Think about the magic triumvirate

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:

  1. Growth – it needs to be a naturally-resonant or ad-resonant property
  2. Stickiness – once exposed, people need to come back of their own volition (daily or weekly)
  3. Monetization – you need to be able to make money from the visitors

Viagra is a great example:

  1. Viagra is super resonant
  2. Customers come back every time they want to have sex, and…
  3. It’s $10 a pill. It is a great product.

Google also has all three:

  1. Google grew very quickly (very high resonance)
  2. People come back to Google every day, and…
  3. Google found ways to monetize the traffic.

Facebook is another example:

  1. Facebook grew very quickly (very high resonance),
  2. People come back to Facebook every day (he said that 65% of Facebook visitors return every day! Sometimes 10 times a day), and…
  3. Facebook found ways to monetize the traffic with ads.

Twitter is an example of something less perfect:

  1. Twitter grew very quickly (very high resonance)
  2. Some people come back to Twitter every day (but a much lower percentage than FB, like 15%), and…
  3. 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.