3 types of winning
Each month I pay Comcast for internet access at my house and their service sucks. I have the option to switch to Qwest but I’ve heard they are just as bad. As a customer, I’m not very happy but dropping my internet isn’t exactly an option. In this transaction there’s one clear winner, and it’s not me.
When I go to concerts, I often end up buying tickets through Ticketmaster. When I do, Ticketmaster makes money and the venue that selected Ticketmaster as the payment system gets a financial kickback. Event-goers are pissed over the exorbitant fees, but both the company (Ticketmaster) and the customer (the venues) are happy. It’s a win for both the company and the customer.
Occasionally you’ll find a company that provides a triple win. I click on Google ads as they’re often helpful. Advertisers are happy to pay for my clicks because on average I’m going to spend far more on their store than I’m going to cost them. Google, of course, is happy to take their cut as well – a great example of a win/win/win. Everyone is happy: the company, the customer and the world.
There aren’t many companies that can get away with being a single winner. These types of wins are really only possible when they have near-monopolistic control of the market. Since everyone hates them, they’re guaranteed to be overturned unless there’s some large market force keeping the status quo.
The vast majority of companies in the world are a double win. You have to make at least one customer happy to have a business. Most double win companies aren’t hated by the rest of the world like Ticketmaster, they’re just invisible since they don’t make much of a difference to anyone besides the customer.
Triple win companies are pretty rare. It’s hard enough trying to satisfy your customers without trying to please everyone else while you’re at it. But of the three types of companies, triple wins are the most fun. Other than your competitors, the entire world is cheering for you to succeed (well, at least until you get big).
One of the reasons I’m having so much fun working on Torbit is that our product is a triple win. I regularly see tweets from people recommending Torbit to websites that are slow. Everyone on the Internet appreciates fast loading websites, even if they have no idea who we are or have no conscious recognition of the difference we make. Our customers love us because we make them more money by making their websites faster. And of course, as long as we’re providing value, people will happily pay us as well.
At the company where you work, who’s winning? For the entrepreneur, what kind of company are you building? I want to make money just as much as the next guy, but it’s not what drives me to get out of bed in the morning. You can be wildly profitable no matter which path you choose, but my guess is you’ll have a lot more fun if you find a way to make the world a better place while you’re at it.