Andrew Chen

Quotes are word for word from the source.

• Future of websites

  “That is, given enough time, our label for "social sites" or "social network sites" or "web 2.0" will simply mean "website.”

  Our noteAndrew predicts that social features will become a standard part of all websites.

• Learning from others

  “it's a lot easier to learn from people who are much smarter than me than to try to figure things out from first principles in a vacuum.”

  Our noteAndrew discusses the efficiency of learning through public discourse.

• Value of advice

  “I know there are problems that folks are facing which, if they had a short conversation, could help them skip months of turmoil.”

  Our noteAndrew explains why he enjoys answering specific questions from his readers.

• Improving cohort retention

  “What you'll want to see is that younger cohorts are getting better than older cohorts.”

  Our noteThe author describes the ideal trend to look for when comparing different customer groups.

• Ad network dynamics

  “The more advertisers you have bidding, the more competitive the pricing is, per click. This means that publishers (and Yahoo) can monetize their inventory better”

  Our noteAndrew discusses how advertiser density affects publisher revenue.

• Momentum from wins

  “Each launch makes the next set of adjacent networks easier, and easier, and easier, until the momentum becomes unstoppable - but all radiating from a small win at the very start.”

  Our noteHow successful networks expand by winning one small market at a time.

• Focus on retention

  “Forget about user engagement - just focus on retention!”

  Our noteAndrew lists potential topics for his future writing on product metrics.

• Filtering product ideas

  “Ultimately, all your product ideas still need to be filtered through the lens of whether you can market them, that the market is big enough, and that the technology issues aren't insurmountable.”

  Our noteExplaining that desirability is just a starting point for a broader business strategy.

• Differentiation strategy

  “Google should extensively feature apps that aren't merely clones of iOS apps - it's not enough to play catchup.”

  Our noteAndrew suggests how Android can compete by highlighting unique platform features.

• Social interaction value

  “If there's one thing to be learned from the BBS games and their related cousins, MUDs , is that great social interactions can trump pretty much everything else.”

  Our noteAndrew discusses how social elements outweighed low-tech graphics in early online games.

• Long tail revenue

  “In the long run, the "long tail" of TV now drives more revenue than broadcast TV. Very interesting to look at the history of media to understand the potential impact of podcasts, video games, and other new media channels.”

  Our noteAndrew discusses how fragmented media channels eventually outearn traditional broadcast hits.

• Single user utility

  “Instagram started off as a standalone tool. In doing so, the product provides 'single-user' utility to the user even when other users aren't around”

  Our noteAndrew describes how Instagram solved the chicken-and-egg problem.

• Benefits of Competition

  “If you're operating a Web 2.0 site, this is all good for you. The more players there are, and the more competition you have to buy your ad inventory, the better.”

  Our noteAndrew discusses how increased competition among ad networks benefits website publishers.

• Google's Hybrid Strategy

  “Google, on the other hand, chose to be an "AND." They both operated a search engine as well as supplying ads to partner search engines, the biggest one being AOL.”

  Our noteAndrew contrasts Google's strategy of being both a publisher and an ad network with Overture's approach.

• Why big launches fail

  “Big launches fail because they might pump up the total users number, but don't help much with the network density number. If anything, they might lower the average.”

  Our noteThe danger of focusing on total user count instead of connection density during a launch.

• Competing on emotion

  “No longer are you in a war about features, but instead, you are competing on things like trust, attachment, and other things that are hard to develop but hard to turn off.”

  Our noteAndrew describes the competitive advantage of building an emotional bond with users.

• Rapid prototyping

  “In fact, a rule of thumb should be that you can prototype the core mechanic within a week or two at MOST. Most people think in months, but you should think in days.”

  Our noteHe suggests a strict timeline for testing the core value of a startup idea.

• Contextual user interaction

  “I found this a nice interaction on G+'s part given that they are building on top of things like email or search where you may not want to leave yet.”

  Our noteAndrew explains the benefit of inline notifications that don't force users to leave their current task.

• Direct startup experience

  “In general, it's my belief that most of the knowledge isn't that transferable, and you are better off just trying to do the VC-backable startup from scratch, rather than deferring that experience.”

  Our noteAndrew discusses whether building a small business prepares you for a VC-backed startup.

• Managing Secondary Channels

  “Need to actively manage secondary channels, both to maximize yield and to safeguard strategic position”

  Our noteHe emphasizes the importance of controlling non-direct sales channels in advertising.

• Cost of innovation

  “While this was an undertaking, it is often necessary to bear the cost of innovation to deliver the right ad product to your audience.”

  Our noteExplaining why imeem built in-house production for short audio ads.

• Educating the market

  “Anytime you introduce a new ad unit, significant education is required for brand marketers and agencies to help them to understand the importance, effectiveness, and promise of this new medium.”

  Our noteAddressing the challenges of selling innovative advertising solutions.

• Consistency in writing

  “It'll be hard since the format of writing long essays tends to suck up a lot of time, but I'm going to try to get back to writing something substantive 1-2 times a week.”

  Our noteAndrew discusses his goal to return to a regular long-form blogging schedule after a break.

• The aggregator problem

  “I think one major loser for this perspective on the market is widget aggregators. In those cases, every $100 needs to be split amongst the blog infrastructure, the widget market, the widget aggregator, and potentially the user.”

  Our noteAndrew warns against business models that involve too many parties splitting the revenue.

• Define expected behavior

  “So ultimately, the important part is to figure out what you are trying to do and what the expected behavior is around it.”

  Our noteThe first step in measurement is defining the specific user actions that align with your business goals.