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Perhaps its just my read, but I think the original post confuses revenue streams with business models with products. It seems to flip from business model to pro
by freejack 15y ago
Perhaps its just my read, but I think the original post confuses revenue streams with business models with products. It seems to flip from business model to product design to revenue streams back to business models and finishes with a vague statement about "core".
Selling complimentary products and services to overlapping and peripheral market segments is an extremely valid and sustainable strategy (Apple). Using different methods of distribution to attack different market segments with similar products works extremely well (Amazon, Google). Launching additional lines of business to attack unrelated markets using a singular strong brand also has merit (Virgin).
The key really is "don't have a shitty business model" not "don't have multiple revenue streams".
On the other hand, I really appreciate Rob's points about how clever often means convoluted (I am always wary of "complicated") and that mediocrity and a lack of focus can be dilutive.
- knowtheory 15y agoOne wonders what a company like 37 Signals would be classified as. Are they one business model? Cause they certainly have several different successful products, although i'd claim that they have a single methodology that's applied all of them (hosted web apps that don't require humans to scale up). Likewise Microsoft... OS manufacturer? Office Suite product company? Video game manufacturer? Web-based something or other?
- SaintSal 15y agoI think the quote from Alex was in the context of a hypothetical business model in a pre-traction startup - it was a tangible way to make the point about the problem with convoluted models at that stage.
- freejack 15y agoahh, yes - that makes a lot more sense.