56 chunks · 46 episodes
...onsumer install). An app has to be big enough to contain within itself a viable business model. But LLMs can produce code cheaply. They are willing to produce itsy bitsy pieces of code that no human would have bothered with if it couldn't be di...
An AI consulting business model for people with a strong personal brand: "You'll get 80% the quality of my hands-on consulting for 20% the cost."
...feature you want. So you end up with no way of coordinating a shopping list. No business model has an incentive to make a great shopping list app, let alone a great one for you.
...ity is in tension with community. Social media needs to select for virality for business models. Social media is in tension with community.
...sn't want it. Engagement is necessary for retention, which is necessary for the business model.
...nger a moat like it has been for decades. The foundation of the tech industry's business models.
...remely capital intensive, which means only businesses that have a safe, legible business model can get financing. Bits-based businesses have startup costs, but much less, relative to their possible scale. That's a great fit for venture investin...
Value arises from scarcity. If you apply a business model from one distribution paradigm to another you're going to miss the point.[cn] It took a decade or more of the web to discover the social media busine...
Stable business models require that where the cost and the value accrues are aligned. If they're disjoint then the user feels like they're getting cheated, or the business...
... time scales, culture is downstream of incentives. Incentives are downstream of business model.
Every business model is misaligned with users in the limit. But some are more misaligned with their users. Even subscriptions see the siren's call for marginal returns of...
...all you need… a neverending force of gravity not just for training LLMs but for business models too.
Goodhart's law is what leads to business models being misaligned with consumers in the limit. Companies are a swarm of employees making interdependent decisions whose ground truth is the business ...
The endstate of aggregator business models is retail media. "Retail media" is ads within the aggregator's 1P UX. Step 1: capture all demand. Step 2: offer to steer that demand to advertisers,...
...gned with your interests. Not some veneer of privacy, but holistically[oe]: The business model. The technical architecture. The privacy model. Everyone should have a Private Intelligence that works only for them, and is entirely aligned with th...
...ying to block agents from using its service. Many services like Doordash have a business model that presumes not a dumb pipe of functionality but an aggregator model. They collect all of the user demand, and then can use that powerful position ...
...s great, but shuttered after receiving no investment for a decade. There was no business model. The companies that might plausibly do cozy finance tools have an ulterior motive: some high-fee financial product.
...ses. Why don't we have it for consumers? Vertical Saas is an extremely powerful business model. It turns out that if you can create an "operating system" for a given niche of business use cases, it can be extremely valuable. Within a given type...
... coordinate your team to use on some arbitrary platform, and there's no obvious business model for someone to make one as a business. A piece of software that I wish existed but doesn't.
Aggregator is a great business model for the company that can pull it off. It also is not necessarily great in the long run for everyone else. Users get more efficiency and scale at firs...