Lessons from a venture

>> Friday, July 31, 2009

Truly valuable story from an entrepreneur who's venture will be shutting down soon.
I found many lessons everyone can learn from Sampa.com.
I wish Marcelo good luck with next ventures!

"Just 20% of our users were on the target audience. That meant 80% were not building any kind of family or baby site. Ok, maybe we can live with that. But it turned out that more than 25% were by pre-teens. There are two problems with that: First, It’s actually illegal in the US and most countries to allow a younger than 13-year-old to sign up to your service without parental consent. Second, pre-teens are not a great audience to build an advertising-based business model.
Pretty much every Social Network-builder, website builder or content sharing site deals with the same issues we dealt with. A good number of entrepreneurs (and most investors) will be oblivious to those facts and just think that everything is going great and the growth is sustainable and proof they are creating great value and soon will be able to turn a huge profit or to sell for hundreds of millions of dollars, until someone takes the time to figure out what people are using their service for and finds out it’s really not what they thought it was."

The Little Secret of Web Startups
By Marcelo Calbucci, TechCrunch

Full Story


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