derek sivers uncommonsense
TRANSCRIPT
BACKGROUND:
Professional musician
Website to sell my CD
CD Baby (1997)
CD Baby (2007) 200,000 musicians 2 million customers 85 employees
CD Baby (2008) sold for $22 million cash
CD Baby (2008) sold for $22 million cash … and gave it all away
Moved to Singapore
Why are you listening?
Why are you listening? Dumb luck… … but learned some things
WHY ARE YOU DOING?
Most people don’t know
They imitate others. Go with the flow. Pursuing someone else’s idea Won’t make them happy (or even rich)
Deathbed regret: Pursued something that someone convinced you you should want, instead of what works for you.
WHAT DO YOU WANT? Money? Prestige? Fame? Leave a legacy? Freedom?
Know. Focus. Don’t diffuse.
Money? (Refuse fame. Others in spotlight. Just watch numbers.)
Legacy? (Like Trump: Put your name on everything. More money if others get to name it.)
Freedom? (Refuse responsibility. Delegate everything. DIY = Decide It Yourself, but not Do.)
Your compass. Optimize.
Side-effects (money, fame, freedom)
But know your goal.
NOBODY KNOWS THE FUTURE
Q: “What’s the future of new media?”
Q: “What’s the future of new media?” A: “Nobody knows.”
Your business plan is moot.
No plan survives first contact with the customer.
CD Baby:
CD Baby: Payment processor
CD Baby: Payment processor Store
CD Baby: Payment processor Store Distributor
Admit: “Nobody knows.”
Admit: “Nobody knows.” Ask instead of answer. Learn instead of preach.
REVOLUTION?
Warren Buffett: “We don’t swing unless it’s a clear home run.”
Keep it simple. One thing.
CD Baby business model: ask the local record store
CD Baby business model: $35 to add $4 per sale
5 years later: “Revolution!”
Love ≠ Romeo & Juliet
Revolution ≠ War & blood
Revolution = simply serving people better
Revolution = uncommon sense
IF NOT A HIT, SWITCH
12 years trying everything
CD Baby = hit song
Felt the difference. Advice?
If people aren’t LOVING what you’re doing, STOP! Don’t persist. Don’t push it.
When you’ve got something great, you’ll know. They’ll be freaking out.
Anything less than “OMFG! Yes! I want to pay!” STOP. Write a new song.
Success comes from persistently improving and inventing
NOT persistently pushing what’s not working
VERSION 0.1
Music recommendations?
First CD Baby: - showed CDs - add to cart - emailed me the info
First CD Baby: - showed CDs - add to cart - emailed me the info Profitable in 2nd month
If you’re not launching too soon, you’re launching too late.
IDEAS vs EXECUTION
“I’ve got this killer idea!”
“I’ve got this killer idea!” (sign NDA to hear it)
“Online dating with music!”
“Online dating with music!” (That’s it! You make it. 50%)
IDEA
-1 = bad idea
1 = weak idea
5 = average idea
10 = good idea
15 = great idea
20 = amazing idea
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
To make a business, you need to multiply the two.
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
Amazing idea × no execution? $20
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
Good idea × good execution? $1,000,000
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
Amazing idea × great execution? $20,000,000
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
I don’t want to hear ideas. I just want to see the execution.
THE MOST SUCCESSFUL THINGS WE DID AT CD BABY
Answered phone on 2nd ring
Changes need pizza
Customer comments sent to musicians
Special requests with order (including cinnamon gum and squid)
People remember you more for the little ways you make them smile, than all the business-school stuff you do.
Eccentric American?
Eccentric in America, too. (that’s the point)
So unusual (remarkable) that everyone tells their friends.
Be shockingly unique. Use uncommon sense.
