Comments on: Success Factors http://graduallythensuddenly.com/2008/02/20/success-factors/ Thoughts on marketing, branding and social media. Fri, 22 Aug 2008 01:48:20 +0000 http://wordpress.org/?v=2.5.1 By: Daniel Gibbons http://graduallythensuddenly.com/2008/02/20/success-factors/#comment-4 Daniel Gibbons Mon, 25 Feb 2008 20:45:42 +0000 http://graduallythensuddenly.com/2008/02/20/success-factors/#comment-4 I agree that the metaphors work for investors and in that sense they are valuable. My point, however, is that they almost never say anything about the fundamental value of the business, and investors are mistaken for buying in on this basis. In short they are short-sighted. Andreesesn's point is really that it's the market that matters and investors are guilty of and suffer from ignoring this truth. For example, the risk of believing that a social network for old people will work on the basis of the wild success of a social network for college students is that there is no relationship between these two markets -- old people and college students. I agree that the metaphors work for investors and in that sense they are valuable. My point, however, is that they almost never say anything about the fundamental value of the business, and investors are mistaken for buying in on this basis. In short they are short-sighted.

Andreesesn’s point is really that it’s the market that matters and investors are guilty of and suffer from ignoring this truth. For example, the risk of believing that a social network for old people will work on the basis of the wild success of a social network for college students is that there is no relationship between these two markets — old people and college students.

]]> By: James Sherrett http://graduallythensuddenly.com/2008/02/20/success-factors/#comment-3 James Sherrett Mon, 25 Feb 2008 19:35:56 +0000 http://graduallythensuddenly.com/2008/02/20/success-factors/#comment-3 From my experience, the real value of relating your idea to something existing is making it easy for the investor / audience to understand. When you say, 'the dogster for moms' you attach all the execution of Dogster to your idea, which is a new context. This provides a shortcut to imagining the idea without all the explicit explanation. And that's really the base value these metaphors provide, because they're also incredibly reductive. But they work. They work because getting people to imagine something is very hard, and hardest when the idea isn't fully formed and tangible. From my experience, the real value of relating your idea to something existing is making it easy for the investor / audience to understand. When you say, ‘the dogster for moms’ you attach all the execution of Dogster to your idea, which is a new context. This provides a shortcut to imagining the idea without all the explicit explanation.

And that’s really the base value these metaphors provide, because they’re also incredibly reductive. But they work. They work because getting people to imagine something is very hard, and hardest when the idea isn’t fully formed and tangible.

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