I don't think Amazon was cash positive until the AWS really took off. AWS
and Prime free shipping pushed them into the black. Good book about it.
Movie Pass might could have worked if they had listened to the founders and
not offered it up for $9.95 I think. And if the AMC ceo had not retired.
Theranos could have made it. There is another company offering a similar
product now. They just got promotion and puff lightyears ahead of
engineering. If Elon Musk had taken over Theranos in the early days it
would be a reality.
I never understood WeWork and how it had a road to profitability. They
founders sure made out well. I think it was a pump and dump from the
beginning.
Best Regards,
Chuck McCown
McCown Technology Corporation
8401 N Commerce Dr
Lake Point, Utah 84074
801-250-9503 Office
435-830-4306 Cell
www.mccowntech.com
www.microtrench.pro
www.terabitnetworks.com
-----Original Message-----
From: Ken Hohhof
Sent: Monday, June 3, 2024 11:45 AM
To: 'AnimalFarm Microwave Users Group'
Subject: Re: [AFMUG] MoviePass documentary
The old saying is "lose money on every sale but make it up on volume". The
new equivalent is "fake it 'til you make it". Amazon is the classic example
of one that worked out. Many have a non obvious revenue model that involve
selling ads or customer data, that's how TV manufacturers can sell TVs at
cost.
But investors seem to be losing patience with business plans that just burn
piles of cash with no plan to ever become profitable. This seems to have
hit streaming companies, which everyone assumes are all profitable, but
actually most are not.
MoviePass seems to have been doomed, as was WeWork. There was Theranos.
Seems like there is a blurred line between "fake it 'til you make it" and
outright scams and pyramid schemes. All of us can attest that you need to
ramp up to a certain number of customers to achieve economies of scale, but
it should be possible to show some math how that leads to eventual
profitability. Otherwise you're like the underpants gnomes.
https://www.youtube.com/watch?v=a5ih_TQWqCA
-----Original Message-----
From: AF <af-boun...@af.afmug.com> On Behalf Of Robert
Sent: Monday, June 3, 2024 11:52 AM
To: af@af.afmug.com
Subject: Re: [AFMUG] MoviePass documentary
I consulted for three VC's after Nscp and L3... The wisdom in their
thoughts at the time was a home run in one out of 20 was doing well... Their
thoughts about founders was about 1/3 idea and 2/3 the ability of the
founder to gather talent around them... Your rolodex was as important as
your execution... Seed money is easy. A good presentation deck and glib
tongue. Getting money for the first round isn't that hard. Getting the
second round was the test of your business. 1MM seed, 4-10MM first, unicorns
got 100MM for second, and the sky was the limit on the 3rd...
On 6/3/24 7:18 AM, dmmoff...@gmail.com wrote:
" ...the startups that light piles of money on fire until it runs out
seem to be actively flying the plane into the dirt. Maybe they have
golden parachutes."
If at first you don't succeed, try and try again.
I read a quote from one of those zillionaire entrepreneurs that he had
to fail at seven businesses before he hit it big with one. So I guess
it takes a lot of practice to get it right. My question is how did he
get investment the 8th time after having those seven failures on his
rap sheet? Or the 2nd-7th time for that matter. That's gotta be
somebody with connections in the good-ol-boys network.
If investors would just give me 8 chances at startups I'm sure I could
be a self-made zillionaire too.
-Adam
-----Original Message-----
From: AF <af-boun...@af.afmug.com> On Behalf Of Ken Hohhof
Sent: Friday, May 31, 2024 6:42 PM
To: 'AnimalFarm Microwave Users Group' <af@af.afmug.com>
Subject: Re: [AFMUG] MoviePass documentary
That'll buff out.
Or if you're a Monty Pyton fan, "It's just a flesh wound".
Or if you've watched Roadkill on Motor Trend TV, "Dzus it back on".
The pilots here can tell me if there's really an expression CFIT
(Controlled Flight Into Terrain). But I think that's supposed to be
unintentional, whereas the startups that light piles of money on fire
until it runs out seem to be actively flying the plane into the dirt.
Maybe they have golden parachutes.
-----Original Message-----
From: AF <af-boun...@af.afmug.com> On Behalf Of Bill Prince
Sent: Friday, May 31, 2024 3:27 PM
To: af@af.afmug.com
Subject: Re: [AFMUG] MoviePass documentary
Bet that smarts.
bp
<part15sbs{at}gmail{dot}com>
On 5/31/2024 10:09 AM, Ken Hohhof wrote:
fly the plane into the ground
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