Ankesh + I have had this discussion at least once before.

It can get quite heated.

Imo, here are the 3 "B"s to avoid at all costs (because they are myths)...

"B"e a magnet.

"B"uild a better mousetrap and the wolrd will beat a path to your door.

"B"uilt it and they will come.

Who is a bigger magnet than McDonald's? Yet they advertise. Why?

Because if they were to stop advertising, they would go out of business.

Why?

Because: "The initial spark that leads to the vast majority of transactions emanates from the marketER, not the marketEE."

The main purpose of the McDonald's ads is not to impart knowledge about McDonald's -- you already know everything there is to know about McDonald's. The purpose of the ads is to BUG YOU. If they stop BUGGING you, you stop going there.

Take Halbert's Coat of Arms letter. How many of those sales were from people who were already looking for a coat of arms? Almost NONE, I'd guess. That means, if he had gone the 'magnet' route (set up SEO + pay per click + website, etc. -- for instance), he would have a FRACTION of the sales he DID get via using the OUTGOING ("pushy") route. In other words, he would have had NO SUCCESS, and no one in the world would know his name now.

There IS some value in being a 'magnet,' yes. But, from what I see, it doesn't do what you think it's gonna do -- ie: let you 'coast.'

Even Wal-Mart advertises. I'm assuming, because they NEED to.

-- TW