Don't make great products with a crappy business model

1. The most promising business models for startups are those with a network effect. A network effect is when the value of a product increases with each new user. Although the product itself remains the same. The simplest example is a social network.

2. Why are such models the most promising? Because any product can be quickly copied now, even a complex one. It took only 3 weeks from the release of ChatGPT for its first analogue to appear! 😱

3. Therefore, any functionality of a product is no longer protection from competitors. The only protection is the audience. You can release a fully functional analogue of Facebook. But who will use it if all your friends and those you follow are on the real Facebook?

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4. But if you want to make a startup with a network effect, you need to stop inventing what unique thing you can do. Because the “I'm the smartest” business model has no network effect.

5. Because the network effect can only appear when something can be done by a very large number of people. And it is needed by another very large number of people. As a result, the value of the platform will increase infinitely as the number of its users increases infinitely.

6. In short, stop inventing what YOU can do. Start looking and seeing what other people can do, and who might need it 🚀