Phil Libin argues that now is the best time in history to start a company, thanks to app stores, smartphones, and freemium economics that let entrepreneurs reach customers instantly and cheaply.
Now is the best time in the history of the universe to start a company because we are living in a geek meritocracy today, or as close to a geek meritocracy as has ever happened. My first two companies, they were all software companies. We had to spend probably 70% of our time and resources. We spent 30% roughly on making the product. We spent 70% on all the other crap. Marketing, logistics, channel partnerships, advertising, all of that stuff. It's like 70% now. Especially if you're doing something for consumers. You can spend 95% or 99% of all your resources making a great product, and you get massive leverage in everything else. This only happened two or three years ago. It's because of app stores. Because I used to have to worry, well, if I release a new version, how are people, how are people in a different state going to get it? Well, I better have a deal with a retailer that works in Tennessee. Now. You make a great app. Everyone on the planet can have it tomorrow. Same thing for advertising. I used to worry about how do you reach people? Well, now you don't have to worry about how to reach people. What do you mean, reach people? You make a great product. Everyone's already having an infinite number of conversations on all their social networks. You just want to be the thing that they talk about. So be great, people will talk about you, end of the story. Smartphones, computers are everywhere. Without smartphones, this wasn't possible. Freemium economics. I've got lots of things to say about freemium in different talks, but freemium economics works really well if you know what you're doing. If you build a good consumer app, these things put together app stores, smartphones, open source infrastructure, network services, freemium economics, all of this is new. In the past five years, all of it together make this a geek meritocracy, make this the best possible time in the history of the universe to innovate and to start a company. And all of the depressing stuff you hear on TV about how it's a bad economy and it's a bad time to do it, it's complete nonsense. All I ask about that is they say, well, when would you rather be alive? Is there any point that you think you would rather. Would you change your life today? For Would you be back in 1992? Would you go back to the 70s? Would you go back to the 1500s? When was there ever a better time? There hasn't been. There's always some feeling that kids today and there's malaise or whatever, but the facts are. The verifiable facts is we've never been closer to a meritocracy. And if you're a geek, pretty sure some of you are, now's the best time to be an entrepreneur, if you've got the right reason to do it.
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