IP-Free Business Advantage

Shaan Puri and Sam Parr discuss how businesses built on IP-free concepts like chess and dictionaries can create valuable companies by leveraging universal recognition without trademark restrictions.

• Dictionary.com Business Model:

  • Gets 40M unique visitors monthly
  • Generates $20M in revenue primarily through ads
  • Operates with minimal staff ("dozens of employees")
  • Sold for $100M
  • Maintains relevance through:
    • Word of the day email list
    • Cultural commentary on social media
    • Annual "word of the year" tied to current events

• Chess.com Success:

  • 50M registered users
  • 200M monthly unique visitors
  • Estimated worth: quarter billion dollars
  • Revenue streams:
    • Coaching services
    • Premium memberships
    • Enhanced features (stats tracking, matchmaking)
  • Benefited from Queen's Gambit popularity surge

• IP-Free Business Advantages:

  • No licensing fees or restrictions
  • Built-in brand recognition
  • Large potential audience
  • Similar opportunities in:
    • Religious apps (like Calm for Christianity)
    • Classic games
    • Reference tools

• Monetization Strategies:

  • Direct advertising (Dictionary.com)
  • Premium services (Chess.com)
  • Potential for strategic acquisitions (e.g., Grammarly buying Dictionary.com)
  • Cross-platform integration opportunities