DNX GLOBAL Talk ★ Derek Sivers - How I built a rockstar online business and why I gave it to...
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Transcript of DNX GLOBAL Talk ★ Derek Sivers - How I built a rockstar online business and why I gave it to...
Background:
Background:
Professional musician
Background:
Professional musician
Website to sell my CD
CD Baby (1997)
Me in my bedroom20 musicians
CD Baby (1999)
Me and John2000 musicians
CD Baby (2002)
8 employees20,000 musicians
CD Baby (2007)
85 employees200,000 musicians2 million customers
CD Baby (2008)
Sold for $22 million cash
CD Baby (2008)
Sold for $22 million cash… and gave it all away.
Why are you listening?
Forrest Gump
Why are you listening?
Forrest Gump…but learned some things.
Why are you doing?
Why are you doing?
Most people don't know.
Why are you doing?
Most people don't know.They imitate others &go with the flow.
Deathbed regret:
You pursued something that someone said you should want, instead of what you really want.
What do you want?
Money?Prestige?Fame?Leave a legacy?Freedom?
Know!
Focus.Don't diffuse.
Money?
Others take spotlight.You just maximize $$.
Legacy?
Trump: spend to put your name on things.
Freedom?
Refuse responsibility.Delegate everything.(DIY = delegate IY)
This is your compass
Optimize.Side-effects (fame/$)but know your real goal.
Nobody knows the future
Your business plan is moot
No plan survives first contact with the customer
CD Baby: (month 1)
Payment processor
CD Baby: (month 2)
Payment processorStore
CD Baby: (year 6)
Payment processorStoreDistributor
ADMIT: “Nobody knows.”
ADMIT: “Nobody knows.”
Ask instead of answer.Learn instead of preach.
Revolution?
CD Baby business model?
Ask the local record store.
CD Baby business model?
$35 to add$4 per salePaid every week
5 years later…“Revolution!”
Love ≠Romeo & Juliet
Revolution ≠war & blood
Revolution =simply serving people better
Revolution = uncommon sense
If it's not a hit, switch
12 years trying everything
If it's not a hit, switch
CD Baby = hit song
If it's not a hit, switch
Felt the difference.
My advice?
If it's not a hit, switch
If people aren't loving what you're doing, STOP!
Don't persist.Don't push it.
When you've got something great, you'll know.
They'll be freaking out.
Anything less than “OMFG! Take all my money now!!”?
Nope. Stop. Change.Write a different song.
Success comes fromperistently improvingand inventing.
Success comes fromperistently improvingand inventing, not persistently pushingwhat's not working.
Version 0.1
Music recommendation idea.
Needs $2M to make it?
CD Baby 0.1
show CDs add to cart email me the info
CD Baby 0.1
show CDs add to cart email me the info
Profitable in 6 weeks.
If you're not launchingtoo soon, you'relaunching too late.
Ideas vs Execution
“I've got a billion dollar idea!”
“I've got a billion dollar idea!”
(Sign this NDA to hear it.)
“Online dating… with music!”
“Online dating… with music!”
“So, you go make it, and we'll split the profits 50/50.”
IDEA
-1 = bad idea 1 = weak idea
5 = average idea
10 = good idea
15 = great idea
20 = amazing idea
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
to make a business, you need to multiply the two.
IDEA EXECUTION
-1 = bad idea $1 = NO execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = AMAZING idea $10,000,000 = amazing execution
amazing idea × no execution?$20
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = GOOD idea $100,000 = GOOD execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
good idea × good execution?$1 million
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = GREAT execution
20 = AMAZING idea $10,000,000 = amazing execution
amazing idea × great execution?$20 million
IDEA EXECUTION
-1 = bad idea $1 = no execution
1 = weak idea $1000 = weak execution
5 = average idea $10,000 = average execution
10 = good idea $100,000 = good execution
15 = great idea $1,000,000 = great execution
20 = amazing idea $10,000,000 = amazing execution
I don't want to hear ideas, just see the execution.
The most successful thingswe did at CD Baby
Answer phone on 2nd
ring
From: CD Baby loves Sara <[email protected]>To: [email protected]: CD Baby loves you!
Personalized email headers.
Changes need pizza.
Customer commentssent to musicians.
Any request with your order.
(Even gum or squid.)
People remember you more for the little ways you make them smile,than all the other tech/biz/marketingstuff you do.
Be unusual (remarkable)
So everyonetells their friends.
Be shockingly unique
Use uncommon sense.
