I was fortunate to hear a talk by one of the partners at Andreessen Horowitz, and he made this point: You want your idea to have three attributes:
- Growth – it needs to be a naturally-resonant or ad-resonant property
- Stickiness – once exposed, people need to come back of their own volition (daily or weekly)
- Monetization – you need to be able to make money from the visitors
Viagra is a great example:
- Viagra is super resonant
- Customers come back every time they want to have sex, and…
- It’s $10 a pill. It is a great product.
Google also has all three:
- Google grew very quickly (very high resonance)
- People come back to Google every day, and…
- Google found ways to monetize the traffic.
Facebook is another example:
- Facebook grew very quickly (very high resonance),
- People come back to Facebook every day (he said that 65% of Facebook visitors return every day! Sometimes 10 times a day), and…
- Facebook found ways to monetize the traffic with ads.
Twitter is an example of something less perfect:
- Twitter grew very quickly (very high resonance)
- Some people come back to Twitter every day (but a much lower percentage than FB, like 15%), and…
- Twitter has had trouble finding good ways to monetize the traffic.
Bottom line: If your idea can combine growth (resonance) and stickiness and monetization, you are golden.