4 ms·

The number of "I don't get it." comments on this thread should be a lesson for everyone. THIS is the reason diversity in your company and social circle is impo

by parfe 13y ago

The number of "I don't get it." comments on this thread should be a lesson for everyone. THIS is the reason diversity in your company and social circle is important. A forum full of men not understanding how a $3.8 billion company is successful.

bedhead 13y ago
Or, no discernible repeatable method for generating income to ever justify a given valuation. Either one though...
- dangero 13y ago
  This is exactly the rebuttal that was given for Facebook 2 years ago. Facebook has been hitting or besting their numbers since IPO. Yes, creating a valuation for a company that doesn't make money is going to be somewhat inaccurate, but companies that solve the chicken egg problem and gather mass have great value in the digital age. Even if you take an example of a website that failed like Myspace, they made enough revenue off ads to justify their valuation before they tanked.
  - bedhead 13y ago
    Facebook clearly had something two years ago. In 2011 they managed to generate almost $1 billion in free cash flow on almost $4b billion in revenue...obviously there is a business model in there somewhere, even if its valuation is debatable (when isn't it?). Pinterest however, as I understand it, doesn't generate any revenue let alone any profits. It's the whole minor formality of zero freakin revenue that's the tip-off that something is hugely amiss with Pinterest as a capitalistic enterprise.
r0h1n 13y ago
That is a great piece of advice. I'm increasingly confused about how best to understand & keep on top of what's happening in the world of social media because I personally don't use Facebook, Pinterest, Whatsapp, Snapchat, Google+ etc. At what point will my personal decision to opt out off the leading social networks (Twitter, and LinkedIn to a lesser extent, are exceptions) start affecting my professional insight into where the Internet and the bulk of its users are headed? I frankly don't know.
- laglad 13y ago
  I'm in exactly the same position. I'd honestly rather spend my time meditating, reading or playing outside in the world. I rationalize the renunciation of social media by remembering that I'm looking to build something incredibly innovative. And to build something incredibly innovative, it helps to (first) step away from the crowd, (second) find a boon, and (third) bring it back. I think you can worry about the crowd after the first 2. At least then you have direction amidst the chaos.
  - pranavpiyush 13y ago
    All that is fine and kudos to you for having that ambition. Do remember that you also need to know how things work and what makes them work. Internet, at its root, is a communication medium. Things like facebook, google+, pinterest, snapchat, etc. are part of a VERY natural evolution of this medium. Being part of the chaos doesnt mean you cant see order amidst it. That's where great entrepreneurs come from. They dont go away from all society and magically, one day, reappear with a brilliant idea. They are in the middle of the chaos, figuring out what works, why it works and how to make it work even better...
brymaster 13y ago
> A forum full of men not understanding how a $3.8 billion company is successful. I guess that begs the question: how is a web app that reposts content that doesn't belong to them and with zero revenue a "$3.8 billion company" again? I won't accept any answer from an investor or web "entrepreneur" type that has everything to gain from cashing in. The real lesson here is speculation and shortsightedness never changes and this is 1999 all over again. Looking forward to the coming IPOs of Pinterest, Snapchat, Rap Genius!
- webwright 13y ago
  You should do some google digging on early Facebook, Twitter, and Amazon commentary. Granted, Facebook and Twitter don't have Google-level revenues, but early commentary about them was pretty much "they CAN'T make money on a social product". Facebook made over 4 billion dollars in 2011. Amazon's first years had some great commentary as well. It turns out that EVERY SINGLE TIME someone builds a product that zillions of people love in an enduring way, they are able to hire world-class value-extraction experts who can make zillions of dollars. Pinterest has the extra advantage of intent-- shoppers pinning products that they want/love gives Pinterest a lot more power to advertise cleverly than Facebook/Twitter. Unsure about Snapchat and RapGenius, but the key question is "With that audience and that growth, what could the smartest people in the industry turn them into if they were armed with functionally infinite spending money?"
  - brymaster 13y ago
    > "With that audience and that growth, what could the smartest people in the industry turn them into if they were armed with functionally infinite spending money?" Ad-ridden, privacy-destroying malware I'd imagine. Since that's all the "smartest people" in the biz are working on: getting people to click ads and subverting the web. The Facebook Jr's out there won't like to hear it but that's the cold truth.
    - webwright 13y ago
      "Ad-ridden, privacy-destroying malware" I was commenting on the revenue potential, not the ethics or quality of the product at the end of the process. That said, I still love Google Search-- it's nigh magical how it shortens the distance between my brain and the answers it craves at any given moment. And I still watch youtube (yet another service that some said would never make money), even with the ads. And I still use Facebook to stay connected with friends while I travel the world for the next 6 months or so. I don't see any (present or future) privacy consequences with these services, and the ads hover right around the "tolerable" range.
theycallmemorty 13y ago
Everyone woman I know uses Pinterest. I get that it's popular and a big deal. It's still legitimate to question whether or not a company with no revenue is worth $3.8 billion.

by parfe 13y ago

bedhead 13y ago

Or, no discernible repeatable method for generating income to ever justify a given valuation. Either one though...

dangero 13y ago
This is exactly the rebuttal that was given for Facebook 2 years ago. Facebook has been hitting or besting their numbers since IPO. Yes, creating a valuation for a company that doesn't make money is going to be somewhat inaccurate, but companies that solve the chicken egg problem and gather mass have great value in the digital age. Even if you take an example of a website that failed like Myspace, they made enough revenue off ads to justify their valuation before they tanked.
- bedhead 13y ago
  Facebook clearly had something two years ago. In 2011 they managed to generate almost $1 billion in free cash flow on almost $4b billion in revenue...obviously there is a business model in there somewhere, even if its valuation is debatable (when isn't it?). Pinterest however, as I understand it, doesn't generate any revenue let alone any profits. It's the whole minor formality of zero freakin revenue that's the tip-off that something is hugely amiss with Pinterest as a capitalistic enterprise.

r0h1n 13y ago

That is a great piece of advice. I'm increasingly confused about how best to understand & keep on top of what's happening in the world of social media because I personally don't use Facebook, Pinterest, Whatsapp, Snapchat, Google+ etc. At what point will my personal decision to opt out off the leading social networks (Twitter, and LinkedIn to a lesser extent, are exceptions) start affecting my professional insight into where the Internet and the bulk of its users are headed? I frankly don't know.

laglad 13y ago
I'm in exactly the same position. I'd honestly rather spend my time meditating, reading or playing outside in the world. I rationalize the renunciation of social media by remembering that I'm looking to build something incredibly innovative. And to build something incredibly innovative, it helps to (first) step away from the crowd, (second) find a boon, and (third) bring it back. I think you can worry about the crowd after the first 2. At least then you have direction amidst the chaos.
- pranavpiyush 13y ago
  All that is fine and kudos to you for having that ambition. Do remember that you also need to know how things work and what makes them work. Internet, at its root, is a communication medium. Things like facebook, google+, pinterest, snapchat, etc. are part of a VERY natural evolution of this medium. Being part of the chaos doesnt mean you cant see order amidst it. That's where great entrepreneurs come from. They dont go away from all society and magically, one day, reappear with a brilliant idea. They are in the middle of the chaos, figuring out what works, why it works and how to make it work even better...

brymaster 13y ago

> A forum full of men not understanding how a $3.8 billion company is successful. I guess that begs the question: how is a web app that reposts content that doesn't belong to them and with zero revenue a "$3.8 billion company" again? I won't accept any answer from an investor or web "entrepreneur" type that has everything to gain from cashing in. The real lesson here is speculation and shortsightedness never changes and this is 1999 all over again. Looking forward to the coming IPOs of Pinterest, Snapchat, Rap Genius!

webwright 13y ago
You should do some google digging on early Facebook, Twitter, and Amazon commentary. Granted, Facebook and Twitter don't have Google-level revenues, but early commentary about them was pretty much "they CAN'T make money on a social product". Facebook made over 4 billion dollars in 2011. Amazon's first years had some great commentary as well. It turns out that EVERY SINGLE TIME someone builds a product that zillions of people love in an enduring way, they are able to hire world-class value-extraction experts who can make zillions of dollars. Pinterest has the extra advantage of intent-- shoppers pinning products that they want/love gives Pinterest a lot more power to advertise cleverly than Facebook/Twitter. Unsure about Snapchat and RapGenius, but the key question is "With that audience and that growth, what could the smartest people in the industry turn them into if they were armed with functionally infinite spending money?"
- brymaster 13y ago
  > "With that audience and that growth, what could the smartest people in the industry turn them into if they were armed with functionally infinite spending money?" Ad-ridden, privacy-destroying malware I'd imagine. Since that's all the "smartest people" in the biz are working on: getting people to click ads and subverting the web. The Facebook Jr's out there won't like to hear it but that's the cold truth.
  - webwright 13y ago
    "Ad-ridden, privacy-destroying malware" I was commenting on the revenue potential, not the ethics or quality of the product at the end of the process. That said, I still love Google Search-- it's nigh magical how it shortens the distance between my brain and the answers it craves at any given moment. And I still watch youtube (yet another service that some said would never make money), even with the ads. And I still use Facebook to stay connected with friends while I travel the world for the next 6 months or so. I don't see any (present or future) privacy consequences with these services, and the ads hover right around the "tolerable" range.

theycallmemorty 13y ago

Everyone woman I know uses Pinterest. I get that it's popular and a big deal. It's still legitimate to question whether or not a company with no revenue is worth $3.8 billion.