Come for the tool, stay for the network

    Come for the tool, stay for the network is a model used to describe the success of some startups. Basically, users come for a “single-player” tool and then stay because a valuable network grows around it. 

    This is Chris Dixon's idea: 

    I’m going to give two historical examples and leave it to readers to think of present-day examples (there are many): 1) Delicious. The single-player tool was a cloud service for your bookmarks. The multiplayer network was a tagging system for discovering and sharing links. 2) Instagram. Instagram’s initial hook was the cool photo filters. At the time some other apps like Hipstamatic had filters but you had to pay for them. Instagram also made it easy to share your photos on other networks like Facebook and Twitter. But you could also share on Instagram’s network, which of course became the preferred way to use Instagram over time.

    The ‘come for the tool, stay for the network’ strategy isn’t the only way to build a network. Some networks never had single-player tools, including gigantic successes like Facebook and Twitter. But starting a network from scratch is very hard. Think of single-player tools as kindling.

    The Coca-Cola Company and Green Mountain Coffee Roasters, Inc. Enter into Long-Term Global Strategic Partnership

    “Breaking Bad”, whose finale airs on September 29th, takes place in a recession-ravaged America where most people are struggling to get by on stagnant incomes but a handful of entrepreneurs live like kings. The hero, Walter White, is a high-school chemistry teacher with a second job in a car wash. When he is diagnosed with cancer he is also shaken out of his lethargy: he decides to go into the highly lucrative methamphetamine business to pay for his cancer treatment and leave his family a nest-egg.
    Business lessons from Breaking Bad, courtesy of The Economist.

    What The Beatles can teach us about entrepreneurship

    What The Beatles can teach us about entrepreneurship

    10 business leadership lessons Julius Caesar could have taught us

    10 business leadership lessons Julius Caesar could have taught us

    Great leaders don't need experience

    Interesting research by Gautam Mukunda from Harvard Business School. He wanted to know whether looking for leaders with long and extensive résumés was the best solution.

    Gautam Mukunda studied political, business, and military leaders, categorizing them into two groups: “filtered leaders,” insiders whose careers followed a normal progression; and “unfiltered leaders,” who either were outsiders with little experience or got their jobs through fluke circumstances. He then compared the groups’ effectiveness; for instance, with U.S. presidents, he looked at historians’ rankings from the past 60 years. He discovered that the unfiltered leaders were the most effective—and also the least effective—while highly filtered leaders landed in the middle of the pack.