Saturday, May 27, 2006

Co-dependents

Very interesting list of lies posted by Guy Kawasaki. Some of them are just the little lies of everyday life, other are the lies of marketers (and yes, as Seth Goding puts it All Marketers Are Liars - great book by the way) and a last group is made of the lies of venture capitalists. In fact when describing lie number 3 ("you need us more than we need you"), Kawasaki is telling a big truth: the relationship between venture capitalists and entrepreneurs who choose to develop their company the Silicon Valley way is one of codependency.




Not a transactional business relationship. Codependency. Perhaps the worst type of relationship between human beings; and that may actually be the reason why so many deals look so bad when one analyzes them from a neutral position. That may also be the reason why we keep hearing some pretty amazing horse-shit these days about how business models don't matter and how venture investors are principally interested in features. That's a huge lie and a dangerous replay of the theories that drove the crazy years 1997 - 2000 (profits are not really important - each customer is worth 7000 $ - cost of acquisition of a customer is 250 $...)


39 comments:

  1. Interesting... the last marketer I have heard trying the "you need us more than we need you" had his expensive product replaced by an open source one and lost his job, as he failed his sales' objective.
    He did not realize that the fact his product was based on standards (namely J2EE) allowed the client to kick him out pretty easily.

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  2. David,
    Yes. Thanks for sharing your experience.
    No human relationship can last when based on dependency and business is first adn foremost about ties between people. No matter what modern theories about rational markets, scorecards, ratios and checklists say... It's all about people.
    And really what I love about our times is the tremendous impact open-source and InfoTech have had in balancing business relationships and making commercial arrogance an expensive sport.

    ReplyDelete
  3. That's right.
    There is a notable shift of spendings from intangible expenses (licensing costs) to human related ones (consulting, training, support).
    And the driving force is not about spending less money but really spending money on a recognized value: building professional-grade human relationships.

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  4. Fully agree with you. Hadn't thought about the shift in how money is spent, but I think you are right...
    An interesting area to explore because it would confirm my belief that we are entering an era of high tide of talent and talent is essentially about people, skills and appropriate human relationships.

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