The answers are not surprising but they are a great reminder of the product design essentials.
Here’s a magic quote from a competitor who tried to beat them in the market:
I ran into the CEO of Dropbox and asked him my burning question: “Why don’t you support multi-folder synchronization?” His answer was classic Dropbox. They built multi-folder support early on and did limited beta testing with it, but they couldn’t get the UI right. It confused people and created too many questions. It was too hard for the average consumer to setup. So it got shelved.
KickStarter‘s cool but I feel like I see too many projects hit their funding numbers at the last minute of the pledge window. Call me a cynic, but after thinking about this on the train one morning, I devised this scheme for getting “free” money for your project.
Start your project the old-fashioned way: gather up the cash you’ll need to cover it.
During the KickStarter pledge period, play by their rules and try to raise as much money as you can.
At the last hour of the pledge period, check your numbers. If the project’s funding level is between 10% and 100% of the tipping point, take your own cash and pledge the remainder to tip the project.
You’ll take home whatever amount you’ve raised, even if it would’ve normally been below the tipping point.
The only case where this isn’t effective is if a project fails to raise at least 10% of the tipping point: KickStarter takes a 5% commission and Amazon payments amount to 3-5% of payments, so the first 10% of real pledges are needed to cover those commissions. But beyond that, any already-funded project is on a risk-free gravy train.
This means that if you’re going to embark on an artistic endeavor and have enough cash on hand to finance it, there’s no reason not to try to get it listed on KickStarter to offset some portion of the cost. If enough KickStarter projects shift to this model, the spirit of the site goes from a collection Cinderella barn-raising stories to cases of “I’m going to do this anyway, anyone feel like chipping in?”
…which makes me wonder if there’s a business case for facilitating the latter from the outset, rather than waiting for the inevitable (or fighting it).
I used to walk down the street like I was a fucking star. I want people to walk around delusional about how great they can be – and then to fight so hard for it every day that the lie becomes the truth.
All that ever holds somebody back, I think, is fear. For a minute I had fear. I went into the [dressing] room and shot my fear in the face.
A couple of articles from Chris Dixon and Caterina Fake about using APIs as cheap, Darwinian business development tools. I could not agree more. There’s something beautiful about telling a small scrappy startup who wants to partner with you that “your idea sounds great – here’s an API key. Take a shot and let us know how it goes.” Similarly, as a small fry it’s fun to have that key to get started on a proof of concept. We’re doing some of that with various APIs at OpenSky for things like tools to match shoppers to sellers. But it’s not always super clean, as we learned at KickApps, so Hunch’s BizDev lead wrote this great overview about how to merge traditional BD with self-serve APIs to optimize your growth.
Edwin Land, inventor of the Polaroid camera, once said that his method of design was to start with a vision of what you want and then, one by one, remove the technical obstacles until you have it. I think that’s what Steve Jobs does. He starts with a vision rather than a list of features.
“Don’t waste your precious pre-launch time” is a great cautionary tale of some common pitfalls that people should avoid when starting a company. The 1st and 3rd, not worrying about your name and aggressively cutting features, are obvious but bear repeating. The 2nd, not chasing early adopters, was a new concept to me and worth considering.
During improvisation, the highly trained music majors used their brains in a way the nonmusicians could not: they deactivated their right-temporoparietal junction. Normally, the r-TPJ reads incoming stimuli, sorting the stream for relevance. By turning that off, the musicians blocked out all distraction. They hit an extra gear of concentration, allowing them to work with the notes and create music spontaneously.
Sounds like flow, no?
The definition of creativity is “production of something original and useful.”
The mental process of creative thinking is “alternating between divergent and convergent thinking.”
The article gets a lot better in the latter half, including a sketch of a problem-solving process:
Fact-finding. Understand what’s going on. This is a perpetual process, but becomes targeted as you enter a project.
Problem-finding. Defining all of the challenges to be overcome.
Idea-finding. Now that you understand the space and the challenges, brainstorm.
Solution-finding. The editorial phase where each idea is judged (and criteria for judgement are defined).
Testing implementations. (It gets a little fuzzy here.)
I think action can be woven into more of these phases, from idea-finding onwards.
This is a video of Frans Johansson’s presentation at the 99% Conference, titled “The Secret Truth About Executing Great Ideas”. I have his book, The Medici Effect, sitting on my nightstand, next in line. He makes some great points here about what I’d call disposable decisions, or “strong beliefs, loosely held.”
Most successful innovators win with volume. Picasso created 20,000 works of art, most of which suck.
Only use the minimum amount of resources required to test, so you can pivot.
The purpose of a strategy is to convince yourself that it could work, not to come up with a correct answer or a final decision. It’s only successful insofar as it empowers actions.
“We have a strategic plan. It’s called doing things.” – Herb Kelleher, CEO of Southwest Airlines
The likelihood that your initial plan is wrong is nearly 100%. You manage this by taking the smallest executable steps.
Props to Behance for sharing their conference speakers online.
This weekend I read 2 interesting articles from the NYTimes that relate to our vision for the new commercial community we’re building at OpenSky:
It’s too bad the good folks at Daily Grommet don’t know of anyone else in their space, given that OpenSky is creating a Daily Grommet in every niche, for every interest. Why limit this “referral and endorsement” role to a limited population of thought leaders when everyone knows someone they trust to recommend the perfect product or solution for any number of needs? Let a daily grommet bloom in every home, in every conversation. There’s an opportunity for every OpenSky seller to watch and learn best practices from Daily Grommet’s success.
This is the new American dream: editing down to the right stuff, not having more stuff. OpenSky’s role is a proponent a new, quality-oriented economy rather than a traditional marketing machine: the purveyor of rampant consumerism.
A joint note from the 2 articles: the founder of Daily Grommet claims consumers have “a burning hunger for real leadership and access to authentic experiences and trustworthy people.” According to sources cited in the happiness article, experiences and relationships are the key to persistent happiness.
So the question for us at OpenSky and anyone else trying to innovate in this space isn’t “how can we sell more stuff?” It’s “how are we providing great experiences and connecting people?”
Here’s how Yaro Starak, internet marketing royalty, sets the stage to collect $25,000 simply by talking to 5 people.
I occasionally enjoy Yaro’s blog and email newsletter for their clear demonstrations of direct marketing tactics. Most recently, Yaro pitched his forthcoming “Elite Entrepreneur Coaching Program” on this page. When it works, he’ll collect $25,000 by simply having conversations with 5 people, on his own terms.
Check it out – it’s a great demonstration of a long sales letter. After reading through it a couple of times myself, I noticed a framework emerge. This is essentially the same pitch that convinces people to part with their hard-earned cash in all kinds of scenarios:
It begins by assuming that the reader is interested in a purchase (too many sales efforts waste time trying to lure disinterested buyers).
The bulk of the content makes an emotional right-brained appeal while overloading the left brain with numbers and case studies.
The net effect is similar to the psych study that asked people to memorize a sequence of random numbers and then offered them a healthy snack or a slice of rich chocolate cakes. Participants whose brains were overloaded by longer number sequences (a left-brained activity) unconsciously tended to shift the decision to the relatively unburdened right brain and more often chose the delicious-but-unhealthy cake.
Step 1: set the stage for an emotional decision
Background = aspirational intro (“I’m rich and so can you!”).
Aspirational value proposition. Too many sales efforts waste time describing the product or service instead of the value it creates for the buyer. “Sell the dream, not the dirt,” declares Donald Trump as he explains his successful real estate ventures.
Aspirational “qualifier” questions. Begins to set a tone of exclusivity, a seller’s market.
Details: product description and list of problems solved. (Overwhelming the left brain with lists leads to right-brain, emotional decision-making.) Lists are key here.
Step 2: appeal to the emotional brain with a scarce luxury good
Velvet rope of work (“You have to really want it.”) Raises perceived value, sets luxury status.
“Trust me” background info.
Velvet rope of price (“Yes, it’s expensive.”) Reinforces luxury status.
No refunds. What?! Yes. It’s so good he doesn’t have to offer refunds. Reinforces luxury status, creates seller’s market mindset.
Charity. Reinforces aspirational tone. I’m not convinced of the value on this one, but it’s a popular sales angle.
“You’ll ‘know’ if this is right for you.” Or, “don’t figure it out, go with your gut!” Driving the shopper to make an emotional decision.
Step 3: Decision time
“Application” reinforces notion of luxury good and seller’s market – you’ll be lucky to get this!
Finally, pricing. At this point it’s an emotional decision. Don’t lead with the price, it allows the user to make a decision without enough cognitive load.