http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/ Nic Brisbourne's view from London on venture capital and exploiting change in technology and media Sat, 11 Feb 2012 20:08:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/#comment-5103 Inma Martinez Thu, 23 Apr 2009 13:25:07 +0000 http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/#comment-5103 I've been making the same point - in fact, yesterday I made it again at Geek'n'Rolla, for a while: product is everything. The revenue models based on "being a club promoter" (Facebook) that amalgamates audiences for a brand to advertise to them are over for me and for many. I have good research from inside the advertising industry that shows how ineffective this model is turning out for many brands and how poor the advertising figures of youtube are. A company needs to sell a clear product, even if it is another vacuum cleaner, because consumers pay for items that deliver a direct and clear value to them or tend to demand services as freeware if they not. I will be disseminating these figures in the next week or so as I only just got them yesterday at the EU conference that I'm attending but the scary thing is that they prove how the advertising margins are decreasing and making it not even worth trying. I’ve been making the same point – in fact, yesterday I made it again at Geek’n'Rolla, for a while: product is everything. The revenue models based on “being a club promoter” (Facebook) that amalgamates audiences for a brand to advertise to them are over for me and for many. I have good research from inside the advertising industry that shows how ineffective this model is turning out for many brands and how poor the advertising figures of youtube are.
A company needs to sell a clear product, even if it is another vacuum cleaner, because consumers pay for items that deliver a direct and clear value to them or tend to demand services as freeware if they not.
I will be disseminating these figures in the next week or so as I only just got them yesterday at the EU conference that I’m attending but the scary thing is that they prove how the advertising margins are decreasing and making it not even worth trying.

]]> http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/#comment-6319 henryyates Wed, 22 Apr 2009 18:07:42 +0000 http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/#comment-6319 As he says, I think with all the noise our there you need 1 as well as 2. This is the real nugget I took away from reading his post. Unless you are Google, I dont think a great product by itself will necessarily make it. As he says, I think with all the noise our there you need 1 as well as 2. This is the real nugget I took away from reading his post. Unless you are Google, I dont think a great product by itself will necessarily make it.

]]> http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/#comment-5087 henryyates Wed, 22 Apr 2009 12:07:42 +0000 http://www.theequitykicker.com/2009/04/22/reid-holffmans-three-rules-for-investment/#comment-5087 As he says, I think with all the noise our there you need 1 as well as 2. This is the real nugget I took away from reading his post. Unless you are Google, I dont think a great product by itself will necessarily make it. As he says, I think with all the noise our there you need 1 as well as 2. This is the real nugget I took away from reading his post. Unless you are Google, I dont think a great product by itself will necessarily make it.

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