Every day nascent web startups gather buckets of funding with unproven concepts (see Color.) Unquestionably some startups need the money to move the next level. But others, armed with a product that goes WHZZZZ instead of Whzzzhz, simply desire the money while it’s still available. (See – 1999) Most startup founders do not start out as Jobsian geniuses with a fanatical vision of perfection and changing the world. This evolution and maturation usually requires time and patience. But founders are often just workers in a system tilted towards going to market too quickly. A system that seems to have an inherent lack of respect for 3 key items: theory(ists), true value creation (with value extraction factored in), and a general lack of understanding about what creating a minimum viable product entails.
The Food Chain is Eating Itself
We are witnessing a trend of big “startups” purchasing little “startups” solely to extract talent – dumping products on the side of the road – truncating talent from code bases and passion from purpose. We also have lost the etiquette of thieves, highlighted by the rampant poaching of talent – sometimes from as close as across the hall – turning “community” into to a dog-eat-dog competition of preferred stock options and flavor-of-the-week.
The early Internet was a top-heavy system full of theorists and inventors. It wasn’t perfect but passion and payout seemed to have more healthy balance than today. The 2nd Internet phase (e-commerce) consisted mostly of early monetizers and a few stylists. The 3rd Internet phase (social) has many stylists, more how-to-ers and a blur of monetizers. The Web Worker food chain is a delicate ecosystem that requires an adherence to stages. But the pressure to monetize before and after every stage is upsetting that balance–our current lack of qualified developer/designer talent is but one symptom.
The Web Workers Hierarchy
Stage 1: (Web) Theorists are traditionally ahead of curves, way ahead.
Stage 2: (Web) Inventors are tactile theorists.
Stage 3: (Web) Stylists are practitioners who found a method that worked for them, shared that methodology and initialized distribution to the masses.
Stage 4: (Web) How-to-ers are documentarians who show users/practitioners how to use the work that stylists have manifest.
Stage 5: (Web) Monetizers support all of the stages above to differing degrees. (And historically have always worked with and through stages 1-4.)
(Web) Theorists
Provide value by opening the doors of invention and triggering possibilities.
Example: Marshall McLuhan – “the medium is the message.”
Extract value when they succombe to, promote monetization too early.
(Web) Inventors
Provide value by bringing possibilities to life. Placing theories into real world scenarios.
Example: Håkon Wium Lie inventor of CSS
Extract value by accepting capital for unproven concepts or moving to distribution prematurely.
(Web) Stylists
Provide value by optimizing the experience of service/product.
Example: Aaron Walter author of Designing for Emotion
Extract value by providing one size fits all solutions as a possibility for user/practitioner. (Not their intent.)
(Web) How-to-ers
Provide value by popularizing an experience
Example: David Scott Meerman author of New Rules of PR and Marketing
Extract value by providing one size fits all solutions as a possibility for user/practitioner. (Uninformed intent.)
(Web) Monetizers
Provide value by moving a product/service into the arena of solvency
Example: Fred Wilson managing partner at Union Square Ventures
Extract value by forcing theorists and inventors to productize and go to market too early. (How they make money.)
I’d be remiss not to note that theorists, and organizations that historically supported theorists, have always had a relationship with a capitalist bent. Universities have wings dedicated to corporations, Bell labs = for profit, IBM labs = R&D and most recently we got a peak at Google Labs = convert product development. Innovation is wonderful and so is making money. The friction resides in needing money to innovate and/or being more interested in making money than innovating. And it is the distance between these poles that abandons the current web worker somewhere between these two quotes
My goal wasn’t to make a ton of money. It was to build good computers. – Steve Wozniak
The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” —Fred Wilson
Amazing is birthed at the top of the web worker food chain by theorists and inventors — people who play with possibilities. I see too many of these people being extracted, or self-extracting, and no longer pushing envelopes but instead settling to sell paper goods. Somehow we need to ensure that world class talent stays at the top of the food chain and continues to be inspired by the possibility vs. the payout. Else, we reinvent Foursquare 30 different ways without making it any better, rewrite practitioner books for glory instead of education, and watch “amazing” dwindle into “just fine.” Potential – the fuzzy “what if”- that inspires us, is a requirement for all successes from Post-it notes to Packet switching. I’m not saying startups shouldn’t take VC/Angel funding, but rather that we should invest in our Web Worker future by supporting theorists and inventors to the same degree we do stylists and how-to-ers.
Making money is generally fairly easy, making a difference is tough and getting tougher, especially as we look to monetize everything right out of the gate.
—Ian
*Disclaimer: The Internet is a Playground is the title of a very funny book by David Thorne. You can buy that book here. This post has very little to do with the book.