Own the Demand

It’s humbling to realize that we have very little control over the will of the people we seek to serve. Just like you can’t make a tornado with a $35 desk fan, you can’t create demand. This is one of the hard lessons the bro marketers and category creationists don’t tell you.

Your goal is to position in a category that’s in demand and that your segm... See more

As a direct result, “demand” for me has steadily grown, even as the “supply” I am willing to offer has diminished, which has allowed me to very substantially raise my fees, keep raising them every year, fire troublesome clients without remorse, and do business entirely on my terms to suit me. This one single, simple discipline has been worth millio

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Further, the internet made the marginal cost of distribution go to zero, implying that adding one additional customer is as simple as adding one more row in a database. It’s virtually free. This means the best companies win by providing the best experience, which earns them the most consumers/users, which attracts the most suppliers, which enhances... See more

The value chain for any given consumer market is divided into three parts: suppliers, distributors, and consumers/users. The best way to make outsize profits in any of these markets is to either gain a horizontal monopoly in one of the three parts or to integrate two of the parts such that you have a competitive advantage in delivering a vertical s... See more