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- FASTer - Issue #173
FASTer - Issue #173
What does success look like? đđđđŻ
The top question I get asked when mentoring tech startups isnât about funding or scalingâitâs about defining success. Itâs a question we all grapple with: What does success look like?
In todayâs world, we often measure success by outcomes like revenue, market share, or user base. But let me share something that will challenge your thinking.
Hereâs a snapshot of revenue per employee at some of the worldâs top companies:
âŤď¸ OnlyFans: $30.1m
âŤď¸ Craigslist: $13.9m
âŤď¸ Netflix: $2.6m
âŤď¸ Apple: $2.4m
âŤď¸ Meta: $2.0m
âŤď¸ Google: $1.7m
âŤď¸ Microsoft: $1.1m
At first glance, these numbers suggest that success is simply about maximizing efficiency and revenue per employee. OnlyFans and Craigslist, for instance, seem like the ultimate success stories with staggering revenue despite relatively small teams. Meanwhile, tech giants like Google, Microsoft, and Apple, while generating enormous total revenue, show a comparatively lower figure when measured this way.
But is success really that simple?
Hereâs where it gets interesting.
The Distinction: Purpose-led Companies vs. Opportunistic Plays
Letâs break it down further by distinguishing between purpose-led companies and opportunistic plays:
Purpose-led Companies
These are businesses built on a deeper mission. Companies like Apple and Google are not just focused on quarterly earningsâtheyâre driven by innovation, long-term vision, and creating products that change the world. Their success isnât defined by a single metric like revenue per employee; instead, itâs rooted in a larger purpose: enhancing human potential through technology, building ecosystems, and continually pushing boundaries.Think about Apple: Sure, $2.4M in revenue per employee is impressive, but the companyâs true success lies in its ability to revolutionize industriesâmusic, phones, personal computing, and even healthcare. Appleâs purpose has consistently been about creating beautifully designed products that integrate seamlessly into everyday life, which sustains customer loyalty, builds its brand, and fuels long-term growth.
Purpose gives these companies resilience and staying power. Their success isnât just a sprint for profitâitâs a marathon of sustained impact.
Opportunistic Plays
On the other hand, businesses like OnlyFans and Craigslist excel at opportunistic plays. These companies thrive by capitalizing on specific market opportunities or needs, with laser-focused business models that drive high profitability. OnlyFans caters to a niche audience, and Craigslistâs lean structure has allowed it to survive as a powerhouse in classified listings for decades.These are hyper-efficient models, maximizing profit per employee. However, theyâre often more transactional in nature. Their success comes from seizing market inefficiencies or cultural trends quickly and effectively. While this can generate incredible returns, the question remains: Is this sustainable in the long term?
Craigslist has been a consistent performer because it stuck to its simple value proposition. But unlike Apple or Google, these companies arenât necessarily tied to larger societal impact or long-term visions beyond their market niche. They focus on opportunity, not necessarily purpose. And while this can be extremely lucrative, it also makes them more vulnerable to market disruptions, regulatory changes, or shifts in consumer behavior.
What Does This Mean for Entrepreneurs?
As an entrepreneur, itâs critical to recognize whether your venture is purpose-led or opportunistic. Both approaches have their merits, but they demand different leadership, decision-making, and risk tolerance.
Purpose-led companies require patience, long-term thinking, and a deep understanding of the problem youâre solving. The rewards come not just from financial success but from the fulfillment of your mission.
Opportunistic plays are about agility, timing, and exploiting market inefficiencies. The upside is rapid growth and profitability, but thereâs often more risk if the market shifts or competitors enter.
Success isnât one-size-fits-all. You must define what success looks like for your own business. Is your goal to create long-term value and leave a lasting impact on your industry or community? Or are you focused on capitalizing on a short-term opportunity and maximizing profit?
Neither approach is wrong, but knowing the difference and aligning your strategy with your vision will help you lead your company in the right direction.
So, what does success look like for you?
Outcomes
Dried fish, groceries a 1938 Saga. What you do today may define generational outcomes. Will you do things differently knowing this?
The $25 investment that created a $300 billion empire.
In 1938, this Korean man sold dried fish to make ends meet.
Now, his family is worth over $18 BILLION.
This is the wild story of the family behind the tech giant, Samsung:
â The Heirs Journal (@heirsjournal)
7:00 PM ⢠Sep 12, 2024
One New Thing (That you should know)
The year a chemistry teacher demonstrated on the âLate Showâ that you could create a soda geyser several feet high by dropping Mentos into Diet Coke, the maker of the candy, Perfetti Van Melle, saw sales spike nearly 20 percent.
Oddly enough, all the effort a company might invest in market research, its next great product or marketing idea might come from a customer tinkering with the product. You can call this consumer misuse, but a positively-framed term is âbricolage,â derived from a French word for making creative use of something other than for its intended purpose.
To leverage misuse constructively and successfully, companies must understand the reasons why customers are motivated to use their products in new and unexpected ways and the contexts within which such behaviors are likely to emerge. Through this visualization, companies should also think through how they would then translate it into innovation across product development and marketing.
For Mentos, success came from more than just the one-time exposure on national television. Company managers encouraged user-generated video uploads to YouTube, and along with Coca-Cola, they even signed popular video makers to help them create more.
The bricolage concept can be seen across industries. Brands including North Face, REI and Patagonia have always marketed to outdoor adventurists, but they have grown revenue by finding ways to take advantage of the âwilderness chicâ fashion trend among average consumers. They have done this carefully by embracing new customers in ways that has not diluted their core brandâs appeal. For you to scale your outcomes perhaps its time to look for these mistakes and scale them?
Boring Stuff That Scales
Every thing digital at some point will be back to IRL engagement. Think about our need for human contact, in person will eventually be back in fashion and scale.
Heres a crazy story from Spain. Singles go to grocery store chain Mercadona between 7-8pm and use their cart to hint what they're looking for. Mercadona has had to hire police and even pulled pineapples from the shelves (but people just used canned fruit instead)
As perceptions change, the act of physically meeting people and making the effort to meet some one which was considered boring is now a trend and seeing a resurgence compared to more digital and isolated means of connecting. Boring ol personal interactions will continue to scale. Will you be ready? How can you leverage this for other businesses or as a marketing hack?
The Washington Post has a full feature on this trend here.
What You Should Be Watching
He was young, rich and on the rise in Moscow. But when up-and-coming Russian oligarch Vladislav Klyushin boarded a private jet for a luxury ski vacation in the Swiss Alps, he had no idea that all of it was about to come crashing down. Klyushin was the owner of a cybersecurity company in Moscow called M-13, but the firm was secretly a front for a computer hacking and insider trading operation that plagued Wall Street for years, and generated more than $90 million in illicit profits for Klyushinâs criminal gang.
Now, with exclusive access to the FBI investigators and Department of Justice prosecutors who chased Klysuhin around the globe, CNBCâs Eamon Javers can reveal the shocking details of the spectacular rise and fall of this audacious criminal enterprise. We learn about their insider trading in stocks of American companies including Tesla and other high-tech firms, and we see the crooksâ own text messages, which give a revealing look at the bromance between the oligarch and a veteran Russian intelligence hacker at the center of the crime ring.
And in an exclusive interview, Javers sits down with a former Russian spy â an officer of the Russian FSB intelligence agency â who explains why all of this, and more, was so important to Russian leader Vladimir Putin. And in a turn of events, the White House just announced a massive, multinational prisoner swap between the U.S., Russia and other nations. As part of the historic deal, the Russian government released high-profile Americans held in captivity there, including Wall Street Journal reporter Evan Gershkovich, who had been in a Russian prison for more than a year.
Also included in the trade were a number of Russians who had been arrested for various crimes and held in prisons in the U.S. and other countries. Klyushin was one of the prisoners released.
Putins Trader provides a deep insight into the vulnerability of financial systems and how to think about things around us and how seemingly simple things we rely on can be used against us. War is moving from cities to wall street. People who can identify the war, between systems and theft of information will go on to build the next decade of high growth companies.
Monetize your time
By not being misled.
As your Instagram feed fills up with glamorous shots from Hamptons parties, European vacations, and festival adventures like Burning Man, plus new fall wardrobes and skincare routines, itâs easy to get swept up in the fantasy. But letâs bring it back to reality for a minute.
Did you know only 56% of Americans take a summer vacation at all? That means nearly half the country never gets those tropical beach photos or weekend trips to luxury destinations.
When it comes to shopping, the average American spends just $120 a month on clothing, and 70% of people donât buy new clothes more than once a month. Compare that to the weekly shopping hauls and luxury tags that dominate your feedâmost people simply arenât living that lifestyle.
Hereâs more perspective: over 60% of Americans are living paycheck to paycheck, and 35% say they canât cover an unexpected $400 expense. Meanwhile, the average credit card debt per household is around $6,500. Behind the filtered photos and curated luxury, financial stress is a reality for many.
Even the cars you see people drivingâthose luxury SUVs and sports carsâarenât always what they seem. Nearly 85% of new cars are financed, with many taking on debt just to keep up appearances. The average monthly car payment in the U.S. is $725 for new vehicles, leaving many feeling stretched.
So letâs be real: the Instagram life is more illusion than reality. Most people arenât going on endless vacations, buying designer clothes weekly, or living debt-free. You donât need all that to find happiness or fulfillment. Often, what people really want in lifeâwhether are better relationships, experiences, or simple pleasures. So what can you do as a founder to monetize your time using social media to scale?
Show the Unpolished Side: Donât just show the glossy successes; share the setbacks, the struggles, and the lessons learned. People resonate with founders and brands that are willing to admit that the entrepreneurial journey isnât all glamor. This could mean sharing the financial sacrifices youâve made, failed product launches, or the day-to-day grind behind the scenes.
User-Generated Content: Encourage your customers or followers to share their own, unfiltered experiences. Whether itâs budgeting tips, managing student loans, or navigating the realities of personal finance, showing authentic stories builds trust and community
.Address Financial Realities: Acknowledge that many people are financially strapped, living paycheck to paycheck, or dealing with debt. Offer content thatâs helpful in this context, like how to manage a budget, save on necessities, or navigate minimalism. This could extend to creating content around spending smartly, debunking the need for excess, or showing how to achieve more with less.
Focus on Mindfulness and Sustainability: Many consumers are shifting toward mindful spending. As a founder, you can align your product or service with this movement. Highlight sustainable, long-term solutions or offer tips for making thoughtful, long-lasting purchases.
Normalizing Everyday Life: Instead of focusing on luxury, spotlight relatable moments that most people experienceâlike making coffee at home, enjoying a low-cost staycation, or upcycling clothes. Highlight that fulfillment doesnât come from big-ticket items or luxury, but from everyday moments.
Engage with Like-Minded Creators: Collaborate with influencers and creators who value simplicity and authenticity. These are individuals who promote mindful spending, living within oneâs means, and finding joy in the little things. You can create campaigns that align with these values, moving away from extravagance.
I have been thinking about this for a while. Imagine a brand or platform that pairs minimalist fashion with financial wellness. Instead of focusing on âhauls,â the brand promotes high-quality, timeless pieces while sharing stories of customers whoâve reduced their spending and found peace in living with less. They also offer budgeting workshops or financial advice as part of their content strategy. This taps into both the desire for sustainable consumption and the growing need for financial wellness in an age of overspending.
By catering to the real side of life behind the reels, you can build deeper, more genuine connections with your audience. In a world saturated with highlights and materialism, showing authenticity can be your brandâs unique differentiator.
One Last Thing
When you build some thing new, my thesis from my learning in 2012 remains the same, albeit it has now been tested to its extreme, how? Many startups, many turn arounds and many failed startup investments later I now more than ever believe that the secret sauce to monetizing your outcomes as a founder is simple. What is it?
In March 2012, at SXSW, Rei Inamoto, then the chief creative officer for AKQA, shared a nugget of wisdom that has stayed with me since then: âTo run an efficient team, you only need three people: a Hipster, a Hacker, and a Hustler.â
I wrote about it in detail on my blog many years ago, but I think about it often. I was at dinner with some friends who Ive co founded/co invested with. Every time we have come out on top, we have had the classic H3 mix. Every time we have fumbled we skipped our own advice.
Bonus! Thought of the week
âIf you write a problem down clearly, and specifically, you have already solved half of itâ
Kidlinâs Law