Startups Copy Then Innovate

Shaan Puri and Sam Parr discuss how many "innovative" startup ideas are actually refined versions of existing business models, particularly those pioneered by internet marketers. They emphasize that success often comes from improving execution rather than inventing entirely new concepts.

Key Points:

• Internet Marketers as Early Adopters:

  • Often viewed as "sleazy" but frequently ahead of the curve in business models
  • Examples include email marketing, paid memberships, and online business marketplaces

• Pattern of Innovation:

  • Not about creating unique ideas
  • Success comes from remixing old ideas
  • Making existing models more professional and appealing

• The "OpenDoor for X" Pattern:

  • Core concept: Providing instant liquidity for traditionally illiquid assets
  • Examples:
    • OpenDoor: Houses
    • OpenStore: Businesses
    • Backflip: Used electronics
    • Rays: Gift cards

• Modern Business Evolution:

  • Take existing business models that work
  • Apply modern internet marketing approaches
  • Improve user experience and interface
  • Scale the operation professionally

• Startup Approach vs Traditional Approach:

  • Traditional platforms (like Flippa, Empire Flippers) often have poor user experience
  • Modern startups "put lipstick on it" - making it more appealing and user-friendly
  • Focus on better execution rather than revolutionary ideas

• Key Success Factor:

  • Not about being first or unique
  • About taking proven models and making them more accessible
  • Improving user experience and scaling effectively