One of the biggest trend on the Internet today is free. If you look at the list of sites you probably use everyday, a majority of them have no charge tied to them. Google, Facebook, Twitter, and loads of other sites are sites that we use everyday, and it really doesn’t cost us a dime. Because we’ve used these services for so long, and we love them so much, it seems like if you wanted to start a business it would be obvious that you shouldn’t charge for your service. I mean, everything you use doesn’t charge and you wouldn’t want to make a product you would use right?
The problem that so many people seem to overlook is the fact that in most scenarios, free doesn’t work. Sure Google, Facebook and Twitter have all gotten their lucky streak by become gigantic websites that everybody uses but no one pays for. But the chances of you getting into the right industry at the right time, making the right connections and building the right service that you are going to be able to become a billion dollar business without charging a dime is so small that you might want to try a different tactic your first few times around.
37signals once posted this fantastic video that talks about the secret to making money online. They mention that far too many people try to shoot immediately for the big time, instead of working themselves up to it. The chances of you building a billion dollar company are very small. Millions of people start up businesses every year, and frankly we only see a ‘big new thing’ once every year or two. If the chances of building a billion dollar company weren’t very small, everyone would be doing it.
The odds are more in your favor if you try to build a million dollar company rather than a billion dollar company. Given, building a company, acquiring customers, and serving them is still hard. Getting to be a million dollar company is hard. But relatively it is a far easier than trying to become the next big thing. And in reality, wouldn’t you be happy with a million dollars?
What’s the takeaway?
Stop trying to make businesses that aim to be the next big thing. There are too many of them. The world has room for all sorts of companies that do their job well. The world needs all sorts of companies that do their job well. Make a company that consistently delivers to its customers. Make a company that delivers a quality product. Make a company that earns a reputation for being reliable, innovative, and for delivering beyond the expectations of its clients.
And then, after doing that, maybe take a chance at trying for the next big thing.