“A million guys walk in to a Silicon Valley bar. None of them buy anything. The bar is declared a rousing success.” – Hiten Shah

This was a great Twitter post from @Li_x_Jiang, retweeted by @hnshah 

This obviously speaks to free content and the popular “Freemium” business model, where a 2% conversion to paid services is a huge success….. 2%.  That means it takes a million free users to get 20,000 paying customers.  Silicon Valley may support those odds but it’s tough everywhere else.

Consider owning 15 – 20% of a much smaller universe.  You do that by understanding your markets really well and solving specific problems for those customers in that market.

There are still a lot of people who pay for good music!


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