Make Building Blocks

In: Business Ideas By: Brian Armstrong

16 Aug 2010

I like the idea of a business that creates building blocks.

In other words, your product may not be directly useful to customers, but it allows other people to create useful products.

Amazon EC2 is a a building block.  So is Apple's App Store.  So are Heroku, WordPress, Paypal, and a bunch more.

Some things that are cool about building a "platform" or building block like this:

  1. You're higher up the food chain
    The guy who makes a great iPhone app makes $100 thousand.  The guy (Steve Jobs) who makes the the App store makes $100 million.
  2. You make other people rich
    If you make a great toaster, you can be proud of yourself in the sense that people enjoy your product and you've made their lives "richer" in some abstract sense.  But if you create Google Adsense, you've made a bunch of people richer in a very literal sense – they can buy groceries this week with the check you sent them.
  3. It's the easiest sell in the world
    Telling someone "hey if I bring you an extra $100, would you give me $10 of it?" is the easiest pitch in the world.  When you make good building blocks they sell themselves.

In short, a good way to make money is to help other people make more money.  Could your business work better as a building block instead of a direct-to-consumer product?

Until next time, keep breaking free!
Brian Armstrong

3 Responses

    Avatar

    Mar

    August 17th, 2010 at 6:28 am

    Hi Brian, I like the idea too, and you’ve summarised the concept nicely and succinctly.

    In a flash, I could think of a few popular business to business, or B2B, platforms from the veteran giants of Ebay.com and Amazon.com to the modern providers like 99Designs.com and TaskRabbit.com and these are services that will probably stay around for some while.

    In this new media age, the Clickbanks and CommissionJunctions have thrived greatly, along with countless publishers, advertisers and consumers.

    Of course it’s never easy to come up with a succesful B2B venture, but it’s a valuable path to trod on indeed.

    Avatar

    franchiseguy01

    January 5th, 2011 at 2:35 am

    The idea was very catchy we focused on B2B transactions so we can optimize profits, but by this idea your present a new way on how our businesses can work not just efficiently but also helping other business to attain success, as you describe we became a building block for others.

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