As more and more entrepreneurs start building what Fred Wilson referred to as second derivative companies, I think they run a big risk of designing a product/service that is targeted at too small of an audience. Too many companies are targeting an audience of 53,651. That’s how many people subscribe to Michael Arrington’s TechCrunch blog feed. I’m a big fan of Techcrunch – and read it every day. However, the Techcrunch audience is NOT a mainstream America audience.
A good review in Techcrunch can get a company their first 5-25K beta users very quickly. However, I’d strongly caution entrepreneurs from taking their initial consumer adoption metrics and extrapolating them too far into the future. I believe startups will find it difficult to cross the “Techcrunch chasm” between the Web 2.0 geeks and Mainstreet USA.
If we could get access to the usage logs of the top 10 Web 2.0 properties, I would bet that their 10,000 most active users would all be the same.
As I evaluate new startups these days I’m finding it harder and harder to see the big ideas that will appeal to a large, non-geek consumer audience. Thoughts?
Exactly.
