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Ask HN: Chicken and egg problem: Ideas on beating it?

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Ask HN: Chicken and egg problem: Ideas on beating it?

#1
I just launched a site that aims to solve a two-sided market problem with a simple newsletter-style solution (a similar approach is found in HARO). In this case, it's product placement.

The site: http://productplaceme.com

I've gotten some modest coverage so far but I'd like to build up the list more before I send the first one out (Tuesday).

I've seen some clever solutions to the chicken-and-egg problem here on HN. What did you do? Or what would you do for PPM?

Re: Ask HN: Chicken and egg problem: Ideas on beating it?

#2
Brian Chesky, of AirBnB, gave a talk at startup school that touched on this topic: http://www.justin.tv/startupschool/b/272180383

His advice was that "you always focus on supply first... then you shift to demand." Here that would mean to try to grab producers before promoters.

The idea is that producers are more willing to list their movies on your site, no harm done, but promoters won't be interested unless you have some movies for them to choose from.

Re: Ask HN: Chicken and egg problem: Ideas on beating it?

#4
post #2

Brian Chesky, of AirBnB, gave a talk at startup school that touched on this topic: http://www.justin.tv/startupschool/b/272180383 His advice was that "you always focus on supply first... then you shift to demand." Here that would mean to try to grab producers before promoters. The idea is that producers are more willing to list their movies on your site, no harm done, but promoters won't be interested unless you have…

2cts I think he said go to the harder side 1st (if it's supply, supply, if it's demand, demand) and then shift to the easier side. For me was the best talk from Startup School 2010 with its story: "Go to your users"!

Re: Ask HN: Chicken and egg problem: Ideas on beating it?

#5
post #2

Brian Chesky, of AirBnB, gave a talk at startup school that touched on this topic: http://www.justin.tv/startupschool/b/272180383 His advice was that "you always focus on supply first... then you shift to demand." Here that would mean to try to grab producers before promoters. The idea is that producers are more willing to list their movies on your site, no harm done, but promoters won't be interested unless you have…

So far I've found this to be true with PPM.

It's hard to get producers to sign up without promoters being on board, but not nearly as hard as the opposite situation.

Re: Ask HN: Chicken and egg problem: Ideas on beating it?

#6
post #2

Brian Chesky, of AirBnB, gave a talk at startup school that touched on this topic: http://www.justin.tv/startupschool/b/272180383 His advice was that "you always focus on supply first... then you shift to demand." Here that would mean to try to grab producers before promoters. The idea is that producers are more willing to list their movies on your site, no harm done, but promoters won't be interested unless you have…

From Startup School as well, Adam D'Angelo said they answered a lot of questions themselves at first, Mark Zuckerberg said they had interns scrape the course info manually, Brian Chesky talked about how they recruited the first people themselves by door-to-door basically.

Summed up by D'Angelo: "it doesn't matter if it doesn't scale if it strengthens your position". Though I don't know how that applies to your case, if there's anything you can do to get things started.

Re: Ask HN: Chicken and egg problem: Ideas on beating it?

#7
Another approach is build a community that either producers or promoters would want to be a part of. I'm not sure how that would look, but basically, you get one side to show up and then pitch to the other saying, you need to see what these guys are doing and that's your newsletter-style solution.

Re: Ask HN: Chicken and egg problem: Ideas on beating it?

#10
In addition to the two other Chris Dixon blog posts other commentators have linked to, Chris Dixon also has a great post on this topic: http://cdixon.org/2009/08/25/six-strategies-for-overcoming-c...

Here are his six suggestions:

1. Signal long-term commitment to platform success and competitive pricing.

2. Use backwards and sideways compatibility to benefit from existing complements.

3. Exploit irregular network topologies.

4. Influence the firms that produce vital complements.

5. Provide standalone value for the base product.

6. Integrate vertically into critical complements when supply is not certain.

This has also been discussed on answers.onstartups.com:

http://answers.onstartups.com/questions/9332/how-do-you-solv...

http://answers.onstartups.com/questions/3623/solving-the-chi...

There are some conflicting answers:

* Joel Spolsky says: "When faced with a chicken & egg problem, you have to find a way to sell simultaneously to both sides of the equation."

* Hendro Wijaya says: "Focus on satisfying one side of the equation first. Pick the chicken, or the egg. Make sure they can see the value early in time."

Nonetheless, the discussion includes useful advice like: Low risk buy-in for one party, Partner with an existing business, and Scaffold (Greg Belote).

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