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I'm in this business to make money. Anything consumer-based requires a huge user base because you can only charge a small amount per user. Huge user bases tak
by trussi 15y ago
I'm in this business to make money.
Anything consumer-based requires a huge user base because you can only charge a small amount per user. Huge user bases take time (read: a lot of money) to build. And users are very finicky and not very loyal. They get bored easy and move on to the next hot thing.
This idea of building the huge user base first, then trying to figure out how to monetize it later is way too risky for me. One false move trying to monetize it and your entire user base just disappears. No thanks.
To summarize, my opinion is that, based on my limited experience and common sense, B2C products are way more risky than B2B.
I think B2B is much less risky with a lot more opportunity to actually make some money. It's (relatively speaking) very easy to monetize a B2B product. And there are so many niches that it's very easy to find a product that adds value.
My comment of not quitting your day job if you're going after B2C assumes you are trying to bootstrap your startup. You simply don't have the money to bootstrap it. If you are going after VC money, then you'd have to get the VC money before quitting the day job. However, you won't be able to get the VC money til you can prove your product can gain hundreds of millions of users. It's a catch-22.
My advice for anybody looking at doing a startup is to stick to the boring B2B market. Don't get swept away with a grandiose idea of building a hundred million user product. Even the most pedigreed players in this space can't figure out how to manufacture huge users bases (i.e. Color).
- sedev 15y agoOkay, thank you for clarifying and expanding on that.