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This is why you have be careful when it comes to starting a business or service that's dependent on another to keep going. Because it's very easy for the 'host

by CM30 9y ago

This is why you have be careful when it comes to starting a business or service that's dependent on another to keep going. Because it's very easy for the 'host' company to take your idea, undercut it and 'force' you out of business. Or to make changes that completely kill your product or service/screw up your marketing strategy. It's a risk you have to take with a business so dependent on another particular company or site.

j2bax 9y ago
Seems like a fairly valid business strategy though. Step 1: Provide a solution to a problem that isn't being addressed by an existing service with a large audience. Step 2: Try to convert users of the host service to your own users by offering other valuable features to them that aren't reliant on the host service. Getting any access and visibility to users is the biggest problem. If you can't retain the users after that point, then maybe you just aren't providing enough value outside of what the host service can provide.
- JTon 9y ago
  I don't think the parent was implying it is an invalid business strategy; just that it has a set of risks.
  - CM30 9y ago
    Yeah. Nothing says a company like this can't work at all, just that it's risky and can easily fail when times change. But it can succeed, if either: 1. The company buys you out and takes you inhouse instead of making a competitor from scratch (this seems to be a common business strategy for startups operating like this) 2. You can spin off the userbase into separate service (like mentioned by the commenter above). 3. Somehow you can exploit the situation to build a brand for a completely different business or industry. Kind of like how a lot of fan game developers use their temporary fame to market themselves to the industry or retrofit their work to be more original after the inevitable cease and desist notice.

by CM30 9y ago

j2bax 9y ago

Seems like a fairly valid business strategy though. Step 1: Provide a solution to a problem that isn't being addressed by an existing service with a large audience. Step 2: Try to convert users of the host service to your own users by offering other valuable features to them that aren't reliant on the host service. Getting any access and visibility to users is the biggest problem. If you can't retain the users after that point, then maybe you just aren't providing enough value outside of what the host service can provide.

JTon 9y ago
I don't think the parent was implying it is an invalid business strategy; just that it has a set of risks.
- CM30 9y ago
  Yeah. Nothing says a company like this can't work at all, just that it's risky and can easily fail when times change. But it can succeed, if either: 1. The company buys you out and takes you inhouse instead of making a competitor from scratch (this seems to be a common business strategy for startups operating like this) 2. You can spin off the userbase into separate service (like mentioned by the commenter above). 3. Somehow you can exploit the situation to build a brand for a completely different business or industry. Kind of like how a lot of fan game developers use their temporary fame to market themselves to the industry or retrofit their work to be more original after the inevitable cease and desist notice.