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> We seem to have taken this to an extreme that rewards people who haven't made something useful. Asana is useful. That’s why it’s growing. The company contin
by PragmaticPulp 6y ago
> We seem to have taken this to an extreme that rewards people who haven't made something useful.
Asana is useful. That’s why it’s growing.
The company continues to lose money not because the product isn’t useful, but because it’s so useful and popular that the investors choose to spend more money capturing market share than organic growth would allow.
- rglullis 6y ago> Asana is useful. That’s why it’s growing. So is the use of opiods and painkillers, at the right scale. VCs and the Softbank's of the world willing to spend so much of "other people's money" like they have a never-ending fountain of it make it really hard to find out what is the right scale of things. Even with Amazon which is often criticized for not paying dividends or running without profits for so long, they knew that the revenue was there and that Bezos could turn a few knobs whenever he wanted to slow down on growth investment and start collecting some profits. Is that true for Asana? How much more market share do they need to get to actually being profitable? What would happen if they slowed down their marketing spending?
- thu2111 6y agoIf it's been nearly a decade for a glorified to-do list app and they still aren't profitable, then it is in fact not useful enough to justify the effort invested. That's what market signals mean.