‘Polarize People’December 23, 2012 8:21 am
‘Polarize People’ is a statement that flies in the face of all the groupthink enthusiasts out there – and kicks kickstarter big time as well. This one is from Bill Gurley, via AVC.
‘You can’t make money with a consensus accurate prediction’
We don’t know about investment, but this would be a golden statement for startup ideas – you will probably never come up with a solid idea if you go for a consensus accurate prediction. There are two supporting points that come to mind:
1. Guy Kawasaki’s advice: “Don’t be afraid to polarize people. Most companies want to create the holy grail of products that appeals to every demographic, social-economic background, and geographic location. To attempt to do so guarantees mediocrity. Instead, create great DICEE products that make segments of people very happy. And fear not if these products make other segments unhappy. The worst case is to incite no passionate reactions at all, and that happens when companies try to make everyone happy.” Source
2. PG’s advice: “A startup just starting out can’t expect to excavate that much volume. So you have two choices about the shape of hole you start with. You can either dig a hole that’s broad but shallow, or one that’s narrow and deep, like a well. .. In practice the link between depth and narrowness is so strong that it’s a good sign when you know that an idea will appeal strongly to a specific group or type of user.” Source
So like Fred, consider putting this on your office wall: ‘You can’t make money with a consensus accurate prediction’.