- Startup Spells 🪄
- Posts
- 🪄 Andrew Chen's 80/20 Principle To Find Product-Market Fit (PMF)
🪄 Andrew Chen's 80/20 Principle To Find Product-Market Fit (PMF)
PLUS: List Of Subreddits Making $5k per month
Startup Spells 🪄
September 18, 2024
Hey,
The Spells Master is back!
Welcome to the 165th issue.
Today's topics:
Andrew Chen's 80/20 Principle To Find Product-Market Fit (PMF)
A tool to Generate Intelligence at the Speed of Light
One recommended video on Uncovering A Network Of Subreddits Making $5k per month
Andrew Chen's 80/20 Principle To Find Product-Market Fit (PMF)
Best way to find Product-Market Fit (PMF) is to clone a startup that already has it.
However, making an exact copy can lead to issues like lack of differentiation in marketing and perception.
Clone something with PMF
To avoid this, Andrew Chen suggests a 80/20 Principle to find PMF more easily.
He suggests keeping "the core of the product the same (80%) while substantially reinventing 20% of the product."
This approach allows you to differentiate from competitors and find PMF more easily.
Several startups have successfully applied Andrew Chen's 80/20 Principle:
1. Twitter vs Facebook
Twitter is just Facebook but with 280 characters.
They have just about every feature Facebook has (80%) but the differentiation is in the 280 characters, the rest 20%.
2. Dr. Squatch vs Old Natural Soap Brands
Dr.Squatch is a natural body soap but natural soaps existed for 1000s of years before Dr.Squatch.
The difference is Dr.Squatch marketed towards men, the 20% differentiator.
Dr.Squatch Soap Brand
3. Liquid Death vs Beer
Liquid Death is packaged like beer and can be found in bars, but it serves sparkling water (20%) instead of alcohol.
Liquid Death Sparkling Water
4. Stripe vs PayPal
Stripe (2009) entered the market a decade after PayPal (1999), offering similar services (80%) but focusing on being the best payment platform for developers, the rest 20%.
5. Midjourney vs Headshot Pro
Midjourney allowed you to turn text prompts into images.
Headshot Pro's differentiation was on making it the best way to take a professional photoshoot for the working class.
Headshot Pro Professional Photos
Remember, the 20% differentiation should be applied to the product's core feature, not secondary or tertiary features.
A tool to Generate Intelligence at the Speed of Light
Rysana is an LLM like OpenAI that runs 100x faster and has 10x lower latency while outputting 100% reliable structure with 10,000x less overhead than the best alternatives on the market right now.
They use less compute, less time, and less data to produce outputs with higher quality, reliability, and reasoning.
The translation demo, a Google Translate Alternative, is phenomenal. Real-time speed looks like a solved problem now after seeing the demo of their real-time AI assistant.
One recommended video on Uncovering A Network Of Subreddits Making $5k per month
This video covers how to game Reddit to make $5k per month.
This is A+ marketing with B- product. These tricks combined with A+ product would net A+ money in the bank.
Top Tweets of the day
1/
If your articles target the word "review," or "reviews" and you lost traffic YOY, the main culprit might be the fact that Reddit tends to rank #1 (or close to 1) for many "review" search queries now.
— Lily Ray 😏 (@lilyraynyc)
2:47 PM • Sep 17, 2024
Review sites are becoming obsolete.
To rank for reviews, marketers now need to focus on Reddit.
Savvy affiliate marketers post on Reddit with a link to their own sites, and then link to Amazon from their own site to avoid detection of affiliate links by Reddit moderators. They edit the post to add links after a few weeks after they are already ranking.
2/
The shit talking on the mr beast lunchable thing is wrong
It is a better than a lunchable.
Sure, low bar.But it’s a misplaced dunk.
Lunchables are sold in every single supermarket.
The outrage shouldn’t be-
“I can’t believe Mr beast is selling kids this junk”It should be-… x.com/i/web/status/1…
— Sean Frank (@SeanEcom)
1:29 AM • Sep 17, 2024
Mr.Beast, Logan Paul, and KSI launched a new brand for kids. These products are junk food but the alternatives are much worse.
This is what good marketing can do. There are countless junk products that people consume because it is presented in a cool way, similar to fast-food and cigarette companies.
3/
for your day to feel super productive, do tasks in the following order
1) time sensitive
2) tasks you want to do the least
3) tasks you like to doif u do work you like and avoid work you dont, its just procrastination. feels bad
to feel amazing, do what you like least, first
— danb (@dnbt777)
6:02 PM • Jul 17, 2024
Ending the day with the tasks you like to do is a phenomenal example of The Peak End Rule so you feel good after doing it.
Memorable movies have extremely good endings for a reason.
Rabbit Holes
How to Build Anything Extremely Quickly - Insane post I've read in a while. The examples are on writing and programming really fast but you can map the applications in any endeavor.
The Best Books About Risk Taking - Most people don't understand risk. They only think of risk is what they can see. But as Morgan Housel said, "Risk is what you don't see."
OUR REACTIVE PR TEAM GET STORIES OUT IN LESS THAN 40 MINUTES - The cream of the crop PR agencies have to deliver stories fast. Speed is one of the leading indicators of how good a PR Agency is.
Until next time,
Your Spells Master!
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