my digital nationalism

looking for Indonesia's significance on the web

Creating and monetizing

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Instagram was recently bought by facebook for 1 billion dollars in cash and stock. For a company thats been around for only 3 years with no revenue, that is crazy.

What can we learn from this?

Instagram is an outlier.

Creating a product and hoping for it to get bought at an absurd value is not a business plan. It almost never happens.

Creating a product that solves a specific problem and brings value to users, that always has to be the key.

In this industry the focus should be your customers, your users. Know your market and what problems they are facing. Create products that address these problems.

Only if you manage to create something that attracts million of users can you think of monetizing. If by then you haven’t figured out how yet, don’t worry, this is a good problem to have.

What you don’t want to is to ruin the user experience for the sake of monetizing and ruining your product in the process. If this is the case, you have lost the battle even before it has begun.

If your product is great somebody will eventually pay for it. It might be from the millions of users you have, or in other forms, like a 1 billion dollar payout from a huge company. Who knows right?

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Written by randomwalls

April 20, 2012 at 9:05 pm

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