Lectures, Conference Presentation, Tutorial
Michael Seibel - Building Product
- The presentation will cover a deep dive into product development over several lectures, featuring stories from the early days of Justin.TV, Twitch, and Poppy to derive lessons on founder decision-making.
- Founders are expected to identify the specific problem and expected result early in the process; if the problem cannot be stated in one or two sentences, the founder likely does not understand it.
- Narrowing problem definitions to address specific groups rather than "mega problems" is presented as critical, while attempting to solve high-skill or supply-constrained issues like on-demand infant babysitting is noted as extremely difficult.
- Products targeting "everyone" initially serve "almost no one," and failure to identify ideal first customers often leads to founders being unable to determine who to engage with.
- Building products without talking to users is considered a mistake, with car shopping examples cited as targeting the wrong customer segment (owners) instead of the group with the daily problem (dealerships).
- Product viability is best tested by charging customers immediately or using discounts with third-party benefits rather than offering free access, which may attract unprofitable users.
- Tracking user actions via event-based metrics is necessary, though non-technical teams may find implementation challenging; starting with 150 tracking items is discouraged, and all employees must be trained to use analytics.
- Development cycles for web-only products should be short (e.g., weekly or bi-weekly), as long cycles lead to "MVP and problem drift," and changing direction based on arguments without a written spec is detrimental.
- Success requires focusing on "desperate" customers willing to use a bad product, rather than those engaged in long conversations for simple software or those in communities (friends, investors) who lack the relevant problem.
- Product-market fit is expected to take a long time, with unsatisfaction after under two years indicating a founder may be on the wrong path, while pivots should be rare and reserved for changing the customer or problem.
- Iterations should focus on changing the solution while keeping the customer and problem constant, as the value of a product is defined by user utility rather than the founder's artistic intent.
- The startup world is described as unforgiving to "artists," and rapid removal of non-working features is preferred over attempting to launch a perfect product, as most initial concepts will not work.
- Founders must incorporate measurement into product specs from the start to avoid "flying blind," and 99% of businesses should track a KPI reflecting revenue or usage, even if revenue is currently zero.
- Hardware companies face specific risks with pre-selling at low prices, and adjusting a lifestyle for a "slow burn" is noted as significantly harder for founders with families and mortgages compared to their younger years.
- Technical teams capable of building MVPs quickly are considered far more important than imagining the future, and the distinction between "beta" and "early MVP" is less relevant than actual user adoption.