Lol

Anonymous person interested in startups etc.. Built a bunch of stuff. Canadian American.

[Lol @rep13106]

@zyaade_ @thekenndubisi Better unit economics give you more room to experiment with creative and distribution generally because each customer is worth WAY more.

Then on top of this people who are in "the distribution is all that matters camp" are doing b2c which has poor unit economics to begin with.

[Lol @rep13106]

@zyaade_ @thekenndubisi The simple math of compounding shows why product matters so much. A great subscription product compounds over time through retention, recurring revenue, and word of mouth.

Even if you want to compete on distribution, your unit economics still determine how successful you'll be.

[Lol @rep13106]

@thekenndubisi Distribution moats are arbitraged away. Long-term relationships with customers and other advantages that compound overtime do not. Software was never the moat period it has always been about taste and long-term value.

[Lol @rep13106]

@thekenndubisi I think it's the opposite everyone is trying to build some vibe-coded app and have some distribution hack that feeds short-term needs for consumers.

The moat is product and connecting to user pain points. You have a huge compounding affect for word of mouth, lower churn rates.

[Lol @rep13106]

Good agentic systems (common sense) that help with complex non-easily verifiable tasks will break steps into verifiable components and have human in the loop for non-verifiable specific tasks.

[Lol @rep13106]

LLMs are most useful when their outputs are easy to verify.

That’s why coding is such a strong use case it has a clear feedback loops.

When outputs are hard to inspect or correctness is vague, the solution becomes much less useful.

[Lol @rep13106]

@VortexPM666 @MetamateDaz Bezos was ethical towards his customers but bad to his employees.

If your entire view of making money is zero sum you're not going to be able to make substantial wealth from your companies.

More people fail is business cause of selfishness and narcissism not being ethical.

[Lol @rep13106]

@VortexPM666 @yacineMTB I don't but even they recognize the value of product

[Lol @rep13106]

@VortexPM666 @yacineMTB Like idk bro if you don't believe me look at the top like distribution heavy companies like Cal AI or something.

Even they will put heavy focus on product because of the HUGE compounding benefits overtime.

Then these companies will never reach the scale of xyz

[Lol @rep13106]

@VortexPM666 @yacineMTB For marketing brands and a cult like fanbase I think this exists less with SaaS but maybe we will see in the future. A lot of influencer apps have failed cause their retention is horrible and or will likely fail long-term in the future.

[Lol @rep13106]

@VortexPM666 @yacineMTB You can make money but it isn't a long-term view. Your conversion rate will go down the more competitors and creatives get produced

Then you are not addressing the main point of compounding. At the end of the day it just doesn't make sense to spend most of your time marketing

[Lol @rep13106]

@VortexPM666 @yacineMTB Once you find the underpriced attention. You will eventually get arbitraged away. Think of meta ads or something as a platform.

If your creative works it will eventually need to be replaced if you have enough volume. It's not a long term view IMO

[Lol @rep13106]

@VortexPM666 @yacineMTB I have multiple viral videos on social media for my app and have run meta ads profitably etc... Literally at the end of the day you are A) constantly testing creatives that will perform worse overtime after a certain volume B) You look for underpriced attention.

[Lol @rep13106]

@VortexPM666 @yacineMTB Think of it logically if your competing on marketing. Someone who has worse marketing but better word of mouth and less churn for their subscription / better retention. Is literally gonna beat you by compounding faster.

[Lol @rep13106]

@VortexPM666 @yacineMTB On software being fast fashion name like one vibe coded SaaS that is doing over 100M AAR it probably does not exist.

Domain expertise still exists in building good products and forming good long-term relationships with customers that can't be captured by agents.

[Lol @rep13106]

@VortexPM666 @yacineMTB jesus christ grammar errors on my end mb

[Lol @rep13106]

@VortexPM666 @yacineMTB Think literally of basic compound income or something. If your churn rate is lower for your subscriptions you grow way faster.

Word of mouth referrals are more retentive, better LTV etc... It just doesn't make most of the time to compete on distribution.

[Lol @rep13106]

@adamisnotroman @yacineMTB Well what utility does a new food delivery app provide? How will it long term provide more utility than other existing apps? It is about the product itself.