meant well. According to Moore, they felt that the company "simply cannot grow any faster than 50 percent and still adequately serve our customers. No one can. Look at Oracle. They are promising anything and everything and shipping little or nothing. Everybody knows it. Their customers hate them. They are going to hit the wall."
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It's entirely possible. Think of it this way: If you're growing at 50 percent a year, and your competitor is growing at 100 percent a year, it takes only eight years before your competitor is 10 times bigger than you. And when it's 10 times bigger than you, it can buy 10 times as much advertising and do 10 times as many projects and have meetings with 10 times as many customers. And you begin to disappear.
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Google's Eric Schmidt on What the Web Will Look Like in 5 Years
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Today's teenagers are the model of how the web will work in five years - they jump from app to app to app seamlessly.
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