
 The Strategic Value of Complements - raju
http://www.nicholasgcarr.com/digital_renderings/archives/the_strategic_value.shtml
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colortone
Killer article

This is a must read for all software startups...we gotta get away from
thinking about "what kind of advertisers would buy on our service" and start
thinking about serving as a direct complement to those advertisers' core
business, and then doing deals around sponsorship/investment.

My $0.02

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bryanlanders
Aren't strategic partnerships a major tool for startups? What have freemium
and all-free models done to the "competitive weapon" of undercutting
competitor pricing? How can you access the risk of complementary endeavors?

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colortone
Depends on the nature of the "strategic partnership", but the stuff that I'm
trying to push is really more directed at existing businesses, not startups.
Many companies have partnerships with VC firms or their own VC fund or
internal "labs" that invest real money in complements. Ultimately, much of the
early-stage VC game seems to be about investing in complements for existing
businesses and then selling the complement to that business once the risk has
been reduced to a reasonable level.

So to clarify, I'm trying to say two things: 1\. when designing a business
model, don't think in terms of selling advertising (i.e. selling out your
users), think in terms of "creating value for someone with discretionary
budget to send your way"

2\. most companies, especially their marketing departments, should be more
active in investing in complementary infosoftwaretech.

