

 YC Startup School: Lessons for a First-Time Founder - dmor
http://refer.ly/blog/five-lessons-from-yc-startup-school/

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ssebro
There's something interesting in #2: if you look at the examples, AOL was the
expensive choice, which won. Today, I see the same thing playing out with
github(expensive) over bitbucket(cheap).

Selling expensive stuff makes you able to throw crazy money into marketing (so
you can send cds to everybody and their cat). That marketing money will buy
you the mindshare you need to win. Most of my friends use github. But nobody
knows what/who bitbucket is.

In other words, even when network effects abound, cheap/free products may not
beat expensive products with the right marketing.

